**5. Labour market indicators**

Looking at some of the indicators of the labour market – such as salaries, fixed-term contracts or the phenomenon of unemployment – is also revealing of the difficulties that are experienced in the professional field. As a starting point, it is important to point out that labour relations systems (working conditions, employment legislation, etc.) are not uniform, either internationally or even at the European level. Nevertheless, worrying tendencies can be identified.

For example, about income levels, the cuts in salaries are striking, particularly among the public sector workers of the more fragile economies (Greece, Ireland, Portugal are some of the most cited examples in the context of the EU). In 2011, in the case of Portugal, public sector workers had their salaries cut by up to 10% and saw their Christmas subsidy reduced by 50%. Furthermore, in the same country for 2012 and 2013, public sector subsidies for Christmas and summer – which have been the result of workers victories for over 30 years – will be cut completely. So the severe austerity measures that affect public sector workers (including both active and retired workers, with ramifications on the lives of approximately 3 million people) are a clear demonstration of the deficit of social justice in the wage relation and its extension to the private sector is a strong possibility (Reis, 2009: 11; Reis & Rodrigues, 2011; Costa, 2012).

In the context of the economic crisis the minimum wage will therefore be of further importance. It is basic thinking to remember that this instrument of policy, apart from being an important source of social justice, may also constitute indispensable financial support that will allow many families to survive. For the workers, the risk of poverty in Portugal is 12% (correspondent to 2/3 of the risk of total poverty6), whereas in Europe it is 8% (half of the risk of total poverty), which shows that in Portugal the salaries are too low to sufficiently deal with situations of poverty risk (Dornelas *et al.,* 2011: 18; Caleiras, 2011).

<sup>6</sup> Which is now around 18% after social transferences by the state. Before those transferences the poverty risk is, according to Eurostat, about 42% (PORDATA, 2011).

Labour Relations and Social Movements in the 21st Century 265

Unemployment figures force us to emphasize, whether in terms of length or age groups that it is young people (which are the better qualified) who are particularly affected. In truth, the tendency for an increase in unemployment appears clear, above all the long-term unemployed9 which cannot be disassociated from, as hitherto mentioned, the high percentage of precarious jobs in Portugal. Furthermore, at the heart of companies low levels of adaptability to work and to working time are evident, which has led to more dismissals, facilitated precarious contracts and made the balance between professional and family life

Data from the ILO indicate that unemployment among Portuguese young people (15 to 24 years old) increased from 16,6 % before the crisis to 22,3 % in 2010, following countries such as Slovakia (33,6 %), Estonia (33 %) or Greece (32,9 %). Even worse, in the first quarter of 2011, the youth unemployment rate in Portugal jumped to 27,8% (INE, 2011: 2). According INE, of the 609,400 unemployed people in the third quarter of 2010, 285,400 were young people below the age of 34. Here (youth unemployment) we can also include graduate unemployment: if in 2000 the number of unemployed graduates was 83,000, in 2010 this had risen to 190,000. These numbers show, therefore, that unemployment among young graduates has worsened in recent years, rising to 55,000 (in 2010), although it is known that graduates receive higher salaries and spend less time being unemployed or working in precarious employment than the rest. Regardless, whether it is unemployment or temporary

In a climate of economic crisis like this, the indices of satisfaction, loyalty and labour cohesion tend, as is expected, to decrease. In the Portuguese case, this has actually happened. As is stated in the 2011 report of the National Observatory for Human Resources (ONRH), from 2009 to 2010 the level of satisfaction of Portuguese workers dropped 1,2%, their loyalty to the company they worked for fell 1,3%, and the involvement of employees with organisations fell 0,8%. Of the 12 indices evaluated by ONRH, all decreased in relation to 2009. The problem of security has been pointed to as the principal concern of Portuguese workers. In a recent international study, Skidmore and Bound (2008) analyse indices such as: (i) the ability of the worker to influence working conditions (working environment); (ii) worker autonomy; (iii) creativity in the workplace, and they found that the Iberian countries (Portugal, Spain) and others in the south of Europe contrasted significantly with countries in the north of Europe. Considering the responses to these indicators, the indices for well-being and interpersonal confidence were found to be very low (above all in the case of Portugal) in addition to showing a close correlation with democracy in the workplace and with

Other studies have attempted to measure the happiness of citizens based on social psychology models (Easterlin, 2001 and 2005; Veernhoven & Hagerty, 2006; Veernhoven, 2011). A recent study (conducted by Rui Brites da Silva) showed that, in terms of the index of subjective well-being, the Portuguese occupy a position in the second half of the table. In Veernhoven's *ranking* for the period 2000-2009, Portugal is in 79th place (with 5.7 points on a

9 In the 3rd quarter of 2010, there were nearly 340,000 long-term unemployed in Portugal (INE, 2010).

more difficult (Dornelas, 2009: 128-129).

