An Overv rvie iew of of employment an and lab labour mar arket - - PowerPoint PPT Presentation

Prelimin inary ry Key Fin Findings fr from th the Regional l Anal alysis is of

• f National

l Employment an and Lab Labour Mar arket str trategic doc

• cuments an

and act actions An Overv rvie iew of

• f employment an

and lab labour mar arket measures in in th the Western Balk alkan Economies an and recommendations for

• r enhancing th

their ir desi sign, im imple lementation an and mon

• nitorin

ing Mih ihail il Arandarenko

Employment and Social Affairs Platform Meeting of Ministries of Labour of the Western Balkan Economies 13 - 14 December 2016 Podgorica, Montenegro

Structure of the presentation on Key Findings from Regional Analysis of Employment Policy and ALMP

• Project Outline
• Framework for Desk Analysis of Employment Policy from ERPs and ESRPs
• Framework for cataloguing and analysing Active Labour Market Policy
• Employment policy within ERPs and ESRPs – key findings by policy areas
• Employment policy within ERPs and ESRPs – comparative analysis
• Employment policy within ERPs and ERPS – strengths and weaknesses
• ALMPs – comparative analysis
• ALMPs – strengths and weaknesses

Framework for Desk Analysis of Employment Policy

• Task: Outline the main features of the national employment and labour

market strategies, including the Employment and Social Affairs Reform Programmes in the economies where these have been developed and the measures prioritised in the Economic Reform Programmes (Activity 1);

• Borrowing from the (EEPO) adjusted Europe 2020 Joint Assessment

Framework (JAF) which has been developed to monitor the EU Employment Guidelines

• The JAF is an indicator-based assessment system developed and used by

the European Commission, the Employment Committee and the Social Protection Committee. A series of indicators to measure the current situation and trends through time are organised by policy area.

• Following EEPO / ECE (since 2016) approach, we record policy reforms by

policy areas, not indicators themselves

Employment Policy Areas (adjusted by European Employment Policy Observatory)

PA 1: Employment protection legislation and other amendments to labour law PA 2: Active labour market policies (including sub-sections on (i) job creation (ii) employment services (public and private) and skills forecasting systems; (iii) targeted activation measures (including information about the state of implementation of the Youth Guarantee) PA 3: Social security systems PA 4: Work-life balance and gender equality PA 5: Education and training systems PA 6: Labour Taxation (including undeclared work) PA 7: Wage setting institutions and dynamics

Creating a catalogue of ALMP and related activities

• Task 3: Create a catalogue of recent, current and planned national

employment and labour market measures,

• In particular those referring to active labour market policies and

Public Employment Services

• From which case examples can be developed and
• Around which peer reviews can be organised

Our approach – using Labour Market Policy Statistics – Eurostat 2013 Methodology

• The scope of the LMP database covers all labour market interventions which can be

described as: Public interventions in the labour market aimed at reaching its efficient functioning and correcting disequilibria and which can be distinguished from other general employment policy interventions in that they act selectively to favour particular groups in the labour market.

• Employment policy – enhancing LM efficiency
• Labour Market Policy – a subset of Employment Policy enhancing LM efficiency AND

promoting LM equity

Public interventions refer to actions taken by general government in this respect which involve expenditure, either in the form of actual disbursements or of foregone revenue (reductions in taxes, social contributions or other charges normally payable).

Labour Market Policy – main types of intervention

1. LM Services

• Labour market services are labour market interventions where the main activity
• f participants is job-search related and where participation usually does not

result in a change of labour market status.

• LM Services also cover other functions of the PES that are not directly linked to
• participants. This includes placement and other services for employers,

administrative functions, general overheads etc.

• 2. LM Measures = Active labour market programmes, plus sheltered employment

and similar measures 1+2 = Active labour market policy

• 3. LM Supports = Passive labour market policy - refer to interventions that provide

financial assistance, directly or indirectly, to individuals for labour market reasons

• r which compensate individuals for disadvantage caused by labour market

circumstance (not part of our Project)

Types of f intervention: 1. . LMP services

1.1. Client services 1.1.1. Information services 1.1.2. Individual case management 1.2. Other activities of the PES 1.2.1. Administration of LMP measures 1.2.2. Administration of LMP supports 1.2.3. Other services / activities

Types of intervention: 2. LM Measures

• Measures refer to labour market interventions where the main activity of

participants is other than job-search related and where participation usually results in a change in labour market status.

• An activity that does not result in a change of labour market status may still

be considered as a measure if the intervention fulfils the following criteria:

• the activities undertaken are not job-search related, are supervised and

constitute a full-time or significant part-time activity of participants during a significant period of time, and

• the aim is to improve the vocational qualifications of participants, or
• the intervention provides incentives to take-up or to provide employment

(including self-employment).

Classification of LM Measures

• 2. Training

2.1. Institutional training 2.2. Workplace training 2.3. Alternate training 2.4. Special support for apprenticeship

• 4. Employment incentives

4.1. Recruitment incentives 4.1.1. Permanent 4.1.2. Temporary 4.2. Employment maintenance incentives 4.3. Job rotation and job sharing (former class 3.) 4.3.1. Job rotation 4.3.2. Job sharing

• 5. Sheltered and supported employment and rehabilitation

5.1. Sheltered and supported employment 5.2. Rehabilitation

• 6. Direct job creation
• 7. Start-up incentives

Alb lbania - Spending and number of f participants (a (absolute numbers)

100000000 200000000 300000000 400000000 500000000 600000000 1000 2000 3000 4000 5000 6000 7000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Spending (RHS) Persons (LHS)

Alb lbania - All llocation of f expenditures across categories of f in interv rvention

