Adaptive Labor Markets

   

To what extent do existing labor market institutions support or hinder the mitigation of labor market risks?

EUOECD
 
Labor market institutions are fully aligned with the goal of protecting individuals against labor market risks.
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Denmark
The social safety net is relatively tight in Denmark, and the unemployed are either covered by unemployment insurance (voluntary) or social assistance. Kreiner and Svarer (2022) estimate that the net replacement rate is 83% at the lower level of the income distribution for the first three months. After the first two years of unemployment, the net income compensation rate drops to 57% for the lower parts of the income distribution.

Workers in nonstandard jobs may be more exposed, as they are seldom members of an unemployment insurance fund, are not protected against layoff to the same extent as workers covered by collective agreements and often do not contribute to pension schemes.
Citations:
Kreiner, Claus Thustrup and Michael Svarer. 2022. “Danish Flexicurity: Rights and Duties.” Journal of Economic Perspectives 36 (4): 81-102.
DOI: 10.1257/jep.36.4.81
Germany
Social protection in Germany is generally comprehensive. The Bürgergeld minimum-income support is available to all job-seekers, regardless of prior employment, and includes health insurance and access to public services, including the free public education system. Additionally, states and municipalities provide targeted support to low-income households through subsidized public transport and free access to various public services. However, the German pension insurance system bases pensions on individual contributions. Consequently, workers with extensive part-time employment or marginal employment (geringfügige Beschäftigung) may face low pension entitlements in old age. In these cases, the Bürgergeld system offers basic protection, supplemented by various instruments aimed at bolstering the pensions of workers with limited employment (see “Policies Aimed at Old-Age Poverty” Prevention).

Every worker has the right to join a trade union, but union membership has been declining, dropping from 9.8 million in 1994 to 5.6 million in a DGB trade union in 2022 (Statista, 2024). Interest in trade union membership is particularly low among high-skilled employees in the service sector, whereas the industry and public sectors have higher membership rates. Worker representation, independent of trade union membership, is supported by guaranteed company co-determination.

The Betriebsverfassungsgesetz (Works Constitution Act), effective since 1952, defines comprehensive information, consultation, and co-determination rights for works councils. However, coverage is not universal and is declining, with only 41% of workers employed by companies with a works council (IAB, 2023). Co-determination is more prevalent in older, larger, and industrial companies, and less common in newer, smaller companies in the service sector.

There are no significant restrictions on the portability of pensions or social insurance, as social insurance is not tied to a specific employer or sector. Private pension claims against a former employer are generally portable, with limitations only for very short employment contracts. Typically, after a few years, the non-forfeitability (Unverfallbarkeit) of private pension claims is reached, allowing the worker to transfer the contract to a new employer or receive financial compensation.
Citations:
IAB. 2023. “Tarifbindung und Mitbestimmung: Keine Trendumkehr in Westdeutschland, Stabilisierung in Ostdeutschland.” IAB-Forum, July 20. www.iab-forum.de/tarifbindung-und-mitbestimmung-keine-trendumkehr-in-sicht/
Statista. 2024. “Anzahl der Mitglieder des Deutschen Gewerkschaftsbunds (DGB) von 1994 bis 2022.” https://de.statista.com/statistik/daten/studie/3266/umfrage/mitgliedszahlen-des-dgb-seit-dem-jahr-1994/
Norway
The Norwegian welfare state protects individuals from four categories of labor market risks:

Unemployment: When one loses their job, a universal state-funded cash unemployment insurance system pays 60% of the former wage for up to 52 weeks for low-income groups and 104 weeks for higher-income groups.

Reduced working capacity: If one is unable to work due to health challenges, the National Social Insurance system provides sickness pay for up to 52 weeks if the health problems are temporary. If the health issues are permanent, a state-funded disability pension pays 66% of the former wage.

Work-family life squeeze: This occurs when one needs to balance work with caring for their own children or elderly, disabled parents. The system offers generous paid leave and job protection for parents. However, the rights to leave work to care for parents are limited.

Difficulty entering the job market: This risk affects individuals after education or immigration to Norway. There is no general scheme for economic support, only a needs-tested social assistance system at the local level. Various active labor market programs exist for different target groups, and some of these programs provide an attendance allowance.

The qualifying condition for benefits is based on employment, measured by income or time. Thus, rights and benefits are portable, not contingent on the employment contract with a particular employer or linked to union membership.
Citations:
Arbeids – og inkluderingsdepartementet. (n.d.) “Arbeidsmarked og sysselsetting.” https://www.regjeringen.no/no/tema/arbeidsliv/arbeidsmarked-og-sysselsetting/id935
 
Labor market institutions are largely aligned with the goal of protecting individuals against labor market risks.
8
Austria
A person may claim unemployment benefit (“Arbeitslosengeld”) if he or she loses a job and becomes unemployed. Someone may claim unemployment assistance (“Notstandshilfe”) if he or she has exhausted entitlement to unemployment benefit and remains in a situation of need.

The aim of unemployment benefits is to secure a person’s livelihood while they are looking for work. To be entitled to unemployment benefits, a person must be unemployed, able and willing to work (to accept suitable employment), be at the disposal of the job office, and not have exhausted their entitlement.

The basic amount of unemployment benefit is currently 55% of daily net income. Depending on the amount of income considered, this can be increased to up to 80% through supplementary and family benefits.

Importantly, entitled persons must have a minimum period of insurance. This applies if someone has been covered by unemployment insurance for at least 52 weeks during the last 24 months or 26 weeks within the last 12 months for people under 25 years old.

Individuals earning above the marginal earnings threshold (Geringfügigkeitsgrenze) of €500.91 per month (in 2023) are covered by unemployment insurance. There is no option for voluntary insurance for employees. However, self-employed persons may join the unemployment insurance system on a voluntary basis.

Workers generally benefit from protection through effective representation by powerful trade unions and the Chamber of Labour. The Austrian trade union movement has addressed increased cross-border mobility by insisting on enforcing labor standards. Unions have primarily pursued this issue through the Austrian social partnership, which fostered a comprehensive regulatory response. However, incidents of noncompliance, especially involving cross-border subcontracting, remain a challenge under the radar of inclusive bargaining institutions. As a nationally bounded enforcement strategy necessarily reaches its limits in transnational labor markets, unions have increasingly complemented their partnership approach with more emphasis on transnational cooperation and initiatives geared toward including mobile workers.

It aligns with Austria’s advanced welfare state regime that its population is considerably more concerned about social security issues than people in other European countries. At the same time, Austria has a significantly lower share of people who can imagine working abroad.

Austria’s contributory pensions and payments are disbursed internationally. Non-contributory benefits – such as specific supplements that may be paid to pensioners with small pensions and little or no other income – cannot be paid outside Austria. The rate of contributory benefits is linked to the amount of contributions and the final salary before becoming eligible for benefits.
Citations:
https://ec.europa.eu/social/main.jsp?catId=1101&langId=en&intPageId=4410

d’Addio, Anna Cristina, and Maria Chiara Cavalleri. 2015. “Labour Mobility and the Portability of Social Rights in the EU.” CESifo Economic Studies 61 (2): 346-376.

