sábado, 13 de dezembro de 2008

Labour market in Portugal

The labour market performance is worrisome. Although participation rates are relatively high in international comparison – including for women and the low-skilled – employment trends have deteriorated since the beginning of the 2000s. The unemployment rate has doubled over the past five years, reaching 8% in 2007, with a growing share of long-term unemployment, as the labour market was not able to get job-seekers back into work as effectively as in the past. Employment protection legislation, overall, remains restrictive in comparison with other OECD countries. To facilitate the adjustment of the economy to the forces of globalisation and reduce the social costs of the adjustment process, policies have to focus on easing labour market regulations that hinder workers' mobility, while reinforcing the support to job losers.
The government has launched a comprehensive review of labour relations, with the stated objective of fostering job creation, reducing the segmentation of the labour market and enhancing mobility, while improving the protection of displaced workers. The conclusions, presented in the “White Book on Labour Relations” at the end of 2007, address several of the problems that are impeding the adjustment of the labour market. They have been under discussion with the social partners in the first half of 2008, with a view to presenting a reform proposal to the parliament. The changes envisaged include revisions to the labour code as well as specific measures to facilitate the application of the law. There are also suggestions for reviewing bargaining procedures to give more room to agreements at the enterprise level and for increasing the adaptability of working time. The White Book proposals go in the right direction and, if enacted, would represent a step forward.
Increasing human capital is essential to improve the adaptability of the workforce to the on-going structural transformation and to foster stronger productivity growth. Portugal suffers from a large education gap the rest of the OECD and action is required not only to raise the education attainment of the population, but also to review the type of education provided and its quality. Measures are being implemented to address supply bottlenecks, especially in technical education and vocational training, and to enhance teachers’ performance. The focus given to diversifying training supply for adult workers and developing skills certification has a strong potential to attract a wider public in lifelong learning.
The government’s strategy to upgrade competences and provide the skills that are needed in the labour market is centred on the Novas Oportunidades initiative. The initiative includes two main pillars:
1. Providing new opportunities to young people at risk of dropping out of school;
2. Offering learning opportunities to adults with low educational attainment, based on the recognition and certification of acquired skills.
Key steps have already been achieved in implementing this initiative, for instance the development of the network of Novas Oportunidades centres, the diversification in the supply of courses for the young people still in education, and the recognition and certification of skills for adults.
More should be done to develop the information base, to undertake systematic field monitoring and conduct rigorous evaluations of the results. But, the most difficult task is to ensure the quality of the services provided. It is also a sine for the success of the government’s strategy to enhance human capital.

Martins Freidenfelds
mfreidenfelds@inbox.lv
(artigo de opinião)

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