Archive:Employment statistics
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EU citizens have the right to work in any Member State without the need for work permits. Although some temporary restrictions apply for workers from countries that joined the EU since 2004, this freedom of movement is designed to help create a single market for jobs and could potentially provide a boost to the economy while helping thousands of people to achieve their career and lifestyle aspirations.
All EU citizens that move to work in another Member State must be treated in the same way as nationals in terms of employment rights that cover work-related issues like pay and dismissal. Nevertheless, job mobility within the EU remains relatively low, as just 2 % of the working age population of the EU currently lives and works in another Member State.
Main statistical findings
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1997-2007.PNG)
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The employment rate among the EU-27’s population aged between 15 and 64 years old was 65.4 % in 2007. Although this represented a further rise in the employment rate since the relative low of 60.7 % recorded in 1997, it remains below the target of 70 % that the Lisbon European Council set for 2010. Employment rates above 70 % were achieved in seven of the Member States (Denmark, the Netherlands, Sweden, Austria, the United Kingdom, Cyprus and Finland). In contrast, employment rates below 60 % were recorded in Romania, Italy, Hungary, Poland and Malta.
Employment rates within the Member States often varied considerably according to regional patterns, with a relatively high dispersion (16.3 %) observed across Italy (as measured by the coefficient of variation for regions at NUTS 2 level). In contrast, there was relatively little divergence in employment rates across the regions of Austria, Greece, Portugal or Sweden (all below 4 %). The dispersion of regional employment across the whole of the EU-27 was seen to be converging, as the coefficient of variation declined from 13.2 % to 11.1 % between 2002 and 2007.
The Lisbon European Council of 2000 set a target employment rate for women of 60 % across the EU. In 2007, the employment rate for women was 58.3 % in the EU-27, a significantly higher rate than that recorded in 2001 (54.3 %), although considerably lower than the corresponding rate for men (72.5 %). Some 15 of the Member States recorded employment rates for women above the target of 60 % in 2007, with the rates in Denmark and Sweden exceeding 70 %.
The Stockholm European Council of 2001 set a target employment rate for older workers (aged between 55 and 64 years) of 50 % by 2010. The employment rate for older workers across the EU-27 was 44.7 % in 2007, much higher than the corresponding rate (37.7 %) recorded in 2001. The employment rate for older workers was higher than 50 % in 12 of the Member States, with the highest rates recorded in Sweden (70.0 %); note there is no official retirement age in this country.
There were considerable differences between employment rates, according to the level of educational attainment. The employment rate of those aged 25 to 64 [1] who had completed tertiary education was 85.3 % across the EU-27 in 2007, much higher than the rate (57.2 %) for those who had only attained a low educational level (primary or lower secondary education).
The proportion of the workforce working part-time in the EU-27 increased steadily from 15.9 % in 1997 to 18.2 % by 2007. The highest proportion of people working part-time was found in the Netherlands (46.8 % in 2007), followed by Germany, the United Kingdom, Sweden and Denmark, where part-time work accounted in each case for about a quarter of those in employment. In contrast, part-time employment was relatively uncommon in Bulgaria (1.7 % of those in employment), Slovakia (2.6 %) and Hungary (4.1 %). A little less than one third (31.2 %) of the women employed in the EU-27 did so on a part-time basis in 2007, a much higher proportion than the corresponding share (7.7 %) for men. Three quarters (75.0 %) of all women employed in the Netherlands worked on a part-time basis in 2007, by far the highest rate among the Member States [2].
Slightly less than one third (31.7 %) of employees in Spain were employed on a temporary basis in 2007, and this share was more than a quarter (28.2 %) of employees in Poland. There was a considerable range in the propensity to use limited duration contracts between Member States that may, at least to some degree, reflect national practices, the supply and demand of labour and the ease with which employers can hire or fire. Among the remaining Member States, the proportion of employees working on a contract of limited duration ranged from 22.4 % in Portugal down to just 1.6 % in Romania.