**6. Subjective attitudes** 

contracts the young are especially hard hit (INE, 2011).

mechanisms of dialogue and participation (also very low).

Just like the salaries, the short-term contracts (for periods of 6 months, generally speaking) also point to precariousness lying ahead. Again, taking into account the Portuguese labour context, between 1999 and 2007 there was an increase in the probability of short-term contracts being signed and maintained for a longer period of time. Given the dynamics of starting an active life, this phenomenon particularly affected young workers, but has also come to affect workers of all ages. Furthermore, in the service sector flexibilization has been especially evident through the use of fixed-term contracts, permitting greater rotation of employment7. Thus, "this excessive rotation reduces the incentive to invest in education and training on the part of companies and workers, and intensify the polarisation of the labour market, affecting negatively the accumulation of human capital of the economy" (Reis, 2009: 12).

Taken as a whole, short-term contracts comprise more than 20% of wage earners, but the younger generations in particular, with high levels of education, this situation is much more concerning. The percentage of precarious employment (if we add short-term contracts, the self-employed, temporary workers and part-time work) is now close to 30% of total employment. According to official sources, in 2010 there were 37,6% of workers between the ages of 15- 34 working on fixed-term contracts, whereas if we consider the age group between 15 - 24 years old this percentage is close to 50% (INE, 2010; Carmo, 2010). In the last decade, jobs offering permanent contracts have decreased at the same pace as fixed-term contracts have increased. This type of contract has steadily increased in all age groups, with the younger generation between 15 - 24 years of age (today popularly known as the *Geração à Rasca* – "Desperate Generation")8 bearing the brunt of this, which is likewise happening in many other European countries (Estanque, 2012).

But today the phenomenon of unemployment is more visible than ever. According to the International Labour Organisation (ILO), unemployment on a global level in 2010 (in spite of a partial recovery after the sub-prime crisis in 2008) remained at high levels, reaching 205 million, with more than 27.5 million unemployed in 2010 than in 2007 (ILO, 2011: 12). According to Eurostat (2011c), just in the EU27, in August 2011, 22,785 million men and women were unemployed (with de 15,739 million unemployed in "Eurozone" countries).

In Portugal, unemployment figures went from 525 thousands (10,1%), in December 2009, to 547 thousands (11%), in December 2010. At this time (December 2010), unemployment rate in the Eurozone was 10% and in the UE/27 it was 9,6% (Eurostat, 2011a). On year later, in December 2011, the percentage of unemployed in Portugal was 13,6%, whilst the average in the Eurozone was 10,4% and in the UE/27 it was 9,9% (Eurostat, 2012a). But according to the National Statistics Institute (INE), in the last quarter of 2011 the unemployment rate reached even at 14%, the highest on record, affecting 771,000 people. However, , the evolution of unemployment goes very quickly, standing at 14.8% in January 2012 (Eurostat, 2012b).

<sup>7</sup> Mário Centeno, in interview with the newspaper *Público*, 7/02/2011. See also Centeno and Novo (2008b: 146).

<sup>8</sup> Since the 12th March 2011, this class of precarious workers has identified itself with the 'Desperate Generation' due to the huge demonstration (that brought together 300,000 people in Lisbon and other cities) that was organised by a group of young people through Facebook, and which, according to several commentators, marked a turning point in the forms of collective action and established itself as a new phenomenon on the national political scene.

