Implementing employment promotion programs in Austria

Regional flexibility and tailor made interventions in the context of centralised regulations and targets

Case study: The Youth training guarantee program PES Austria Dr. Ernst Haider

Moskau, 17.9.2014

Czech Rep Slovakia Lower Austria Germany Upper Austria Swizzerland Italy Styria Carinthia Slovenia Hungary

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Austrian labour market 2013

(% change compared to 2012 in brackets)

         

Population 8,3 m Population of working age (15-65 years) 5,7 m Employees 3,480,000 (+0,5%) Unemployed (national registration) 287,000 (+10,2%) Persons affected by unemployment 886,000 (+4,3%) EU Employment rate 72,3% EU unemployment rate 4,9% National UE-rate 7,6% (+0,6%pt) EU long-term unemployed 1,2% EU Youth unemployment rate 9,2%

 

registered job vacancies 440.000 (-1,7%) “market-share” of PES 36,5%

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The AMS, the Public Employment Service

 is a service provider company under public law  is divided into

one federal, 9 regional and 101 local offices

 the local organisations are complemented by 67 career information and counselling centres  r epresentatives of employers’ and labour organisations (unions) are involved at all levels and make a considerable contribute to forming labour market policy  at the end of December 2013, 5.539 staff (corresponding to 4.902 full time equivalents) were at the service of job-seekers and enterprises. 4

Characterising LMP in Austria

• LMP is a statutory federal governmental policy task, • There is no political decentralisation of LMP to other governmental bodies or municipalities • The AMS performs its duties within the framework of the general labour market policy goals as set out in the PES-Act and by the • ministry of labour • Integration of ALMP and UI (passive LMP) within the AMS • Revenue of the UI contributions is used for income support to job-seekers (benefits)

and

for active labour market policies • Tripartite representation by workers’, employers’ and government representatives at all levels of the AMS

AMS could be defined as a managerial decentralised, self administration model in coordination and cooperation with other LMP players on the local level (“Länder”) (Mosley 2011)

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LMP-Planning-Architectur in Austria

Europa 2020 – A strategy for smart, sustainable and inclusive growth , ESF 2014-2020 National Reformprogram Austria (NRP) Youth Guarantee Implementation Plan LMP-objectives given by the BMASK Long term business plan 2013-2016 Annual LMP-targets Balanced Scorecard (process-targets and customer satisfaction ) Budget (staff /infrastructure) Budget (ALMP, UI-benefits) Regional&local working programs

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System of central-steering the AMS

Targets Regulations (tasks and services)



Management by Objectives



Balanced Scorecard

 

Working programs Controlling



Management Information systems

  

Rules & directives (active and passiv LMP) Organisational structur and development HR-training and -development Ressources



ALMP Budget



Budget



Staff



Infrastructure



IT

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Characterising the AMS

• •

Centralised Tasks

   Decision of priority labour market policy programs Implementation of annual LMP-goals, MbO-system and BSC Specification of nationwide standard regulations concerning organisation, personnel, facilities, research and statistics  Performance Management Controlling

Decentralised Tasks

  Implementation of regional LMP-goals and LMP-programs Coordination with other LMP-institutions, the local government in the TEP (territorial employment pacts)  elaborating labour market policy aims for the respective regions  Distribution of budget and staff to the local offices 8

Regional/local Cooperation

      PES bodies ensure that activities at regional and local levels are performed in close cooperation with the social partners.

cooperation of PES with the nine Region (

Länder)

governments has been enhanced over the years, e.g. cofinancing LMP-programms Balanced financing of regional/local training&employment programms between PES and regional government gives advantage for appropriate measures in the local context Combining labour market and regional economic policy through Territorial Employment Pacts (TEPs, the management of the TEPs is ESF-funded), which support structural change by supplying business and industry with skilled workers and by training job-seekers to meet skill requirements. agencies for vocational training and further training, counselling centres for vulnerable target groups and other organisations are involved. Cooperation also involves private placement agencies and temporary work agencies 9

Austrian Background TEP - Partners

Public Employment Service Chamber of Labour Chamber of Commerce Chamber of Agriculture NGOs (Local Initiatives) Federal Office of Social Affairs Gender Mainstreaming Experts

Budgets of the partners: over EUR 930 Million p.a.

