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Combating youth unemployment: Commission assists the member states

Eugene Eteris, European Studies Faculty , RSU, Riga, 10.04.2014.Print version
Youth unemployment in the EU is currently at about 23 per cent, almost twice as high as the overall rate, i.e. unemployment is at an unsustainable and unacceptable level. The EU’s top priority is to fight unemployment, and inside this priority, the major issue is that of youth unemployment. The EU and the member states need a targeted and effective response.

Following initiatives taken by Chancellor A. Merkel and President F. Hollande, with other European Heads of State and Government, the Commission decided to organise a conference more focused on present problems: what should be done in order to speed up the common efforts involving national experts and interested organisations.

 

The EU’s top priority is to fight unemployment, and inside this priority, the major issue is youth unemployment.

 

In December 2012, the Commission presented its Youth Employment Package, which included the establishment of a Youth Guarantee Scheme, and in April 2013 the EU member states adopted the Package.


High priority

Young people in Europe remain at the core of all EU’s priorities; they are the key to Europe's future dynamism and prosperity. Their talents, skills and creativity are essential to ensure European's growth and competitiveness. However, the reality is that youth unemployment in Europe has reached alarming levels, representing a waste of human resources.

 

It is a challenge for Europe: growth is slowly resuming; though that urgently needs to be translated into job opportunities. Hence, promoting youth employment must be the top priority.

 

President of the Commission, together with László Andor, Commissioner responsible for social affairs acknowledged that although there are signs of hope in the economic situation in Europe, it is difficult to say that the crisis is over until the EU has unacceptable high level of unemployment.


Challenges

The EU is facing serious challenges; therefore, in the Country-Specific Recommendations that the Commission is going to prepare in June 2014, it insists on the need to focus the policies in terms of growth: mainly, through investments in quality jobs. This is the moment in the EU development that underlines a new “turnaround of the economy”.

 

At the same time, there are still some structural factors that hamper growth and hamper employment, and that have to be addressed on their own.

 

The EU and the states have to work hard to make possible this recovery and make possible the growth of employment.

 

In December 2012, the Commission presented its Youth Employment Package, which included the establishment of a Youth Guarantee Scheme, and in April 2013 the EU member states adopted the Package. The issue is urgent: it's not common for the states to adopt Commission’s proposals in six months. It shows that there is awareness by the governments of Europe about the extremely difficult present unemployment situation.     

   

All EU states should implement the Union’s “Youth Guarantee Scheme” aimed to ensure that all young Europeans receive a good quality offer of employment, continued education, an apprenticeship or a traineeship within four months of leaving school or becoming unemployed.


Positive signs

A number of important European indicators are showing positive signs: growth is picking up (it is expected to reach 1.5% in the EU in 2014 and accelerate to 2.0% next year.

 

Although labour markets are always slower to react, the outlook now is for a modest rise in employment from this year on and a decline in the unemployment rate towards 10.4% by 2015. Youth unemployment is currently at 22.9%, almost twice as high as the overall rate, i.e. unemployment is at an unsustainable and unacceptable level.

 

The EU and the states need a targeted and effective response; targeted, because such general figures hide large differences between countries. These are average figures, but the situation is very different across countries.


Risks of unemployment

Certain groups of youngsters – such as women, disabled people and migrants – are particularly exposed to the risks of unemployment, long-term unemployment and early school leaving.

Young people are over-represented in temporary and part-time work, which reflects segmented labour markets.

 

There is the need to focus on the young people that are not in employment, education or in training (the so-called NEET situation), and in Europe today, over 14 million people under the age of 29 are considered in the NEET – without employment, education or training.


High unemployment co-exists with increasing difficulties in filling vacancies. The latest European company survey found that about 40% of firms across the EU had difficulties finding staff with the right skills.  

 

Growth is necessary, but it is not a sufficient condition to solve these problems. There is also the prospect of jobless growth. That is why the member states need, at the same time, to try to foster new drivers for growth, to have specific targeted measures for employment. That is, the EU needs a broader strategy to address employment, education and skills levels; hence, the implementation of the Youth Guarantee remains a top priority.

