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Publication Date: December 25, 2020

DOI:10.14738/assrj.712.9511. Papadakis, N., Drakaki, M., Saridaki, S. & Dafermos, V. (2020). Into the Vicious Cycle of Precarity: Labour Market, Precarious Work,

Social Vulnerability and Youth: The case of Greece within the EU context. Advances in Social Sciences Research Journal, 7(12) 474-496.

Into the Vicious Cycle of Precarity: Labour Market, Precarious Work,

Social Vulnerability and Youth: The case of Greece within the EU

context

Nikos Papadakis

Professor and Director of the Centre for Political Research & Documentation (KEPET), Department

of Political Science, University of Crete

Deputy Director of the University of Crete Research Center for the Humanities, the Social and

Education Sciences (UCRC)

Member of the ECPR Political Culture Research Network, Rethymnon, Greece

Maria Drakaki

PhD in Political Science and Researcher at KEPET,

Department of Political Science, University of Crete, Rethymnon, Greece

Collaborating Teaching Staff at the Hellenic Open University

Sofia Saridaki

PhD Candidate and Researcher at KEPET

Department of Political Science, University of Crete, Rethymnon, Greece

Vassilis Dafermos

Professor and Director of the Laboratory of Social Statistics

Department of Political Science, University of Crete, Rethymnon, Greece

ABSTRACT

Ιn the last decade, there has been a widespread expansion of both precarious

work and precarious forms of employment (such as temporary and low- qualified jobs, seasonal and part-time jobs etc.), in which a growing share of

young people work. The impact of precarious work on young people is likely to

be permanent, while it seems to affect (even over-determine) their life courses.

Non-smooth and early transitions into labour market are very likely to worsen

progressively their long-term life chances (Lodovici & Semenza, 2012: 7).

Undoubtedly, the long-lasting global economic Crisis and the subsequent

Recession, has heavily affected the state of play in the labour market

worldwide, provoking severe modifications both in the field of employment

and countries’ social cohesion. Based on the above mentioned, the paper deals

with precarious work in general, while it emphasizes precarious work among

youth. It initially captures, briefly, the state of play in terms of the impact of the

Crisis on the widening of the phenomenon of precarious work and then it

focuses on theoretical insights and critical conceptual definitions concerning

precariousness in the labour market. Further, based on secondary quantitative

-data analysis, it analyses the key- parameters and facets of precarious work

(focusing on youth) in the European Union and, mainly, in Greece. Additionally,

it briefly presents parameters of the impact of the COVID-19 pandemic on

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Papadakis, N., Drakaki, M., Saridaki, S. & Dafermos, V. (2020). Into the Vicious Cycle of Precarity: Labour Market, Precarious Work, Social Vulnerability

and Youth: The case of Greece within the EU context. Advances in Social Sciences Research Journal, 7(12) 474-496.

URL: http://dx.doi.org/10.14738/assrj.712.9511 475

precariousness in Greece. Finally, the paper explores the correlation between

precarious work and social vulnerability, especially among young people.

The present paper is based on an ongoing Research Project. More specifically, this

research is co-financed by Greece and the European Union (European Social

Fund- ESF) through the Operational Programme «Human Resources

Development, Education and Lifelong Learning 2014-2020» in the context of the

project “Precarious Work and Youth in today’s Greece: secondary quantitative

analysis, qualitative filed research and research-based policy proposals” (MIS

5048510).

Key-words: precarious work, labour market, youth, vulnerability, Greece, European

Union

1 INTRODUCTION

Nowadays, there is no doubt that during the last decade both the field of labour market and the

working conditions have greatly affected by the impact of the economic Crisis and the consequent

multi-parameter long-lasting Recession in the European Union, which have caused a variety of

changes and modifications in terms of the components of the employment field and working

conditions, -causing, among others, the gradual expansion of precarious work.

