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BackIt is a well-known fact that apart from considerable employment effects, investments in childcare also generate significant additional income for the public sector. The European Parliament used this realisation as an opportunity to discuss the subject of care facilities for children in a public hearing and to emphasise its significance also in respect of meeting the targets of the European Union. Especially the target of reaching an employment rate of 75 % by the year 2020 cannot be implemented without the contribution made by women.
There is still a lot to do until the “Barcelona Targets” have been achieved!
At its 2002 conference in Barcelona, the European Council laid down the target for the childcare sector: “Member States should remove disincentives to female labour force participation, taking into account the demand for childcare facilities and in line with national patterns of provision, to provide childcare by 2010 to at least 90 % of children between 3 years old and the mandatory school age and at least 33 % of children under 3 years of age”. We are now in 2013 and still far from meeting the “Barcelona Targets” - also in Austria. The reasons for this are based on the fact that many disincentives were not removed and that therefore care facilities are still not accessible to all social groups, not to mention that they are often not affordable. Another fact is that the quality of childcare facilities often leaves a lot to be desired even though in accordance with a study by the EU Commission on average only 27 % of Europeans cited this as a problem. The EU Commission also used these findings as an opportunity to make recommendations to the Member States on the employment of women and on the availability and quality of care facilities. Austria too was among the Member States where the EU Commission sees a need for action.
Investments in childcare pay off – also in times of crises!
To realise the Barcelona Targets and to continue public investments in spite of the crisis is the order of the day. This was also the main thrust of the public hearing in the European Parliament. The Vienna Chamber of Labour shares this opinion and therefore has some time ago made calculations, which apart from considerable employment effects would also indicate a significant additional income for the public sector. Even in case of a relatively pessimistic assumption with regard to economic growth and employment growth, so the study of the Chamber of Labour, the costs for more and better childcare will at least be neutralised by additional income (employment taxes and savings in respect of unemployment insurance). It needs investments to achieve the required effects. The recommendation for Austria is to invest EUR 100 million p.a. on average to develop and improve childcare facilities over the next four years. This move would mean that about 14,000 additional jobs would be created by the childcare sector itself.
Development of affordable, easy accessible and high quality childcare facilities for toddlers and young children must have priority
In summary one could say that investments in childcare could not only remedy the current deficits in respect of availability and quality, but that considerable employment and budget effects could also be generated. One can only hope that the Member States recognise this potential and not forget that the development of childcare facilities must go hand in hand with a general mixture of measures for reconciling work and family life.
Additional information:
AK Position Paper: Social Investment - Growth, Employment and Financial Sustainability. Economic and Fiscal Effects of Improving Childcare in Austria
Barcelona Targets Revisited
At its 2002 conference in Barcelona, the European Council laid down the target for the childcare sector: “Member States should remove disincentives to female labour force participation, taking into account the demand for childcare facilities and in line with national patterns of provision, to provide childcare by 2010 to at least 90 % of children between 3 years old and the mandatory school age and at least 33 % of children under 3 years of age”. We are now in 2013 and still far from meeting the “Barcelona Targets” - also in Austria. The reasons for this are based on the fact that many disincentives were not removed and that therefore care facilities are still not accessible to all social groups, not to mention that they are often not affordable. Another fact is that the quality of childcare facilities often leaves a lot to be desired even though in accordance with a study by the EU Commission on average only 27 % of Europeans cited this as a problem. The EU Commission also used these findings as an opportunity to make recommendations to the Member States on the employment of women and on the availability and quality of care facilities. Austria too was among the Member States where the EU Commission sees a need for action.
Investments in childcare pay off – also in times of crises!
To realise the Barcelona Targets and to continue public investments in spite of the crisis is the order of the day. This was also the main thrust of the public hearing in the European Parliament. The Vienna Chamber of Labour shares this opinion and therefore has some time ago made calculations, which apart from considerable employment effects would also indicate a significant additional income for the public sector. Even in case of a relatively pessimistic assumption with regard to economic growth and employment growth, so the study of the Chamber of Labour, the costs for more and better childcare will at least be neutralised by additional income (employment taxes and savings in respect of unemployment insurance). It needs investments to achieve the required effects. The recommendation for Austria is to invest EUR 100 million p.a. on average to develop and improve childcare facilities over the next four years. This move would mean that about 14,000 additional jobs would be created by the childcare sector itself.
Development of affordable, easy accessible and high quality childcare facilities for toddlers and young children must have priority
In summary one could say that investments in childcare could not only remedy the current deficits in respect of availability and quality, but that considerable employment and budget effects could also be generated. One can only hope that the Member States recognise this potential and not forget that the development of childcare facilities must go hand in hand with a general mixture of measures for reconciling work and family life.
Additional information:
AK Position Paper: Social Investment - Growth, Employment and Financial Sustainability. Economic and Fiscal Effects of Improving Childcare in Austria
Barcelona Targets Revisited