The Future of Work and the Challenges Facing the …...The Future of Work and the Challenges Facing...

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The Future of Work and the Challenges Facing the Welfare State

Transcript of The Future of Work and the Challenges Facing the …...The Future of Work and the Challenges Facing...

Page 1: The Future of Work and the Challenges Facing the …...The Future of Work and the Challenges Facing the Welfare State 2 Socle européen des droits sociaux Effects of changes already

The Future of Work and

the Challenges Facing

the Welfare State

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Effects of changes already occurring in the workplace

The causes of changes in the workplace: not only technological reasons

Several kinds of impact:

Impact on the sectoral composition of employment

Skill-biased technological change, which increases demand for skilled labour only

The increase of duality in the labour market, with insecurity at one end

The growth in self-employment mainly among business owners without

employees

A certain blurring of the company borders

More job versatility and more atypical and intermittent careers, which leads to a

breakdown of social rights

Uncertainty associated with the size of the changes at work

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The shift to the service sector: the impact on the level of employment?

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Source: Insee,

Employment in full-

time equivalents (on a

national accounts

basis), projections

Nemesis-France

Strategie

0%

10%

20%

30%

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60%

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Agriculture Industry Construction Market services Non market services

Share of employment in France , by sector (%), 1949-2022

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Not all jobs are automatable

High risk of automability Low risk of automability

Jobs with working hours imposed by external

demand and requiring an immediate response,

which don’t involve the strict application of

procedures

Jobs with working hours not imposed by external

demand and requiring an immediate response,

which involve the strict application of

procedures

Other kinds of

jobs

Source: France Stratégie,

according to Dares-Drees-

DGAFP-Insee, working

conditions survey.

Jobs (millions), according to working hours and the strict application of procedures,

1998 to 2013

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Evolving content of tasks (risk 50-70)%) Automatable jobs (risk >70)%)

Share of workers at high risk of automatibility

Between 7% and 15% of jobs are fully automatable in France

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Source: OECD

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A slow polarisation of jobs without increasing the share of low-skilled workers

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Source: Insee,

Labour Force

Survey, projections

France Strategie-

Dares

Scope:

metropolitan

France

Share of employment (%) in France, according to skill level, 1990-2022

10%

15%

20%

25%

30%

35%

40%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022

ouvriers et employés peu qualifiés

professions intermédiaires

cadres

ouvriers et employés qualifiés

Low-skilled white and blue collar

Professionals

High-skilled workers

Skilled white and blue collar

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Intermittent careers and variable income

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Born before 1940 Between 1940 and 1950 B/w 1950 and 1960 B/w 1960 and 1970 B/w 1970 and 1980

Short and long spells of unemployment

Short spells of unemployment Long spells of unemployment

No unemployment spells

An increase in unemployment with each new generation

Source: DARES,

DREES, Health and

professionnal careers

Survey, 2006

Note: in 2006, one

person in two born after

1960 had been

unemployed

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Higher episodes in unemployment

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Scope: metropolitan France,

households, persons in work

(except public sector) age 15

and up (age at the last day of

the reporting period).

Source: France Stratégie, on

the basis of the Insee Labour

Force Survey 2014.

Transition rate into unemployment, according to age

and type of contract, 2003-2014 (by year, %)

0%

5%

10%

15%

20%

25%

Under the age of30

30 y/o and older Temporaryagency workers

Fixed-termcontract

Permanentcontract

Age type of contract

2003-2008

2008-2014

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Diversification of forms of employment and of working time

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Employment share of full-time and part-time jobs,

according to contract type (%)

Scope: metropolitan France,

households, persons in work

(except public sector) age 15

and up (age at the last day of

the reporting period).

Source: France Stratégie, on

the basis of the 2014 Insee

Labour Force Survey.

