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On 21st January 2016, the European Commission launched the report on the Employment and Social Developments in Europe 2015 (ESDE 2015) at a conference in Brussels. ESDE is published every year, reflecting on developments over recent years in job creation, improving labour markets’ efficiency, and removing obstacles to job creation. This annual review underpins the EU’s policy actions and recommendations in pursuit of the Europe 2020 employment and social targets.

Positive employment trends

As Marianne Thyssen, the European Commissioner for Employment, Social Affairs, Skills and Labour Mobility, pointed out in her opening statement, in 2015 the EU has continued to recover from the crisis. Employment rates have risen, more women are in employment than ever before, more people aged 50 and above gained employment, and the employment rates of young adults have risen as well.

Rising inequality is major concern

However, big challenges that already existed in the past have actually intensified. Increasing socio-economic inequalities in many Member States do not only hamper economic growth and the effective use of human capital but also impact on people’s wellbeing. As Margo Hoftijzer from the World Bank underlined, educational attainment, including numeracy and literacy, is markedly stratified along socio-economic lines, compromising people’s life chances. Given that 60% of working poor households in the EU live below the poverty line, these groups are particularly affected by the impact of socio-economic inequalities and the risk of social exclusion.

Social expenditure shifts to pensions and health

One of the main developments in social protection has been a shift in expenditure from unemployment and family benefits and services to pensions and health. ESDE 2015 argues that the shift translates into areas of social protection, such as those that ensure adequate income while facilitating participation in the labour market, being underfunded. Cash and in-kind benefits for the long-term unemployed are a point in case as financial benefits have decreased relative to median household income in many EU member states while in-kind benefits tend to be less often available for the long-term unemployed. This leaves them increasingly unlikely to re-enter the labour market, hence at a high risk of social exclusion.

Key role of public social services

Whilst ESDE 2015 focuses primarily on employment, ESN welcomes the recognition of the role that social services play in enabling employment and inclusion. Unfortunately, the immense discrepancies between member states’ investment in social services and service quality available are far from narrowing. We suggest that ESDE 2016 includes an assessment of the quality and availability of public social services in EU Member States for people furthest from the labour market. ESN’s recent publication on local public social services’ priorities for the European Semester 2016 outlines the key role of social services to contribute to people’s active and social inclusion, and their overall quality of life, whilst our publication on integrated services includes specific examples of cooperation between social and employment services to secure the integration of groups of people furthest from the labour market.