ilo-global jobs pact and employment policies in austria€¦ · i.d) a global jobs pact (june 2009)...
TRANSCRIPT
Johannes Schweighofer
ILO-Global Jobs Pact and
Employment Policies in Austria
Study visit of Trade Unionists from Ethiopia, Ghana, Kenya,
Malawi, Mauritius, Mozambique, Namibia, Sirra Leaone, Swaziland,
Zambia, Zimbabwe at the Austrian Trade Union Confederation
(ÖGB)
Vienna, 21 March 2011
Johannes Schweighofer
Vienna, March 2011 2
Overview
I. What says the ILO-Global Jobs Pact?
II. Austrian Crisis Measures: a Big Package!
III. Austrian Labour Market and Employment Policies
IV. Social Security and Social Safety Net in Austria
(compared to Developing/African Countries)
V. Austrian-Keynesianism and Social Partnership
VI. Poverty (Millenium Development Goals) and
Informal Economy: Here and There!
Johannes Schweighofer
Vienna, March 2011 3
My MAIN MESSAGES
What makes the difference for labour market
performance?
I.Political will to keep unemployment low!
II.Institutions matter!
III.GDP-Growth – a necessary, but not a sufficient
condition for fair growth!
IV.Piecemeal engineering/muddling through/trial and
error - better than „systematic approach“?!
V.Poverty: similarities, but many substantial differences
VI.Do we live in the same world?!
Johannes Schweighofer
Vienna, March 2011 4
I.a) Recovering from the Crisis:
A Global Jobs Pact (June 2009)
Adresses the social and employment impact of the
financial and economic crisis; productive recovery
centered on investments, employment and social
protection; decent work opportunities; job centered
policies; worldwide action: national, regional, global?
Generating employment, extending social
protection, respecting labour standards, promoting
social dialogue, shaping fair globalisation;
Implementation? Impact? Mutual learning!
Johannes Schweighofer
Vienna, March 2011 5
I.b) Recovering from the Crisis:
A Global Jobs Pact (June 2009)
The ILO-Global Jobs Pact had NO SIGNIFICANT
IMPACT ON AUSTRIAN ECONOMIC POLICIES!
Generating employment: Broad political consensus
in Austria!
Extending social protection?! in AUT - not really (Re-
placement Ratios in UI, Care, Pensions)!
Respecting labour standards (see ILO Decent Work
Country Profile Austria - below)
Promoting Social Dialogue: Transferability?
Fair Globalization: Tobin Tax (on financial transactions)
– Global Competition for Jobs/Prosperity
Johannes Schweighofer
Vienna, March 2011 6
I.c) A Global Jobs Pact (June 2009)
Employment Preference
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
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= E
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-64
Employment Rate in European Countris (2009)
Source: Eurostat
Johannes Schweighofer
Vienna, March 2011 7
I.d) A Global Jobs Pact (June 2009)
Employment Preference
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
20,0
Unemployment Rate in Western Countries in 2010 (2009)
Johannes Schweighofer
Vienna, March 2011 8
II.a) Financial Crises - Austria
Historic Downturn of Austrian Economy (-3,9% of
GDP, -1,4% dep. Employment, +22,6% Unemployed)
Co-ordinated Stimulus Package in Austria (Makro
and Mikro) and in the EU
Imported Crises (Financial Market Turbulances)
Very unusual reaction pattern of Austrian Economy
(no hysteresis effects)
Unemployment Rate: 3,8% (2008) – 4,8% (2009)
Employment Rate: 72,1% (2008) – 71,6% (2009)
Piecemeal Engineering – Trial and Error!
