Europe’s public sector: where are the Europe’s public sector: where are the young workers?young workers?

Nick ClarkNick ClarkWorking Live Research InstituteWorking Live Research Institute

Background to projectBackground to project Youth in Europe’s labour marketYouth in Europe’s labour market European Government responsesEuropean Government responses

The state as an employerThe state as an employer Has “flexibility” helped young workers?Has “flexibility” helped young workers?

Concluding remarksConcluding remarks

Research into precarious work Research into precarious work and young workers in public and young workers in public servicesservices

3 Key sectors for European Federation of Public 3 Key sectors for European Federation of Public Service Unions (EPSU):Service Unions (EPSU):Energy & water; Public administration, defence, social Energy & water; Public administration, defence, social

security; Health & social caresecurity; Health & social care

16-24 year olds’16-24 year olds’Employment; Precariousness; Training, progression & Employment; Precariousness; Training, progression &

careers; Collective bargainingcareers; Collective bargaining

EuropeEuropeEU-27; nine specific countries (including UK)EU-27; nine specific countries (including UK)

Youth (15-24 years) unemployment rates (October 2011)

Change in youth unemployment rates 2007-Change in youth unemployment rates 2007-2010 (EU 27)2010 (EU 27)

Change in youth unemployment rates 2007-Change in youth unemployment rates 2007-2010 (EU 27)2010 (EU 27)

Part time as % of all workers, Part time as % of all workers, 15-24 yrs 15-24 yrs

Proportion 16-24 year olds with temporary contract (Eurostat Q2 2010)

Change in temporary employmentChange in temporary employment

Activity status young peopleActivity status young peopleEU 27, 2008EU 27, 2008

Youth in the European labour Youth in the European labour marketmarket High level of unemployment (21% compared to 10%, High level of unemployment (21% compared to 10%,

ranging from 8% Austria to 46% Spain)ranging from 8% Austria to 46% Spain) Low activity rate (50-60%, compared to 70%+)Low activity rate (50-60%, compared to 70%+) Increasing participation in tertiary educationIncreasing participation in tertiary education In work, more likely toIn work, more likely to

Have temporary contract (4 times more likely)Have temporary contract (4 times more likely) Work part-time involuntarilyWork part-time involuntarily Be low paidBe low paid

Less likely to be self-employedLess likely to be self-employed Hit hard during the crisisHit hard during the crisis

Europe’s responseEurope’s response

Youth on the Move – Youth on the Move – Commission’s 2010 initiative, primarily aimed Commission’s 2010 initiative, primarily aimed at improving educational levels, but also to launch “Youth at improving educational levels, but also to launch “Youth employment framework”employment framework”

Interventions to support young workers in OECD countries report Interventions to support young workers in OECD countries report (World Bank 2007) found (World Bank 2007) found direct direct employment strategies in US and employment strategies in US and Canada, but not EuropeCanada, but not Europe

European Employment Observatory, “Youth employment European Employment Observatory, “Youth employment measures, 2010” (measures, 2010” (published Feb 2011published Feb 2011) reported no policy initiatives ) reported no policy initiatives relating to the state as an employerrelating to the state as an employer

Eurofound study (2011) finds active labour market strategies to be Eurofound study (2011) finds active labour market strategies to be common government response (sometimes contested by unions), common government response (sometimes contested by unions), but again no mention of public sector’s role as employerbut again no mention of public sector’s role as employer

““Overall, governments’ policies towards young workers have tended to emphasise Overall, governments’ policies towards young workers have tended to emphasise the importance of getting young people into work, no matter the quality of the jobs the importance of getting young people into work, no matter the quality of the jobs available.”available.”

YOUNG WORKERS & PUBLIC YOUNG WORKERS & PUBLIC SERVICESSERVICES

Youth employment by sector Youth employment by sector 2005 (EU-25)2005 (EU-25)

Youth employment by sector Youth employment by sector 2005 (EU-25)2005 (EU-25)

Youth employment by sector Youth employment by sector 2005 (EU-25)2005 (EU-25)

Youth employment by sector Youth employment by sector 2005 (EU-25)2005 (EU-25)

2011 youth employment in 2011 youth employment in public administrationpublic administration% workforce aged 15-24% workforce aged 15-24

Country All industries & services

Public administration , defence, social sec.

