Employment remains Europe's Achilles heel: report

 
27/01/2005

Despite a number of reforms, overall EU employment rates have stagnated and productivity growth fallen, according to the Joint Employment Report (JER) for 2004-2005 released today by the European Commission.

With an employment rate of 63 per cent during 2001-2003, the report estimates that the EU would need to create 22 million more jobs to reach the target of 70 per cent in 2010 - as set by the EU's 'Lisbon agenda'. Rates for the employment of women and older workers have also stagnated at 55 and 40 per cent respectively.

The report finds little progress towards the three objectives of the European employment strategy (EES). These are full employment, improving quality and productivity at work, and strengthening social cohesion and inclusion.

The Commission acknowledges the major efforts by EU Member States in making work pay (through measures such as tax and benefit system reform), reforming public employment services, fostering entrepreneurship and introducing lifelong learning strategies. But it says they have made little progress in managing economic restructuring, tackling undeclared work, investing in people's education and developing active ageing strategies.