Elena Zotova, Astana, 2013

Priorities of the Russia's G20 Presidency

in Employment

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PRIORITIES

Russia has formulated the following priorities of its presidency in G20

- Growth through quality jobs and investment;

- Growth through trust and transparency;

- Growth through effective regulation.

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G20 working groups 2013

These 3 priorities of the Russian Presidency are addressed by 8 working groups each having its own area of interest

1) Framework for strong, sustainable and balanced growth; 2) Jobs and employment; 3) International financial architecture reform; 4) Strengthening financial regulation; 5) Energy sustainability; 6) Development for all; 7) Enhancing multilateral trade; 8) Fighting corruption.

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Situation

Decline in UnemploymentArgentina, Germany, Indonesia, Republic of Korea,

Mexico, Russia, Turkey, USA

Growth of UnemploymentEurope (with exception of Germany), South Afrca

Long -Term UnemploymentFrance, Germany, Japan, UK

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Situation• The unemployment rate stands at 10.9% in the EU and

12.0 % in the Eurozone. Long-term unemployment is increasing and nearly one in two unemployed people have been without a job for over a year. However, the situation varies widely across the EU, with national unemployment rates ranging from less than 5% in Austria to over 25% in Greece and Spain. Young people have been particularly hard hit, with the youth unemployment rate reaching more than 50% in certain countries. Tackling unemployment and the social consequences of the crisis is one of the EU's key priorities, as stressed by the European Council conclusions of 14 and15 March 2013.

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Challenge

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Priorities

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5G20 Task Force on EmploymentMoscow, 21-22, February 2013

Methodology

• No one size fits all

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Balanced integrated approach

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Social Protection

Social Protection

RR

Job Creation

To stimulate labor demand we propose the following:

I. Government stimulated and market-based incentives for investments in job creation and for stimulating sustainable and balanced growth (including but not limited to improvements in investment climate, withdrawal of administrative barriers for investments in jobs, improvement of legal framework, investments governance, and taxation (including taxation waivers for new job places), increased stability of banking systems, development of public-private partnerships and small and medium enterprises)

II. Long-term investments (including in infrastructure) as a basis for job creation and economic growth – possible sources (such as pension funds), state guarantees and other instruments stimulating and protecting investments in job creation

III. Increased flexibility of labour regulations, including on dismissals, development of distance jobs, part-time jobs, temporary jobs etc. for those who needs such types of jobs or who can’t find regular full-time jobs.

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Labor ActivationTo stimulate labor supply we propose through improved education systems, vocational training systems, apprenticeships and other methods, enforcement of active labor market policies and rearrangement of passive labor market policies

Special measures for enhancing employment of vulnerable groups of population

Social protection policies can not be considered as sufficient for vulnerable groups of population

Special labour activation measures including creation of special jobs should be aimed at vulnerable groups of population who can work, increased flexibility of labor legislation, development of appropriate infrastructure

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Monitoring

G20 Countries Progress Report on Implementation of Employment Agenda

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List of Specific Country Commitments Recorded in the Los

Cabos Growth and Jobs Action Plan

Promote green and sustainable growth (Australia, Korea, Germany, Mexico).

Encouraging formal sector employment through better education or skill development (Brazil, Indonesia, Mexico, South Africa).

Improving employment opportunities for targeted groups such as youth and persons with disabilities (Canada, Korea, UK);

Encouraging the participation of younger workers through apprenticeships (UK).

Retraining of long-term unemployed (US);

Increasing wage flexibility, such as decentralized wage setting (Italy);

Promote investments in infrastructure to increase productivity and living standards in the medium term by addressing bottlenecks (Argentina, Australia, Brazil, India, Indonesia, Mexico, Saudi Arabia, South Africa, UK);

Reducing labour tax wedges (Brazil, Italy);

Reforms to unemployment insurance to make it more effective and efficient in supporting job creation (Canada).

Tax and benefit reforms to enhance productivity and improve incentives to work (Australia, Germany, Italy, UK).

Skills development (Spain);

Enhancing education, training and skills development (Australia, Canada, France, Germany, Italy, Turkey, South Africa).

Providing targeted support for the poor or strengthening social safety nets (India, Indonesia, China, Mexico, Saudi Arabia, South Africa).

Encouraging the participation of females in the labour force by, for example reforming benefit systems and providing affordable child care services (Australia, Germany, Japan, Korea).

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Policy issues identifiied in The Los Cabos Leaders Declaration

Job creation -“We are committed to adopting all necessary policy measures to strengthen demand, support global growth and restore confidence, address short and medium term risks, enhance job creation and reduce unemployment.” (para. 10

Labour market measures - “ ..to urgently combat unemployment through appropriate labour market measures … structural reforms, in full respect of the fundamental principles and rights at work, can play an important role in lifting economic growth to generate labour market opportunities, mobility and jobs.” (para. 20)

Youth employment -“We reaffirm our commitment to youth to facilitate their access to quality jobs…” (para. 20)

Women’s economic participation” …concrete actions to overcome the barriers hindering women’s full economic and social participation and to expand economic opportunities for women…” (para 23)

Skills development -“..intensify our efforts to strengthen cooperation in education, skills development and training policies, including internships and on-the-job training …”. (para. 20)

Quality employment -“Jobs with labour rights, social security coverage and decent income …” (para. 20)

Social protection -“We recognize the importance of establishing nationally determined social protection floors.” (para.22)

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