Speech: Remarks by Commissioner Thyssen on the 2017 Joint Employment Report at the European Commission press conference on the Autumn Economic Package

The results of our reports today are encouraging. They show we are on the right track towards recovery.

The employment situation is improving step by step in a context of moderate economic recovery. Let me give you a few key figures:

Almost 5 million jobs have been created since the beginning of the mandate.

The employment rate has reached 71%. If the current trend continues, the Europe 2020 target of an employment rate of 75% in 2020 is within reach.

There are 5.7 million fewer people unemployed than in April 2013, when unemployment reached its peak.

We have today 1.6 million fewer young unemployed in the EU compared to 2013.

Long term unemployment has decreased significantly as well, we have now 2 million less long term unemployed than since we started this mandate.

But much still remains to be done:

Over 20 million Europeans remain unemployed, including almost 10 million long term unemployed.

While we have made good progress, not least through the Youth Guarantee, there are still 4 million young unemployed.

And despite some progress last year, still around 119 million people are at risk of poverty or social exclusion. Children and young people, not less than 25 million of them, are those who are affected the most.

Member States have been drifting apart for too long when it comes to jobs, growth and social standards. The employment rate ranges from just 56% in Greece to 81% in Sweden. But now, we begin to see again the first signs of convergence among Member States. For example Spain and Cyprus made big steps forward regarding job creation.

Our initiatives to boost employment, especially among young people, have been taken up by the Member States in the whole EU. And they begin to bear fruit.

With our support, Member States have made sure that the Youth Guarantee and Youth Employment Initiative also work in practice.

They have invested in individualised services and improved the functioning of employment services and agencies.

Also legislative reforms to address duality in the labour market are underway.

Boosting employment also means investing in people. Many states are modernising their education and training systems to improve skills and adjust curricula to the needs of labour markets. We are supporting this with our EU Skills Agenda.

I have repeated this several times and I want to underline it again: our European social models, the European social market economy as such, are a success story. Yet, we need to make sure our systems are sustainable and fit-for-purpose in changing societies and labour markets. Work is underway:

For example, we have seen a number of reforms of social safety nets including linking better social benefits to activation measures.

Many Member States have undertaken important reforms on pension systems.

On EU level, we are in the final phase of consulting on the European Pillar of Social Rights. We will then come up with a proposal in March next year.

We need to further step up reforms and work together towards a Europe that leaves no one behind.

More jobs and growth are the best drivers of bringing people out of poverty or social exclusion. This Commission has made this a priority from the beginning.

New types of contracts and digitalisation create flexibility and a lot of opportunities. But we need to ensure they are also matched with adequate security.

Social protection systems need to be updated to ensure that no one is left behind.

Revisiting our tax and benefit systems can help tackle inequality on our labour markets and support participation of low-earners and women.

To workers, the message is clear that wage-setting should be effective for both job creation and real income increase.

The Commission and Member States cannot do this alone. Effective social dialogue is crucial to design and monitor fair and efficient reforms.

On our impulse, to reinforce the social dialogue, this year for the first time EU social partners and their national affiliates were invited to the Council to discuss the design and implementation of reforms under the European Semester. The Joint Employment Report devotes increased attention to the role of social dialogue.

Ladies and gentlemen, this package is a good balance.

It aims for more and better jobs, but also recognises the need to equip people with the skills they need in order to fill these jobs.

It supports businesses and gives a boost to investment and growth, while at the same time pushing for more equality, more fairness and more inclusive growth.

A more social Europe is at the heart of our agenda, on which we work together with Member States and Social Partners. We are not there yet, but we begin to see more and more concrete results for our citizens.

Thank you for your attention.

SPEECH/16/3732