Under-employment: a new form of unemployment

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According to Eurostat, the unemployment rate is declining since 2013. However, despite the fall in the unemployment rate, wage growth remains very low. Would there be a catch?

 

Having a job does not preserve people from poverty. In-work poverty exists and in France between 1 and 2 million workers are concerned according to the Observatory of inequalities (figures for 2013).

 

One of the causes of this non-wage growth may be underemployment. That is why the European Central Bank devotes a chapter to it in its latest “Economic Bulletin” published on 10 May. According to the ILO, this expression refers to a situation in which the employee does not achieve “full employment”, “underemployment is characterized by underutilization of the productive capacity of the employed population”.

 

Several scenarios are possible: individuals discouraged from seeking work, caregivers unable to return to work immediately, part-time employees wishing to work more hours… These situations are therefore a result of an unfulfilled desire to work, a pool of unused labour and yet this is not included in the unemployment figures. If added, this would bring the number to 18% compared to 9.5% of the euro area’s working population (current figures for 2017 according to Eurostats). European actors such as the European anti-poverty network (EAPN) are campaigning for European policies to take account of this reality.

 

Thus, the weakness of the labor market is more important than what is shown. In the study, the European Central Bank proposes to broaden the definition of the unemployment rate. It must be said that a large part of the jobs created in recent years are of poor quality: temporary jobs or jobs requiring great flexibility such as jobs managed by collaborative platforms. This precariousness of employment is a subject followed by Ipse which seeks solutions to mitigate the effects, do not hesitate to participate in our events to promote your good practices or to discover new ones!