Within the above mentioned framework, it is worth mentioned that the phenomenon of precarious

work was existing before the outset of the Crisis in Europe. However, the strict fiscal measures that

taken in order to face the Crisis (e.g. the Medium-Term Fiscal Strategy Frameworks (Memoranda)

in the case of Greece) were deregulated the economy and the labour markets of the Member-States,

especially those in the European South), sharply widespreading both unemployment rates,

especially those of the workforce aged 15-24 and 55-64, and cuts in welfare provisions and

entitlements (McKay et al., 2012: 5). In fact, in several national cases, the youth constitutes the “age

group that affected more (from the Crisis) as its unemployment rate has risen dramatically and its

wages have decreased” (Green, 2017: 7).

Even though youth unemployment is falling, since 2014, it still remains high, while the total

unemployment rates differ substantially across Europe, which eventually affects youth

unemployment. What is indeed alarming is the fact that “for the first time since the Second World

War, there is a real risk that today’s young adults – the most educated generation we have ever had –

may end up less well-off than their parents” (European Commission 2017a: 9).

The above mentioned in adjunction with the expansion of social inequalities, the shrinking of the

Welfare State and consequently the increase of poverty rates, -directly related to the vertical

increase of people’s unemployment rates- (see in detail Papadakis et al, 2020; Papadakis et al.,

2017a: 6-11; Papadakis et al., 2017b: 10-11; Kotroyannos et al., 2015: 269; Matsaganis, 2013: 10-

12; Matsaganis, 2011: 510), had a direct impact on the social fabric in Greece and, consequently,

resulting in its social transformation and the weakening of social cohesion (see in detail Papadakis

et al., 2017b: 6-8; Papadakis et al., 2020; Featherstone, 2011: 202; Matsaganis, 2013: 3; OECD, 2014:

1).

This unstable state of play caused a “significant growth in a wide range of non-standard forms of

employment relationship with the result that significant numbers of Europe’s workers are now

excluded from welfare benefits and/or employment protections.” (McKay et al., 2012: 5). While over

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the years, it has strengthened the emergence and expansion of new forms of precarious work,

including part-time, undeclared or uninsured work, "temporary" employment, seasonal work etc.

(Eurofound, 2018: 1; McKay et al., 2012: 16; ILO, 2011: 5) as well as the intensity of the phenomenon

“just in time workforce” (Rifkin, 2003: 9).

In other words, a new labour market situation has emerged, in which new forms of employment

dominate, characterized by precariousness and flexibility, such as part-time employment,

undeclared work, rotating employment etc. While, at the same time, young people seem to be facing

more of these transformations in the field of employment (Green, 2017: 7).

2 PRECARIOUS WORK AND PRECARIOUS FORMS OF EMPLOYMENT: THEORETICAL AND

DEFINITIONAL ISSUES

As regards the definitional framework of “precarious work”, even though the debate on the

conceptual delimitation of the term remain an “open” issue to this day (see in detail Spyridakis,

2018: 17-53; ILO, 2011: 5-7), as the increasing intensity and extent of precarious and occasionally

employment as well as their key-characteristics differ from country to country based on the

historical development of each country’s labour market at national and local level, and the context

that surrounds it (i.e. the labour market) (ILO, 2011: 7).

Thus, precarious work can be defined as: work characterized by uncertainty, instability and

insecurity with limited social benefits and law protections, and employees bear the risks of work

(Kalleberg and Vallas 2017: 1). Precarious work “has moved to the centre of debates on the future of

employment as a spreading consensus expects globalization, new technologies, employer risk shifting

and more heterogeneous workforces to continue to promote more commodified forms of labour”

(Rubery et al., 2018: 510). In the European Union, these changes and transitions have taken place,

mainly, in the last decades (1980s onwards) of the 20th century, when the domination of precarious

forms of employment, such as part-time work, fixed-term contracts, temporary work etc.

constituted significant components-forms of employment in defining and understanding the

concept and the field of precarious work (McKay et al., 2012: 16).

In this context, a growing share of people, especially the youth ones, even having jobs, it seems that

in recent years young people are increasingly working in temporary and low-qualified jobs whose

the impact on them is likely to be permanent and difficult on their life courses (Lodovici & Semenza,

2012: 7), as non-smooth and early transitions into labour market are very likely to worsen

progressively their long-term life chances (“scaring effect” phenomenon) (Lodovici & Semenza,

2012: 7).