• B. Labour market measures (excluding

employment incentives) 1% B.2. Training (excluding workplace) 5% B.2.2. Workplace training 45% B.4. Employment incentives (excluding B.4.1) 3% B.4.1 Recruitment incentives (temporary) 44%

• A. Labour market services

2%

Kosovo* - Spending and number of f participants (a (absolute numbers)

500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 50000 100000 150000 200000 250000 300000 1 2 3 Spending (RHS) Persons (LHS)

Kosovo* - Allocation of f expenditures across categories

A.1.1. Client services 43% B.2.1. Institutional training 26% B.2.2. Workplace training (2014-2015) 7% B.2.4 Special support for apprenticeship (2015 only) 8% B.4. Employment incentives (2014- 2015) 3% B.6. Direct job creation (2014- 2015) 12% B.7. Start-up incentives (2014-15) 1%

Macedonia, FYR - Spending and number of f participants (a (absolute numbers)

6000000 6500000 7000000 7500000 8000000 8500000 9000000 50000 100000 150000 200000 250000 300000 2013 2014 2015 Spending (RHS) Persons (LHS)

Macedonia, FYR - All llocation of f expenditures across categories

B.2.1. Institutional training 5% B.2.2. Workplace training 4% B.2.3. Alternate training (2015 only) 0% B.4. Employment incentives 30% B.5.1. Sheltered and supported employment (2015 only) 0% B.6. Direct job creation (2014-2015) 2% B.7. Start-up incentives (excluding loans) 44% A.1.1. Client services 15%

Montenegro - Spending and number of f participants (a (absolute numbers)

13600000 13800000 14000000 14200000 14400000 14600000 14800000 15000000 15200000 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 2013 2014 2015 Spending (RHS) Persons (LHS)

Montenegro - Allocation of f expenditures across categories

A.1.1. Client services 10% B.2.1. Institutional training 4% B.2.2. Workplace training 1% B.2.3. Alternate training 1% B.4.1. Recruitment incentives (excluding temporary) 1% B.4.1.2. Temporary 5% B.5.1. Sheltered and supported employment 7% B.5.2. Rehabilitation 1% B.6. Direct job creation 68% B.7. Start-up incentives 2%

Serbia - Spending and number of participants (a (absolute numbers)

• 200,000,000

400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000 1,800,000,000 2,000,000,000 20000 40000 60000 80000 100000 120000 140000 160000 1 2 3 Spending (RHS) Persons (LHS)

Serbia - Allocation of f expenditures across categories

A.1.1. Client services 0% B.2.1. Institutional training 5% B.2.2. Workplace training 2% B.2.4. Special support for apprenticeship 31% B.4.1. Recruitment incentives 3% B.4.1.1. Permanent 13% B.4.1.2. Temporary 1% B.5.1. Sheltered and supported employment 9% B.5.2. Rehabilitation 2% B.6. Direct job creation 12% B.7. Start-up incentives 22%

Serbia 2015 – portfolio of ALMPs

Active Job Search Training - ATP1 Self-efficiency Training - ATP2 Job Clubs Employment Fairs Professional practice programme Acquisition of practical skills

Training for the labour market

Training at the request of employer Functional basic education of adults Subsidies for self-employment Employer subsidies for new jobs Public works Wage subsidies for PWD without experience Measures supporting PWD Training for development of entrepren. Subsidies for social assistance benefic. Workshop for job loss stress alleviation Employer SSC subsidy (waiver) Upfront UB subsidy for self-employment Wage subsidies for PWD social enterprises Rehabilitation subsidies for PWD SE 30% UB stimulus for employment A.1.1. Client services A.1.1. Client services A.1.1. Client services A.1.1.1. Information services B.2.4. Special support for apprenticeship B.4.1.2. Temporary B.2.1. Institutional training B.2.2. Workplace training B.2.1. Institutional training B.7. Start-up incentives B.4.1.1. Permanent B.6. Direct job creation B.4.1.1. Permanent B.4.1. Recruitment incentives B.7. Start-up incentives B.4.1.1. Permanent A.1.1. Client services B.4.1. Recruitment incentives B.7. Start-up incentives B.5.1. Sheltered and supported employment B.5.2. Rehabilitation B.4. Employment incentives

Bosnia and Herzegovina Spending and number of f participants (a (absolute numbers)

5000000 10000000 15000000 20000000 25000000 30000000 5000 10000 15000 20000 25000 2013 2015 Spending (RHS) Persons (LHS)

BiH - Allocation of f expenditures across categories – FBiH (2 (2015 only)

A.1.1. Client services 4% B.2. Training 1% B.4.1. Recruitment incentives 31% B.4.1.2. Temporary 31% B.6. Direct job creation 4% B.7. Start-up incentives 29%

BiH - Allocation of f expenditures across categories – Republika Srpska

B.2.4. Special support for apprenticeship 15% B.4.1. Recruitment incentives 31% B.7. Start-up incentives 54%

Comparative distribution of expenditures across interventions

Figure 1. Comparative distribution of expenditures across measures

ALMP spending as a share of f GDP in in the Western Balkans and the EU, , total and by category ry

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% ALMPs Services Active measures Region average (ALMP)

Preliminary recommendations related to designing and monitoring active labour market interventions

• Increase share of ALMP in GDP or at least preserve stability of expenditures
• Have a balanced portfolio of measures
• Avoid relying on one large programme or on one group of interventions
• Consolidate small programmes since they imply higher operational costs

per participant

• Target more expensive programmes toward deeply vulnerable individuals
• Introduce fully fledged Eurostat methodology for monitoring LMP – and

conduct in house cost benefit and impact assessment analyses