Youth employment &“Youth on the Move”

Kick-Off meeting « Future City Jobs » London, 11/10/2011

Brigitte DEGENPolicy & Communication Officer

European Commission, DG Employment, Social Affairs and Inclusion

EU economy: what is the current picture?

• 23 million people (on average 10% of active population) now unemployed

• Much higher percentage for young people (20,9%), harshly hit by the crisis (more than 40% unemployed youth in Spain & Greece)

• In 2009, EU GDP fell by 4% ; industrial production dropped by 20% to 1990s levels

• National deficits at 7% of GDP on average, national debts at over 80% of GDP on average

• EU‘s growth potential has already halved as a result of the crisis

EU priorities for young people (1)

ENSURING TRANSITIONS

•Individualised professional guidance and advice

• Youth guarantees

• Vocational training, apprenticeship

• Targeted active policies

• Personalised approach, reach out to young people in partnership with various relevant actors

EU priorities for young people (2)

IMPROVING THE LABOUR MARKETS

•Stimulating the offer• Reducing segmentation• Promoting quality mobility

MOBILISING EU SUPPORT:• Sharing experiences & good practices (Progress)• Using EU funding, in particular ESF

Europe 2020: 3 relevant EU headline targets

By 2020

• 75 % employment rate for people between 20 and 64

• < 10% early school leavers & min. 40% hold tertiary degree

• reduce by 20 million the number of people at risk of poverty

Europe 2020: 3 interlinked priorities

Smart growth: developing an economy based on knowledge and innovation

Sustainable growth: promoting a more efficient, greener and more competitive economy

Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion

Europe 2020: 7 flagship initiativesSmart Growth Sustainable

GrowthInclusive Growth

Innovation« Innovation Union »

Climate, energy and mobility

« Resource efficient Europe »

Employment and skills

« An agenda for new skills and jobs »

Youth education and employment« Youth on the 

move »

Competitiveness« An industrial policy for the 

globalisation era »

Fighting poverty« European platform against poverty »

Digital society« A digital agenda 

for Europe »

Youth on the move

3 strands of key actions

• Improve education and training systems: lifelong learning, higher education, VET

• Facilitate EU mobility for learning purposes and on the labour market

• Policy framework to improve youth employment

1. Actions to support education & training

• Re-launch cooperation on vocational education and training

• Modernise universities

• Quality framework for traineeships

2. Support for learning and job mobility• Access to job opportunities in the wider EU labour market

through new mobility scheme: Your first EURES job

• A European Vacancy Monitor to increase transparency

• Ensure free movement of young workers and monitor the application of EU legislation to ensure that mobile workers enjoy the same rights as « home » young workers

• Remove obstacles and increase opportunities: proposal for a Council Recommendation on promoting learning mobility

• For all young people: graduates from VET, graduates from HE, vulnerable groups (NEETs, low-skilled, women, ethnic minorities, migrants, disabled)

• Focus on: transitions, fighting segmentation, provide adequate safety nets, encourage youth entrepreneurship & self-employment

3. A framework for youth employment

A framework for youth employment

What do we want to achieve?

Reduce high youth unemployment Raise youth employment rates

EU had these objectives already before the crisis when youth employment was not satisfactory either, but there are important additional short term challenges in the jobs crisis:

tight public budgets fewer job openings, risk of “lost

generation”

A framework for youth employment :How does EU intervene?

• Design and implementation of youth policies: first and foremost a Member States’ competence

• EU has mainly a policy coordination role:

* setting common priorities

* monitoring progress

* making recommendations to individual Member States

* promoting mutual learning and best practice exchange

Priorities of the policy framework * Help young people to get the first job and start a career * Support youth at risk

* Provide adequate social safety nets for young people

* Support young entrepreneurs and self-employed

Improve education-to-work transitions

Information, guidance and counselling

Skills development at labour market entry (vocational training, apprenticeships)

Early contact with labour market during studies (traineeships, internships)

Youth Guarantees

Ensuring that all young people are in a job, further education or activation measures within four months of leaving school and provide this as a “Youth Guarantee”

Implementation at national level; Youth Guarantees (and similar approaches) need to be based on consensus and joint action of different stakeholders

“Single contract”

In segmented labour markets, introducing an open-ended "single contract" with a sufficiently long probation period and a gradual increase of protection rights, access to training, life long learning and career guidance for all employees.

Make permanent contracts more attractive, e.g. by introducing minimum incomes specifically for young people and by positively differentiated non-wage costs.

•

Strengthening social safety net for youth

* Offering a good balance between rights to benefits and targeted activation measures based upon mutual obligation; in order to avoid that young people fall outside any social protection system and to avoid benefit traps.

* Modernising social security systems to take account of specific situation of young people, especially their increased risk of precariousness

Promoting youth entrepreneurship & self-employment (1)

• Increasing knowledge on entrepreneurship and self-employment

• First report on "entrepreneurial activity in Europe" focusing on the social and employment aspects of entrepreneurship;

•Policy brief on youth entrepreneurship beginning of 2012

• Youth@Work campaign

Youth@Work

Awareness-raising campaign to build contacts between young people and small businesses (SMEs). The aim is to:

help young jobseekers find jobs in SMEs and rapidly gain experience and skills

raise awareness among small businesses about the potential benefits of recruiting inventive, dynamic young people

make young people aware of the existing tools that can help them become self employed or set up their own business

Promoting youth entrepreneurship & self-employment (2)

Supporting entrepreneurship & self-employment financially:

European Social Fund

European Progress Microfinance Facility

ERASMUS for young entrepreneurs

Progress Microfinance

Creating jobs and fighting exclusionby:Increasing access to, and availability of, microfinance for:

vulnerable groups (unemployed, disadvantaged people, youth...)

micro-enterprises, especially those in the social economy

Some relevant links

Promoting entrepreneurs & the self-employedhttp://ec.europa.eu/social/main.jsp?catId=952&langId=en

Progress Microfinance http://ec.europa.eu/epmf

Erasmus for young Entrepreneurs http://www.erasmus-entrepreneurs.eu/

Youth on the movehttp://europa.eu/youthonthemovehttp://ec.europa.eu/social/main.jsp?langId=en&catId=950

Youth@Workhttp://ec.europa.eu/social/youth@work

Thank you!