Just like the salaries, the short-term contracts (for periods of 6 months, generally speaking) also point to precariousness lying ahead. Again, taking into account the Portuguese labour context, between 1999 and 2007 there was an increase in the probability of short-term contracts being signed and maintained for a longer period of time. Given the dynamics of starting an active life, this phenomenon particularly affected young workers, but has also come to affect workers of all ages. Furthermore, in the service sector flexibilization has been especially evident through the use of fixed-term contracts, permitting greater rotation of employment7. Thus, "this excessive rotation reduces the incentive to invest in education and training on the part of companies and workers, and intensify the polarisation of the labour market, affecting

Taken as a whole, short-term contracts comprise more than 20% of wage earners, but the younger generations in particular, with high levels of education, this situation is much more concerning. The percentage of precarious employment (if we add short-term contracts, the self-employed, temporary workers and part-time work) is now close to 30% of total employment. According to official sources, in 2010 there were 37,6% of workers between the ages of 15- 34 working on fixed-term contracts, whereas if we consider the age group between 15 - 24 years old this percentage is close to 50% (INE, 2010; Carmo, 2010). In the last decade, jobs offering permanent contracts have decreased at the same pace as fixed-term contracts have increased. This type of contract has steadily increased in all age groups, with the younger generation between 15 - 24 years of age (today popularly known as the *Geração à Rasca* – "Desperate Generation")8 bearing the brunt of this, which is likewise happening in

But today the phenomenon of unemployment is more visible than ever. According to the International Labour Organisation (ILO), unemployment on a global level in 2010 (in spite of a partial recovery after the sub-prime crisis in 2008) remained at high levels, reaching 205 million, with more than 27.5 million unemployed in 2010 than in 2007 (ILO, 2011: 12). According to Eurostat (2011c), just in the EU27, in August 2011, 22,785 million men and women were unemployed (with de 15,739 million unemployed in "Eurozone" countries).

In Portugal, unemployment figures went from 525 thousands (10,1%), in December 2009, to 547 thousands (11%), in December 2010. At this time (December 2010), unemployment rate in the Eurozone was 10% and in the UE/27 it was 9,6% (Eurostat, 2011a). On year later, in December 2011, the percentage of unemployed in Portugal was 13,6%, whilst the average in the Eurozone was 10,4% and in the UE/27 it was 9,9% (Eurostat, 2012a). But according to the National Statistics Institute (INE), in the last quarter of 2011 the unemployment rate reached even at 14%, the highest on record, affecting 771,000 people. However, , the evolution of unemployment goes very quickly, standing at 14.8% in January 2012 (Eurostat,

7 Mário Centeno, in interview with the newspaper *Público*, 7/02/2011. See also Centeno and Novo

8 Since the 12th March 2011, this class of precarious workers has identified itself with the 'Desperate Generation' due to the huge demonstration (that brought together 300,000 people in Lisbon and other cities) that was organised by a group of young people through Facebook, and which, according to several commentators, marked a turning point in the forms of collective action and established itself as

negatively the accumulation of human capital of the economy" (Reis, 2009: 12).

many other European countries (Estanque, 2012).

a new phenomenon on the national political scene.

2012b). 

(2008b: 146).

Unemployment figures force us to emphasize, whether in terms of length or age groups that it is young people (which are the better qualified) who are particularly affected. In truth, the tendency for an increase in unemployment appears clear, above all the long-term unemployed9 which cannot be disassociated from, as hitherto mentioned, the high percentage of precarious jobs in Portugal. Furthermore, at the heart of companies low levels of adaptability to work and to working time are evident, which has led to more dismissals, facilitated precarious contracts and made the balance between professional and family life more difficult (Dornelas, 2009: 128-129).

Data from the ILO indicate that unemployment among Portuguese young people (15 to 24 years old) increased from 16,6 % before the crisis to 22,3 % in 2010, following countries such as Slovakia (33,6 %), Estonia (33 %) or Greece (32,9 %). Even worse, in the first quarter of 2011, the youth unemployment rate in Portugal jumped to 27,8% (INE, 2011: 2). According INE, of the 609,400 unemployed people in the third quarter of 2010, 285,400 were young people below the age of 34. Here (youth unemployment) we can also include graduate unemployment: if in 2000 the number of unemployed graduates was 83,000, in 2010 this had risen to 190,000. These numbers show, therefore, that unemployment among young graduates has worsened in recent years, rising to 55,000 (in 2010), although it is known that graduates receive higher salaries and spend less time being unemployed or working in precarious employment than the rest. Regardless, whether it is unemployment or temporary contracts the young are especially hard hit (INE, 2011).