Krings, Torben. 2021. “From ‘Protecting Indigenous Workers’ towards Protecting Labour Standards?: Austrian Trade Unions and the Transnationalisation of Labour Markets in the EU.” Zeitschrift für Sozialreform 67 (4): 362-384.
Belgium
As mentioned previously the Belgian social welfare system is overall rather generous and extensive. However, the gig economy and its increased importance raise new difficulties for the workers involved and their access to social security. The government following actions by the unions and the concerned workers themselves is trying to legislate on the matter. In October 2022, it adopted new legislation ensuring a presumption of salaried status for delivery drivers of certain platforms and the introduction of an obligation for platforms working with self-employed workers to insure them for work-related accidents. However, these two advances have yet to materialize in concrete achievements. What’s more, these advances are meeting with considerable resistance from the platforms concerned. Deliveroo and Uber Eats, among others, consider that the presumption of salaried status does not apply to them. They have also already gone before the labor court several times, which has so far ruled in their favor each time.
These workers are nonetheless fairly well represented by unions who are at the front battle on these questions. As mentioned previously, unionization rates in Belgium are among the highest in Europe. Nonetheless, the evolution of the labor market makes it sometimes hard for workers to organize. At the same time, unions blame the government of somehow complicating their work by taking steps against them. A recent example of this trend is linked to the decision by Delhaize (a Belgian supermarket group that was created in 1867) to franchise the majority of its stores making collective bargaining more difficult by splitting the workforce. Moreover, when unions acted against this decision, politicians sometimes broke up picket lines with the help of bailiffs, and the courts issued orders banning strikes and even gatherings in the vicinity of the supermarkets concerned.
Citations:
A press article on the overall problem faced by the government with platform companies: https://www.lecho.be/economie-politique/belgique/general/a-l-aube-du-proces-deliveroo-l-etat-toujours-empetre-face-aux-plateformes-de-livraison/10506265.html
Uber contre un chauffeur: https://www.lecho.be/dossier/mobilite/uber-obtient-gain-de-cause-son-chauffeur-n-est-pas-un-salarie/10436529.html
A press article on the Delhaize case: https://www.lesoir.be/530986/article/2023-08-13/delhaize-pourquoi-la-strategie-syndicale-se-radicalise
Finland
The constitution of Finland (Chapter 19) dictates that all unemployed persons (and persons seeking employment for the first time) are covered through a social security scheme. There have also been policies to incentivize part-time work for unemployed individuals through income disregard schemes, allowing unemployment benefit claimants monthly earnings of up to €300 without any deduction in the benefit amount (Open Unemployment Fund A-kassa 2023). However, Prime Minister Orpo’s government has decided to abolish the so-called income disregard in the unemployment benefit scheme.

Trade union contribution payments are tax deductible in Finland. Collective agreements are binding on all workers, regardless of their union membership. Policies and regulations ensure the full portability of social rights, including social insurance and pensions.
Citations:
Open Unemployment Fund A-kassa. 2023. “Impact of Part-Time Work on Earnings-Related Unemployment Allowance.” https://a-kassa.fi/en/impact-of-part-time-work-on-earnings-related-unemployment-allowance

OECD. 2023. Evaluation of Active Labour Market Policies in Finland, Connecting People with Jobs. Paris: OECD Publishing. https://doi.org/10.1787/115b186e-en
Slovakia
Existing policies and regulations provide universal social protection for all workers. Health, social, and unemployment insurance are compulsory for all employed or self-employed individuals.

Labor Law 76/2021 Z. z. stipulates that the employer shall negotiate all relevant aspects of working conditions and sign the collective agreement with trade unions present in the firm or with the council of employers in firms where trade unions do not function. Only in firms where no representative body represents employees can the employer act autonomously.
Citations:
Zákonník práce. 2021. https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2001/311/vyhlasene_znenie.html
Slovenia
The OECD’s comparative data on financial barriers to returning to work for Slovenia in 2023 shows the result for minimum wage is 87% of earnings, the sixth highest percentage among OECD countries. For the average salary, the result is 67.1%, very close to the OECD average of 69.9%. For 67% of the average wage in Slovenia, the result is 80.1%.

Trade unions in Slovenia continue to be a strong and important player in the institutionalized tripartite social dialogue – the Economic and Social Council. There are some differences between the various governments. Under the Janša government in 2021, the trade unions decided to withdraw from the social dialogue in the council after the government systematically violated the rules for the council’s functioning. Conversely, during the Golob government, this step was taken by the employers’ organizations, which accused the government of violating the social dialogue and pointed out their unequal position. Although the unionization rate in Slovenia is still around 20%, all employees, not only union members, can benefit from the agreements that unions have reached with employers or the government.

Regarding social security during unemployment, the basis for calculating financial compensation is the average monthly salary received in the eight months before the month of unemployment. For young people under 30 years of age, this period is five months. The duration of financial compensation depends on the employee’s age and insurance period, ranging from 2 to 25 months. Compensation decreases from 80% of the base for three months to 60% for the next nine months and 50% after one year. If, at the end of the financial compensation period, an employee has no more than one year to fulfill the minimum requirements for the old-age pension and is still unemployed, they may be entitled to have their pension and disability insurance contributions paid by the state.

To some extent, the portability of social rights is guaranteed, particularly with pensions. In Slovenia, there is a widow’s pension and a family pension, which can be drawn under various conditions. It is also possible to receive a disability pension.
Citations:
Al, Ma., and M.Z. 2021. “Sindikalne centrale se umikajo iz Ekonomsko-socialnega sveta.” RTVSLO. https://www.rtvslo.si/slovenija/sindikalne-centrale-se-umikajo-iz-ekonomsko-socialnega-sveta/580017

OECD. 2024. “Financial Disincentive to Return to Work.” https://data.oecd.org/benwage/financial-disincentive-to-return-to-work.htm

M.Z. and K.G. 2023. “Delodajalci začasno izstopajo iz ESS-ja.” RTVSLO. https://www.rtvslo.si/slovenija/delodajalci-zacasno-izstopajo-iz-ess-ja-mesec-gre-za-takticno-blokado-sprememb/675724
Spain
For the first time, Law 2/2023 establishes that all individuals participating in external training or academic internships as part of company, institution, or entity training programs must pay social security contributions, thereby extending existing social insurance schemes to previously excluded categories.
The labor market law of 2021 reinstated the precedence of sectoral agreements over firm-level agreements for wage negotiations. Higher-level agreements take priority over firm-level ones, with specific exceptions in areas such as overtime payment, distribution of working time, and conciliation. The new labor regulation encompasses agreements on more than 12 different items, including criteria to balance the representation of men and women in training contracts, plans for reducing temporary employment, and access to training programs for fixed-term employees, among others. In this context, the reform has the potential to enhance the role of collective bargaining and social dialogue. All workers may benefit from improvements in protection negotiated by the unions with employers.
The lack of a unique personal ID has historically created several problems for the portability of social rights. Moreover, procedures are not uniform across autonomous communities. These regions use different operational tools, request different ID numbers for primary identification, and adopt varying strategies to identify people when the primary ID number does not exist (Muñoz de Bustillo, 2022). Autonomous communities also employ different strategies for undocumented persons. The Organic Law 3/2018, of 5 December, on the Protection of Personal Data and the Guarantee of Digital Rights, includes the right to portability. The OECD suggests enhancing regional transferability of social and housing rights to improve system efficiency and enable individuals to leverage employment opportunities in more distant locations (OECD 2023). Additionally, improving communication with households eligible for the minimum income guarantee could increase its utilization.
Citations:
Rafael Muñoz de Bustillo. 2022. “The 2022 Spanish Labour Reform.” International Review of Economic Policy 4 (1): 62-80.
OECD. 2023. “Economic Surveys: Spain 2023.” https://read.oecd-ilibrary.org/economics/oecd-economic-surveys-spain-2023_5b50cc51-en#page4
Sweden
In Sweden, policies and regulations generally provide robust social protection for workers, aiming to extend existing social insurance schemes to previously excluded worker categories and adapt them to non-standard forms of work. The country’s welfare system is comprehensive and inclusive, encompassing various social insurance programs such as unemployment benefits, sickness benefits, parental leave, and healthcare.

