1. The European Employment Strategy and the Europan Semester
Federico Lucidi
DG Employment, Social Affairs and Inclusion

2. Outline of the presentation
The EES and EU2020 Strategy
The European Semester
An overview of 2015 CSRs

3. The European Employment Strategy
The EES was introduced in 1997 by the Amsterdam Treaty
Its aim is the creation of more and better jobs throughout Europe
It now constitutes part of the Europe 2020 Strategy, and is implemented through the European Semester

4. Treaty-based Objectives
MS and the Union shall […] develop a coordinated strategy for employment:
To promote a skilled, trained and adaptable workforce…
…and labour markets responsive to economic change
To achieve full employment, social progress, a high level of protection
(art. 145, TUE)

5. Competences – who does what?
Full respect of national competences on employment policy;
Member States define and implement their national policies…
…and coordinate with each other within the Council at European level
The Commission encourages cooperation of MS, supports their common action, and intervenes to complement their action if necessary

6. Europe 2020 strategy Launched in 2010
Smart, sustainable and inclusive growth
5 headline targets + 7 flagship initiatives
European Semester, enhanced by the Six-Pack (2011) and the Two-Pack (2013)
Mid-term review of EU2020 in March 2014

7. The EU2020 targets Employment rate should be at 75% (2014: 69,2%)
Share of early school leavers should be under 10% (2014: 11.1%)
Goal of 40% of younger generation having tertiary degree or diploma (2014: 37.9%)
20 million fewer people at risk of poverty or social exclusion (since 2010, the number of AROPE has risen by 6 million. 24.8% of the EU-28 population)

8. European Semester - milestones
Integrated guidelines including Employment guidelines, proposed by the Commission and adopted by the Council
Annual Growth Survey (AGS) and Alert Mechanism Report (AMR), presented by the Commission (November)
Joint Employment Report (JER) including a Scoreboard of key employment and social indicators (November)
Country Reports, published by the Commission (February)
National Reform Programmes (NRPs), submitted by Member States (April)
Country-Specific Recommendations, proposed by the Commission (May) and adopted by the Council (June-July)

10. 2015 AGS - A coordinated approach
Investment deficit and protracted employment and social challenges
Impact of an improved employment and social situation on potential GDP growth.

11. Employment in the AGS 2015 Emphasis on:
Entrepreneurship
Investment in skills
Job creation
Mobility
… presenting a shift towards harnessing the conditions for business to create new employment

12. 2015 new approach – Streamlining and focus on structural reforms
"We should not waste the opportunity of this economic recovery. I call on Member States to profit from the momentum and deliver on structural reforms that help those left behind get back into the labour market"
M. Thyssen, EMPL Commissioner
The European Semester 2015 focuses on the structural reforms that are most essential for those left behind during the crisis to get back in the labour market

13. 2015 Making it happen: the European Semester
Chapeau Communication:
First signs economic recovery, but unequal over Member States
Reform is taking place, but impact takes time
Challenge to keep reform drive on track
Economic tailwinds are breathing extra vitality into an otherwise mild cyclical upswing
EU GDP growth expected at 1.8% this year, 2.1% next
Labour markets are slowly improving
EU unemployment down to 9.2% next year
HICP inflation to recover later this year
Set to increase from 0.1% this year to 1.5% in 2016
The fiscal outlook continues to improve
Deficit at 2.5% this year and debt on decreasing path
But policy has to address the underlying weaknesses
Overcome the pre-crisis imbalances and the legacy of the crisis
Boost investment
Re-build the medium-term growth potential

14. Employment relevant 2015 CSRs
Skills, education and training
Youth
Protection of the vulnerable
Extending working life
Female LM participation
Health care systems
Labour taxation and shadow economy
ALMPs
LM segmentation and EPL
Wages and competitiveness

15. 1.The role of education and training
Unemployment rate by educational attainment
Early school leaving: MT, RO
Access to education/E&T for
vulnerable groups: AT, BG,
CZ, HU, RO, SK
Educational outcomes: HU, LT,
MT, SK, UK
Higher education reform: CZ, LV
Teachers' training / attractiveness
of profession: CZ, HU, IT, MT, SK
LM relevance of education/ skill
mismatch: BE, EE, FI, IT, LT, UK
VET, apprenticeships, work-based
learning: EE, LV, IT, UK
Cooperation of education
with private sector: UK Source: Eurostat

16. 2. Youth
2015 CSRs target mainly: Youth employment: IT, BG, ES, FI, PT, RO Reach out to NEETs: BG, PT, RO YG: Member States made considerable progress but steps are needed towards its full implementation

17. 3. Protection of the vulnerable
At-risk-of poverty and social exclusion
Poverty and exclusion on the rise in two third of the MS
Effectiveness of social transfers:
ES, HR
Adequacy/ coverage of unemployment benefits/ social assistance, link to activation: FR, HU, IE, HR, LT, LV, RO
Childhood poverty: IE
Disabled: EE

18. 4. Extending working lives
Duration of working life (years, 2012) and employment rate of older workers (%, 2013)
2015 CSRs target mainly on:
Restricting access to early retirement FI, HR, LU
Adjust statutory retirement age to life expectancy: AT, BE, LU, MT
Actively enhance older workers' employability AT, BG, FI, SI
Harmonisation of retirement age men and women: AT, RO
Sustainability/adequacy pension system: AT, PT, SI, LT, FR, HR
Source: Eurostat

19. 5. Female labour market participation
Gaps between male and female full-time equivalent employment rates in 2014
Source: Eurostat
Need for family support services:
AT, CZ, EE, IE, RO, SK, UK

20. 6. Healthcare and long-term care
2015 CSRs focus mainly on:
Healthcare: BG, CZ, ES, FI, HR, IE, LV, RO, SI, SK
Long-term care: AT, SI
Public healthcare expenditure as % of GDP, 2012
Source: Eurostat, OECD, WHO

21. 7. Tax wedge remains high for low income earners
Tax wedge and tax
disincentives for
low income earners:
AT, BE, (EE), CZ, DE, FR, HU, LT, LV
Source: Eurostat

22. 8. ALMPs and employment services
2015 CSRs target mainly:
Enhance quality, coverage, targeting and effectiveness of ALMP: BE, HU, IT, PT, RO, SK
PES performance: ES, IT, PT, RO
Improve employability: EE, FI, LT, LV, SI
Long-term unemployment (%, left scale, 2012) and activation support (LMP participants per 100 persons wanting to work, right scale, 2011)
Source: Eurostat, LMP database

23. 9. Employment protection and labour market segmentation
Share of temporary contracts (2013) and transition from temporary to permanent (2012)
2015 CSRs target mainly:
Labour market segmentation: DE, FR, IT, PL
Employment protection legislation: FR, IT
Source: European Commission 23

24. 10. Wages and competitiveness
2015 CSRs target mainly:
Wage setting, development, indexation and flexibility: BE, ES, FI, FR, HR, IT, LU, PT
Minimum wages, incl. not detrimental to job creation: BG, FR, PT, RO, SI
Unit labour costs in deficit and surplus countries, euro-area groups weighted averages, y-o-y % change
*Surplus countries are: BE, DE, LU, NL, AT, FI
Source: Eurostat