A Third Way to Employment and Integration? Social Enterprises in Europe between Workfare and Welfare

Abstract

Unemployment has become and has persisted to be a core problem of social integration all over Europe. Currently, nearly half of all unemployed people in the European Union have been jobless for more than one year (according to OECD data). It is especially elder people, disabled workers, women and low-skilled people who face considerable risks of long-term unemployment, with social exclusion as a possible consequence. A comparatively large part of the long-term unemployed are confronted with difficulties in the areas of health, family life and social relations (friends, neighbourhoods). Further problems are drug addiction, the misuse of alcohol and debts. No doubt that these societal problems make social expenditure increase. Against this background, public policies in Europe face hard challenges. Different kinds of political strategies might be (and have been) employed to cope with these challenges. One classical way of tackling unemployment was creating jobs in public services; but in times of fiscal crisis this strategy has gone out of fashion. A further strategy was to endorse market solutions by deregulating the labour market or subsidizing low wage employment. While some countries such as the U.K. seem to have reduced long-term unemployment, many people have remained in a precarious situation with regard to their labour market position.