Efforts have been made to ensure that workers in non-standard employment arrangements, such as part-time workers, temporary workers, and self-employed individuals, have access to these social protections. Major features of Sweden’s social insurance policies include the separation of spouses’ income and individual taxation, the expansion of public and private day care centers, and a very generous parental leave program provided to both women and men, which has created much better possibilities to combine a professional career with parenthood (Dufvander and Löfgren, 2020).

The basic difference between the social democratic and green parties, on one hand, and the center-right parties, on the other, is that the former emphasize gender equality, whereas the latter emphasize freedom of choice. Both blocs, however, are fully committed to the overarching goals of family policy and see it as integral to promoting gender equality.

Additionally, reforms have been introduced to address gaps in social protection for workers in non-standard employment, such as the introduction of income-related unemployment benefits for part-time workers (Försäkringskassan, 2024).

Regarding employment protection legislation, Sweden ranks below the average for all OECD countries in terms of temporary contracts. However, concerning employment protection for regular workers, Sweden ranked in the top third of all OECD countries in 2019, the year with the latest available data (OECD 2020).

Sweden has established mechanisms to facilitate the transfer of social insurance benefits and pensions for individuals who move among different jobs, sectors, or countries. Additionally, within the European Union, Sweden adheres to regulations that guarantee the portability of social security benefits for EU citizens working or residing in different member states.

Overall, while Sweden’s policies and regulations provide extensive social protection for workers and strive to address the needs of those in non-standard employment arrangements, there may still be areas for improvement, particularly regarding the effectiveness of measures ensuring the portability of social rights across diverse employment contexts.
Citations:
Duvander, A-Z., and Löfgren, N. 2020. “Sweden Country Note.” In Koslowski, A., Blum, S., Dobrotić, I., Kaufman, G., and Moss, P. eds. “International Review of Leave Policies and Research 2020.” http://www.leavenetwork.org/lp_and_r_reports/

Försäkringskassan. 2024. “Social insurance system.” https://www.forsakringskassan.se/english/moving-to-working-studying-or-newly-arrived-in-sweden/social-insurance-system

OECD. 2020. “OECD Employment Outlook, Chapter 3: Recent Trends in Employment Protection Legislation.”
Switzerland
Switzerland has a well-developed system of generous unemployment benefits and an active labor market policy. Unemployment benefits are available for traditional employees; the self-employed are not covered by unemployment insurance. Generally, the unemployed are entitled to unemployment benefits if they are unemployed for at least two days, if they are residents of Switzerland (foreigners need to have a valid long-term or basic residence permit), and if they have contributed to the unemployment insurance program for at least 12 months. Students who cannot get a job after finishing their studies can apply for unemployment benefits after a waiting period of 120 days (work.swiss 2023). Unemployment benefits are not extended to undocumented migrants, whose number is difficult to determine, but was estimated between 100,000 and 300,000 in 2005, and who fill the needs of the labor market (Longchamp et al. 2005).

Trade union density in Switzerland is low by international comparison. Due to corporatist integration and the opportunities offered by direct democracy, unions’ political influence may be greater than the density figures suggest. But generally, unions’ power is limited, making them a junior partner in a corporatist system dominated by employers and their organizations (Armingeon 2007, 2011; Mach et al. 2020; Mach/Eichenberger 2022). However, due to the so-called flanking measures of the bilateral agreements with the EU, a large share of jobs are covered by generally applicable collective agreements (erga-omnes-rules) (Oesch 2011). In 2022, about 50% of all jobs were covered by collective agreements, and among these, every second job was covered by a generally applicable collective agreement (FSO 2023).
Social rights within Switzerland are strongly portable. Social policy is mainly regulated at the federal level. The most important social insurance programs – unemployment and pensions (1st pillar) – are federal-level systems, although they are implemented at the regional level. The second pension pillar is run by private pension funds, but assets can be shifted between these funds in the event of a change of employer.
Citations:
Armingeon, Klaus. 1997. “Swiss Corporatism in Comparative Perspective.” West European Politics 20(4): 164-179.

Armingeon, Klaus. 2011. “A Prematurely Announced Death? Swiss Corporatism in Comparative Perspective.” In Switzerland in Europe: Continuity and Change in the Swiss Political Economy, eds. Christine Trampusch and André Mach. London/New York: Routledge.

FSO (Federal Statistical Office, Bundesamt für Statistik). 2023. “Gesamtarbeitsverträge nach Typ, Grösse und Wirtschaftssektor.” https://www.bfs.admin.ch/bfs/en/home/statistics/work-income.assetdetail.28985683.html

Claude Longchamp, Monia Aebersold, Bianca Rousselot, Silvia Ratelband-Pally. 2005. Sans-papiers en Suisse.
c’est le marché de l’emploi qui est déterminant, non pas la politique d’asile. Rapport final sur mandat de l’Office fédéral des migrations, Gfs.Bern.

Mach, André, Frédéric Varone, and Steven Eichenberger. 2020. “Transformations of Swiss Neo-Corporatism: From Pre-Parliamentary Negotiations toward Privileged Pluralism in the Parliamentary Venue.” In The European Social Model under Pressure, eds. Romana Careja, Patrick Emmenegger, and Nathalie Giger. Wiesbaden: Springer Fachmedien Wiesbaden, 51-68.

Mach, André, and Steven Eichenberg. 2022. “Associations d’intérêts.” In Handbuch der Schweizer Politik. 7. Auflage., eds. Yannis Papadopoulos, Pascal Sciarini, Adrian Vatter, Silja Häusermann, Patrick Emmenegger, and Flavia Fossati. Zürich: NZZ Libro, 439-464.

Oesch, Daniel. 2011. “Swiss Trade Unions and Industrial Relations After 1990. A History of Decline and Renewal.” In Switzerland in Europe: Continuity and Change in the Swiss Political Economy, eds. Christine Trampusch and André Mach. London/New York: Routledge, 82-102.

