The Future of Work and the Challenges Facing the Welfare State

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The Future of Work and the Challenges Facing the Welfare State
The Future of Work and
the Challenges Facing
the Welfare State
The Future of Work and the Challenges Facing the Welfare State
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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Socle européen des droits sociaux
The Future of Work and the Challenges Facing the Welfare State
The shift to the service sector: the impact on the
  level of employment?
             60%
                     Share of employment in France , by sector (%), 1949-2022

             50%             Agriculture   Industry   Construction   Market services   Non market services

             40%

             30%
                                                                                                             Source: Insee,
                                                                                                             Employment in full-
                                                                                                             time equivalents (on a
             20%                                                                                             national accounts
                                                                                                             basis), projections
                                                                                                             Nemesis-France
                                                                                                             Strategie
             10%

              0%
                   1965

                   1970

                   1975

                   1980

                   1985

                   1990

                   1995

                   2000

                   2005

                   2010

                   2015

                   2020
                   1949
                   1950
                   1951
                   1952
                   1953
                   1954
                   1955
                   1956
                   1957
                   1958
                   1959
                   1960
                   1961
                   1962
                   1963
                   1964
                   1966
                   1967
                   1968
                   1969
                   1971
                   1972
                   1973
                   1974
                   1976
                   1977
                   1978
                   1979
                   1981
                   1982
                   1983
                   1984
                   1986
                   1987
                   1988
                   1989
                   1991
                   1992
                   1993
                   1994
                   1996
                   1997
                   1998
                   1999
                   2001
                   2002
                   2003
                   2004
                   2006
                   2007
                   2008
                   2009
                   2011
                   2012
                   2013
                   2014
                   2016
                   2017
                   2018
                   2019
                   2021
                   2022
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Socle européen des droits sociaux
The Future of Work and the Challenges Facing the Welfare State
Not all jobs are automatable
 Jobs (millions), according to working hours and the strict application of procedures,
 1998 to 2013
                    Low risk of automability                                High risk of automability

                                                                                                    Source: France Stratégie,
                                                                                                    according to Dares-Drees-
                                                                                                    DGAFP-Insee, working
                                                                                                    conditions survey.

   Jobs with working hours imposed by external                       Jobs with working hours not imposed by external
   demand and requiring an immediate response,      Other kinds of    demand and requiring an immediate response,
    which don’t involve the strict application of       jobs              which involve the strict application of
                   procedures                                                          procedures

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Socle européen des droits sociaux
The Future of Work and the Challenges Facing the Welfare State
Between 7% and 15% of jobs
                                                        are fully automatable in France
                                          Share of workers at high risk of automatibility

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

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Socle européen des droits sociaux
The Future of Work and the Challenges Facing the Welfare State
A slow polarisation of jobs without
           increasing the share of low-skilled workers
             Share of employment (%) in France, according to skill level, 1990-2022
                                    40%
                                                                                         Low-skilled
                                                                                       ouvriers       white andpeu
                                                                                                 et employés     bluequalifiés
                                                                                                                       collar
                                                                                       professions
                                                                                        Professionalsintermédiaires
                                    35%                                                cadres
                                                                                        High-skilled workers
  Source: Insee,                                                                       ouvriers  et employés
                                                                                        Skilled white  and blue qualifiés
                                                                                                                collar
  Labour Force
  Survey, projections
  France Strategie-                 30%
  Dares
  Scope:
  metropolitan                      25%
  France

                                    20%

                                    15%

                                    10%
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                                          1990 1992 1994 1996 1998 2000 2002 2004 62006 2008 2010 2012 2014 2016 2018 2020 2022
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Intermittent careers and variable income
                          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

           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                        Long spells of unemployment
               Short spells of unemployment          No unemployment spells

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Higher episodes in unemployment
                                    Transition rate into unemployment, according to age
                                    and type of contract, 2003-2014 (by year, %)
                                    25%

                                                                                                                2003-2008

                                    20%                                                                         2008-2014

                                    15%                                                                                     Scope: metropolitan France,
                                                                                                                            households, persons in work
                                                                                                                            (except public sector) age 15
                                                                                                                            and up (age at the last day of
                                    10%                                                                                     the reporting period).
                                                                                                                            Source: France Stratégie, on
                                                                                                                            the basis of the Insee Labour
                                                                                                                            Force Survey 2014.
                                     5%