Provincial Government Federation of Industry Federation of Trade Unions Provincial School Board Educational Institutions Municipalities Regional Management Associations 10

THEMATIC FOCUS of the TEPs

Interface social welfare to work and school to work Special employment facilities for marginalised groups Female youth: manufacturing school Tyrol and Unterland Assistance to trainees and start-ups

Upper Austria

Cross-project co-operation

Lower Austria Vienna Burgenland Styria Vorarlberg Salzburg Tyrol Carinthia

Structural integration at the interface school/labour market Sustainable measures, co operation between interfaces Closing gaps: measures for unemployed

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Case study Implementing the Youth training guarantee program

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Youth unemployment rate (15-24) in the EU (2013)

60,0 50,0 40,0 30,0 20,0 10,0

9,2

0,0 Eurostat (Abfrage 15.04.2014) 13

Favourable framework conditions for the youth labour market in Austria



low level of total/youth unemployment

2013 : Austria: 4,9 %/ 9,2%; EU 28: 10,8 %/ 23,4%   

the dual (vocational) training system

 combination of on-the-job training in an enterprise and school-based education (ratio 80:20)  about 41 % of a birth year cohort start an apprenticeship after compulsory education  About 200 different apprenticeships in crafts, industry and services are defined, the duration ranges from two to four years.

Since the 80 ies

one of the

Federal Government’s LMP-priorities

is to optimise the labour market prospects for young people.

in 2013 about

EUR 640 Mio

. were spent for labour market and employment policy for young people (40% of active LMP-spending) 14

Unemployment rate of young people (20 to 24) by education

Every third young person without education is unemployed average: 10,6% compulsory education apprenticeship secondary technical and vocational schools – medium level Upper –level secondary technical and vocational colleges Secondary academic schools – upper level Tertiary level education (e.g. universities; colleges, vocational training academies) 15

Implementing the Youth training guarantee program – central regulations

    To give all young people a chance to complete a vocational education, the Training Guarantee started in 1998 and was expanded in 2008 on a legal basis.

Training guarantee ( § 38e Austria‘s Public Employment Act): Each young person who wants to take up an apprenticeship will get a training slot as promised by the Training Guarantee within 3 months either by   entering an apprenticeship in the labour market, entering a supra-company apprenticeship training or  taking on a training opportunity provided by the PES A regulatory framework (guidelines, financing, monitoring) has been set out by the federal PES Providing the financial ressources according to the regional demand 16

Implementing the Youth training guarantee program - decentral organisation

     Regional/local PES analyse the structure of the youth target group (gender, minorities, vulnerable groups...) and the preferred type of apprenticeship Regional/local PES analyse the local demand of enterprises for specific qualifications – according to the local economy (tourism, services, rural/urban areas, etc.) Based on this information regional PES makes a call for tenders for the delivery of supra-company-training Equal funding by regional PES and regional governments Assessment of the outcome and further development in the regional context (new qualifications, quantitative&qualitative adjustments, etc) 17

Training Guarantee for young people – supra-company apprenticeship training

•

Supra-company apprenticeship training

 If young apprenticeship-seekers cannot be placed in a formal apprenticeship, they will be offered („guaranteed“) the opportunity to enter a apprenticeship programme in a supra-company apprenticeship training.

  the apprenticeship training is provoded by private or non profit institutions the attendance of public vocational school is mandatory

1. Supra-company apprenticeship training by an educational institution

– theoretical training in a public vocational school – practical training offered by the educational institution

2. Cooperation between an educational institution and a private company

– theoretical training in a public vocational school – practical training in a company 18

Supra-company apprenticeship training

eductional institution

goal: completion of apprenticeship

vocational school 19

Supra-company apprenticeship training

educational institution

goal: transfer to apprenticeship in a company

company vocational school 20

Supra-company apprenticeship training

• Number of participants: 2009 12.177

2010 12.784

2011 12.000

2012 11.026

• Expenses: € 12.000/participant/year • Achievements (results of evaluation): – about 50% changed to an appreticeship in a company 21

Success factors of the Austrian PES

 political agreement concerning the duties and the framework conditions of the AMS  Tripartite self-administrated (semi governmental) organisation  concentration on core activities and main processes since the reform 1994  stable staff structure (low managers and employee turnover)  Performance Management (MbO, BSC)  ongoing organisational development (total quality management)  Good mixture of central & decentralised decisions and providing services (federalism)  time for planning, testing, evaluation and implementing of new activities is taken 22

Tank you for your attention

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