‘Third system’ is a step in the right direction

Date: 08/10/1998

By Simon Coss

WHEN it comes to thinking up new ways of tackling unemployment in the EU, it appears that three is the magic number.

This, at least, appeared to be the conclusion of a recent meeting in Brussels held to examine the success of what has become known as the 'third system' for creating jobs.

According to the European Commission and Parliament, which organised the meeting, the third system is made up of “locally based organisations which are neither public bodies nor private sector companies”.

Examples of such groups include cooperatives, mutual organisations, voluntary and non-profit groups, and various public-private sector ventures.

Last year, the Commission launched a pilot scheme to assess the effectiveness of the third system (sometimes called the 'social economy') in creating jobs. It also set aside 20 million ecu to help fund 50 of the most innovative projects. More than 3,000 requests for Union money flooded in from across the EU.

Data from Eurostat, the Union's statistical agency, show that the social economy accounts for 4.5-5.3&percent; of economic activity in the Union, or some 7 million jobs. The figure is growing faster than job levels in the EU as a whole.

Current estimates indicate the number of third-system jobs created since 1980 has increased by 11&percent; in Germany, 15.8&percent; in France and 39&percent; in Italy.

The Commission insists that what is important about this system is that it does not just provide short-term or voluntary jobs, but often forms an important rung on the ladder to the mainstream labour market.

“This work, offering intermediate steps to the formal labour market is of immense importance,” said Social Affairs Commissioner Pádraig Flynn at the Brussels conference.