Johannes Schweighofer
Vienna, March 2011 9
II.b) Financial Crises - Austria
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Volatility of Unemployment: Change to same Month in Previous Year 06/1990 -1/2011
Source: PES Austria
Johannes Schweighofer
Vienna, March 2011
10
II.c) Financial Crises - Austria
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Unemployment Rate Development July 2008-July 2010
Johannes Schweighofer
Vienna, March 2011 11
II.d) Financial Crises – General Measures
Economic Stimulus Package I: approx. € 1 billion
Financing for SME and infrastructure measures
Economic Stimulus Package II: approx. € 2 billion
“Investment Campaign” (a.o. regional employment
programmes amounting to € 150 million)
Tax reform amounting to € 2.7 billion
in order to encourage demand and boost purchasing
power
= Altogether more than 2% of the Austrian GDP
Johannes Schweighofer
Vienna, March 2011 12
II.e) Financial Crises - Austria
Record budget for active labour market policy in
2010: some € 2,1 Billion/0,75% of GDP (active) and
€ 3,3 Billion/1,2% of GDP passive LMP
Increase of AMS staff by 200 (about 5%) to 4,680
Labour Market Package I: revision of short-time
working scheme, focus on high-quality qualification
Labour Market Package II: reforms of short-time
working (relaxing criteria), part-time allowance scheme
for older workers, educational leave and solidarity
premium model, establishment of a youth foundation
Labour Market Package III: further education for
women and youth
Johannes Schweighofer
Vienna, March 2011 13
II.f) Financial Crises - Austria
0
200
400
600
800
1000
1200
1400
Ind
ex 1
974=
100
Real Expenditures on Active Labour Market Programmes andUnemployment Rate 1974-2010
IAMP1real
IAMP2real
IAMP3real
IALQ
IAMP1real: Aktive + Aktivierte (Qualifizierung, ATZG) + JASG + KUA
IAMP2real: Aktive + Aktivierte Qualifizierung + JASG (ohne ATZG, ohne KUA)
IAMP3real: Aktive (ohne KUA) + JASG
UR 2010: 6,9%
Total Expentidures on aLMP 2010: 0,86% of GDP
Johannes Schweighofer
Vienna, March 2011 14
II.g) Financial Crises - Austria
Expenditures
for active
Programmes
in % of GDP
per %point
UR
Johannes Schweighofer
Vienna, March 2011 15
II.h) Financial Crises - Austria
•
•
Short time working scheme2009: 66.000 effektiv Kurzarbeitende (durchschnittl. Ca. 26.000; ca. 20% Frauen) in300 Betrieben; 113 Mio. € , durchschnittl. 24% AZ-Reduktion (13 Mio. Stunden von 5,6Mrd., 0,25% AZ-Reduktion)
578
4.296
7.287
11.338
15.631
21.345
37.087
32.401
35.478
32.16534.314
26.019
22.19720.93420.832
17.083
11.78211.007
7.8796.590
3.5651.730
90
10.000
20.000
30.000
40.000
50.000
60.000
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Plan TeilnehmerInnen*
Bestand TeilnehmerInnen (Ende August 2010 abgerechnet)**
Participants in Scheme: Stock 0,7% of total Employment
Johannes Schweighofer
Vienna, March 2011 16
II.i) Financial Crises – Short Time Working
Subsidized temporary reduction of working time
(10-90%), in companies suffering from transitory eco-
nomic difficulties
• 2007: average of 42 persons working short-time, 2008: 798
• Peak in April 2009: more than 37,000 persons working
short-time
Reform of short-time working
• Extended eligibility criteria (all employees except
apprentices)
• Prolonged maximum duration (up to 24 months)
• Increased financial support
• Combination with qualification measures possible
Johannes Schweighofer
Vienna, March 2011 17
III.a) Austrian Employment Policies
Key Features
• High Employment Rates (more den 70% of 15-64 year
old are either self or dependent employed)
• Low unemployment rates for a very long time (around
4%, LFS-ILO-Standard)
• High Labour and Job Turnover Rates
• Keeping youth unemployment rates low (€ 500-2009)
• Active LMP – not too active: 60% of Expenditures go
to qualification measures
• Passive LMP – not too generous: some 60% net-