Moreover, precarious work is associated with skills mismatch (as in the case of Italy), deconstructed

labour markets (as in the case of Greece), random transitions (such as in Spain), where the

“employment trajectories do not seem to lead anywhere, and the sensation of being trapped is

profoundly embedded” (Lodovici & Semenza, 2012: 13-14).

Within this unstable context nowadays, precarious forms of employment can be classified based on

two major categories of employment in terms of contractual arrangements, namely (ILO, 2011:

7):

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Papadakis, N., Drakaki, M., Saridaki, S. & Dafermos, V. (2020). Into the Vicious Cycle of Precarity: Labour Market, Precarious Work, Social Vulnerability

and Youth: The case of Greece within the EU context. Advances in Social Sciences Research Journal, 7(12) 474-496.

URL: http://dx.doi.org/10.14738/assrj.712.9511 477

i.The limited duration of the contract, including forms of employment contracts such as fixed- term, short-term, temporary, seasonal, day-labour and casual labour (ILO, 2011: 7).

ii. The type/form of the employment relationship, including types/forms of employment

relationships such as: triangular and disguised employment relationships, bogus self-employment,

sub-contracting contracts and agency contracts (ILO, 2011: 7). In particular, regarding triangular

and disguised employment relationships as well as bogus self-employment are related, many times,

with decreased employment terms and conditions and they often constitute a way of shifting the

burden of the responsibility and the risks associated with employment from the employer to the

employee/worker, -risks related with such employment relations, e.g. dismissals (McKay et al.,

2012: 6).

The above mentioned precarious forms of employment are characterized by four main working

conditions: i. low wages, ii. inadequate and insufficient protection from termination of employment,

iii. lack of access to social structures but also to the privileges (benefits) that are mostly related to

permanent and full employment, iv. absence or limited access of employees to exercise their labour

rights (ILO, 2011: 7).

According to ILO (2011: 5), both precarious forms of employment and their characteristics tend to

be expanded and “normalized” in the labour market due to “employers’ ingenuity” inventing new

ways in order to circumvent legislative framework or/and find loopholes in laws to increase the

profitability of their business/enterprise and maintain their sustainability.

3 EUROPEAN KEY-CHALLENGES AND INITIATIVES TO COMBAT PRECARIOUS WORK

Unemployment, youth unemployment, poverty and their persisting correlation constitute probably

the major challenges in the EU, at the moment. According to the Euro-barometer, more than 8 out

of 10 Europeans consider unemployment, social inequalities and migration the top challenges, that

the EU is facing, while more than the half of the Europeans consider that not everyone has chances

to succeed and life chances would be more limited for the young- next generation (see

Eurobarometer 2017, as cited in European Commission 2017a: 20). According to the European

Commission, unemployment rates “are falling (constantly since 2014) but differ substantially across

Europe....(while) the crisis has affected parts of Europe in different ways, but across the Union, it is

younger generations that have been hit particularly hard” (European Commission, 2017a: 9).

Further, it seems, that precarious work gradually becomes “the new norm to which employment and

social protection systems must adjust but the motivators for, and likely consequences of, legitimising

and normalising these employment forms are complex and potentially contradictory. Precarious work

is best defined as the absence of those aspects of the Standard Employment Relationship (SER) that

support the decommodification of labour” (Rubery et al., 2018: 511).

In the last decade (2010-2020), there has been an increasing intensification of political

interventions, at the European level, aiming at reducing precarious work and protecting and further

improving working conditions (Eurofound, 2020a: 3-4).

The above mentioned intensification is due on the one hand to the impact of the multidimensional

economic Recession on employment and labour market, and on the other hand due to Mega-Trends

that are taking place and seem to gradually prevail (e.g. globalization, digital economy,

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digitalization, demographic and social changes, climate change, etc.) (Eurofound, 2020a: 3-4). These

Mega-Trends had a clear impact on the structure of economy and labor market, industrial relations

systems, and business models, having, in turn, direct impact on work relations, forms of

employment and contracts types and, consequently, on social welfare systems in Europe

(Eurofound, 2020a: 3-4) (see Figure 1).

Figure 1: Relationship between megatrends, effects and impacts on the labour market, and policy

interventions

Source: Eurofound, 2020a: 4.

