Home Policy Employment Flexicurity

Flexicurity

The “Flexicurity” model for the labour market is often proposed as a “miracle cure” for Europe’s employment/growth problems. The model is perceived to offerthe potential for creating the “best of all worlds”, by combining in one single strategy the seemingly divergent needs of companies and workers/unemployed.

This package is promoted as offering, on the one hand greater flexibility for businesses to hire and fire, seen to be essential to support growth in a globalised economy, and on the other hand, providing “employment” although not “job security” for workers or aspiring workers, and a safety net of income support for those in between jobs.

Considerable attention has focused on the Danish labour market model, which appears to have achieved new jobs and low unemployment rates, combined with guaranteeing an effective safety net during unemployment, backed by dynamic and high quality activate labour market policies.

The key elements of this strategy are described as the “Golden Triangle: (P. K Madsen.)
1. High labour market mobility and easy hiring and firing.
2. Generous social protection (including unemployment benefit and social security for those without adequate contributions).
3. Active labour market policy, involving counseling, training/education and support for re-skilling and upgrading competences as well as active support for getting a job.

The European Commission’s Joint Employment Report in 2006, reflected in the June Council decision, emphasizes a separate specific element of life-long learning.

There is great concern among anti-poverty organisations that EU approaches will result in greater flexibility and weaker social protection for employees and the unemployed.

Documents