Transcript Jane Kennedy, Manchester 2nd February

“Active Labour Market Policies in the
UK – What lessons can be learned from
the British Experience?”
Helen Bache
UK Department for Work and Pensions
CICERO FOUNDATION
PARIS, 23 FEBRUARY 2006
1
WHAT HAVE WE DONE?
2
19
7
19 1 Q
72 1
19 Q3
74
19 Q1
7
19 5 Q3
77
19 Q1
7
19 8 Q3
80
19 Q1
81
19 Q3
8
19 3 Q
84 1
19 Q3
8
19 6 Q
87 1
19 Q3
89
19 Q1
9
19 0 Q
92 3
19 Q1
9
19 3 Q
95 3
19 Q1
96
19 Q3
98
19 Q1
99
20 Q3
01
20 Q1
02
20 Q3
04
20 Q1
05
Q3
Percentage of Working Age Population (%)
Employment Rate
78
76
74
72
70
68
66
64
62
3
Comparing the UK with the EU:
UK
Employment Rate
EU
71.6%
63.3%
Men 77.8%
70.9%
Women 65.6%
55.7%
Older 56.2%
41.0%
Unemployment Rate 4.7%
Women 4.2%
Youth 12.1%
Long Term 1.0%
9%
10.2%
18.7%
4.1%
Source: Employment in Europe 2005, Eurostat
4
Employment 2004
C UK
an
ad
a
U
Ja S
G pa
er n
m
a
Fr ny
an
ce
Ita
ly
C UK
an
ad
a
U
Ja S
G pa
er n
m
a
Fr ny
an
ce
Ita
ly
Percentage Employed
80
70
10
60
50
8
40
6
30
4
20
10
2
0
0
Unemployment 2004
Source: OECD
5
Percentage Unemployed
Wider International Comparison
12
HOW HAVE WE DONE IT?
6
Success in the labour market is built on
solid foundations
• Macroeconomic Stability
• Flexibility and diversity
• Making work pay
• Active Labour Market Policies
– Jobcentre Plus
– New Deals
7
Macroeconomic stability
• Macroeconomic stability is the platform from which
countries can achieve high levels of employment.
• The new macroeconomic framework introduced since
1997 has delivered stability and growth in the UK –
creating the right kind of environment for employment
to flourish.
• A stable economy is necessary for high levels of
employment, but not sufficient.
8
Flexibility and diversity
60%
60%
50%
50%
40%
40%
30%
30%
11 % work
40 hours
20%
29% work
40 hours
20%
10%
10%
0%
0%
0
20-24
36
40
44
0
20-24
United Kingdom
40
44
Germany
60%
60%
50%
50%
40%
40%
30%
30%
11% work
39 hours
20%
36
39% work
40 hours
20%
10%
10%
0%
0%
0
20-24
36
France
40
44
0
20-24
36
40
Italy
9
44
Part Time Workers
16%
8%
2%
74%
Could Not Find a Full Time Job
Ill or Disabled
Did Not Want a Full Time Job
Student or at School
10
Making work pay
• Work incentives are important to make it worthwhile
for individuals to participate in the labour market,
particularly for those on low incomes.
• The Government strategy to make work pay is
designed to tackle the unemployment trap and the
poverty trap.
• Reforms to income tax and National Insurance
Contributions and the introduction of the National
Minimum Wage and tax credits improve incentives to
work for low income households.
11
Active Labour Market Policies
• Jobseeker’s Allowance
– Rights & Responsibility agenda
– Assisted job search
– Increased help as duration increases
• New Deal
– Ends long term unemployment
– Gateway to training/retraining
– No other option
12
Modern Jobcentre Plus services
Self-service
and face to
face advice
brought
together
13
RESULTS
• Around 60% of unemployment benefit claimants
leave the register within 3 months
• Around 80% leave within 6 months
• Around 90% leave within 9 months
• Around 95% leave within a year
14
Jobseekers Allowance Caseload Over
1 Year
700
Aged 18-24 on JSA over 1 yr
600
500
All Ages on JSA over 1 yr
400
300
200
100
15
Dec
2005
2004
2003
2002
2001
2000
1999
1998
1997
0
MAIN SUCCESSES
16
Key success factors
• Jobcentre Plus – single point of delivery for
benefits and help into work
• Compulsory work focussed interviews and
specially trained advisers
• Something for something – rights and
responsibilities
17
Future challenges
• Our 5 year strategy, published earlier this year, set
out our long-term aspiration to increase our
employment rate to 80%.
• If we are to meet our aspiration of an 80%
employment rate, we would need to increase the
number of people in employment by around 2.5
million.
• 5 year strategy and Green Paper are available on our
website at www.dwp.gov.uk
18
ANY QUESTIONS?
19