Chair’s Conclusions. Meeting of G8 Ministers of Labour & Employment on “Productive Employment as a Factor of Economic Growth and Social Integration”

Introduction

 

• 1. On October 10, 2006, the G8 Ministers of Labour & Employment and the EU Commissioner for Employment, Social Affairs and Equal Opportunities met in Moscow, together with representatives from the International Labour Organization (ILO) and the Organization of Economic Cooperation and Development (OECD), to discuss the theme "Productive Employment as a Factor of Economic Growth and Social Integration". On October 9, a consultation with social partners was held in preparation for the meeting.

 

• 2. Ministers emphasized the need to achieve widespread prosperity and to promote social equity, fairness, and justice in developing labour markets that combine flexibility with security, to respond to the challenges of globalization and demographic change. This requires the active coordination of sound macroeconomic policies with adequate and effective social protection.

 

• 3. Globalization, more intense economic competition, demographic changes and rapid technological, institutional and managerial innovations have had significant effects on labour markets throughout the world. Ministers agreed on the need for a strategic approach in order to meet these challenges as they also provide opportunities to create more and better jobs, greater inclusion and sustainable economic growth.

 

• 4. Ministers agreed on the need to share good practices in the development of industrial relations and labour and social policies and a continuous exchange of knowledge and experience in this field. They also agreed that labour market, social and economic strategies should give special attention to the following matters:

• Creating conditions for labour markets that promote flexibility and security;
• Fostering more inclusive labour markets that integrate underrepresented groups;
• Assessing the effects of the increase in international migration;
• Increasing investments in human capital and promoting lifelong learning, while ensuring that skills development investments respond to the needs of the labour market;
• Ensuring coherence with appropriate trade, industrial, investment, regional, educational and vocational training policies.

 

I. Improving the Synergy between Labour Markets and Social Policy

 

• 5. Ministers agreed that economic growth and social policy development are closely connected to the development of effective labour markets which provide work for as many people as possible and where people are better off in work. This requires, first, removing impediments to labour market participation as well as job search (notably by implementing well-designed welfare benefit systems and active labour market policies). Second, employment regulations should help labour market dynamism while providing security.

 

• 6. Ministers noted that labour and employment must be considered in the context of three interconnected tendencies: the enormous growth in all countries of the service sector; the increase of the information component in all products and services, and the globalization of virtually all aspects of our economies. We strongly encourage the creation of more training and skills development programmes, particularly those that can enable workers to take advantage of growing opportunities in the service sector.

 

• 7. Ministers agreed that the development of flexible and more inclusive labour markets and new efficient work places can contribute to rapid economic growth, creation of new jobs and reduced unemployment.

II. Creating More and Better Labour Market Employment Opportunities

 

• 8. Ministers believe that much can and should be done to ensure that all workers can enjoy longer and fulfilling careers. To promote greater access to the labour market and a better quality of work, they emphasized the importance of providing greater opportunities for those who are not fully represented in the labour market, including through efforts to:

• Facilitate school to work transition for youth;
• Enable work-life balance for adult men and women;
• Facilitate workforce participation of older workers, providing them with appropriate working conditions, continued education and training;
• Promote employment and inclusion for all people on benefits, not just those on unemployment benefits
• Combat discrimination and support the integration of immigrants and migrants in the labour markets.

 

Implementing these and other changes can help address the shortfall of workers that some G-8 countries might face in coming years.

 

• 9. Ministers noted that appropriate integration of migrants into recipient societies may require understanding of foreign professional and occupational qualifications and the development of linguistic and cross-cultural competencies within the workforce.

 

• 10. Ministers agreed that facilitating occupational, job and geographic mobility within our countries can have a positive impact on job creation and economic growth. The development of diversified and efficient labour market infrastructure creates additional opportunities for mobility and increases productive employment.

 

III. Investing in People and Developing Lifelong Learning

 

• 11. Given that new technologies have proven to be a major source of labour productivity growth, education and professional skills are increasingly important. The achievement of basic skills, lifelong learning and continuous skills upgrading are essential for employability in today's rapidly changing knowledge-based economy.

 

• 12. Investments in human resources lead to improving the employment component of economic growth. Public policy should facilitate the development of partnerships among government, business, labour unions and non-profit sectors. By stimulating investments in human resources, these social partnerships can facilitate more productive employment and sustained economic growth.

 

• 13. Ministers highlighted the issue of lifelong learning, which should be an integral part of national employment strategies. They encouraged governments and social partners to cooperate to make lifelong learning available to the greatest degree possible, thus improving the adaptability of workers to the changing patterns of labour markets.

 

• 14. Ministers encouraged countries to exchange information on their respective professional qualifications, occupational training and credential recognition systems, and for better mechanisms to facilitate recognition of foreign professional and occupational credentials.

 

• 15. They also recognized the need to promote higher levels of literacy and life skills to allow people, including disadvantaged groups, greater opportunity to participate in the labour market, wider access to employment opportunities, as well as fuller participation in society.

 

IV. Effective International Cooperation

 

• 16. Ministers recognized that productive employment and decent work is an essential factor of economic growth, social development and human dignity. They support the work of the Organization for Economic Cooperation and Development (OECD) and the International Labour Organization (ILO).

 

• 17. Ministers called for member countries to exchange information on labour market reforms and related social policies. They believe that a coherent policy package is needed in order to improve employment performance and welcome the new OECD Jobs Strategy as a reference of good practices in this regard.

 

• 18. Ministers recognised the importance of the social dimension of globalization and, in this context, the ILO decent work agenda as a component of international development, as underlined in the 2005 World Summit Outcomes and the Ministerial Declaration of the high-level segment of the substantive session of the Economic and Social Council, held in 2006. They also reaffirmed their commitment to the core labour standards as defined in the 1998 ILO Declaration of Fundamental Principles and Rights at Work.

 

• 19. Ministers recognized the importance of partnership between all stakeholders, including social partners.

 

• 20. Ministers welcomed the offer by Germany to host the 11^th Conference of G8 Ministers of Labour & Employment in 2007.