Download Labour Market – experiences of the Slovak Republic 5 years after

Labour Market – experiences of the
Slovak Republic
National Convention on the EU in Serbia
Mária Nádaždyová, EPPP
Belgrade 16 March 2009
2009 – year of anniversaries
5 years since the accession to the EU
20 years since the fall of Iron Curtain
 EU membership: wide support and consensus across
the whole social and political spectrum
 Positive economic and social achievements of last years
disrupted by the global economic crisis
 SK-EU development: strongly interlinked, full integration
SK labour market development
Labour market (LM) performance compared to selected MS
2000 -2007
LM performance compared to selected MS
2000 -2007
LM performance compared to selected MS
2000 -2007
SK: development of registered unemployment rate
2005-2008
Vývoj miery evidovanej nezamestnanosti
% 14,0
rok 2005
rok 2007
13,0
rok 2006
rok 2008
12,0
11,0
10,0
9,0
8,0
7,0
uár bruá r
Jan
Fe
r ec
Ma
Ap
ríl
j
Má
Jún
Júl
Au
r
t
r
ber
ber
gus tembe któbe
em ecem
v
p
O
o
N
D
Se
Lisbon Strategy (LS) - growth and jobs
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Mid-term review in 2005: Integrated guidelines for
growth and jobs (broad guidelines for the economic
policies of the MS and the Community and Guidelines
for the employment policies of the MS.
MS invited to take the integrated guidelines for growth
and jobs into account in their national reform
programmes (NRPs).
4 pillars of the renewed LS – 4 priority areas:
R&D and innovation
business environment
employment opportunities
integrated energy/infrastructure policy.
Development of selected indicators for
monitoring of the Lisbon Strategy
Development of selected indicators for
monitoring of the Lisbon Strategy
Development of selected indicators for
monitoring of the Lisbon Strategy
Development of selected indicators for
monitoring of the Lisbon Strategy
SK success story
(National Reform Programme 2008)
„High economic growth, a stable economic
environment, employment growth,
unemployment decline in the previous
years and a gradual consolidation of the
public finance have created the
preconditions for further growth of the
Slovak economy and increased standards
of living in the country.“
Sources of GDP growth
(INEKO survey among local economists, March 2007)
Tax reform (2004)
21%
Privatisation by foreign investors (19982002)
Entry to the EU (2004)
Labour Code Amendment (2003)
17%
Reforms before 1998
12%
10%
10%
Pension reform (2004-2005)
4%
Other sources (including social welfare
reform)
26%
Labour Code
•Basic features of 2003 reform More flexibility: Less coercive character – setting
only basic standards, Weaker trade unions
•Basic features of the 2007 amendments Better protection: improved terms and
conditions for decent work, part-time contracts employees protection,
protection of dependent work, reduction of gender pay gap.
Before 2003
2003-2007
After 2007
3+2 months
2 or 3 months
2+2 or 3+3 months
No
Indefinite
Up to 3 years
150 hours
400 hours
400 hours
Approval by union for group
dismissals and firing workers
Yes
No
No
Retraining before dismissal
Yes
No
No
Union approval for flexible
work time
Yes
No within 4month period
Yes
Firing costs
Extension of term contracts
Overtime yearly
Employment Services Act
extensive amendments – May 2008
• ALMP measures reinforced and extended
• Measures better focused on disadvantaged groups
aiming at increasing their employability
• Support of LM integration of disadvantaged groups e.g.
school graduates, disabled, mothers, pre-retirement age
• Measures to address long-term unemployment e.g.
allowances for training disadvantaged job seekers, to
keep employment of low-income groups, allowances for
LM education and training for graduates, transportation
to work allowance, support for self-employment jobs and
social enterprises.
European Economic Recovery Plan
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In the context of the current economic downturn, the European
Council in 2008 agreed on a European Economic Recovery
Plan (EERP)
This plan provides for a co-ordinated budgetary stimulus to
boost demand and restore confidence.
It should be accompanied by an acceleration of structural
reforms, grounded in the LS, to stimulate the economy whilst
boosting the Union's long-term growth potential, notably by
promoting the transition towards a low-carbon, knowledgeintensive economy.
It also presents proposals to stimulate EU labour markets,
notably through the implementation of integrated flexicurity
policies focussed on activation measures, and skills.
These are essential in promoting employability and ensuring
rapid re-integration into the labour market.
Implementation of the LS reforms in the
context of the EERP – SK assessment by EC
• Slovak GDP growth moderated to 7.1% in 2008, down
from 10.4% in 2007, mainly as a result of a slowdown in
the external demand.
• In 2009 the Slovak economy will grow more slowly.
• Inflation increased to 4% in 2008, but will ease in 2009.
• The government budget deficit is expected by the EC to
have widened to 2.2% of GDP in 2008.
• The current account deficit is estimated to have been 6%
of GDP in 2008, and is expected to remain at that level
in 2009.
SK assessment by EC: employment
• Employment grew by 2.3% in 2008, but is
expected to slow in 2009.
• Unemployment is likely to stay high, at above
10% in 2009.
• The export-oriented companies, in particular the
automotive sector, and employees with atypical
contracts will likely be hardest hit by the
slowdown.
• Additional measures are needed to improve
entrepreneurship, to develop an active ageing
strategy and to address youth employment.
SK assessment by EC: medium-term
challenges
• to continue reducing unemployment, notably long-term
unemployment,
• to improve the quality of the education and training
system,
• to enhance the employability of certain groups,
• to gradually reduce regional differences in both income
and employment.
• to increase the quality of output of R&D and innovation
and private sector involvement
• to enhance the focus on fiscal discipline in order to
ensure macro-economic stability and improve the
adjustment capacity of the economy
• to implement the energy and climate change package
Main recommendations for SK
• to continue implementation of structural reforms
• within an integrated flexicurity approach to make
progress in the implementation of the LLL
strategy
• to continue the reforms of education and training
systems to address the skill mismatch,
• to develop an active ageing strategy and
enhances access to employment for the longterm unemployed and disadvantaged groups.
New LM challenges brought by global
economic crisis
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protecting employment
promoting entrepreneurship
reinforcing activation schemes
improving skills and jobs matching
supporting creation of demand for labour by
reducing social charges on low income jobs
Message
Nothing can preclude your success on the
way towards better future if you have:
Clear vision and strategy
Political will and courage
Streamlined, transparent and goalcentered policies and resources
Public support and involvement
References
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A European Economic Recovery Plan, COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
COUNCIL, COM(2008) 800, 2008
Five years of an enlarged EU – Economic achievements and challenges, European Economy 1/2009, 2009,
Brussels (graphs: slides 3 -6)
Implementation of the Lisbon Strategy Structural Reforms in the context of the European Economic
Recovery Plan - Annual country assessments: COUNCIL RECOMMENDATION on the 2009 up-date of the broad
guidelines for the economic policies of the Member States and the Community and on the implementation of
Member States' employment policies, COM(2009) 34/2, 2009, Brussels
National Reform Programme of the Slovak Republic for 2008 – 2010, 2008, Bratislava (tables: slides 9-12)
Peter Goliaš: Experience of Slovak Labour Market Reform, INEKO – Institute for Economic and Social Reforms,
2007, Belgrade (tables: slides 14-15)
UPSVaR, unemployment statistics, 2008, Bratislava (graph: slide 7)
Thank you for your attention!
Mária Nádaždyová
EPPP-European Public Policy Partnership
Zámocká 36
814 99 Bratislava
e-mail: [email protected]