 

Indeed the Europe 2020 strategy has put a special focus on implementing effective measures to address youth unemployment.


Country-Specific Recommendations

Commission's Country-Specific Recommendations in 2013 have identified urgent steps needed in 19 member states to combat youth unemployment through, inter alia, active labour market policies, reinforcement of public employment services and support for training and apprenticeship schemes.

 

The European Commission is closely following up the implementation of the Country-Specific Recommendations and we will be attentive to the forthcoming National Reform Programs.

The establishment of a Youth Guarantee scheme in all EU states is a major structural reform and also a key investment for the future.

 

Most of the work to fight youth unemployment must be done at the national level. And of course very different situations co-exist in terms of the challenges facing EU countries, their policies, the institutional arrangements in place and also the constraints on budgetary resources.

 

However, the European Union can provide added value through targeted initiatives and funding.

 

The successful launch of the Youth Guarantee shows that there is a strong commitment at the highest political level to tackle youth unemployment. So far 23 EU states have already submitted their Youth Guarantee Implementation Plans to the Commission and the other 5 are expected to present theirs later this year.

 

The Commission is carefully assessing the plans submitted through bilateral meeting with the member states providing technical feedback on the implementation plans and in some cases "Youth Guarantee technical missions" have been sent to the states.


Comprehensive strategy needed

The need for a comprehensive strategy supporting the move from school to work is a novel requirement for most EU states. The point is that the Youth Guarantee needs to be a comprehensive scheme that reaches all unemployed or inactive young people, even those who are hardest to help. Very good inter-ministerial cooperation and the involvement of all stakeholders are crucial, especially social partners, youth organisations and also the private sector must be involved.

 

A credible Youth Guarantee implementation plan starts with a sound analysis of where current policy falls short in targeting young people's needs. Schemes and programs for youth employment are almost universally weak in reaching out effectively to young people who are neither in employment, nor in education or training. That is why they need a targeted response; the Commission believes that with the Youth Guarantee there will be positive steps.

 

There is also an urgent need in the EU states for sufficient funding; in this context European funding is in place to support the Youth Guarantee programs, which include speeding up preparations for the Youth Employment Initiative-related programs, so that EU’s € 6 billion would reach the EU states as soon as possible. As is known, these funds are available through the seven year programming of the EU Multiannual Financial Framework.


European Social Fund

The Youth Employment Initiative is highly relevant as it seeks to support the fight against youth unemployment, and in particular the implementation of the Youth Guarantee, in most affected regions (those with youth unemployment rates above 25%).

 

Additional EU support for the member states in the fight against youth unemployment is coming from the European Social Fund. That is why, on top of € 6 billion, in fact, there are more funding, if necessary.

 

The Commission has encouraged the EU member states to step up their efforts to implement the Youth Employment Initiative as soon as possible. In this way the states can deliver on the ground and achieve concrete results.


Quality traineeships and apprenticeships

The Youth Guarantee is also about rolling out quality traineeships and apprenticeships on a much larger scale than before.

 

The Council – thanks to the Greek Presidency's efforts – recently reached a political agreement on the proposal for the Quality Framework for Traineeships (this happened 3 months after the Commission made its proposal).

 

The Quality Framework for Traineeships is an important reference point for traineeships under the Youth Guarantee. Traineeships can have a key role in ensuring smooth transitions from school to work only if they offer quality learning content and good working conditions. It is now crucial that all member states “ensure” full application of the quality elements by adopting them in their legislation or national practices.

 

Another European-wide initiative is the European Alliance for Apprenticeships that aims to increase the quality and supply of apprenticeships across Europe and to change attitudes towards dual education systems.

 

Commissioner L. Andor has been in contact with the business community, promoting actively their participation and their initiatives also in this European Alliance for Apprenticeships; there was an overall positive reaction with many companies, including trans-national companies, committing to some action in this area.

