The polarization of the labour market and the exclusion of vulnerable groups

Since the 1980s there has been an increased differentiation of labour market experiences in most European labour markets. For those in middle and higher level occupations, there has been a marked rise in skill levels, whereas for those in lower manual occupations skill development has been limited and there has been a sharp increase in the risk of unemployment. Recent research has provided a dearer picture of the implications of these trends for the quality of people's lives. Both developments raise significant issues with respect to the health and well-being of those in the labour force. The rise in skill levels has ambivalent consequences for the quality of work life. It is linked to more intrinsically interesting work, but at the same time to an intensification of work effort. Unemployment has strong negative psychological consequences in all European societies. However, the severity of its implications differ from one society to another. The risk that it will lead to poverty is affected by the nature of the welfare institutions of a society, while the likelihood that it will be associated with social isolation is conditioned by the prevailing patterns of household organisation and of sociability.