Draft Joint Employment Report 2013 Lars Michael Engsted DG Employment, Social Affairs and Inclusion

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 General labour market situation

Decreasing employment and increasing unemployment in the EU Joint Employment Report

Change in unemployment rate (p.p.) over the last 12 months and the last three months to August 2012 Source: Eurostat Growing divergences between European labour markets 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 Source: Eurostat, the data used are: (i) the unemployment rate (UR, %), and (ii) the labour shortage indicator (LSI, %), derived from EU business survey results Beveridge curve, EU-27, 2008 (Q1) 2012 (Q3) Joint Employment Report

Labour market challenges (3) Maintain the attachment of long-term unemployed to the labour market Joint Employment Report Long-term unemployment rate in % of population, 2008 and 2011

Improve the transitions from school to work and integrate young people better in the labour market Labour market challenges (4) Joint Employment Report Share of NEETs among the year old (%) Source: Eurostat, LFS, Def initionNEET: Neither in employment, education or training

Source: EU-SILC longitudinal dataset, only 18 countries available Labour market challenges (5) Improve the efficiency of social protection systems to combat poverty and social exclusion Joint Employment Report

Annual Growth Survey Key labour market priorities

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 (1) Preparing for a job-rich recovery

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 (2) Improving employability levels in particular of young people

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

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