replacement ratio; benefits according to work history
•
Johannes Schweighofer
Vienna, March 2011 18
III.b) Austrian Employment Policies
Unemployment benefit
• Amount: basic amount of 55% + family supplements
+ additional supplements (eg: minimum income € 1000 – net €
800; unemployment benefit: 480€; average benefit: some € 800)
• Eligibility: unemployment, availability for job placement, ability to
work, willingness to work, compliance with eligibility criteria,
period of claim not yet exhausted
• Duration: 20 / 30 / 39 / 52 weeks
(depending on insurance period and age)
Unemployment assistance (means-tested)
• Requirements: claim for unemployment or transition benefits is
exhausted, financial distress and availability for placement
• 92% resp. 95% of UB basic amount + family supplements
• Assessment of partner income
Johannes Schweighofer
Vienna, March 2011
III.c) Active Labour Market Policy Measures
• Employment:- Integration subsidies (EB)
- Socio-economic enterprises and job schemes in the non-profit sector (SÖB, GBP)
- Short-time work (and qualification) (KUA)
- Solidarity premium (SOL)
- Subsidies to single-person businesses (EPU)
• Qualification:- Labour foundations (AST)
- Professional mobility (active job-search, orientation, qualification, training) (BM)
- Allowances for training course costs and ancillary course costs (KK, KNK)
- Training of employees (QFB)
- Subsistence allowance (DLU)
- Youth programmes
• Support Measures:- Counselling and guidance centres (BBE)
- Childcare subsidies (KBH)
- Business start-up programme and subsidies (UGP, GB)
- Geographical mobility (job interview grants, distance & relocation subsidies)
Johannes Schweighofer
Vienna, March 2011 20
III.d) Austrian Employment Policies
Johannes Schweighofer
Vienna, March 2011 21
III.e) Austrian Employment Policies
0
2
4
6
8
10
12
Un
em
plo
ym
en
t R
ate
Unemployment Rate in the long Perspective: AUT-GER-EU15-USA
EU15
Germany
Austria
USA
Source: EU-AMECO-Database
Johannes Schweighofer
Vienna, March 2011 22
III.f) Austrian Employment Policies
Labour Market Flows in Austria 2010
Dependent
Emplyoment
Stock UB
12/2009
3.299.000
Self Employed
Stock SB
12/2009
410.000
Dependent
Employment
Stock UB
12/2010
3.344.000
Self Employed
Stock SB
12/2010
416.000
PES-Registered(Unemployed,
Qualification)
Out of Labour
Force
280.000
37.000
37.000
2.000
41
9.0
00
33
8.0
00
716.000
16.400
560.000
36.600
458.000
39.000
12.000
771.000
Source: PES DWH Erwerbskarrierenmonitoring, Hauptverband der Sozialversicherungsträger; Stand der Daten 16.03.2011;
gerundete Werte
Johannes Schweighofer
Vienna, March 2011 23
III.g) Austrian Employment Policies: Youth
Unemployment Rates (Sept 2010)
Source: Eurostat
Johannes Schweighofer
Vienna, March 2011 24
III.h) Austrian LMP
• Labour market administration outsourced from the
Federal Ministry in 1994 and incorporated as Public
Employment Service AMS ( = “Arbeitsmarktservice”)
• Functions:
• Private-sector functions (counselling, placement
and support services)
• Official functions (unemployment insurance,
employment of foreigners)
• Labour Minister sets overarching objectives in
accordance with the Social Partners
Johannes Schweighofer
Vienna, March 2011 25
Public Employment Service (AMS)Federal Head Office
Provincial
Office 1
Provincial
Office 8
Provincial
Office 9
Provincial
Office 6
Provincial
Office 2
Provincial
Office 3
Provincial
Office 5
Provincial
Office 4
Provincial
Office 7
Regional
Branch
Offices
Regional
Branch
Offices
Regional
Branch
Offices
Regional
Branch
Offices
Regional
Branch
Offices
Regional
Branch
Offices
Regional
Branch
Offices
Regional
Branch
Offices
Regional
Branch
Offices
III.i) Austrian LMP: Organisational Structure
Federal Ministry of Labour, Social Affairs
and Consumer Protection
101 regional offices + 2 branch offices, 63 career information centres