Self-employed 14,4%

Others (internship and

State-aided contracts)

3%

Fixed-term conctracts (incl.

temporary agency workers)

full-time6,2%

Fixed-term conctracts (incl.

temporary agency workers)

part time2,5%

Open-ended contracts full-time

61%

Open-ended contracts part-time

13%

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Sources: Labour

Force Survey

Insee,

projections

France Stratégie 6,9%

12,1%

11,4%

10,4%

6,0%

7,0%

8,0%

9,0%

10,0%

11,0%

12,0%

13,0%

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Share of fixed-term contracts (FTC)

Projections of the share of FTC according to its trend by occupation between 2004 and 2014 if it increases, otherwise the shareis maintain to its 2014 valueProjections of the share of FTC according to its trend by occupation between 2004 and 2014 if it increases, otherwise the shareis maintain to its 2014 valueProjections of the share of FTC by occupation kept constant at its 2014 value

Share of fixed-term contracts in employment, 1990-2027

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Increasing employment share of the self-employed in France, the Netherlands and the United Kingdom

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Employment share of the self employed in France,

Netherlands and United Kingdom. 1983-2014.

Source: Eurostat, Labour

Force Survey, population

aged 15-64

Scope: metropolitan

France

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Employment share of self-employed, 1990-2027

Sources: Labour

Force Survey

Insee,

projections

France Stratégie

16,6%

13,2%

12,1%

11,2%

10,0%

11,0%

12,0%

13,0%

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Share of self-employed

Projections of the share of self employed according to its trend by occupation between 2004 and 2014 if it increases,otherwise the share is maintain to its 2014 value

Projections of the share of self employed according to its trend by occupation between 2004 and 2014 if it increases,otherwise the share is maintain to its 2014 value

Projections of the share of self employed by occupation kept constant at its 2014 value

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What is the future of work?

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Are new forms of employment going to replace permanent contracts?

In 2027, the fixed-term contracts and the self-employed will increase slowly:

their employment share will reach a maximum of 25% (21% in 2014), and

permanent jobs will still account for the major part (75%).

Not taking into account a possible disruption

Will increased automation mean less work or/and more skills

updating?

What will work activity mean tomorrow?

Without a relationship with an employer, without a work place, without pay

(volunteer, digital labour), etc.

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What impact on worker protection?

What is certain and already occurring for some workers

Breakdown of social rights (status change, moving from one company to

another or from one industry to another, spells of unemployment)

Some workers are less protected against risk of revenue losses (fixed-term

contracts, self-employed without employees and without capital, youth)

A permanent adaptation of workers skills is needed but access to

professional training is uneven

The need of new forms of collective bargaining

Uncertainties regarding the amplitude of changes The options within the debate are closely related to the vision for tomorrow of

their supporters. But everyone is convinced that a change in workers protection

is necessary. 14

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Options at stake in the debate

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Separated and connected

Still working together

No more work

Adapting labour

law and social

protection to work

changes

not too much will

need changing

Universalising the

labour and social rights

at work

big disruption should be

accompanied by the

reform of the 21th century A universal income

disconnected from

work

not enough work for all

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Adapting labour law and social protection to work changes

Extending the salaried contractual relationship (vs self-employed one)? By

law, by the court, by collective bargaining?

Further protecting the self-employed and fixed-term workers (better social

benefits for discontinuous careers, extending protections to some self-employed

workers, etc.)

New forms of collective action and collective bargaining

Securing employment transitions CPA: an individual activity account to accumulate points for job-related training and

education, days off not taken and strenuous work, making benefits portable,

adapting them to people rather than jobs themselves

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Universalising the labour and social rights at work

An occupational right without distinguishing between self-employed and

salaried workers A common set of rights for all workers (on the basis of ILO fundamental labour rights or

beyond?)

Labour rights growing according to the degree of subordination (what those levels

should be and how to measure them?)

Social drawing rights Individual social rights for all social protection (unemployment insurance extended to

self-employed, social benefits and unemployment insurance to guarantee a minimum

welfare support for the poorest workers and extended to youth)

This rights still derives from the work of insured individuals and their investment in such

an insurance (≠ universal income financed through tax revenues).

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A universal income disconnected from work

A universal income accounting for all the system of social protection

and assistance

An unconditional cash payment given to all citizens including the children

Total replacement of social benefits and full disconnection from work

What level of income and how to finance it?

A basic income for the lowest incomes or a liveable level for all?

Depending on the level, replacement of some or all social-spending

programmes (including health and education maximum) and tax increases

are required

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