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Egbert Holthuis, EMPL/D2

MISEP Achieving activation of job seekers: successful strategies for case management  3 and 4 November, Paris. Egbert Holthuis, EMPL/D2. Activation: difference labour market and general employment policies. LMPs are public interventions targeted towards particular groups

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Egbert Holthuis, EMPL/D2

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  1. MISEPAchieving activation of job seekers: successful strategies for case management 3 and 4 November, Paris • Egbert Holthuis, EMPL/D2 DG Employment, Social Affairs and Equal Opportunities

  2. Activation: difference labour market and general employment policies • LMPs are public interventions targeted towards particular groups • While general employment policies, by definition, are not targeted at any particular group • LMPs are grouped into active or passive measures • Active policies (ALMP) aim to increase the likelihood of employment or improve earning prospects • Whereas, passive policies provide income support to unemployed people or early retirees, without, a priori, attempting to directly improve their labour market performance DG Employment, Social Affairs and Equal Opportunities

  3. Main types of ALMPs • LMP services, including PES • Training • Job rotation and sharing • Employment incentives (eg wage subsidies) • Integration of the disabled • Direct job creation (public or non-profit sectors) • Start-up incentives DG Employment, Social Affairs and Equal Opportunities

  4. Activation policies within an integrated flexicurity approach • Modern social security systems that provide adequate income support, encourage employment and facilitate labour market mobility. • Flexible and reliable contractual arrangements through modern labour laws, collective agreements and work organisation. • Comprehensive lifelong learning strategies to ensure the continual adaptability and employability of workers, particularly the most vulnerable. • Effective active labour market policies that help people cope with rapid change, reduce unemployment spells and ease transitions to new jobs. DG Employment, Social Affairs and Equal Opportunities

  5. Need for activation in relation to overall employment situation DG Employment, Social Affairs and Equal Opportunities

  6. But high employment growth is still needed to reach Lisbon targets DG Employment, Social Affairs and Equal Opportunities

  7. Moreover employment outlook is worrying • For the EU/euro area as a whole, growth is forecast to come to a virtual standstill in 2009 and only to start recovering slowly in 2010. • However, the impact will vary, and some Member States are forecast to experience a recession depending on their competitiveness, exposure to the financial crisis, and the scale of the housing market shock. • This will lead to an increase in unemployment and fiscal positions will deteriorate DG Employment, Social Affairs and Equal Opportunities

  8. How to increase activity levels? • Emphasis on voluntary transitions and combinations education, work, unemployment, private household etc • Objective long-term improvement of individual welfare (life-course perspective) • Modernising benefit/social security policies • incentives and compensation income loss • Tax-benefit reforms, Make Work Pay, ALMP DG Employment, Social Affairs and Equal Opportunities

  9. Findings of the 2008 National Reform Programmes • Reforms pay off but low income earners still at high risk of Unemployment/Inactivity traps in many MSs • In the current juncture of fragile economic situation there is a need for more vigorous implementation of the flexicurity approach, in particular of: • - active LM policies in order to support persons that will have to undergo transition across occupations and sectors and to avoid hysteresis effect that lead to damaging long-term social consequences • - adequate income support to households and workers most adversely affected by the downturn, while not jeopardizing work incentives and budgetary conditions DG Employment, Social Affairs and Equal Opportunities

  10. Discussion points for MISEP • Experiences with « Rights and Duties approach » eg PES quality counselling and job‑brokerage services, unemployed to comply with obligations to search actively for a job, to accept any suitable job offers or to participate in ALMPs • Examples how to counteract disincentive effects on labour supply associated with UB by adopting well‑designed ALMPs • How to strengthen research on effectiveness of activation policies (data requirements!) DG Employment, Social Affairs and Equal Opportunities

  11. More Information • Thank you for your attention! DG Employment, Social Affairs and Equal Opportunities

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