Data sources and availability
Given the considerable interest in labour market policies post-Lisbon, the European Labour force survey (LFS) has grown in importance and has become a key tool for observing labour market developments. The LFS is a quarterly household sample survey carried out in the Member States of the European Union, candidate countries and EFTA countries (except Liechtenstein). It is the main source of information concerning the situation and trends within the labour market of the EU. The LFS primarily reports on the EU’s population of working age (15 years and more) which is composed of persons in employment, unemployed persons and economically inactive persons. It provides comprehensive information on these three categories, describing the employment situation of employed persons by reporting on, for example, their education level, the branches in which they work, their occupations, as well as their propensity to engage in part-time work, the duration of their work contracts, and their search for new jobs. Note that coverage in terms of labour force status is restricted to those aged 16 and over in Spain and the United Kingdom. In Denmark, Estonia, Latvia, Hungary, Finland, Sweden (from 2001 onwards) and Norway, the coverage relates to those aged 15 to 74, while in Sweden (prior to 2001) and Iceland, coverage refers to those aged 16 to 74. The sample size amounts approximately to 1.5 million individuals each quarter, with quarterly sampling rates of between 0.2 % and 3.3 % in each country. During the period from 1998 to 2005, the survey underwent a transition towards a continuous quarterly survey. All EU Member States now provide quarterly results. The economically active population (labour force) comprises employed and unemployed persons. Employment/activity rates represent employed/active persons as a percentage of same age total population. Employed persons are defined as persons aged 15 and over who during the reference week performed some work, even for just one hour per week, for pay, profit or family gain or were not at work but had a job or business from which they were temporarily absent because of, for example, illness, holidays, industrial dispute and education or training. Self-employed persons work in their own business, farm or professional practice. A self-employed person is considered to be working if she/he meets one of the following criteria: works for the purpose of earning profit; spends time on the operation of a business, or; is in the process of setting-up a business. Employees are defined as persons who work for a public or private employer and who receive compensation in the form of wages, salaries, payment by results or payment in kind; non-conscript members of the armed forces are also included. Annual employment growth gives the change in percentage terms from one year to another of the total number of employed persons on the economic territory of the country or the geographical area. A full-time/part-time distinction in the main job is declared by the respondent, except in Germany, Ireland and the Netherlands, where thresholds for usual hours worked are used. The indicator for employed persons with a second job refers to persons with more than one job at the same time. Persons having changed job during the reference week are not counted as having two jobs. A job is considered as temporary if employer and employee agree that its end is determined by objective conditions, such as a specific date, the completion of an assignment or return of the employee who was temporarily replaced. Typical cases include: persons with seasonal employment; persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); persons with specific training contracts. The dispersion of regional (NUTS level 2) employment rates shows regional differences in employment within countries and groups of countries (EU-27, euro area). It is zero when the employment rates in all regions are identical, and will rise if there is an increase in the differences between employment rates among regions. The indicator is not applicable for several countries as these comprise only one or a handful of NUTS level 2 regions. However, the employment rates of these countries are used to compute the indicator at a European level.
Context
EU citizens have the right to work in any Member State without the need for work permits. Although some temporary restrictions apply for workers from countries that joined the EU since 2004, this freedom of movement is designed to help create a single market for jobs and could potentially provide a boost to the economy while helping thousands of people to achieve their career and lifestyle aspirations.
All EU citizens that move to work in another Member State must be treated in the same way as nationals in terms of employment rights that cover work-related issues like pay and dismissal. It is also possible for job hunters to get their unemployment benefits paid in another EU country for a period of time while they try to secure employment.
Flexible working conditions – for example, part-time work or work from home – are thought to stimulate employment and activity rates, by encouraging more persons into the labour force. Other initiatives that may encourage a higher proportion of persons into the labour market include improvements in the availability of childcare facilities, or providing opportunities for lifelong learning. Nevertheless, job mobility within the EU remains relatively low, as just 2 % of the working age population of the EU currently lives and works in another Member State.
Central to this theme is the issue of ’flexicurity’: policies that simultaneously address the flexibility of labour markets, work organisation and labour relations, while also taking into account the reconciliation of work and private life, employment security and social protection. It is often argued that if individuals and couples are unable to achieve their desired work/family life balance, not only is their welfare lower but economic development is also curtailed through a reduction in the supply of labour. In this way, flexible working arrangements can be viewed as encouraging more people into work, while liberating individuals to make family choices such as whether to try to have a family or spend more time with children. In contrast, an inflexible labour market can be seen as one reason behind a reduction in birth rates, which has clear repercussions for future labour supply, as well as the knock-on effects regarding the financial sustainability of social protection systems.
Further Eurostat information
Publications
- LFS – Methods and Definitions (description of the continuous survey since 2001)
Tables, graphs and maps
Database
- LFS main indicators
- LFS series – Detailed quarterly survey results (from 1998)
- LFS series – Detailed annual survey results
- LFS series – Specific topics