Earlier this week Eurofound published a report on the ‘Effectiveness of policy measures to increase the employment participation of young people’. This study finds that Member States have implemented a set of diverse measures to combat youth unemployment. Although efforts to tackle youth unemployment have been somewhat sporadic with a lack of coordination throughout Europe in terms of investment and the monitoring of outcomes, the study did show that when properly implemented, youth specific policies can have positive impacts on the employability of young people and, as a result, their level of social inclusion and participation in society.

Please find the executive summary and the full report below:

Below, some national examples of policies. They fall under the themes of  ‘Reintegration of Early School Leavers’, ‘School to Work Transition’ and ‘Employability Measures’.

Some national examples from the Effectiveness of policy measures to increase the employment participation of young people Report

Reintegration of Early School Leavers

 Hungary

For example the pilot programme Springboard in Hungary aims to give a second chance to young people who left education as soon as it was legally possible or who did not successfully complete vocational school. The programme aims to create a motivating learning environment and to fill any skill gaps that may hinder students’ performance when they (re)enter a vocational school. A preparatory phase therefore focused on establishing this alternative learning environment through teacher training, small classrooms, the design of teaching materials and the development of an innovative learning environment, including purpose-built classrooms and job shadowing opportunities.

 

School to Work Transition

 Spain 

Other approaches to enhancing the transition process include efforts to improve self-employment opportunities for young people and the quality of employment young people obtain, for example by increasing the share of young people in permanent, as opposed to temporary, employment. Spain, for instance, has promoted self-employment and the transition from temporary to open-ended contracts for young people. The previous government introduced the modification of unemployment benefit capitalisation regime; this enables young unemployed people who want to start their own business to receive 80% of their total unemployment benefit entitlement in one single payment in order to help them with the business set-up costs. To qualify, they must prepare a detailed business plan and initiate their business activity within one month. Exemptions from social security contributions are offered for the self-employed and companies that hire young or long-term unemployed people on a part-time basis (50–75% of full-time working hours). This measure is also combined with incentives for employers to change temporary contracts into open-ended ones. The focus of these measures is on sustainability of employment for the young person; high temporality rates (the ratio of temporary versus permanent workers) have always been one of the main features of working conditions among young people in Spain. Indeed, the crisis brought about a 10% rise in the share of young people working in temporary jobs. This characteristic of the jobs market for young people has been linked to job instability and poorer training and progression opportunities. These factors can have an impact on future career prospects and life planning.

 

France

Another STW policy example (alongside Connexions and the Navigator Centres) that recognises the importance of providing personalised support to young people is the ‘integration into society contract’ (Contrat d’insertion dans la vie sociale, CIVIS) in France. It aims to guide low-qualified young people aged 16–25 years who are experiencing difficulties entering the labour market into stable employment. Measures include personalised follow-up with an adviser, as well as participation in training activities and work placements or internships. Young people sign a ‘CIVIS contract’, which sets out a number of objectives and tasks for them. Beneficiaries are expected to meet their individual adviser on a regular basis and engage in job search activities. The lowest qualified beneficiaries receive additional support. CIVIS is implemented by a network of ‘local missions’ and centres for information and guidance (permanences d’accueil, d’information et d’orientation, PAIO) which are local structures in charge of providing a range of services to young people, including guidance, information and counselling.

Employability Measures

Austria

In Austria, for example, supra-company apprenticeships (.BA) were introduced to overcome significant gaps between the demand for and supply of apprenticeship places and to provide a ‘safety net’ for those unable to find an apprenticeship place with a specific company. They allow young people who are unable to find a traditional apprenticeship to complete a full apprenticeship based in a vocational training centre, but with work experience with different employers. There are two

forms of .BA. .BA 1 allows young people unable to find a placement at company level to complete a full apprenticeship delivered by an accredited provider. .BA 2 places more emphasis on practical work experience and training (combined with time spent in training with a provider). Both types are generally preceded by a period of vocational guidance and coaching (known as Berufsorientierung und Coaching, BOCO) to ensure young people make informed career choices and select a realistic pathway for them. .BA then provides regular curricula in the dual system, combining classroom-based learning with fixed amounts of time spent in an employer setting. They also deliver individualised support to young people to address any barriers to integration.

