Undeclared work levels vary widely across economies
1 April 2014
The level of undeclared work varies widely across economies, according to new research published by Randstad, the HR services provider.
Tue, 1 Apr 2014The level of undeclared work varies widely across economies, according to new research published by Randstad, the HR services provider.
In its flexibility@work report, conducted by the University of Sheffield and research and advice provider Regioplan Policy Research, the size of the so-called undeclared economy varies widely – from less than 10% in countries such as the US, the UK, Japan and the Netherlands, to more than 25% in parts of Southern and Eastern Europe.
By definition, undeclared work is ‘any paid activities that are lawful as regards their nature but not declared to the public authorities, taking into account the differences in the regulatory system of Member States’ (European Commission, 2007).
In terms of who isn’t declaring the work, this is usually at the fault of the employee. This is when work is referred to as ‘black’, ‘cash-in-hand’ or ‘hidden.’
According to Randstad, countries with a smaller undeclared economy are typically those in which it is easier for companies to resort to temporary employment to meet labour demands.
By creating the right environment in which temporary work agencies play a significant role, these economies reduce the supply and demand of undeclared work by providing both employers and workers with better alternatives.
Jacques van de Broek, chief executive officer of Randstad, says: “The report clearly shows a need for more proactive labour market policies to lift unjustified restrictions on temporary agency work.”
In its flexibility@work report, conducted by the University of Sheffield and research and advice provider Regioplan Policy Research, the size of the so-called undeclared economy varies widely – from less than 10% in countries such as the US, the UK, Japan and the Netherlands, to more than 25% in parts of Southern and Eastern Europe.
By definition, undeclared work is ‘any paid activities that are lawful as regards their nature but not declared to the public authorities, taking into account the differences in the regulatory system of Member States’ (European Commission, 2007).
In terms of who isn’t declaring the work, this is usually at the fault of the employee. This is when work is referred to as ‘black’, ‘cash-in-hand’ or ‘hidden.’
According to Randstad, countries with a smaller undeclared economy are typically those in which it is easier for companies to resort to temporary employment to meet labour demands.
By creating the right environment in which temporary work agencies play a significant role, these economies reduce the supply and demand of undeclared work by providing both employers and workers with better alternatives.
Jacques van de Broek, chief executive officer of Randstad, says: “The report clearly shows a need for more proactive labour market policies to lift unjustified restrictions on temporary agency work.”
