Individuals increasingly need employment security rather than job security, as fewer have the same job for life. Companies, especially SMEs, need to be able to adapt their workforce to changes in economic conditions. They should be able to recruit staff with a better skills match, who will be more productive and adaptable leading to greater innovation and competitiveness.
However, Europe is not adjusting as well as it could to the shocks that are imposed on its economy. This may aggravate concerns related to outsourcing and relocation4, and increase income inequalities and gaps between skilled and unskilled workers5. The EU and its Member States need to progress further towards a dynamic, successful knowledge economy, spreading the benefits of prosperity more evenly across society. [extract]
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Towards Common Principles of Flexicurity: More and better jobs through flexibility and security.