 

These steps are very important with regard to the dual education system, because experience shows that in countries where dual education systems exist, young people have a better chance of a smooth transition from school to work. Following the launch of the Alliance last year, some 30 organisations have already pledged to take concrete action.

 

Supporting labour mobility, one the four freedoms underlying Europe's internal market, is also important and the Commission has proposed to improve and modernise EURES, the job mobility portal that currently gives access to over 1.7 million job vacancies, to more effectively match labour supply and demand across Europe.

 

Another promising initiative is the Grand Coalition for Digital Jobs that the Commission launched in 2013; Commission organised meetings with some of the biggest companies in the world in the digital area to ask them to contribute. Information and communications technology remains one of the best avenues for job creation in Europe. Over the last years, this sector has proven its resilience over the crisis and 500,000 jobs were created in the ICT sector. Europe might actually face a shortage of up to 900,000 ICT professionals by 2020.

 

The Commission will soon launch a new initiative to exploit the potential of job creation in the green economy, something that will need more professionals.


The Erasmus+ program

The Erasmus+ program is also supporting EU states’ reforms in the field of education and training systems. For 2014-2020 it has a budget of € 14,7 billion aimed at boosting skills, employability and supporting the modernisation of education, training and youth systems.

 

The beneficiaries from Erasmus+ in Europe:

 

- 2 million higher education students will receive grants to study or train abroad, with 450 000 traineeships available;

- 650 000 vocational students and apprentices will also be able to study, train or work abroad;

- 800 000 teachers, trainers, education staff and youth workers will receive funding to teach or train abroad;

- 200 000 Master's degree students planning a full course in another country will benefit from loan guarantees;

- More than 25 000 students will receive grants for joint Master's degrees (studying in at least two higher education institutions abroad);

- More than 500 000 young people will be able to volunteer abroad or participate in youth exchanges;

- 125 000 schools, vocational education and training institutions, higher and adult education institutions, youth organisations and enterprises will receive funding to set up 25 000 'strategic partnerships' to promote the exchange of experience and links with the world of work;

- 3 500 education institutions and enterprises will get support to create more than 300 'Knowledge Alliances' and 'Sector Skills Alliances' to boost employability, innovation and entrepreneurship;

- 600 transnational partnerships in sport, including European non-profit events, will also receive funding.

Reference: SPEECH/14/308; 9 April 2014 and Erasmus+ Frequently Asked Questions (MEMO/13/1008, 19/11/2013).


Implementation

The critical point is – the member states' level: it is basically a national competence in the case of employment. The Commission tries to create new instruments, also financially, but the key issue is implementation. That is why the presence of distinguished experts and people working in the national administrations is so important.

 

Besides, important is to create political priority, trying to join efforts at national, European and sometimes also international level, e.g. with the ILO. But at the same time, the success of this is in the implementation, the way the EU member states’ national administrations – with the resources they have and some that the EU can put at their disposition – can indeed implement it on the ground. And also the political commitment, the priority that governments, social partners, political partners and, generally, stakeholders can give to the effective implementation of the Youth Guarantee.

 

The success of the Youth Guarantee depends to a very great extent on sharing ownership with the many players involved. It is important that this initiative is a process that mobilises all the partners involved. That is why it is important, apart from high-level conferences, to have full commitment at European and national level.

 

European Union as a political project has to be based on a firm belief in the EU’s social model, i.e. social market economy and on the values that underlie it. It can only prosper if the EU gives young people opportunities. This is one of the most existential issues that the EU is facing: not to have a lost generation in Europe. “Young people will only embrace Europe if Europe embraces them, if Europe shows that we are concerned, but not only concerned, but committed to find solutions”, underlined the Commission President.

 

The next important meeting at the level of Heads of State and Government, will be at the next Italian Council Presidency (July-December 2014) in Turin.

 

Reference:  European Commission Speech by President Barroso: "Youth Guarantee: making it happen", SPEECH/14/304; 8 April 2014, at:

http://europa.eu/rapid/press-release_SPEECH-14-304_en.htm?locale=en







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