European social policy and social dialogue

1. European social policy andsocial dialogue ETUC Youth project 2009 More and better jobs for young people in Europe Madrid, 26-28 August 2010 Bianca Busuioc European Commission, DG EMPL – unit « Social Dialogue and Industrial Relations » Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

2. A short perspective on the situation of young people in Europe • 5.6 million youth unemployed in 2009 • One out of four unemployed is under 25 years • Nearly 80 % of young people between 20 and 24 in Europe have completed upper secondary education. Nonetheless, a quarter of 15-year olds are low achievers in reading literacy10 and 6 million young people leave school without any qualifications. • difficult to anticipate how the situation will develop for young people in the next four-five years • Every year a certain number enter the labour market, with limited recruitment chances… Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

3. Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

4. A short perspective on the situation of young people in Europe • Europeans are living longer, having children later and there are fewer young people. The 15- 29 age group is projected to represent 15.3 % of Europe's population in 2050, whereas it is currently 19.3%3. • Globalisation can bring growth and jobs, but it can also bring about specific challenges for vulnerable workers such as youth, as demonstrated by the crisis. • Key competences flexible enough to develop appropriate skills throughout one's life are vital, and early school leaving is still a key issue. • (2009 Communication « A EU strategy for youth ») Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

5. A short perspective on the situation of young people in Europe • Conclusion: any action impacting on the transition to the labour market must be designed to fit the needs of young adults. • Unemployment is not a new phenomenon • however, a new feature: the increase was more steep for young men • than women • employment rates for this and next year predict the red line to remain in the order of 10%. • In the pre-crisis decade the EU managed to reduce by nearly 40 % the share of long-term unemployed among young people under 25. • Differences between Member States have increased enormously with the crisis and different factors may explain youth unemployment • Examples: Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

6. A short perspective on the situation of young people in Europe • Germany has a stable rate of 10% youth unemployment because the • Country has institutions that cushion the effects of the crisis (strong VET • basis) and invests in a "transition system" for young people falling out of • the mainstream pathways. • Spain is one of the countries with high protection of the core workforce, but with strong segmentation of the labour market to the disadvantage of youth. • Finland is PISA champion, but there seem to be problems in the transitions to the labour market. • France is a country with strong active labour market policies, but the sustainability of outcomes is problematic. Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

7. Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

8. European common challenges • Despite different starting points: there are a number of common • challenges in all EU member states and there must be real commitment • to address them. • Ensure education and appropriate skills for young people • Improve the first entry into the labour market • Improve transitions • Increase the employment rate in the age group 20 to 30 • The Commission’s priorities are set to match these challenges... Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

9. European Commission priorities • Preparation for the labour market through education and training should equip young people with key competences and respond to labour market needs • Transition to the labour market requires getting a first (full time) job after finishing education and training. • Stabilisation of labour market attachment needs to be achieved through a balanced mix of flexibility and security for recent entrants on the labour market. Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

10. Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

11. EU policy framework for youth • EU Youth Strategy 2010-2018 • Adopted in April 2009, this strategy acknowledges that young people are • one of the most vulnerable groups in society, especially in the current • economic and financial crisis. The aim is to consolidate the EU policy • orientations for youth employment responding to the challenges outlined • above and seek to strengthen Member States commitment to action • EU2020 strategy Includes a specific flagship initiative targeted at youth • Youth on the move Communication Includes specific youth employment priorities Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

12. EU Youth Strategy 2010-2018 • Following on previous youth strategy, the current one asks for greater collaboration between youth policies and other policy areas such as education, employment, inclusion and health • It includes three overarching and interconnected goals closely linked to those of the Renewed Social Agenda: • – Creating more Opportunities for Youth in education and employment • – Improving Access and full participation of all young people in society • – Fostering mutual Solidarity between society and young people • Under each goal, two to three 'fields of action' are proposed with objectives for the first three years, 2010-2012, each including a list of possible specific actions which can be undertaken by Member States and/or the Commission. Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

13. EU 2020 Strategy • Three priorities are at the heart of Europe 2020: • – Smart growth – developing an economy based on knowledge and innovation. • – Sustainable growth – promoting a more resource efficient, greener and more competitive economy. • – Inclusive growth – fostering a high-employment economy delivering economic, social and territorial cohesion. • Among the flagship initiatives meant to implement the first priority, one is • « Youth on the move », aimed (among others) at improving the • employment situation of young people. • The Commission is currently preparing a Communication expected to be adopted • this autumn… Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

14. Communication Youth on the move • Young people's transition periods from education to employment have • become significantly longer and complex. • Unemployment among young people is on average at least twice as high as for the overall workforce • The current economic crisis puts further pressure on the labour market • opportunities for the young. They frequently work in low-quality,temporary • jobs and are poorly paid. • Youth unemployment is often a result of lack of skills or • skills mismatch. • Guidance and counselling systems on qualification pathways and future job opportunities are needed. • The Commission's upcoming proposal is a contribution to Europe 2020, aiming to • develop, over the next ten years, an economy that is based on knowledge and • innovation. Part of the Commission’s future Communication on youth will • propose actions more specifically targeted to youth employment, to answer the • above mentioned challenges. The Communication underlines more robust policy • coordination and involvement of social partners. Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

15. Communication Youth on the move – 7 priorities • Help to get a first job • Promote on-the-job learning • Moving upwards after the first job • Target a job for youth at risk • Provide adequate social safety nets for young people • Support young entrepreneurs • Attract young talent into jobs Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

16. Youth employment – a financial support at EU level • The European Social Fund is the main EU financial instrument to support actions targeted to youth employment in Member States: • 30% of all beneficiaries directly supported by the Fund are 15-24 years old. • 60% of the entire ESF budget is spent on education and training, including for young people • approximately 2.5 million young people per year benefit from ESF support (examples: education/study grants, ESF-supported jobs or apprenticeship places, incentives for self-employment, job guidance and counselling, training or mentoring, pedagogical/social support). Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

17. Commission complementary actions • Apart from supporting youth employment policy implementation in • Member States, financial support (European Social Fund), cooperation • with/among MS through exchange of good practice ("mutual learning") • And dialogue with Social Partners, the Commission envisages a • number of complementary actions in the future: • Launch of the "Your first EURES job" scheme (2011) • Link the new microcredit facility with youth entrepreneurship (together • with DG ENTR) • Launch a Corporate Social Responsibility Initiative promoting more • recruitment and better quality in youth employment (together with DG • ENTR) Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1

18. More information about EU Youth policy: • http://ec.europa.eu/youth/index_en.htm Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit F1