EU 27 9.1 4.8

Czech Rep 6.3 4.2

Germany 11.0 8.3

Italy 5.1 1.5

Netherlands 15.5 4.8

UK 12.9 4.9

Ranked by proportion of youth in Ranked by proportion of youth in populationpopulation

Ranked by proportion of youth in Ranked by proportion of youth in populationpopulation

Ranked by proportion of youth in Ranked by proportion of youth in populationpopulation

Ranked by proportion of youth in Ranked by proportion of youth in populationpopulation

Ranked by proportion of youth in Ranked by proportion of youth in populationpopulation

Ranked by proportion of youth in Ranked by proportion of youth in populationpopulation

Ranked by proportion of youth in Ranked by proportion of youth in populationpopulation

Is “flexibility” Is “flexibility” (precariousness), (precariousness), helping?helping?

Job security and age: French civil Job security and age: French civil service (2008)service (2008)

Job security and age: French civil Job security and age: French civil service (2008)service (2008)

Job security and age: French civil Job security and age: French civil service (2008)service (2008)

Youth as % all temps: health & social work Youth as % all temps: health & social work q1 2008-q2 2011, EU 27q1 2008-q2 2011, EU 27

Youth as % all temps: public admin, Youth as % all temps: public admin, defence, social sec.defence, social sec.q1 2008-q2 2011, EU 27q1 2008-q2 2011, EU 27

summary from datasummary from data

Unemployment becoming more widespread amongst Unemployment becoming more widespread amongst Europe’ young workersEurope’ young workers

As measures (but not definitions) of precarity, temporary As measures (but not definitions) of precarity, temporary contracts and involuntary part time working more contracts and involuntary part time working more prevalentprevalent

Public services perform worse than economy as a whole Public services perform worse than economy as a whole in employing young workers – public administration in employing young workers – public administration universally the worstuniversally the worst

Young workers more affected by crisis – particularly in Young workers more affected by crisis – particularly in public servicespublic services

InterviewsInterviews

““flexible” forms of working did not protect young workers flexible” forms of working did not protect young workers in public services, in fact they were made more in public services, in fact they were made more vulnerable to being the first to go:vulnerable to being the first to go:

Temporary contracts in Spain widespreadTemporary contracts in Spain widespread ““Mini-jobs” in Germany (social care)Mini-jobs” in Germany (social care) 80,000 in “continuous collaboration” contracts in Italy, 80,000 in “continuous collaboration” contracts in Italy,

but 70,000 pass entrance exam to find no jobsbut 70,000 pass entrance exam to find no jobs 50,000 50,000 stagiaires stagiaires in Greece had contracts terminatedin Greece had contracts terminated O’Higgins (O’Higgins (IZA 6434 IZA 6434 2012): ease of terminating contracts 2012): ease of terminating contracts

of young is positively correlated with level of youth of young is positively correlated with level of youth unemploymentunemployment

Concluding remarksConcluding remarks

“…“…the principal difficulty seems to be that the previous precariousness of young the principal difficulty seems to be that the previous precariousness of young workers’ employment (in terms of job security) has meant that they have been first to workers’ employment (in terms of job security) has meant that they have been first to lose their jobs when cuts were made. The fact that young workers are much more lose their jobs when cuts were made. The fact that young workers are much more likely to be on low wages (…interviews confirmed that this was the case in public likely to be on low wages (…interviews confirmed that this was the case in public services, too) does not seem to be keeping them in work”services, too) does not seem to be keeping them in work”

““If Europe’s public administrations simply employed the same If Europe’s public administrations simply employed the same proportionproportion of under- of under-25 year olds now as they did at the end of 2008…, over 25 year olds now as they did at the end of 2008…, over 100,000100,000 more of Europe’s more of Europe’s young would currently have a job. Had employment of the young stayed at the same young would currently have a job. Had employment of the young stayed at the same level level numericallynumerically, there would , there would 165,000 165,000 fewer European youth unemployed.fewer European youth unemployed.

Are governments just stupid?Are governments just stupid? ““the expected wave of retirements could provide an the expected wave of retirements could provide an

opportunity for governments to restructure their opportunity for governments to restructure their workforce by decreasing employment levels” workforce by decreasing employment levels” (OECD (OECD 2011).2011).