Overarching Objectives
III.j) Hierarchy of Labour Market Policy Objectives
Overarching Objectives by the Federal Minister
LMP Annual Objectives
AMS Balanced Scorecard
Active LMP Budget
(proportion for women: 50%)
Work Plan of Provincial
and Regional Offices
AMS Long-Term Plan
EU: Integrated Guidelines, European Employment
Strategy – National Reform Programme
Labour Market Policy
November 2010 26
Johannes Schweighofer
Vienna, March 2011 27
IV.a) Social Security – Safety Net in AUT
Sickness and Maternity (7,1% of GDP)
Work injury: 99% of population is covered
Old age and disability pension (15,5% of GDP)
Unemployment (1,4% of GDP)
Family benefits (2,8% of GDP)
Social Assistance-Means tested guaranted minimum
income (€ 753, incl.dwelling costs for single – poverty
threshold– 60% of median income = € 994 in 2008)
Labour Law (severance payments, notice periods)
Overall Expenditures: 27,3% of GDP in 2008 (almost
30% in 2009)
Johannes Schweighofer
Vienna, March 2011 28
IV.b) Social Security – Safety Net Globally
Johannes Schweighofer
Vienna, March 2011 29
IV.c) Social Security Expenditures – Developing
Countries
Johannes Schweighofer
Vienna, March 2011 30
IV.d) Social Security–Contribution Rates in AUT
Johannes Schweighofer
Vienna, March 2011 31
IV.e) Social Security – Globally
Johannes Schweighofer
Vienna, March 2011 32
IV.f) Social Security – Current Discussions
in Austria
Extending social protection in AUT during crisis -
not really:
# Increase in re-placement ratios in UI – denied
(trade union request during crisis)
# care for elderly
# old age pensions and health insurance face
severe financial constraints (older people are more
often sick; disability pension – average age of
retirement: 52 years; old age pension: 57,5 female
/58,9 male (statutory pension age: 60/65; life
expectancy: 81 female/78 male)
Johannes Schweighofer
Vienna, March 2011 33
IV.g) Social Security – Safety Net AUT
Respecting labour standards - see ILO Decent Work
Country Profile Austria:
+ Achievments in recent years: Incresing labour force
participation of women and elderly; decreasing
poverty of employed (6% working poor), more
social protection for atypical workers (part-time,
temporary workers, marginal employed, free lancers,
etc.) and a better work-life-balance;
- Problem areas: atypical work forms which do not
provide minimum income, more low wage earners
(12,7% earn less than 2/3 of median income),
segmented labour market (employment stability),
labour market integration of foreigners
Johannes Schweighofer
Vienna, March 2011 34
V.a) Austro-Keynesianism and Social
Partnership in Austria
What is „Austro-Keynesianism“? (1)
• Concept was developed in the 1970s
• From „welfare-state oriented corporatism“ (1960-
1990) to „competition-oriented corporatism“ (1990-
2010)
Main Features
• Broad political consensus – fight against (youth)
unemployment!
• Consensus: Markets do NOT provide full employment
in all circumstances! Deficit spending! Eclectic and
pragmatic approach! Stabilize expectations of
economic agents!
Johannes Schweighofer
Vienna, March 2011 35
V.b) Austro-Keynesianism and Social
Partnership in Austria
What is „Austro-Keynesianism“? (2)
• Stabilize inflation through „hard currency strategy“
(DM anchor) – wage restraints – macroeconomic
orientation; appreciation of Austrian Schilling wipes
out unproductive sectors („Strukturpeitsche“) – Austria
has no problems to participate in EURO-area!
• Take income distribution as given – „maximise the
cake“=GDP growth!
• Trade unions and Employer Organizations face a
situation of „repeated games“ (do not cheat!)
Johannes Schweighofer
Vienna, March 2011 36
V.c) Austro-Keynesianism and Social Partnership in
Austria
Johannes Schweighofer
Vienna, March 2011 37
V.d) Austro-Keynesianism and Social Partnership in
Austria
What is Social Partnership?