Work.swiss. 2023. “FAQ Arbeitslosenentschädigung.” https://www.arbeit.swiss/secoalv/en/home/menue/stellensuchende/arbeitslos-was-tun-/faq_arbeitslosenentschaedigung.html
7
Czechia
Existing labor laws in Czechia provide substantial protection to employees by limiting excessive working hours, preventing arbitrary dismissals, and ensuring rights to holidays. However, challenges persist due to the lack of such rights and protections for those outside standard employment contracts and potentially poor enforcement for those with regular employment contracts. The former category includes individuals working under contracts for individual tasks, which encompasses many registered as self-employed. The full extent of such fraudulent forms of self-employment cannot be estimated accurately, but estimates range between 2% and 4% of the labor force. Students and other young people also frequently work under casual contracts with pay levels that start around the subsistence minimum.
A significant amendment to the Czech labor code, incorporating EU directives on work-life balance and transparent working conditions, will take effect on October 1, 2023, with certain provisions delayed until January 1, 2024. These modifications include expanded employer information duties, electronic contracting options for labor transactions, rules for remote work, enhanced rights for parent employees, and relaxed formalities for the service of process. Remote work arrangements will require rights to breaks during working hours and holidays. However, these changes will not affect work under contracts for specific tasks, provided the employer can prove that it is not effectively an employment contract (i.e., fixed working hours, a defined workplace, a hierarchical relationship with an “employer” able to order changes to work tasks). For many in casual work arrangements, it is extremely difficult to challenge the contract they are offered.
The enforcement of labor law is bolstered by the presence of trade unions, which can, and often do, negotiate collective agreements that improve protections and working conditions. Employers have obligations toward worker representatives, including facilitating their activities and providing leave with compensatory wages. Transnational information access rights are also outlined, requiring certain employers to provide information and consultation through European Works Councils or agreed procedures. Union membership in the Czech Republic stands at around 12% of employees, with ČMKOS being the dominant force. Data from 2022 showed that 45% of all employees were covered by collective bargaining, 52% were not covered, and the remainder were unclear. Pay was 17% higher for those covered, and hours worked were marginally less.
Citations:
Act No. 281/2023 Coll. on the amendment of the Labor Code (Act No. 262/2006 Coll., as amended) and certain other laws.

https://www.worker-participation.eu/national-industrial-relations/countries/czech-republic

https://portal.gov.cz/en/informace/rules-concerning-worker-representation-INF-19
https://advokatnidenik.cz/2023/08/28/mohou-se-dohody-o-praci-zmenit-na-svarcsystem/
https://www.czso.cz/csu/czso/struktura-mezd-zamestnancu-2022
France
Social protection has previously been provided for all workers. New forms of work – especially new independent status for small enterprises (auto-entrepreneurs) – limit such rights (Marzo 2021).

Trade unions have been in decline for decades. Effective representation, however, is regulatorily ensured for all big firms. Smaller firms, especially those with fewer than 50 employees, are not subject to most of these obligations.

Most social rights are portable, especially if workers changing jobs stay in the same sector. The latest development in this area has been the portability of the rights to training. Pension reforms have also served to align rights across the various sectors.

Financial disincentives to return to work have not significantly changed in recent years – they remain relatively high,and above the OECD average.
Citations:
Marzo, C. 2021. “Comparaison britannique des tentatives de protection sociale des travailleurs de plateformes au prisme de la pandémie: vers un nouvel équilibre entre acteurs publics et privés?” Revue de droit comparé du travail et de la sécurité sociale 3: 142-163.
Ireland
“Pathways to Work (2020-2025)” identifies labor market risks associated with the modern economy, characterized by rapidly transitioning skills, sectors and job types due to digitalization, artificial intelligence and climate transition. The Labour Market Council is hosted by the Department of Social Protection, and there is also a Low Pay Commission. Additionally, the Department of Enterprise and Employment anticipates labor market changes, while the Department of Higher and Further Education, Research, Innovation and Skills oversees SOLAS, the national training agency. However, there is a lack of integration across these bodies. The 2020 Programme for Government includes a commitment to a Just Transition Commissioner. While a limited Just Transition Commission was rolled out in the context of the transition from peat/turf production in the midlands, there is a growing sense that a broader Just Transition Commissioner is necessary. This expanded role would address labor market risks and transitions resulting from climate and emissions policies, including those related to agriculture, which is considered Ireland’s primary transition risk.
Citations:
McGann, M., and M. P. Murphy. 2021. “Introduction: The Dual Tracks of Welfare and Activation Reform-Governance and Conditionality.” Administration 69 (2): 1-16.
OECD. 2024. “Benefits in Unemployment, Share of Previous Income (Indicator).” doi:10.1787/0cc0d0e5-en
Lithuania
Labor market institutions are primarily focused on protecting individuals from labor market risks. The availability of unemployment benefits depends on the individual’s employment record. Although the requirement is not demanding – to be eligible, an individual must have been employed for at least one year during the last 2.5 years – it may pose a risk for some. The long-term unemployment rate in Lithuania has been higher than the OECD average.

Only a small share of employees are members of trade unions, and it is a dominant practice to negotiate wage and other employment conditions individually. According to the OECD, trade union density was 7.4% in 2019, while employer organization density was 33% in 2016. The portability of social rights is affected by EU-wide regulations (OECD and AIAS 2021).
Citations:
Lithuanian Ministry of Social Security and Labor. “Unemployement social insurance (in Lithuanian).” https://socmin.lrv.lt/lt/veiklos-sritys/socialinis-draudimas/socialinio-draudimo -ismokos/nedarbo-socialinis-draudimas?lang=lt
OECD and AIAS. 2021. Institutional Characteristics of Trade Unions, Wage Setting, State.
Intervention and Social Pacts, Lithuania. OECD Publishing, Paris. www.oecd.org/employment/ictwss-database.htm
New Zealand
New Zealand’s labor market institutions play an important role in mitigating labor market risks.

Employment laws and regulations protect workers’ rights, such as minimum wage laws and health and safety regulations, and establish provisions for fair dismissals. Government agencies gather data that help policymakers anticipate labor market risks and take proactive measures.

New Zealand has social safety nets, including unemployment benefits and welfare support, that serve as a buffer during periods of unemployment or economic instability. Efforts have been made to broaden the coverage of such protection benefits to previously excluded worker categories, such as migrant workers (Harris 2020). The Labour-Green coalition had plans to introduce an income insurance scheme modeled on similar programs in Europe, but the plans were shelved in early 2023. Prime Minister Hipkins said there would need to be “significant improvement” in economic conditions before the scheme could be implemented (Taunton 2023).

While the government has made efforts to mitigate labor market risks, there are areas that require more policy work. In particular, more must be done to adapt regulations and support schemes to accommodate the growing prevalence of nonstandard forms of work, such as among gig economy workers (Pullar-Strecker 2023). There are also concerns that the newly elected National government will roll back the protection of workers’ rights. For example, ACT – one of the three coalition parties – has signaled that it wants to change the Employment Relations Act to prevent courts from ruling that a person employed as a contractor could claim the rights of an employee (Stock 2023). Already in December 2023, the new government repealed the Fair Pay Act – legislation passed by Labour in 2022 that would have allowed sector-wide collective employment negotiations (McConnell 2023).
Citations:
Harris, C. 2020. “Migrant workers to receive emergency benefits.” Stuff, 20 November. https://www.stuff.co.nz/business/123455880/migrant-workers-to-receive-emergency-benefits

McConnell, G. 2023. “Every bill the Government has passed under urgency.” Stuff, December 22. https://www.stuff.co.nz/national/politics/133493748/every-bill-the-government-has-passed-under-urgency

