#1
#1 out of 1
business1d ago
Fewer rights, bigger profits
- Recent OECD and TUAC analyses link stronger employment protection with higher share of income for workers and less inequality.
- Spain's 2021 reform reduced temporary contracts and increased permanent employment, with employment rates reaching a record high.
- Italy's 2015 Jobs Act is cited as a cautionary example where flexible dismissal rules did not boost broad-based growth.
- Stronger protection supports long-term productivity by enabling learning, investment and safer workplaces.
- The article argues that weaker protection can undermine downturn resilience and cause mass layoffs.
- Protection is linked to fertility outcomes, with research suggesting dual labor markets undermine birth rates.
- OECD research emphasizes voluntary transitions as drivers of productivity growth.
- Security in employment is linked to broader social benefits like health and reduced safety net reliance.
- The article frames stronger protections as a condition for growth, not an obstacle.
- Veronica Nilsson, TUAC General Secretary, emphasizes governance and protection to support productivity.
- Policy takeaway: strengthen employment protection to sustain productivity growth and social wellbeing.
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