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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)304
Vol.1980/0108

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(80)304final
Brussels,29May1980
THEUNEMPLOYMENT PROBLEM
(CommunicationoftheCommissionto,heEuropeanCouncil)
\9
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COM(80)304final

THE UNEMPLOYMENT PROBLEM
TheCommunique oftheEuropean Council oflast November stated
'that amore coordinated approach toemployment problems need tobedefined ,
and asked the Commissiori tosubmit proposals onspecific measures to
promote more incisive Community action todeal with theunemployment
problem .
, InApril ,theEuropean Council agreed that thereduction of
inflation wasanimportant means ofcombatting unemployment butthat efforts
within theCommunity toreduce structural unemployment should bestepped up
and better coordinated .
The growth ofunemployment
After the rapid increase inunemployment intheperiod from 1973
^to1977 ,thesituation stabilised somewhat in1978 .Employment rose by
almost amillion although ,with theincrease inthesupply oflabour ,this
did notpermit afall intheunemployment rate from the level of5.5%
(some 6million unemployed ).
Theprospects now are for aworsening ofunemployment in1980 to
6%,with thepossibility offurther large increases in1981 .This would be
inpart due toaslow-down inthesupply ofjobs asaresult ofloweconomic
growth ,and inpart due todemographic factors ,especially the large number
ofyoung people who will continue tocome onto the labour market inthe ,
early 1980s -some 4mayear ,1mayear more than intheearly 1970s .
Policy actions
f •-
s
TheCommission welcomes thesupport oftheCouncil for the
development ofactions totackle unemployment .

-2-
However,thereisariskthatmakeshiftsolutionswillbeput
forwardwhichweakenthefightagainstinflation,yieldtoprotectionist
pressures,andleadtofree-for-allnationaleconomicpolicies.These
couldfurtherworsentheemploymentprospectsintheCommunityby
weakeningcompetitiveness ,andbyfragmenting thelabourmarketbetween
differentcategoriesandgroups,leadingtogreaterinequality.
TheCommunitymusttackletheseproblemsinacoordinated way
byimplementing measurestostrengthenexistingpolicies,bydevising
newpolicieswherenecessary,andbyrestoringcloserlinksbetween
economicandsocialpolicies.
Economicpolicy
TheviewoftheCommision,onthegeneralstanceofbudgetary
andmonetarypoliciesissetoutinthedocumentontheEconomicand
SocialsituationintheCommunity.
Energypolicy
GuidelinesforacoherentenergypolicyatEuropeanlevelupto
1990wereadoptedbyCouncil,aimedatmoreenergysavingandfurther
reducingofoilimportdependence bytheexploitation ofexistingsources
ofenergyandthepromotionofnewsources.Thispolicyshouldtake
accountoftheemploymentaspectandinparticular,additionaljobs
shouldbecreatedbywideradoptionofenergysavingmeasures.A
communication fromtheCommission onanewinitiativetoencourageenergy
investments wasdiscussedatthelastEuropeanCouncil,andtheCommission
hasbeenrequestedtoputforwarddetailedproposals.

-3-
-Externat demand
\ '
Itwasagreed with theother industrialised countries and the
OPEC members ,that development aidfalls farshort ofearlier commitments .
Anincrease infinancial aid,linked with animportant effort inrecycling
offinancial surpluses would furthermore help insupporting external demand
bymobilizing the large potential demand inthedeveloping countries .
Industrial policy
I -
Support isbeing sought atCommunity level tohelp European
industries toadapt tochanges inthe internal division oflabour and to
\
changes ininternal demand .Such actions need tobestrengthened inorder
toensure adjustment tonewtrading patterns and tosave themaximum number
ofviable jobs .TheCommission hasputforward specific measures of
additional support andadjustment forworkers inthe steel industry .
V.
Labour market policy .
Guidelines toimprove theoperation ofthe labour market at
national andCommunity level have been presented totheCouncil anddiscussed
' ' \
bytheStanding Committee onEmployment .These guidelines provide support
forplacement and training activities andorient labour market policy towards
future needs .

-4-
Newtechnology
TheCommissionhasdiscussedthisyear,withtheStandingEmployment
Committeetheimpactofthenewmicro-electronic technologyonemployment,
includingquestionsofvocationalguidanceandtrainingandchangesin
jobcontentandqualityofworkinglife.Workiscontinuing,inco-operation
withthetwosidesofindustryandtheGovernments,toexploitthedifferent
experiences intheMemberStatesandtodevelopappropriatepolicyresponses.
Workingtime
Asasupportingactiontoassistemployment,theCounciladopted
generalguidelines onthere-organization ofworkingtimeinDecemberlast.
TheCommissionhasnoworganizedmeetingswiththetwosidesofindustryand
theGovernments inordertofollowupspecificissues.
Follow-upactionbytheCommissioninco-operation withtheSocialPartners
TheCommissionintendstodevelopthesepolicyactionswithinits
responsibilities andinvitestheEuropeanCounciltosupportitsinitiatives .
Linkswiththetwosidesofindustryalsoneedtobestrengthened .Given
thepresenteconomicandsocialdifficulties andthegrowingfearsabout
employment,thereisariskofadeterioration inthesocialclimatewhich
coulditselfmaketheachievement ofeconomicandsocialobjectives more
difficult.Thisreinforcestheneedforconsensusabouttheoverallstrategy
neededtoputtheCommunitybackontheroadtostabilityandfuller
employment.