Pullar-Strecker, T. 2023. “Uber Granted Right to Appeal Drivers’ Employment Status.” Stuff, June 8. https://www.stuff.co.nz/business/132269681/uber-granted-right-to-appeal-drivers-employment-status

Stock, R. 2023. “ACT’s contractor plan finds favour with BusinessNZ, but unions say it will worsen inequality.” Stuff, June 22. https://www.stuff.co.nz/business/132389990/acts-contractor-plan-finds-favour-with-businessnz-but-unions-say-it-will-worsen-inequality

Taunton, E. 2023. “Delay to income insurance scheme a blow for workers, union says.” Stuff, February 8. https://www.stuff.co.nz/business/131177245/delay-to-income-insurance-scheme-a-blow-for-workers-union-says
Poland
Social insurance in Poland includes pensions, disability and sickness benefits, and accident insurance. These cover employees engaged in employment contracts. Individuals conducting business activities independently or employed under a civil law contract (commission agreements) can opt out of sickness insurance and join it voluntarily. Workers employed under a specific task contract are excluded from pension insurance. Their only obligation is to register such a contract with the Social Insurance Institution (Zakład Ubezpieczeń Społecznych, ZUS). In 2023, the topic of social security contributions for specific task contracts appeared in the National Reform Plan, and were the subject of social consultations. Changes to this regulation were unlikely to appear before the first quarter of 2024.

Trade union membership is open to employees, individuals employed under civil law contracts, and the self-employed. Union members always have greater protection, particularly in matters of job termination and individual labor law. Another representative body for employees is the Workers’ Council, which serves as an in-house mediator between employers and employees. Unlike trade unions, the Council represents all employees.

In general, social rights and social insurance apply to specific individuals. After meeting risk criteria, recipients receive specific benefits. Family members typically also receive health insurance. In the realm of pension insurance, there is the institution of a family pension, a benefit triggered by the death of a family member. This amounts to 85% of the benefit that the deceased individual would have received. Pension insurance benefits can also be inherited.
Citations:
https://notesfrompoland.com/2022/06/01/ukrainian-refugees-fill-gaps-in-polish-labour-market-but-risk-getting-stuck-in-low-skilled-jobs/
Portugal
In Portugal, a mandatory social insurance scheme automatically covers all eligible workers. Those not required to join can opt into the voluntary social insurance scheme, which is designed for national citizens of legal age who are fit for work. This scheme is particularly important for social volunteers, scholarship recipients, high-performance athletes, professional interns, and informal caregivers, as it offers them access to social security benefits. The system provides a range of benefits to mitigate various labor market risks, including unemployment, retirement, sickness, and disability.

Moreover, recent legislation has sought to expand the coverage of the Portuguese social security system, such as by criminalizing employers who did not report domestic service personnel, a development that took place in 2023.

For individuals who do not meet specific criteria for certain benefits, such as the minimum number of working years, the solidarity subsystem of social security offers means-tested social benefits. This subsystem is accessible to all national citizens and aims to ensure essential social rights, prevent and eradicate poverty and social exclusion, and provide assistance in situations of personal or family need. It also addresses social or economic imbalances resulting from deficiencies in the contributory social security system.

Additionally, workers and employers have collective representation structures, such as trade unions, to safeguard and promote their interests and rights. In Portugal, the current legal framework permits multiple worker representation structures, operating under principles of autonomy and independence. All workers, regardless of age or role, have the right to establish trade unions at any level to defend and enhance their socio-professional interests.
Citations:
Expresso. 2023. “Novas regras para o trabalho doméstico: saiba como calcular as contribuições sociais e quanto terá de pagar.” Expresso, May 12. https://expresso.pt/economia/trabalho/2023-05-12-Novas-regras-para-o-trabalho-domestico-saiba-como-calcular-as-contribuicoes-sociais-e-quanto-tera-de-pagar-9ce3906e
Netherlands
Although government regulations systematically and automatically adjust the pension age based on increasing life expectancy, they only moderately mitigate labor market risks for groups such as those over 66 – 67 years old (depending on the birth year). In 2023, there were over 300,000 workers aged 65 or older (3.3% of all employed), many of whom were gainfully employed or self-employed, including artists, truck drivers and tailors. Although employment agencies offer placements for those over 50 or willing to work past 65, this population faces stubborn discriminatory biases from employers, labor unions (due to pension liabilities in collective labor agreements, CAOs) and the government, with concerns focusing on high wage costs versus perceived lower productivity and creativity. Starting 1 January 2024, the government is gradually phasing out the labor cost tax advantage for employers hiring older workers.

Studies indicate that young disabled individuals are at high risk of long-term financial hardship, particularly due to their vulnerable position in society. Research concludes that the current fragmented policies, relying on self-reliance, social network support and local government responsibilities for integrating state support systems are ineffective and inefficient.

Collective agreements negotiated by labor unions to protect workers’ rights regarding various working conditions still function effectively. However, union influence has weakened in recent years, with fewer than 20% of employees in some sectors remaining union members, and these memberships skewing toward older demographics. This situation means that a small minority of workers (e.g., among metalworkers or teachers) influence sector-wide employment terms. It also results in less representative consultation processes, often focusing on arrangements beneficial to older workers (see also “Effective Civil Society Organizations (Capital and Labor)”). This dynamic is supported by a quasi-contractual incorporation clause in collective bargaining agreements, making these agreements binding for all workers within a sector regardless of union membership.

Most employers accept the incorporation clause due to economies of scale with regard to transaction costs. However, in SMEs and certain sectors, there is a shift toward company-specific agreements in which works councils substitute for labor unions. If this trend persists, labor laws may need revision to enhance works councils’ rights, or to strengthen and institutionalize the legal basis of the incorporation clause.

The portability of social rights depends on international treaties and national conditions. Generally, state pensions (AOW), worker’s disability benefits (WAO), disability insurance for the self-employed (WAZ), benefits under the law on work and income (WIA), benefits under the law on surviving dependents (ANW), and sick leave benefits are unconditionally portable within the EU, EEA and Switzerland, with continued eligibility monitored in these countries. However, benefits like unemployment benefits (WW), surcharges on other benefits (Toeslagenwet) and benefits for disabled youth (Wajong) face portability restrictions unless individual arrangements are made with the relevant benefit agencies.
Citations:
NBA-platform voor accountants en financials, 25 August 2021. Steeds meer werkende 65-plussers.

Ministerie van Sociale Zaken en Werkgelegenheid. n.d. “Arboportaal. Ouderen en werk.”

tax live.nl, Wolters Kluwer, 21 December 2023. Gevolgen stapsgewijze afschaffing loonkostenvoordeel oudere werknemers.

Nationale Ombudsman. 2022. Meedoen zonder beperkingen. De financiële problemen van jongeren met een beperking in de Wajong en Participatiewet. Rapportnummer: 2022/144.

Rijksoverheid. n.d. “Werken met een arbeidsbeperking.”

NRC. 2023. “Vakbonden hebben opnieuw minder leden, maar stakingsacties remmen daling.” Marée, October 31.

Eén Vandaag. 2023. “Waarom aantal leden van vakbond niet uitmaakt bij onderhandelingen, maar hoe representatief ze zijn wél.” January 23.