• „Corparatism“ means „extremly broad participation
of social partners i.e. trade unions and employer
organisations in decision making of all relevant
economic policy areas (fiscal, monetary, education,
• Autonomy of Social Partners in the field of wage
policies (collective aggreements)
• Precondition: Strongly centralisied organisations on
both sides
• Results: extremly rare cases of strikes
• Aiming for compromise, compromise, compromise
• Muddling through – Trial and Error – Going forth
and back
Johannes Schweighofer
Vienna, March 2011 38
V.d) Austro-Keynesianism and Social Partnership in
Austria
-1,2
-2,2
-1,8
-0,8-0,6
-2,1
-0,9
-1,5
0,1
-2,6
-0,9-0,7
-1,2
-0,4
4,8
-3,0
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
6,0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Income Distribution in Austria (whole economy)Benya-Formel: dwages=inflation+dproductivity
Infl+Prod_Gesamt Löhne/Gehälter_Gesamt Umverteilung weg von AN
Johannes Schweighofer
Vienna, March 2011 39
V.e) Austro-Keynesianism, Social Partnership
100,0
110,0
120,0
130,0
140,0
150,0
160,0
1991 2000 2005
Dependent Employed: from1991
1.Dezil-Mittel 2.Dezil-Mittel 3.Dezil-Mittel
4.Dezil-Mittel 5.Dezil-Mittel 6.Dezil-Mittel
7.Dezil-Mittel 8.Dezil-Mittel 9.Dezil-Mittel
10.Dezil-Mittel Inflation
100,0
120,0
140,0
160,0
180,0
200,0
220,0
240,0
260,0
280,0
1983 1991 2000 2005
Dependent Employed: from1983
1.Dezil-Mittel 2.Dezil-Mittel 3.Dezil-Mittel
4.Dezil-Mittel 5.Dezil-Mittel 6.Dezil-Mittel
7.Dezil-Mittel 8.Dezil-Mittel 9.Dezil-Mittel
10.Dezil-Mittel Inflation
Source: Guger et. al. (2009) Source: Guger et. al. (2009)
Johannes Schweighofer
Vienna, March 2011 40
VI.a) Poverty and Informal Economy: Here …
Johannes Schweighofer
Vienna, March 2011 41
VI.b) Poverty and Informal Economy: … and there
Johannes Schweighofer
Vienna, March 2011 42
VI.c) Poverty … there: The Millenium Goals
Source: The MDG-Report 2010 Source: The MDG-Report 2010
Johannes Schweighofer
Vienna, March 2011 43
VI.d) Poverty … there: The Millenium Goals
Source: The MDG-Report 2010Source: The MDG-Report 2010
Johannes Schweighofer
Vienna, March 2011 44
VI.e) Poverty – here in Austria
Poverty-Definition in Austria (according to EU-SILC,
houshold diposible income+transfers): 60% of Median
Houshold Per Capita-Income (equivalence-based; 1.
person=1, next person=0,5, next child=0,3) - at risk of
poverty (income poverty)
Treshold: € 994 monthly/11.932 yearky for single
person, € 2087/25.056 two adults+two children
12% of Austrian = 993.000 persons
Absolute poverty (+income poverty): cannot afford
heating home, and extra costs, payments delay, go to
doctor, no clothings, 6%= 488.000 persons
Social Transfers (including pensions) reduce poverty
rates from 43% to 12%
Johannes Schweighofer
Vienna, March 2011 45
VI.f) Poverty – here in Austria
Johannes Schweighofer
Vienna, March 2011 46
VI.g) Poverty – here in Austria
Johannes Schweighofer
Vienna, March 2011 47
VI.h) Poverty – here in OECD-countries
Johannes Schweighofer
Vienna, March 2011 48
VI.i) Poverty – here in OECD-countries
Source: Employment Outlook, Chapter 1 (forthcoming)
Johannes Schweighofer
Vienna, March 2011 49
VI.j) Poverty and Informal Economy: Here and there
0
10
20
30
40
50
60
70
80
90
100
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Poverty and Income Levels
GDP per Capita(PPP, 2010)
Populaton belownational poverty line (in %)
Source: CIA Factbook
Johannes Schweighofer
Vienna, March 2011 50
VI.k) Poverty and Informal Economy: Here and there
Johannes Schweighofer
Vienna, March 2011 51
VI.l) Poverty and Informal Economy: Here and there
Johannes Schweighofer
Vienna, March 2011 52
VI.m) Poverty and Informal Economy: Here and there
Johannes Schweighofer
Vienna, March 2011 53
VI.n) Poverty and Informal Economy: Here and there
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
Shadow Economy
Source: Schneider et. al. 2006)
Johannes Schweighofer
Vienna, March 2011 54
VI.o) Poverty and Informal Economy: Here and there
0
10
20
30
40
50
60
70
80
90
100
Labour Force in Agriculturein % of total Labour Force
Source: CIA factbook and ILO
Johannes Schweighofer
Vienna, March 2011 55
VI.p) Poverty and Informal Economy: Here and there
0
10
20
30
40
50
60
70
80
90
100
Unemployment Rate(latest figure)
Source: CIA Factbook and ILO
Johannes Schweighofer
Vienna, March 2011 56
VI.q) Poverty and Informal Economy: Here and there
0
10
20
30
40
50
60
70
80
Gini-Index - Family Income
Source: CIA Factbook and ILO
Johannes Schweighofer
Vienna, March 2011 57
VI.r) Poverty and Informal Economy: Here and there
Source: CIA Factbook