Employment alone cannot fight poverty but it can be part of the solution

Press release: Dublin February 7, 2013

Intervening at the informal meeting of Ministers of Employment and Social Affairs in Dublin on February 7, Social Platform made clear that employment alone cannot fight poverty and that implementation of the active inclusion strategy is required. The latter demands a strong investment in minimum income schemes and in social services to ensure people can effectively be included in society and have access to the labour market.

The EU has 26 million unemployed people while 120 people are living in poverty, an increase of 4 million since 2010.

Employment alone cannot fight poverty when sometimes even having a job keeps people poor. The 2013 joint employment report recognises that wage adjustments, reduction of working hours, and an increase in part-time and temporary contracts may have contributed to the increase of in-work poverty. Currently 8.7% of people employed live below the poverty line. Employment is also not the answer for children living in poverty, for older people living on decreasing pensions and not the answer for those who cannot work due to a disabling environment (lack of accessibility, lack of supporting and affordable childcare services, and lack of affordable housing).

Social Platform considers that if employment alone cannot fight poverty it can nonetheless be part of the solution. When intervening in front of the 27 ministers of Employment, Conny Reuter, President of Social Platform called for the implementation of the Commission’s 2008 Active Inclusion recommendation: “The economy has to serve the people. People need to be supported with minimum income, access to quality and affordable services and personalised pathways to employment, otherwise the situation will worsen”. He also deplored that only 7 member states have made progress regarding the implementation of the recommendation.

Conny Reuter said at the meeting that “we cannot wait for poverty and social exclusion to be challenged as a mere result of economic and employment policies. It is clear that an integrated approach to poverty and employment that goes further than an isolated focus on labour market conditions and the creation of jobs is needed. Quality of employment, working conditions and access to the labour market must be ensured. The EU must develop an integrated strategy to combat poverty and social exclusion at both European and national level as a core policy in itself to ensure an immediate and sustainable reduction of poverty and social exclusion. The work of social NGO’s is to support the transitions out of poverty and exclusion through social services, education and training is crucial.”

For these reasons, Social Platform supports the Irish Presidency statement that “income support, effective pathways to work and efficient health and social services are all crucial elements of the active inclusion strategies needed to bring about a Europe with a fair, inclusive and sustainable economy”.

Notes to editors: please see our full recommendations to the informal EPSCO Council meeting of February 7-8

ENDS