Addressing Job Losses and Employment Challenges in Belgium: Solutions from Agoria

2023-10-24 12:44:00

On the employment side, despite an increase at the start of the year, a disruption occurred in the second quarter with more than 1,500 jobs lost, including in IT. This is the first time in three years that the number of technology jobs has declined. A further drop of 2,400 jobs is expected in the second half of the year.

Remove automatic indexing

Belgium’s handicap in terms of salary costs increased from 9% in 2021 to 14% in 2023. “We recommend removing the automatic indexation of salaries by the end of the next legislature and organizing biannual negotiations with social partners, shares Bart Steukers, CEO of Agoria. In the short term, we advocate at least a capping of automatic indexation. The goal is to proportionally reward the best performing workers thanks to a more flexible system.”

In addition, to boost the competitiveness of businesses, Agoria recommends maintaining the current tax system supporting Research and Development (R&D) and maintaining the standard of 3% of GDP.

Limit unemployment over time

As for how to reduce long-term unemployment, Bart Steukers’ observation is clear: “We are not doing enough to put people to work. Minister Pierre-Yves Dermagne is not doing enough. I think he We must accept the fact that today a little less than one person in four does not have a job and are not looking for one either. We must increase, particularly financially, the difference between people looking for work and others. This is why we propose to limit the right to unemployment to two years for workers who have experience of less than 20 years, and to three years for those who have experience of more than 20 years.”

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Furthermore, for the federation, it is important to guarantee basic digital and STEM (Science, Technology, Engineering and Mathematics) knowledge in the education of each pupil and student. “And for job seekers who do not necessarily have the skills required in digital professions, it is never too late. There is always a way to get people into companies at the bottom of the ladder and to train them, even in IT”, supports the CEO of Agoria.

Finally, although the use of flexi-jobs has recently been extended, it will be limited to a few sectors and Agoria proposes to immediately extend it to all companies. “This would make it possible, for example, to keep very experienced seniors aged 60 and over on board,” concludes Bart Steukers.

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