Undeclared or under-declared work seems to be a common secret in the cultural and creative sector (CCS). However, this is of little relevance to national policy makers. A pilot study by the European Labour Authority (ELA) aims to provide the first mapping of this relatively untouched area.
Although data and statistics on this issue are limited, participants in the Platform's Thematic Review Workshop (Brussels, May 2024) confirmed that, in line with their experience, there is significant undeclared work in the CCS in Member States. This can take various forms, such as bogus self-employment, cash payments, lack of written contracts, unpaid or underpaid services. In addition, the lack of dialogue between employers and workers and fragmentation appear to be further obstacles to improving working conditions in many subsectors and fair pay for cultural and creative workers.
Journalists, web designers and performers are among the professions most affected by bogus self-employment. Other forms of undeclared work are found among creative professionals, circus artists, DJs and support staff .
A specific feature of working conditions in the cultural and creative sectors that emerges from the research and literature is the activities that cultural and creative workers carry out without receiving any form of payment or financial compensation.
Research findings indicate that cultural and creative workers in general spend time on various types of activities for which they do not receive financial compensation. In the live performance sub-sector, such 'unpaid' activities include networking, writing applications for funding, conceptualising new projects, completing projects, administration, etc.
A similar phenomenon can be observed in the audiovisual sub-sector. Musicians often spend a lot of time practising their professional skills. Film and documentary directors and scriptwriters provide services that are not fully remunerated (e.g. development work, scriptwriting, pre-production preparation, but also peer coaching and even teaching).
Nevertheless, there seems to be a growing awareness of the issue of unpaid work among stakeholders and policy makers in the Member States. For example in Germany, rehearsals and performances are typically considered as part of the paid services or artistic work activities in the live performance sector. In addition, artists (e.g. dancers, orchestras, theatre actors, etc.) are increasingly demanding written contracts and adequate remuneration for their rehearsals and performances.
According to the research, a significant number of professionals in the CCS who are technically self-employed are de facto in dependent employment and thus in 'false self-employment'.
Cultural and creative sector organisations rely on public and private funding to finance their operations, while at the same time requiring the availability of professionals in order to receive such funding. This leads to project-based employment and contributes to an increased reliance on non-standard forms of work to cut costs. For example, artists and creators who are contracted by a single person or organisation to do work for them are declared as self-employed, even though the hours of work, the content of the work and the way it is handled are determined by the contractor and not by them.
Depending on the measurement method, bogus self-employment is estimated to be between 1.6 % and 10.8 % of all self-employed in the CCS. As a result, the CCS is one of the economic activities with the highest shares of false self-employment in the EU.
In this context, the authors of the study highlight the difficulties of establishing an employment relationship in cases where third party payers are involved and performers work, sometimes for very short periods, in small venues without the clear 'presence' of a direct counterpart who may in some specific cases be qualified as an employer.
The absence of a direct counterpart at the place of work may also have consequences in terms of compliance with legislation on working conditions and occupational health and safety. This specific issue, which concerns the live performance sub-sector, was also raised during the Thematic Review Workshop.
The information gathered from interviews and desk research also highlights the phenomenon of workers in the cultural and creative sector providing work without a contract. This does not mean that the work is not paid for by the client or employer. However, it appears that a significant amount of time is spent by workers performing a task without 'adequate' financial compensation. In some cases this may mean that there is no contract for these hours or that the hours worked are under-reported.
The interviews also revealed the existence of a certain informal economy, the acceptance of cash payments and unregistered services. This is very often associated with small-scale activities and/or small private venues.
Read the full report here.
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Photo author: Mostafameraji
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The European Labour Authority has uncovered hidden quantitative and qualitative figures about the continent's cultural and creative sectors. Spanning six sub-sectors, including music, performing arts & visual arts, it paints a landscape of precariousness and informal economic activity.
CCS are characterised by project-based financing, fragmented value chains, high levels of self-employment and non-standard forms of work. Precarious working conditions and low levels of collective representation make it one of the least organised forms of work, in contrast to its social value as seen during the pandemic. This is the first and main conclusion of a study published by the European Labour Authority on the working conditions of artists and creative workers in the EU.
