Ministry of Labour, Social Affairs and Family Slovak Republic

1. Ministry of Labour, Social Affairs and FamilySlovak Republic Labour Market and Employment Policy in Slovakia Anna Frančeková Employment Strategy Department October 2005

2. MOLSAF System prior to reform • Absence of philosophy • Poverty trap • Extensive abuse of the system • Huge administartion

3. MOLSAF Principles of the reform • „Making work pay“ • View into the future instead of critism of the past • Basic social minimum guaranteed • Efficient support of job-search and increase of employabillity

4. MOLSAF Targets of the reform • Activation of the unemployed • Motivation to seek and retain a job • Reduce the abuse of the system • Streamlined administration

5. MOLSAF Active Labour Market Policy 1 • Act on Employment Services – adopted in December 2003, effective as of 1st February 2004 • Fiscal consolidation: limited resources on Active Labour Market Policy (ALMP) from national budget – maximum use of ESF • Principles: • Individual and targeted work with the unemployed • Mandatory character of most of the ALMP instruments • Extended and improved allowances • Compliance with principles of state aid and with the rules on the ESF • Fiscal consolidation – limited resources on ALMP from national budget and maximum use of ESF • Targeting at regions lagging behind and disadvantaged job seekers

6. MOLSAF Active Labour Market Policy 2 • Employment services – not only public – based as of 2004 State • the Centre of Labour, Social Affairs and Family and regional offices of labour, social affairs and the family Non – State • Non –state providers of employment services (licence obligatory) • Temporary work agencies • Agencies for supported employment Outsourcing of emloyment services to non-state providers (contract based)

7. MOLSAF Activation of unemployed- ALMP 1 = part of active labour market policy • Goal: jobseekers maintain or regain working habits and routines • Help to eliminate inactivity trap: entitlement to increased social assistance benefit – incentive for benefit recipients to engage in a meaningful activity or training New or upgraded measures of active labour market policy • Services • Job matching • Information Services • Professional Counselling • Programmes • Retraining • Projects and Programmes

8. MOLSAF Activation of unemployed- ALMP 2 Projects and programmes • Supported employment for long-term unemployed • Sheltered employment for disabled jobseekers • Support for setting up a businesses • First work experience for young people • Support to labour mobility • Second chance programmes • Social Development Fund – community work targeting marginalized gorups

9. MOLSAF Activation of unemployed- ALMP 3 Projects and programmes • National project I – Support for employment of jobseekers with an emphasis on the gorups disadvantaged on the labour market • National project II – Support for thr employment of citizens with disabilities • National project III- Education and training for the labour market • National project V- Activation of the unemployed and low motivation unemployed dependent on the materila need assistance • National project VII- Increasing quality and the range of employment services through information and advice and special counselling tools and services • National project VIII- Increasing the range and quality of employment service delivery • National project IX- School leaver`s job experience scheme (Graduate practice)

10. MOLSAF What to do next ? Priorities reflected in the Slovak national reform programme 2006-2008 • Further modernisation of employment services • Increased investments in the human capital • Incentives for boosting employment • Challenging demographic changes • Inclusive labour market