Rijksoverheid. n.d. “Welke uitkeringen kan ik meenemen als ik ga emigreren?” https://www.rijksoverheid.nl/onderwerpen/emigreren/vraag-en-antwoord/uitkeringen-meenemen-naar-het-buitenland
UK
The shift to Universal Credit (UC) as a single mechanism integrating previously fragmented benefits marked a significant change in the UK’s approach to social welfare. This transition provoked considerable controversy and encountered several initial difficulties. The transition to UC as the main benefit is now nearly complete, although some individuals can still claim Job Seeker’s Allowance or Employment Support Allowance, depending largely on their contribution record. UC includes benefits for the low-paid, those not in employment, and has additional provisions for disabled people and the self-employed. The Scottish government now has increased responsibility for social security concerning disability and has committed to providing more assistance in claiming benefits.

Since the start of the New Labour government in 1997, the UK has adopted an active labor market policy where the employment agency, now called Job Centre Plus (JCP), works with claimants to help them find jobs. JCP offers various forms of support for accessing jobs and requires claimants to attend meetings and agree to a program with a designated work coach. Benefits can be withdrawn if claimants do not adhere to the terms. The JCP provides support tailored to different categories of claimants and has transitioned to online job advertising through the “Find a Job” system. There is no direct union involvement in this process.

From September 2020 to March 2022, the pandemic-related Kickstart scheme provided employment subsidies to create new jobs for 16 to 24-year-olds on Universal Credit who were at risk of long-term unemployment. The scheme subsidized jobs for six months for up to 25 hours per week. An evaluation of the scheme found that it broadly achieved its aims but faced initial problems and was least successful in supporting the least qualified participants and certain ethnic groups.
Citations:
https://www.jobcentreguide.co.uk/

https://www.gov.uk/government/publications/kickstart-scheme-process-evaluation/kickstart-scheme-process-evaluation#reflections-and-recommendations
https://www.gov.scot/publications/our-vision-for-social-security/
6
Australia
There is a strongly held belief among Australian policymakers that the best way to manage risk is to ensure a high level of employment, rather than developing policies to directly protect individuals against labor market risks. A low-unemployment economy benefits workers who would otherwise face high risks of joblessness, including young workers, those with relatively low levels of education, and those in manual jobs. Australian governments have been mostly successful in implementing this approach (AIHW 2023). However, there remains a significant number of people who receive benefits as part of the JobSeeker program. Although there was a sharp increase in JobSeeker recipients during the pandemic, the number has decreased rapidly since then. However, those on JobSeeker remain on the program for longer than in the past, indicating difficulty in finding work (Ballantyne and Coates 2022).

Australia does not have a national unemployment insurance system, and relatively few workers are protected by unemployment insurance in the event of job loss. A flat-rate unemployment benefit with stringent income and assets tests is the only protection provided by the state. This means most workers have almost no protection against labor market risks. Protections provided by trade unions are confined to a relatively small proportion of the workforce. The portability of social rights is limited to private retirement savings, which are fully portable.
Citations:
AIHW. 2023. “Employment and Income Support Following the COVID-19 Pandemic.” https://www.aihw.gov.au/reports/australias-welfare/australias-welfare-2023-data-insights/contents/employment-income-support-following-pandemic

Ballantyne, A., and B. Coates. 2022. “When Unemployment Falls, Disadvantaged Workers Benefit Most.” The New Daily May 11. https://grattan.edu.au/news/when-unemployment-falls-disadvantaged-workers-benefit-most/
Canada
Overall, Canada has a fairly strong social safety net to mitigate labor market risks relative to many other countries, but it is in need of updating.

Several key supports for workers have existed in Canada for decades, dating back to programs first introduced during the First World War and the Depression of the 1930s. Chief among these is unemployment insurance, which helps replace wages during temporary job loss. Workplace safety standards and workers’ compensation rules also help minimize injury and illness risks. Minimum wage laws aim to provide a living wage and address exploitation, while pension plans guard against poverty in retirement.

However, recent changes in the labor force have not been adequately addressed. Unemployment insurance has not adapted to trends of more frequent job transitions, and the self-employed have less access to these protections. Consequently, precarious gig economy jobs typically lack social protections or benefits. The risk of job automation is also not supported by dedicated retraining programs. Additionally, inequities in work benefits continue to exist across income levels.
Estonia
Estonia has compulsory unemployment insurance with contributions shared between the employee and the employer. Legislative changes in summer 2023 made the unemployment benefit system more adaptive to the labor market situation. If the unemployment rate increases, the duration of benefits is extended. The adjustment mechanism is automatic, based on labor market statistics, and thus keeps administrative burdens low while providing timely relief to unemployed households.

Besides this improvement, some issues remain or are only partly resolved. Social protection does not cover platform workers, who are in most cases registered in Estonia as self-employed and thus not eligible for unemployment benefits. All self-employed individuals are responsible for paying the social tax, which covers health insurance and old-age pensions, meeting at least a set minimum (€215 monthly in 2022). This can be problematic if the individual’s business is not doing well.

Estonia has a very low union density, with only 6% of workers covered by collective agreements – the lowest such rate in Europe (ETUI, 2023). Thus, exercising bargaining power in negotiations with the neoliberal government is quite a challenge. For example, the government opposes the proposed EU Platform Work Directive. According to Minister of Economic Affairs and Information Technology Tiit Riisalo, the directive may risk subjecting most gig workers to work contract regulations that may not be compatible with the platforms’ business models (MKM, 2023).

As a member of the EU, Estonia ensures the portability of social rights through EU legislation. Additionally, Estonia has bilateral agreements on pensions with several non-EU countries.
Citations:
ETUI. 2023. “Wages and Collective Bargaining: Fighting the Cost-of-Living Crisis.” https://www.etui.org/sites/default/files/2023-03/Benchmarking_3.%20Wages%20and%20collective%20bargaining%20fighting%20the%20cost-of-living%20crisis_2023.pdf
MKM. 2023. “Platvormitöö direktiivi esialgne kokkulepe ei leidnud EL liikmesriikide toetust.” https://www.mkm.ee/uudised/platvormitoo-direktiivi-esialgne-kokkulepe-ei-leidnud-el-liikmesriikide-toetust
Israel
There are various protections against labor market risks, but these are generally limited in scope.
Unemployment benefits are comparatively low in both replacement rate and duration, partly due to a lack of funding following reductions in employers’ payments (Koreh 2020). Employees are eligible for unemployment benefits if they have worked for at least 12 out of the last 18 months.
Self-employed workers are not eligible for unemployment benefits. Various attempts to change this situation over the years have failed. Self-employed workers are also not eligible for other benefits such as paid leave, sick days or vacation.
In Israel, a mandatory pension law has been in place since 2018, requiring 18.5% of the value of an employee’s salary to be paid into a pension fund. Employees contribute 6% of their salary, while the employer covers the rest. Self-employed workers are also subject to this requirement. This mandatory pension system reflects a privatized scheme, ensuring that all employees have privately managed pension funds (Lurie 2018).
All government employees (including civil servants and local authority workers) are represented by the central labor union. However, this does not include workers in outsourced public services, who are usually not organized and enjoy only basic mandatory work benefits (Paz-Fuchs 2018). In addition, unionization of private sector employees has been increasing in recent years, particularly among workers of high-tech and service provision companies. In 2022, 30% of employees in Israel were members of a labor union (Kolerman 2022).
Citations:
Koreh, Michal. 2019. “The Deficit Crisis in the National Insurance Budget Towards the Year 2027 - Description of the Causes, Analysis of the Consequences and Proposed Solutions.” Social Security 108.