 

Italy

in Italy, new Higher-level Apprenticeships were piloted over the course of 2004–2008, and again from 2010 onwards, to provide an opportunity for higher education students to acquire a diploma or degree through training and paid employment. The first pilot was the first time that apprenticeships were linked to the educational system. It enabled around 1,000 young people (aged 18–29 years) to gain higher-level qualifications (both at secondary and tertiary level) while working; previously apprenticeships had been regarded as mainly labour contracts (ISFOL, 2011). Recently, the apprenticeship programme has been extended to doctoral degrees. The apprenticeship contract is a paid labour contract, and apprentices enjoy the protection afforded by normal contracts, such as pension contributions, holidays and social assistance. Many of the instruction methods introduced as part of these pilots are considered innovative in the Italian context as the system utilises more project work, real-life case study assignments and teaching by professionals from the sector.. 

The START Programme in Hungary, for example, is largely a wage subsidy scheme administered by the Hungarian tax authority, which targets young jobseekers, including those under 25 years without a higher education degree and who have not yet been employed apart from casual work during full-time study. By (temporarily) reducing the cost of employment through a reduction of tax liabilities, it makes hiring more affordable for firms, while offering young people practical work experience and the chance to boost their skills and self-confidence. The measure allows employers to reduce the contributions paid for two years (or one year from 2010 if the entrant has at least a BA degree). To demonstrate their eligibility, all entrants are entitled to a ‘start-card’ (a plastic card issued by the tax authority), which is valid for two years. Once an employer hires a programme participant, they are allowed to pay the reduced contribution immediately and deal with the verification of their claims to the tax authority at the end of the year.

The Full report can be found here: http://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=7315

A frequent question that people working on youth employment is why should young people have specific policies and investment, well this question is very aptly addressed in the report. Please find it below:

2.2.1 Focus on Youth

The labour market situation of young people has become an increasingly urgent social matter in the EU (30) and the integration of young people into the labour market continues to be a major policy issue for the EU and individual Member States. Despite a shrinking and increasingly better-educated youth population, young people in many Member States still face (29) ‘Young people’ refers to the age group 15-24. However, the labour market situation of the older young age group (25-29) is increasingly gaining importance. More young people aged between 20 and 24 stay longer in education and training both due to the recent economic downturn as well as a result of EU educational targets. Therefore the transition process from school to work is postponed to a later age . See a more detailed presentation of youth employment across various age groups in the European Commission (2012b). (30) State of the Union address by President Barroso to the European Parliament in September 2011 (see also http://ec.europa. eu/commission_2010-2014/president/ state-union-2011/index_en.htm). considerable problems in making the transition from education into employment. And many of those who have gained a foothold in the labour market often hold unstable jobs with unfavourable conditions and career prospects.

The young need special attention and support for various reasons. Firstly, their situation is more challenging in comparison to adults and has been deteriorating over time. They face high unemployment rates and they are increasingly affected by long-term unemployment and labour market segmentation. The second reason is the negative long-term implications of unemployment at a young age, such as the increased probability of future unemployment, the reduced level of future earnings and the higher likelihood of precarious employment. The negative impact goes beyond the labour market and may also adversely influence poverty, young people’s health status, life expectancy and youngsters’ beliefs as well as their civic and political participation (see Bell and Blanchflower 2010, Scarpetta et al. 2010, Simms 2011, YOUNEX project (31), European Commission 2011a, Eurofound 2011a and Eurofound 2012a). This has a negative impact not only on young people’s financial and social situation or training but also for the economy and social cohesion at large.

Finaly, the young are more exposed to systematic labour market risk (Chung et al. 2012). They are confronted with changed labour markets and more demanding employers than previous generations – there is greater pressure on them to be job-ready and to perform from day one (Sissons and Jones 2012).

While the young share several common characteristics, they are a heterogeneous group and this requires tailor made policies that go beyond a well-functioning labour market. The unemployed can be skilled or unskilled. The young might be inactive because they are in education, but also because they look after children or elderly relatives or because they are disabled or sick. Policies need to acknowledge that and include, besides general growth stimulating policies, specific measures to reduce income insecurity and poverty among the young as well as preventive measures starting in childhood to minimize the risk of the young becoming a NEET (neither employed, nor in education or training).

We set out an agenda for job creation and balanced labour market reform in the April 2012 Employment Package, and I will shortly present a Social Investment Package for Growth and Cohesion to address the growing risks of poverty and social exclusion.

As the crisis drags on, governments find it more difficult to invest in people and prevent economic and social exclusion. But we need social investment now, otherwise we will see a decline in economic potential and much larger social costs in the future.