Draft Joint Employment Report 2013

Lars Michael Engsted DG Employment, Social Affairs and Inclusion

Joint Employment Report General labour market situation

• A general worsening of the economic and social situation in a number of Member States with social unrest spreading.

• The situation has worsened recently and prospects are dim for 2013 and will only improve in 2014 • The EU currently the only major region in the world where unemployment is still rising.

• Growing divergence between labour markets in Europe.

Joint Employment Report Decreasing employment and increasing unemployment in the EU

Joint Employment Report Growing divergences between European labour markets

Change in unemployment rate (p.p.) over the last 12 months and the last three months to August 2012

Source: Eurostat

Joint Employment Report

Labour market challenges (1)

Boost job creation that has been subdued and decreasing in recent years Unemployment rate and job finding rate in the EU-27, 2007Q1-2011Q4

Source: Commission Services calculations based on Eurostat data

Joint Employment Report

Labour market challenges (2)

Improve the resilience of the labour markets Beveridge curve, EU-27, 2008 (Q1) — 2012 (Q3)

Source: Eurostat, the data used are: (i) the unemployment rate (UR, %), and (ii) the labour shortage indicator (LSI, %), derived from EU business survey results

Joint Employment Report

Labour market challenges (3)

Maintain the attachment of long-term unemployed to the labour market Long-term unemployment rate in % of population, 2008 and 2011

Joint Employment Report

Labour market challenges (4)

Improve the transitions from school to work and integrate young people better in the labour market Share of NEETs among the 15-24 year old (%) 2008-2011 Source: Eurostat, LFS, Def initionNEET: Neither in employment, education or training

Joint Employment Report

Labour market challenges (5)

Improve the efficiency of social protection systems to combat poverty and social exclusion

Source: EU-SILC longitudinal dataset, only 18 countries available

Annual Growth Survey Key labour market priorities

AGS 2013 priorities (1) Preparing for a job-rich recovery

• Exploiting the job potential in a number of job-rich sectors (green jobs, ICT, care sectors) • Improve the responsiveness and the adjustment capacity of labour markets.

• Ensure that wage developments continue to develop in line with

productivity

• Put more emphasis on innovation and research and the links between business and educational institutions

AGS 2013 priorities (2) Improving employability levels in particular of young people

• Investing in effective employment services and active labour market policies • Combine work and training opportunities, on-the job trainings and setting up partnerships between education, labour market institutions, social partners and businesses • Implement effective youth guarantees offering solutions of training or employment opportunities within four months • Improve access to lifelong learning systems throughout working life especially for older workers • Encourage cross-border labour mobility

AGS 2013 priorities (3) Promoting social inclusion and tackling poverty

• Develop active inclusion strategies encompassing efficient and adequate income support, • Take measures to tackle poverty • Enable broad access to affordable and high-quality services.

• Strengthen the link between social assistance and activation

measures

• Provide more personalised services • Increase the take-up of measures by vulnerable groups

Thank you !