More flexible approach would have saved jobs, says EU

THE number of people losing their jobs in Ireland could have been less had the Government and employers adopted a more flexible approach, an EU study suggests.

Ireland, Spain and Portugal responded to the economic crisis solely by shedding jobs and young people have been particularly badly affected, an EU study has found.

Other countries such as Germany, Austria and Belgium reduced the number of hours being worked and cut productivity while France gave employers subsidies and so saved jobs. They are now in a better position to take advantage of the recovery, said Employment Commissioner Lazlo Andor launching the report.

“Overall the more moderate employment impact in Austria, Belgium and Germany reflects a greater willingness in these states to adjust to falls in demand by reducing hours worked and productivity rather than the number of workers in employment,” the report said.

Ireland, Spain and the Baltic states have seen the most job losses over the last two years, while Austria, Belgium, Italy and Germany saw relatively few.

While many of the job losses are blamed on the collapse of the construction sector in Ireland and Spain, both countries and the three Baltic states did not adopt the kind of the measures other countries did that helped them limit their job loses.

The high number of people on temporary contracts in Spain and Ireland also contributed to the big number of people let go as it is so much easier to terminate their employment, the report said. Ireland has the third highest ratio of people on temporary contracts.

But overall young people have borne the brunt of the crisis with a disproportionate number of 15-24 year olds out of work. The highest percentage is Spain, with 40%, followed by Slovakia and Italy. Ireland has the fourth highest at around 27%.

Particularly vulnerable are the numbers of young people who are neither in education, employment or training and they range from 4% in Denmark to 20% in Bulgaria. They account for 10% of young people in Ireland.

A far higher number of young people — 40% on average — are in temporary jobs compared to 13% in the overall working population. Like all those not on permanent contracts, they receive less training, are paid an average of 14% less and find if very difficult to move into a regular job.

Commissioner Andor said countries need to adopt new strategies to help increase employment.

“European labour markets will emerge from the crisis profoundly changed. That’s why workers and employers must be ready with the right skills and incentives to adapt to the changing realities” said the commissioner.