In Focus: Social security responding to the financial crisis
The aftermath of global financial and economic crisis continues to affect economies and people in most countries. While the recession seems to have ended, the impact on the labour market looks destined to persist for several more years. Nevertheless, social security systems have responded effectively to the test by softening the impact of the crisis. The challenge for social security now is to continue to cope with the social fall-out.
The ISSA recognizes that social security programmes have faced exceptional challenges as a result of the global financial crisis. Firstly, the crisis has depleted social security funds, which may undermine the financial viability of schemes that rely on funding. Secondly, the transformation of the financial crisis into an economic crisis has meant that there has been less income for social security – because of fewer contributors – and higher expenses – as a result of additional beneficiaries. This situation looks set to be further complicated by the fact that many governments are under pressure to rebalance their budgets, and this may mean cuts in social security expenditure.
The ISSA believes that dynamic social security approaches can provide social security institutions with effective policies and strategies to restore confidence in public social security programmes, contribute to revitalizing the economy, and better guarantee social cohesion by providing adequate protection to the most vulnerable.
The ISSA is proactively working through its members to enable social security institutions and policy-makers to analyse the impact of the financial and economic crisis, develop strategies that can alleviate its negative social and economic effects and share measures adopted and lessons learned.
Snapshots
Social Security Monitor - Financial crisis
smh.com.au (10/03/10) The global financial crisis hit younger Australians hardest last year, pushing more of them onto government benefits and slowing their wages, a new report shows.
egovmonitor.com (05/03/10) Welfare systems and specific short-term policies have been vitally important in mitigating the social and economic impact of the crisis, says a new EU report presented today. The 2010 'Joint Report on Social Protection and Social Inclusion', to be discussed by Employment and Social Affairs Ministers on 8-9 March, focuses on drawing lessons from Europe's response to the crisis.
elpais.com (03/03/10) El paro camina más lentamente que otros indicadores hacia su punto de inflexión. Los servicios públicos de empleo registraron en febrero otro fuerte aumento de las personas sin ocupación, 82.132. Aunque supone la mitad de la subida registrada en febrero de 2009, se trata de un dato adverso, pues se compara con el peor año del mercado laboral. Esa evolución en febrero, un mes propenso al empleo tras el parón del inicio de año, sitúa el número de parados registrados en un nuevo récord de 4,13 millones.
guardian.co.uk (25/02/10) More than 100,000 people were forced to retire against their will last year as employers used the default retirement age to cut back on jobs, according to Age Concern and Help the Aged. The charity said its research suggested employers had used forced retirement as a cheap and easy alternative to redundancy during the recession.
oecd.org (24/02/10) Au Danemark, le dynamisme du marché du travail des jeunes, conjugué à une stratégie d’activation bien conçue, a aidé les jeunes à mieux résister à la récession actuelle que leurs homologues de la plupart des autres pays de l'OCDE. Pourtant, le chômage des jeunes continue de croître et selon un dernier rapport de l'OCDE, le Danemark devrait intensifier les initiatives récentes pour aider les jeunes désavantagés. Un plus grand nombre de jeunes Danois devraient bénéficier de mesures d’activation.