At this point, it is worth mentioning that based on the recent findings of Eurofound (2020a), 8 key

challenges are recorded in the field of employment for the EU, which are directly related to the

intensity of precarious work at the European level (Eurofound, 2020a: 2). More specifically:

1. Flexibilisation: Although, the total share of non-standard employment has remained stable, in

general, the share of compound non-standard employment has been increased, for instance

marginal part-time work, very short temporary contracts, undeclared work and casual work

(Eurofound, 2020a: 2).

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Papadakis, N., Drakaki, M., Saridaki, S. & Dafermos, V. (2020). Into the Vicious Cycle of Precarity: Labour Market, Precarious Work, Social Vulnerability

and Youth: The case of Greece within the EU context. Advances in Social Sciences Research Journal, 7(12) 474-496.

URL: http://dx.doi.org/10.14738/assrj.712.9511 479

2. Part-time work: “Low-hours part-time work is often linked to difficulty making ends meet, and

low-hours part-time workers are over-represented among multiple job holders. One-quarter of part- time work is involuntary” (Eurofound, 2020a: 2).

3. Temporary contracts: According to the Eurofound (2020a), even though there is no change

(almost stagnated in 14%) in overall percentage of temporary contract workers during the period

from 2008 to 2018, it has been recorded an expansion in the use of temporary contracts mainly for

new labour market entrants. In this new employment context, the share of involuntary temporary

work stands at 60% (Eurofound, 2020a: 2).

4. Self-Employment: Regarding self-employment, there are a number of changes at both sectoral

and structural level, with upward trends in the rates of self-employed without employees

(Eurofound, 2020a: 2). Although in most cases self-employment is voluntary, a quarter of the self- employed can be described as precarious (Eurofound, 2020: 2). It is worth noting that in 2018, 17%

of the self-employed showed vulnerability and precariousness (Eurofound/Wilkens, 2018).

5. Polarisation: During the period 2008-2018, it is observed, throughout the EU, an increasing

polarization, as there is an increase in employment rates in jobs that are high-paid but also low- paid. In contrast, employment growth in mid-level earnings was lower (Eurofound, 2020a: 2).

6. Rising insecurity: “Individuals on non-standard contracts are less likely to have access to full

employment rights, social protection and representation. A high share of temporary and part-time

workers do not have access to a range of social benefits. Over the observed period, there has been an

increase in the share of workers at risk of poverty”(Eurofound, 2020a: 2). Clearly, there is an alarming

correlation between precarious work and risk-of –poverty. Young people, women, low-skilled

people, migrants and disabled people have higher levels of insecurity in terms of their employment,

as they are more likely to work in precarious jobs. In particular, a key factor of youth employment

in precarious jobs is the difficulty of transition from education and training systems to stable

employment (standard employment) (Duell, 2004: 93).

7. New business models: The rise and establishment of new business models of teleworking, e.g.

platform work, are correlated and linked to other trends observed within the EU (Eurofound,

2020a: 2) and, at the same time, are a key parameter in increasing the precariousness of employees

in Europe.

8. COVID-19 pandemic: Last but not least, although in several EU Member States (including in

Greece), measures have already been taken to reduce the impact of the COVID-19 pandemic crisis

on the economy, employment and the welfare state, it seems that its impact will be particularly

significant in employment (Eurofound, 2020a: 2) and will lead to further transformations in the

labour market.

Especially, for the workforce, that work in precarious forms of employment (seasonal employment,

temporary and short-term employment, part-time work etc.), such as in the sectors of tourism,

transport/transfer, catering and accommodation (see in detail CCSA, 2020: 20; INSETE/Ikkos &

Koutsos, 2019: 3) (see Table 1).

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Table 1: Current impact (impact degree) of the COVID-19 Pandemic by sector of economic activity

Source: ILO, 2020: 4-5.

Within this context, the European Union, recently, in order to tackle the phenomenon of precarious

work (including undeclared work and bogus self-employment) and the fragmentation of the labour

market and working inequalities, has proceeded to the establishment of a set of initiatives and

measures towards the decrease of their impact (i.e. precarious work and labour market

fragmentation) on both workers, labour market and society (see in detail European Parliament,

2017: 8-34).

