EU: In-Work Poverty And Unemployment
BNP Paribas | Apr 12, 2017 04:40AM ET
Since the financial crisis, the risk of in-work poverty – i.e. having a job but receiving less than 60% of the median disposable income after social transfers – has risen in Europe. In 2015, about 9% of German workers were in this situation compared with 6% in 2009. Labour market reforms have succeeded in reducing the unemployment rate, but at the expense of an expansion of low paid jobs.
In Germany, about 22% of employees earn less than 66% of median gross hourly earnings compared with only 8.8% in France (2014 data). In France, the in-work poverty rate amounted 7.5% in 2015, a 1-point increase since the crisis, but the unemployment rate rose to more than 10% from 8% in 2007. Is the trade-off between unemployment and in-work poverty ineluctable? Not really. Since 2011, Denmark has succeeded in lowering the unemployment rate in combination with a decline in the risk of in-work poverty.
by Raymond VAN DER PUTTEN
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