Kolerman, Matan. 2022. “The Effect of Labor Unions on Inequality, Employment and Wages.” Arlozorov Forum. https://www.arlozforum.org/post

Lurie, L. 2018. “Pension Privatization in Israel.” In A. Paz-Fuchs, R. Mandelkern, and I. Galnoor, eds., The Privatization of Israel: The Withdrawal of State Responsibility, 101–121. Palgrave Macmillan. https://www.palgrave.com/gp/book/9781137601568#otherversion=9781137582614

Paz-Fuchs, A. 2018. “Privatization, Outsourcing, and Employment Relations in Israel.” In A. Paz-Fuchs, R. Mandelkern, and I. Galnoor, eds., The Privatization of Israel: The Withdrawal of State Responsibility, 283-309. New York: Palgrave Macmillan US. https://doi.org/10.1057/978-1-137-58261-4_12
Italy
The traditional Italian system for protecting against unemployment risks (Cassa Integrazione Guadagni) was significantly improved and extended in 2015 and 2022 (Law decree of 18 August 2015 n.148 and Budgetary Law of 2022). Consequently, Italy has a well-structured system of unemployment benefits that covers all types of workers who lose their jobs: employees with and without permanent contracts, associates, and agricultural workers.

However, approximately 3 million irregular workers in Italy lack regular employment contracts and, therefore, insurance coverage and protection in the event of dismissal. For these workers, the only protection available is provided by social support programs against poverty (Reddito di Cittadinanza until 2023 and the new Inclusion Income or the Formation and Labor Support program since 2023) (Law 3 July 2023 n.85).

The portability of pensions is guaranteed by law, but the real problem for the future is that the fragmented careers of the younger generation will result in lower pensions compared to those of current pensioners.
Citations:
- Istituto NAzionale della Previdenza SOciale. 2023. XXI Rapporto annuale. https://www.inps.it/it/it/dati-e-bilanci/rapporti-annuali/xxi-rapporto-annuale.html

Inapp. 2023. “Il sostegno al reddito in caso di sospensione temporanea o disoccupazione involontaria.” https://pubblicazioni.inapp.org/handle/20.500.12916/4085
Japan
In 2020, Japan spent only 0.24% of GDP on unemployment benefits, well below the 0.58% OECD average. Moreover, only a comparatively small share of the unemployed receive benefits, which can be at least partially explained by the fact that many non-regular positions do not qualify workers for benefits. However, the criteria for participation in the unemployment insurance program have been continually relaxed. In 2010, the minimum expected period of employment was reduced from six months to 31 days and the minimum weekly working hours required were lowered from 30 to 20 in 2012. The unemployment insurance payment period in Japan ranges between 90 and 360 days, depending on the duration of insured employment, age and the reasons the employment ended.

Traditionally, Japanese labor policy has emphasized keeping at-risk workers employed to avoid unemployment in the first place. The Employment Adjustment Subsidy and other subsidy programs have been crucial in this approach and have helped employers maintain excess workers during economic downturns by subsidizing wages. The experience of the global financial crisis and the COVID-19 pandemic suggests that this approach has been largely successful as unemployment rates remained well below those of comparable countries. In contrast, Japan has always spent far less on active labor market policies than comparable countries. Japan’s Support System for Job Seekers provides some free vocational education and training (VET) programs, as well as allowances for VET participants. Re-employment allowances are also available for recipients of unemployment benefits.

Another major concern of Japanese employment practices has been the treatment of migrant workers. The Technical Intern Training Program, which has facilitated the temporary migration of low-wage workers to Japan mostly from developing countries, has been criticized for allowing abusive employment practices and making it hard for workers to claim rights. The current government has announced that the program will be abolished and replaced with more formalized mechanisms of labor migration. This could improve the legal position of workers.

Due to the traditionally large role of corporate welfare schemes, the limited integration of non-regular workers and migrant workers into these systems means there are still considerable differences between different types of workers. In addition, there has been a large gap in social benefits between workers in large, and small and medium-sized firms. Public schemes do not mitigate these gaps in any way and are considered – as a government council admitted – inadequate, especially with regard to old age, where most pensioners rely to a large extent on corporate lump sum payments and pension benefits in addition to the public pension. Payments for workers outside large firms tend to be much lower and non-regular workers do not usually receive any payment. Japan has improved public pension options for self-employed workers in recent years.

As in other countries, low-wage workers have benefited particularly from wage growth, not least because regional and national minimum wage rates have been raised almost every year above inflation. In October 2023, the minimum wage was raised from JPY 1,072 to JPY 1,113 (€7) per hour for Tokyo. Despite improvements in the situation of non-regular workers, who accounted for 36.7% of all employees in 2022, they face many more risks than regular workers. The safety net still does not cover all non-regular workers, though the Kishida cabinet plans to extend some benefits to those working below 20 hours per week. Furthermore, some trade unions that had previously only accepted regular workers as members began to represent the interests of non-regular workers. Thanks to these changes, the number of involuntary non-regular workers has declined considerably from 3.41 million in 2013 to 2.10 million in 2022.
Citations:
Aoki, Kotaro, Nana Iwamoto, and Taro Yamada. 2023. “Japan’s Labor Movement Is Taking Up the Demands of Part-Time and Temporary Workers.” Jacobin, May 9. https://jacobin.com/2023/05/japan-labor-movement-union-organizing-nonregular-workers-spring-offensive

“End of Technical Intern Program: Use Reformed System to Improve Working Environment for Foreigners.” Japan News, February 10, 2024. https://japannews.yomiuri.co.jp/editorial/yomiuri-editorial/20240210-168083/

“Japan weighs jobless benefits for part-timers below 20 hours a week.” Nikkei Asia, April 25. https://asia.nikkei.com/Spotlight/Work/Japan-weighs-jobless-benefits-for-part-timers-below-20-hours-a-week

“Minimum Wage Increased in Japan from 01 October 2023 – October 02, 2023,” 2023, https://wageindicator.org/salary/minimum-wage/minimum-wages-news/2023/minimum-wage-increased-in-japan-from-01-october-2023-october-02-2023

OECD. 2023. “Public unemployment spending (indicator).” doi: 10.1787/55557fd4-en (accessed: 5 December 2023).

OECD. 2023. “Social Spending (Indicator).” doi: 10.1787/7497563b-en

OECD. 2023. “The OECD Tax-Benefit Database. Description of Policy Rules for Japan 2023.” https://web-archive.oecd.org/2023-11-08/500515-TaxBEN-Japan-latest.pdf

Takahashi, Koji. 2023. “Non-Regular Employment Measures in Japan.” Japan Labor Issues 7 (44): https://www.jil.go.jp/english/jli/documents/2023/044-05.pdf
Latvia
According to OECD (2023) data, Latvia has higher-than-average financial disincentives to return to work, providing 82.5% of earnings when a formerly unemployed person returns to employment.

Unemployment benefits in Latvia are tied to social contributions and the duration of time spent in the labor market. The higher the social tax paid, the higher the unemployment benefit received. This link between social contributions and benefit amounts is crucial for addressing labor market risks, particularly given the low unionization rate.

