Flex Work Research Centre

In this paper, the current European labor market is examined, in relation to the economic crisis and the Lisbon targets. It is shown that the targets will not be met in the short term, and that in the long term, they will not be sufficient to match labor demand. The aging population will continue to challenge the labor markets and underscore the need to increase labor participation post-crisis. Some drivers of labor market participation have proven to be useful in the past. For example, it is essential to keep employees connected to the labor market, and to keep their skills and competencies up to date. The longer people stay away from work, the lower their chances of re-entering the work force at a later stage. The importance of the Flexicurity model is discussed and the special role of temporary agency work therein. Temporary work (which also includes agency work) acts as a stepping stone for the unemployed, especially in countries like the UK, Italy, Germany, Belgium, and the Netherlands. The importance of temporary agency work is also underscored by the EU, seeing ‘temporary agency work […] as a key factor in meeting the requirements of the Lisbon Strategy, as it contributes to increasing both employment and competitiveness.’ Private employment agencies play an important role in matchmaking and transitions in the labor market, and play an active role in contributing to a flexicure, and thus sustainable, active work force. It is emphasized that in the short term the important role of private employment agencies in the matchmaking and transition process, especially in more difficult economic times should be recognized. In the long term flexicurity systems should be implemented and improved. The main goal should be to combine flexible contractual arrangements with employment security and skills enhancement. EU member states should benefit from each other’s experiences in using flexicurity pathways. Furthermore, in the long term the matchmaking experience of temporary work agencies in public-private partnerships should be used. That might help to bridge the ‘sectoral gap’ between unemployment in one sector, and persistent vacancies in other sectors.