Ministerie van Sociale Zaken en Werkgelegenheid 1 NL-Ministry of Social Affairs and Employment...

Ministerie van Sociale Zakenen Werkgelegenheid

1

NL-Ministry of Social Affairs and Employment

“New accents in the field of work and income”

and SZW Policy agenda 2005

26 November 2004


2 Content:

1. The short term

2. The longer term

3. 2004-2007 policies


3

The short term


4 Economic growth

Economische groei (% BBP)

-2,0

-1,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

Nederland EU


5

Development of Employment and Unemployment

Groei werkgelegenheid en werkloosheid (* dzd personen, jaar-op-jaar)

-150

-100

-50

0

50

100

150

200

2501

98

2

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

Verandering werkgelegenheid Verandering werkloosheid


6

Necessity of wage moderation in order to remain competitive

•Wage costs per unit product

96

100

104

108

112

116

1201

994

19

96

19

98

20

00

20

02

20

04

Ind

exci

jfers

(1

99

4=

10

0)

Nederland

Euroconcurrenten


7 Short term:

•Economic situation: - Low growth- Hardly or no rise of employment- Rising unemployment (to 550 thsnd in

2005)- Deteriorated competitivenes

•Necessary measures:– Responsible wage development– More dynamic labour market – Reforming the entrepreneurial climate – Improving the climate for innovation


8

The longer term


9

The Dutch welfare state under pressure: from inside and from outside

Ageing

Individualisation

Internationalisation Technologicaldevelopments


10

Labour Force Participation 1992 and 2003: by age and sex

Arbeidsparticipatie naar leeftijd en geslacht

0102030405060708090

1001

5-1

9

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

-64

2003 totaal 2003 mannen2003 vrouwen 1992 totaal


11

Demographic change: Number 65+ per 10 workers

2004 2040


12 A more activating social security

Outflow into employment as a percentage of total outflow from Unemplmt Benefit (WW),

1960-2002 (source SZW)

40

50

60

70

80

90

1960 1968 1976 1984 1992 2000


13

BBP/ hoofd (index, 1969=100) en arbeidsparticipatie m/ v (20-64 jaar, % )

0

10

20

30

40

50

60

70

80

90

100

19

69

19

72

19

75

19

78

19

81

19

84

19

87

19

90

19

93

19

96

19

99

20

02

20

05

Part

icip

ati

eg

raad

(%

)

100

110

120

130

140

150

160

170

180

190

200

BB

P/

ho

ofd

(1

96

9=

10

0)

Participatie mannen Participatie vrouwenBBP (2000=100)

BBP

More individual responsibility

•Highereducated population

•More families with two income earners

•More propsperity

mannen

vrouwen

/hoofd


14 What to learn from others?

More labour market flexibility creates many job opportunities.

Adequate social security facilitates labour mobility and an optimal search period

ALMP’s with a lot of emphasis on knowledge limits unemployment to a short term period

The Danish “golden triangle”


15 The Policy Philosophy

INCENTIVES

TAIlLORMADE

SUPPORT

PREVENTION

Solidity and solidarity


16

New accents in the field of work and income means concretely...

Fundamentally recalibrating the social security and labour market, more focused on:

•Activation: Work should pay!, Improving combinations of work and care, Improving the balance of rights and obligations in social security, training.

•Individual responsibility: make the individual increasingly responsible for the risks he/she can influence (like unemployment, sickness etc.), through individual saving and or insurances.

•Meer dynamism: less employment protection.


17

2004-2007 policies• Wage moderation

• Labour market policies

• Disability legislation (WAO)

• Unemployment Insurance (WW)

• Pre- and Early retirement schemes (VUT and prepension),

• life course arrangement


18 Labour market policies

•From target groups to general policies

•Removing obstacles for participation, for example the ‘poverty trap’

•Additional policies where necessary

•Increasing the effectiveness of reintegration courses

•Employing more sheltered employment workers in normal companies

•More attention to the idea of life long learning


19 The headlines in summary:

•More people longer active in employment

•Faster switches from benefit into employment

•Speedier adjustments

•More individual responsibility


20 Gouden tijden voor cartoonisten…

Ministerie van Sociale Zaken en Werkgelegenheid 1 NL-Ministry of Social Affairs and Employment...

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