However, the law caps unemployment benefits at eight months, with a regressive element where benefits decrease every two months. Additionally, there is no benefit for the ninth month of unemployment, encouraging a prompt return to the labor market. Once registered as unemployed, individuals must attend training courses and requalification opportunities provided by the State Unemployment Agency. However, under-reported wages in the labor market negatively affect long-term pensions, training opportunities, and social protection.

Social insurance, including unemployment and pensions, is funded through social tax contributions. Residents can also contribute to private pension schemes, such as third-level schemes operated by banks. These private schemes depend on stock market fluctuations, while contributions to state pension schemes directly rely on social tax payments.

The State Unemployment Agency employs a platform and analytical tools for forecasting labor market changes. Short-term forecasts help plan and deliver training for unemployed individuals, while mid-term forecasts assist in policy design.
Citations:
OECD. 2023. “Financial Disincentive to Return to Work (Indicator).” doi:10.1787/3ef6e9d7-en
Law On State Social Insurance. 1997. https://likumi.lv/ta/en/en/id/45466-on-state-social-insurance
NVA. 2023. “Darba tirgus prognozes (in Latvian).” https://www.nva.gov.lv/lv/darba-tirgus-prognozes?utm_source=https%3A%2F%2Fwww.google.com%2F
OECD. 2022. OECD Economic Surveys: Latvia 2022. https://www.oecd.org/latvia/oecd-economic-surveys-latvia-25222988.htm
 
Labor market institutions are only somewhat aligned with the goal of protecting individuals against labor market risks.
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Greece
Labor market institutions in Greece are only somewhat aligned with the goal of protecting individuals against labor market risks.

The minimum unemployment benefit, provided for up to 12 months, is very low at just €479 per month. Due to various exemptions, only about 10% of the unemployed receive this benefit. However, the government plans to increase the benefit to up to €1,300 per month, depending on years of work, and extend its duration to 18 months (Georgakis 2024).

The General Confederation of Greek Workers (GSEE), representing private sector employees and workers, regularly advocates on behalf of the unemployed, ensuring their interests are represented.

Greece’s population, including the unemployed, is covered by a public social insurance agency (EFKA) and the National Health System (ESY), modeled after the UK’s NHS. Despite bureaucratic hurdles and inefficiencies in the ESY, social rights such as social insurance, health insurance, and pensions are portable. Access to public healthcare and basic social insurance for the unemployed has been guaranteed by law since 2016.
Citations:
Georgakis, El. 2024. “A ‘Lifting’ of the Unemployment Benefit is Forthcoming.” Ta Nea website. https://www.tanea.gr/2024/01/21/economy/erxetai-liftingk-lfsto-epidoma-anergias-online/#:~:text=%CE%A3%CF%8D%CE%BC%CF%86%CF%89%CE%BD%CE%B1%20%CE%BC%CE%B5%20%CF%80%CE%BB%CE%B7%CF%81%CE%BF%CF%86%CE%BF%CF%81%CE%AF%CE%B5%CF%82%2C%20%CF%84%CE%BF%20%CE%B5%CF%80%CE%AF%CE%B4%CE%BF%CE%BC%CE%B1,%CE%AD%CF%87%CE%B5%CE%B9%20%CE%B4%CE%B9%CE%B1%CE%BC%CE%BF%CF%81%CF%86%CF%89%CE%B8%CE%B5%CE%AF%20%CF%83%CF%84%CE%B1%20479%20%CE%B5%CF%85%CF%81%CF%8E

The website of the General Confederation of Greek Workers (GSEE) is https://gsee.gr/

Law 4368. 2016. “Providing Access to Public Health Care and Basic Social Insurance for All.”
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Hungary
Labor market oversight and regulation in Hungary are the responsibilities of the Ministry of National Economy, where a state secretariat oversees these functions. Services are provided via the employment fund and the National Employment Service. Social insurance in Hungary is offered to the entire nation. Essential health services for residents of Hungary are provided independently of employment or contributions to the social welfare system. Pension portability is organized in accordance with European standards. Adequate representation through trade unions in Hungary is lacking, as trade unions are fragmented and marginalized, even though company trade unions are widespread and in some sectors have considerable negotiating power (Neumann and Tóth 2018). Some key trade unions, such as the Hungarian Chamber of Commerce and Trade (MKIK), have been co-opted by the government and echo its policy priorities. Overall, social dialogue is weak.
Citations:
Neumann, L., and A. Tóth. 2018. “Hungarian Unions under Political and Economic Pressure.” Rough Waters: European Trade Unions in a Time of Crises, 127.
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USA
The social safety net in the United States is relatively sparse, especially when relying solely on the federal baseline (Hacker 2002). Programs such as the Supplemental Nutritional Assistance Program (SNAP, otherwise known as food stamps), Temporary Aid to Needy Families (TANF, a form of means-tested child benefit), and Medicaid (public health insurance for the poor) assist to some extent with managing labor market risks like unemployment. However, there are many gaps in the federal social safety net (Soss and Schram 2007). There is no federal comprehensive paid leave, which negatively affects those facing health issues or parenthood.
For the first four decades of the Social Security Act of 1935, agricultural and domestic service workers were excluded from most of its protections, including unemployment insurance and the state pension (Lieberman and Lapinski 2001). It wasn’t until 1972 that Congress amended the legislation to include these groups, who were disproportionately workers of color (Ward 2005). Two-thirds of Black women worked in excluded occupations at the passage of the Social Security Act (Skrenty 1996).
The reliance of the U.S. healthcare system on employer-provided healthcare is a significant barrier to labor market flexibility (Maioni and Marmor 2019). About half of Americans receive their healthcare from their employer or their partner’s or parent’s employer (Lockhart 2012). Similarly, paid leave policies are not universally mandated by law but depend on individual contracts with employers (Ramanathan 2021). Given the weakness of unions, these contracts are typically crafted to reflect the interests of employers rather than the best interests of employees (Milkman 2019).
Citations:
Milkman, Ruth. 2019. “The World We Have Lost: US Labor in the Obama Years.” In Looking Back on President Barack Obama’s Legacy, ed. W. Rich. Palgrave.
Maioni, Antonia, and Theodore Marmor. 2019. “Healthcare.” In The United States and Canada, ed. P. Quirk. Oxford: Oxford University Press.
Deborah Ward. 2005. The White Welfare State. Ann Arbor: University of Michigan Press.
John Skrenty. 1996. The Ironies of Affirmative Action. Chicago: University of Chicago Press.
Kumar, Ramanathan. 2021. “From Civil Rights to Social Policy: The Political Development of Family and Medical Leave Policy.” Studies in American Political Development.
Robert Lieberman and John Lapinski. 2001. “American Federalism, Race, and the Administration of Welfare.” British Journal of Political Science 31 (2): 303-329.
Jacob Hacker. 2004. “Privatizing Risk without Privatizing the Welfare State: The Hidden Politics of Social Policy Retrenchment in the United States.” American Political Science Review.
Joe Soss and Sanford Schram. 2007. “A Public Transformed? Welfare Reform as Policy Feedback.” American Political Science Review.
 
Labor market institutions are not at all aligned with the goal of protecting individuals against labor market risks.
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