Birth of a new EU agency

Nonetheless, several megatrends are challenging the sustainability of these achievements and of the EU’s social and economic model: population ageing, globalisation, technological transformation, geopolitical uncertainties and climate change. Convergence between the Member States, and within each of them, is key to ensuring sustainability in the EU. Social dimension Integrating the social dimension from the outset – as opposed to addressing it through ex-post remedial action - is of key importance. The fairer the transition to a carbon-neutral economy, the more the EU citizens stand to benefit from it and the smoother the acceptance and implementation of climate-friendly policies. Fairness can be achieved through social investment that enables citizens to be active in the labour market and acquire new skills, and that provides support during critical life course transitions. Investment in "human capital" also enhances economic sustainability, by supporting firms’ competitiveness and, ultimately, wages. Social investment is at its best in a life-cycle approach, starting with childcare and early childhood education: it then supports mothers’ labour market participation and employment, while fostering cognitive skills and equal opportunities early on in children’s lives. The social dimension can also be secured by measures that facilitate access to energy efficient, affordable and adequate housing. Extra jobs Trade union and employer organisations should accelerate their efforts to manage the transition, despite differences due to the uneven impact of this transition on different sectors of the economy. If well managed, the transition to a zero-carbon economy will increase the number of jobs available and have a positive impact on labour market structure, job distributions and skills needed. By 2030, the transition is expected to create an additional 1.2 million jobs in the EU, on top of the 12 million new jobs already expected in a no-policy-intervention scenario. Job quality will also benefit from the transition, which is expected to mitigate the ongoing job polarisation resulting from automation and digitalisation. It will create jobs in the middle of the wage and skills distributions, particularly in construction and manufacturing. © Belga Image Four components Employment and Social Developments in Europe 2019 highlights four main components of sustainable development, which reinforce each other and are highly relevant from a policy viewpoint: 1. Creating a virtuous circle by promoting productivity and efficiency through policies focusing on “human capital” (skills and social welfare in general) and institutions (well-functioning collective bargaining and trust in the work of government institutions). 2. Labour market efficiency, as a precondition for sustainable development. By contrast, structural weaknesses in product and labour markets undermine competitiveness, wage increases and employment prospects. In this respect, inclusive labour markets offering equal opportunities and rewards are key. 3. Favourable social conditions and efficiency of the welfare state in lowering poverty rates and inequality. 4. Fighting limitations to growth, such as high labour taxes and limited investment in the workforce. More information: https://europa.eu/ !qb97Xj Learning new skills: investment in human capital enhances economic sustainability by supporting firms’ competitiveness and ultimately wages. SOC I A L AG E NDA / NOV E MB E R 2 0 1 9 / 1 1