Specifically in 2017, the European Pillar of Social Rights came into force, after a long consultation

process, starting in 2016 (European Commission, 2016a: 2-11; European Commission, 2016b: 1-

18). This initiative aims to address the state of play, in short- and long-term, which has developed

in the E.U., mainly due to the impact of the Crisis on the employment field and society, namely long- term and youth unemployment, increase in poverty rates, changes in working conditions (European

Commission, 2017b: 3). In particular, the European Pillar of Social Rights is based on 20 key- principles, which are structured in the following axes (European Commission, 2017b: 4): “i. Equal

opportunities and access to the labour market, ii. Fair working conditions, iii. Social protection and

inclusion” (European Parliament, Council of the European Union, European Commission, 2017) in

order to protect and ensure, effectively, current and, mainly, new rights for the European citizens

(European Commission, 2017b: 4).

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Papadakis, N., Drakaki, M., Saridaki, S. & Dafermos, V. (2020). Into the Vicious Cycle of Precarity: Labour Market, Precarious Work, Social Vulnerability

and Youth: The case of Greece within the EU context. Advances in Social Sciences Research Journal, 7(12) 474-496.

URL: http://dx.doi.org/10.14738/assrj.712.9511 485

4.2. Temporary employment

The rate of temporarily employed persons aged 15-24 in the EU28 Member States (Eurostat,

2020g), increased gradually from 2012 onwards. In 2019, the proportion of employees in

temporary employment was much higher for young people in all EU28 countries (Eurostat, 2020g).

More specifically, in the second quarter of 2019, almost half (42.8%) of employees aged 15-24 were

employed under a temporary contract (Eurostat, 2020q), a percentage which was more than three

times higher than the one of the 20-64 age group. In 2019, in all EU28 countries (Eurostat, 2020g)

the percentages recorded for young employees in temporary employment were much higher than

those for employees aged 25-64. As reported by Eurostat (2020q), in the second quarter of 2019,

approximately 8 million young people (42.8%) were employed under a temporary contract. The

share of temporary contracts for employees aged 15-24 was more than three times higher than that

for employees aged 20-64 (12.6%). In 9 EU countries more than half of young people aged 15-24

worked on a temporary basis: Spain (69.5%), Italy (63.3%), Portugal (62.2%), Slovenia (61.2%),

Poland (59.1%), France (56.1%), Sweden (53.7%), the Netherlands (51.8%) and Germany (50.6%).

During the period 2010-2019 as regards the 15-24 age group, the rate of temporarily employed

women aged 15-24 was slightly higher than that of men (by 1.7 percentage points).

In the EU28 countries, although in recent years the rates of involuntary temporary employment

have shown a slight decrease (EU28, 2014: 56% - EU28, 2019: 51.1%), continue to remain high. In

2019 (Eurostat, 2020l), in many countries more than two thirds of the temporary employees were

working involuntarily. Most young people aged 15-29 (35.7% for men and 38.9% for women)

reported that they were working on a temporary basis because they could not find a permanent job

(Eurostat, 2020l). The countries with the highest percentages regarding involuntary temporary

employment in 2019 were Cyprus (91.3% for men and 94.6% for women) and Croatia (85.1% for

men and 84.2% for women), while the lowest rates were observed in Austria (7.5% for men and

10.8% for women) and in Germany (11.6% for men and 13.1% for women) (Eurostat, 2020l).

Figure 5 illustrates that there is a fairly large difference in terms of involuntary temporary

employment between the 15-29 and the 25-64 age groups (on average 22.9 percentage points in

the EU28 countries). This, to some extent, can be attributed to the fact that many young people work

under temporary employment status voluntarily because they are in education or training.

However, as data suggest (Eurostat, 2020l), it shouldn’t be ignored that a great deal of young

workers are led into temporary employment, in the absence of an option for a permanent job. The

only EU28 countries in which the percentage of the 15-29 age group slightly exceeded that of the

25-64 age group were Romania (0.8 percentage points) and Slovakia (0.7 percentage points). In the

rest of the countries, the percentages of the 25-64 age group were higher, with differences ranging

from 3.6 to 26.6 percentage points (Eurostat, 2020l).