The study titled "Employment characteristics and undeclared work in the cultural and creative sectors" paints a stark picture of systemic failure, as in many cases cultural workers appear to be left without basic protections such as health insurance and pension benefits. In addition, digital platforms and cross-border mobility complicate their professional environment, with many artists operating in legal and financial grey areas.
The study used a multi-method approach to investigate undeclared work in Europe's cultural and creative sectors, combining desk research with semi-structured interviews with stakeholders in the EU cultural sector. It also included in-depth case studies in five countries: Belgium (Flanders), France, Germany, Latvia, and Portugal.
Overall, the cultural sector in the EU employs around 7.7 million people, representing 3.8% of total employment. However, only 76.5% work full-time, compared to an EU average of 81.5% in the wider economy, with particularly low rates in the Netherlands, Austria, and Germany. In addition, almost a third of CCS workers are self-employed, compared to only 13.8% in other sectors of the economy. Artists face particularly difficult circumstances, with only 73.3% having a permanent job, according to Eurostat.
Wide differences among member states but also sectors
ELA, estimates that there should be around 1.2 million cultural enterprises in the EU in 2020, accounting for 5.2% of businesses within the non-financial business economy. There are significant regional disparities, with higher employment in the sector in western and northern Member States than in eastern and southern ones. Germany and France, together with the Netherlands, Spain and Italy, were home to 62.6% of all artists and writers in the EU.
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The most recent statistics available show that 1.7 million artists and writers were active in the EU, accounting for 22% of employment in the sector. 'Artists and writers’ is measured by Eurostat by means of selecting two specific cultural occupations e.g. authors, journalists, and linguists and creative and performing artists. About 46% of artists are self-employed, which is significantly higher than the proportion of self-employed in all sectors of the CCS (31,7%) and in the total employment (13,8%).
Employment in the CCS is also characterised by higher participation rates of women and younger people, and higher levels of education than in the general economy. But there is also considerable diversity between the different sub-sectors (e.g. literature, music, visual arts, performing arts, audiovisual and cultural heritage); Performers and artists for example, face particularly complex challenges when working across EU borders. Issues such as double taxation, misclassification of workers and inconsistent national regulations create additional barriers. Non-EU nationals working without proper permits add another layer of complexity to this already nuanced employment ecosystem.
In order to tackle the problem, some countries have taken certain measures. France has introduced regional prevention agreements specifically targeting undeclared work in the audiovisual and performing arts. Belgium has introduced a regulatory framework for both professional and amateur artists, creating more structured pathways for cultural employment.
Countries such as Belgium, France, Greece, and Portugal have established sophisticated registration systems to collect data on cultural workers, providing unprecedented insights into employment dynamics in the sector. In the audiovisual subsector, prior authorisation and event permits have become standard practice, helping to create a more transparent working environment.
A pivotal workshop in Brussels in May 2024 brought together labour inspectorates, social partners, and EU institutions to identify the root causes of undeclared work, develop prevention strategies and create comprehensive policy recommendations. In the September report, the ELA focuses on establishing a standardised framework across Member States.
The approach focuses on facilitating an ongoing dialogue between national enforcement authorities to create consistent definitions and job classifications within the cultural industries — a long-standing problem in the EU. By developing a robust data collection mechanism, experts aim to enable comparative analysis between different countries and cultural sub-sectors.
That should include a particular focus on identifying and documenting current patterns of undeclared work in emerging creative sectors such as video games, sports and the emerging digital creative industries. The proposed strategy also targets less visible forms of undeclared work, including cultural activities organised by casual employers and transactions facilitated by digital platforms.
The rise of digital platforms has further complicated the employment landscape. Professionals increasingly rely on crowdfunding and online platforms, often operating in legal grey areas that circumvent traditional tax and labour regulations.
ELA believes that these recommendations could significantly improve working conditions for artists and creative professionals by developing targeted prevention strategies and creating more transparent employment mechanisms. However, experts acknowledge that successful implementation will require sustained cooperation between government agencies, cultural institutions and creative professionals across the European Union.
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Image (1) Credit: Graffiti in Via del Voltone by 66colpi, under the Creative Commons Attribution-Share Alike 4.0 International licence
Image (2) Credit: Corso degli Artisti Street Painting Festival in Little Italy, Downtown San Diego, Christopher Mann McKay, GNU licence