                                     0%
                                          Under the age of 30 y/o and older   Temporary        Fixed-term       Permanent
                                                30                          agency workers      contract         contract
                                                        Age                                  type of contract
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Diversification of forms of employment and of
   working time
   Employment share of full-time and part-time jobs,
   according to contract type (%)
                                    Open-ended                                     Others
                                     contracts                                (internship and
                                     part-time                                  State-aided
                                       13%                                       contracts)
                                                                                     3%                Scope: metropolitan France,
                                                          Self-employed
                                                                                     Fixed-term        households, persons in work
                                                               14,4%
                                                                                                       (except public sector) age 15
                                                                                   conctracts (incl.
                                                                                                       and up (age at the last day of
                                                                                     temporary         the reporting period).
                                                                                  agency workers)      Source: France Stratégie, on
                                                                                       full-time       the basis of the 2014 Insee
                                                                                         6,2%          Labour Force Survey.
                                             Open-ended                              Fixed-term
                                              contracts                           conctracts (incl.
                                              full-time                              temporary
                                                61%                               agency workers)
                                                                                      part time
                                                                                         2,5%

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Share of fixed-term contracts in employment,
      1990-2027                     13,0%

                                                                                                                                                                    12,1%
                                    12,0%

                                                                                                                                                                    11,4%
                                    11,0%

                                                                                                                                                                    10,4%
                                    10,0%

                                     9,0%

              Sources: Labour
              Force Survey           8,0%
              Insee,
              projections                   6,9%
                                     7,0%
              France Stratégie

                                     6,0%
                                             1994

                                             2011
                                             1990
                                             1991
                                             1992
                                             1993

                                             1995
                                             1996
                                             1997
                                             1998
                                             1999
                                             2000
                                             2001
                                             2002
                                             2003
                                             2004
                                             2005
                                             2006
                                             2007
                                             2008
                                             2009
                                             2010

                                             2012
                                             2013
                                             2014
                                             2015
                                             2016
                                             2017
                                             2018
                                             2019
                                             2020
                                             2021
                                             2022
                                             2023
                                             2024
                                             2025
                                             2026
                                             2027
                                            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 share
                                            is maintain to its 2014 value
                                            Projections of the share of FTC according to its trend by occupation between 2004 and 2014 if it increases, otherwise the share
                                            is maintain to its 2014 value
18/10/2016                                  Projections of the share of FTC by occupation kept
                                                                                             10 constant at its 2014 value
Socle européen des droits sociaux
Increasing employment share of the self-employed
   in France, the Netherlands and the United Kingdom
                                    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
                                17,0%
                                        16,6%

                                16,0%

                                15,0%

                                14,0%
                                                                                                                                                                     Sources: Labour
                                13,0%
                                                                                                                                                             13,2%   Force Survey
                                                                                                                                                                     Insee,
                                                                                                                                                             12,1%
                                                                                                                                                                     projections
                                12,0%
                                                                                                                                                                     France Stratégie
                                                                                                                                                             11,2%
                                11,0%

                                10,0%
                                        2000

                                        2006
                                        1990
                                        1991
                                        1992
                                        1993
                                        1994
                                        1995
                                        1996
                                        1997
                                        1998
                                        1999

                                        2001
                                        2002
                                        2003
                                        2004
                                        2005

                                        2007
                                        2008
                                        2009
                                        2010
                                        2011
                                        2012
                                        2013
                                        2014
                                        2015
                                        2016
                                        2017
                                        2018
                                        2019
                                        2020
                                        2021
                                        2022
                                        2023
                                        2024
                                        2025
                                        2026
                                        2027
                                          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?
   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.
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Options at stake in the debate
         Still working together
                                                                               No more work

                                        Universalising the
                                        labour and social rights
                                        at work
                                        big disruption should be
                                        accompanied by the           A universal income
     Adapting labour                    reform of the 21th century   disconnected from
     law and social
                                                                     work
     protection to work
                                                                     not enough work for all
     changes
     not too much will
     need changing
                                           Separated and connected

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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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