Federal work minister calls for ambitious ‘jobs for all’ plan

Summary

Kris Peeters, work minister in the federal government, thinks that Belgium can lower its unemployment rate to 3%– the lowest achievable rate – by 2020

Plans to tackle social dumping

Federal minister for work Kris Peeters told VRT radio this week that he would like to see every Belgian working by 2025, an ambition he described as “achievable”.

“According to the federal planning office, the unemployment rate will drop to 6.6% by 2018,” he said. “We want to bring that down to 3% by 2020.” Unemployment in the first quarter of this year stood at 7.6%. 

An unemployment rate of less than 3% is considered the lowest rate possible by economists. A 0% unemployment rate is impossible because of situations such as people switching jobs and graduates who have yet to find a job.

Peeters’ ambition would require the creation of some 240,000 jobs in addition to the 216,000 new jobs the government is already planning for the period. To reach the target, the minister intends to stimulate e-commerce and to eliminate social dumping – where companies based in countries with less stringent labour laws hire staff from that country to perform work in Belgium under the regulations of the home country. 

A 3% target, said Peeters (pictured), would require the co-operation of social partners – employers and unions – as well as the regions. Flemish labour minister Philippe Muyters said he supported the goal but called on the federal government to play its part by reforming corporation tax to encourage companies to invest in employment.

“Flanders has invested a great deal in innovation and improving our competitive position,” he said. “We are calling on the federal government to take the necessary initiatives to back up that policy.” 

The employers, represented by the Federation of Belgian Enterprise, are also broadly supportive. “We’d like nothing more,” said director-general Pieter Timmermans. “But it’s going to take a lot of feet on the ground.” The current business climate is not company-friendly enough, he said, a point agreed by Hans Maertens, the chair of Voka, Flanders’ chamber of commerce.

Photo courtesy impulskrediet.be