Investing in people: EU funding for employment and social inclusion - Social Europe guide | Volume 7
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ISSN 1977-2343
Investing in people:
EU funding for employment
and social inclusion
Social Europe guide | Volume 7
Social Europe
Investing in people:
EU funding for employment
and social inclusion
Social Europe guide
Volume 7
European Commission
Directorate-General for Employment, Social Affairs and Inclusion
Manuscript completed in June 2014
Neither the European Commission nor any person acting on behalf of the Commission
may be held responsible for use of any information contained in this publication.
Cover illustration: Moulay Guisse — © European Union
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ISBN 978-92-79-38146-1 – doi:10.2767/24234 (print)
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ISSN 1977-2343 (print)
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In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 3
Foreword
issues such as its ageing society and the
ever-changing demands of the globalised
economy.
The EU must take action on all these
fronts and is determined that Europe’s
human and social capital do not go to
waste in the coming years. This brochure
examines key Community funding instru-
ments that are dedicated to investing in
© European Union
people so they can lead fulfilling and
prosperous lives without facing unem-
ployment and social exclusion. It will be
a team effort, as funding arrangements
have been decided through close part-
László Andor nership between the European Commis-
Commissioner for Employment, sion and the Member States. Projects are
Social Affairs and Inclusion implemented by or in cooperation with
community groups, civil society bodies,
The European Union and its Member NGOs and the like.
States have had to cope with extremely
difficult times since the economic crisis For more than 50 years, the European
first hit in 2008. We have seen unemploy- Social Fund (ESF) has been helping to
ment rates spiral upwards, economic give Europeans the skills they need to
growth cut and an increase in citizens get good jobs. Training, apprenticeships
suffering poverty and social exclusion. Set and lifelong learning schemes across the
against this challenging back-drop is the EU receive support from the ESF, as do
need for Europe to deal with longer-term projects that help people trying to battle
4 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
their way out of poverty and social exclu- Funds like the ESF are key tools for the
sion. This fund will remain the central delivery of EU policies which aim to
tool for investing in human capital over improve the economy and social cohe-
the new programming period, which runs sion. They support Europe 2020 – the
from 2014-2020. More than EUR 80 bil- EU’s ten-year strategy for smart, sus-
lion has been allocated to the ESF over tainable and inclusive growth. Europe
the next seven years. This money will 2020 has many bold ambitions, which
continue to help people back into the include reducing the number of people
labour market and address pressing at risk of poverty and social exclusion by
social issues such as youth unemploy- 20 million and ensuring that 75 % of 20
ment and social marginalisation. It will to 64 year-olds are in work by the end
also be used to sharpen up the delivery of the decade. Funding priorities and
of education and public services. spending at EU and national level must
be aligned with the strategy’s objectives.
The ESF is complemented by three other I am delighted that the Commission has
funds. The Fund for European Aid to the succeeded in adding a strong social
Most Deprived (FEAD) helps the very needy dimension to the new EU budget round.
by providing them with, for instance, basic It means that the ESF and other funds
necessities such as food and clothing. The can invest in those who need the most
EU programme for Employment and Social help. Twenty percent of the ESF’s budget
Innovation (EaSI) is helping people to move has been earmarked for projects that
across Europe to find good jobs and offers promote social inclusion and combat
micro-finance to social entrepreneurs. poverty. It is worth reminding ourselves
Meanwhile, the European Globalisation that there is a lot to build on. Between
Adjustment Fund (EGF) continues to help 2007 and 2013, 68 million people took
redundant workers train for other jobs or part in ESF-financed activities. We esti-
set up their own businesses. mate that 5.7 million people secured
In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 5
work and around 8.6 million obtained effectively. It is in everyone’s best inter-
additional qualifications thanks to ESF ests to tackle unemployment, rescue
support for training and education. The young people from a life of inactivity
Fund was also responsible for more than and to eliminate poverty and social
400 000 business or self-employment exclusion. The task has been made
start-ups. much harder in recent years, but the EU
and the Member States are determined
This work will continue as it must if to continue to work together to make
Europe is to address its social problems life better for all their citizens.
6 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
Table of Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
CHAPTER 1
Investing in people . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
A long history of support for employment and social policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Keeping pace with change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Branching out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
EU’s multiannual financial framework – supporting employment and social policies . . . . . . . . . . . . . . 11
Funding – the bigger picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
The Cohesion policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Priorities for the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Contribution from the Hellenic Council Presidency:
Ioannis Vroutsis, Minister of Labour, Social Security and Welfare . . . 16
CHAPTER 2
The European Social Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Supporting Europe 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Key principles for the new programming period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Focusing on four themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Getting and maintaining people in employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Social Inclusion and Combating Poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Better and more accessible education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Improving the quality of public administration and governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
How the ESF works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
CHAPTER 3
Introducing the Fund for European Aid to the Most Deprived . . . . . . . . . . 59
Why do we need this new Fund? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
How does the FEAD differ from other EU funds? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Objectives of the FEAD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Ensuring a smooth transition for EU food aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
How does the FEAD work? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Europeans living hand-to-mouth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 7 CHAPTER 4 EaSI: EU Programme for Employment and Social Innovation . . . . . . . . . . . 67 Leverage for social policy experimentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Three axes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 EaSI objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Coordinated action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Complementarity with other EU programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Progress: Modernising employment and social policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 EURES: Promoting job mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Microfinance and Social Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Funding opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 CHAPTER 5 European Globalisation Adjustment Fund (EGF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 EU solidarity with redundant workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Support measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 New measures to tackle the crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 The crisis criterion: sudden shock redundancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Who can benefit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 What support can the EGF provide? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Complementarity with other EU programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 What is new in the EGF for 2014-2020? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Learning from doing: EGF best practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Voice from the European Parliament: Marian Harkin Member of the Committee on Employment and Social Affairs . . . . . . . 86 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
CHAPTER 1 © Thinkstock
In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 9
Investing in people
A long history of support The spectre of increasing youth unemploy-
for employment ment rose in the 1970s, so the ESF was
and social policies used to help those with few qualifications
by funding vocational training schemes. It
The European Union (EU) has been invest- was also around this time that it started
ing in people since it first came into being to offer support to specific groups such as
as the European Economic Community women, older workers and disabled
(EEC) in 1957. people.
The Treaty of Rome established the Euro- The 1980s saw the ESF helping some of
pean Social Fund (ESF), which was initially Europe’s poorer regions unleash their
deployed to help workers in economic sec- human potential and reduce imbalances
tors that were modernising their production with the richer EEC nations. By the late
processes. Grants were offered for short- Eighties, more than half of the ESF’s
term retraining courses so that workers expenditure was committed to employ-
could learn new skills. The ESF also made ment schemes in places such as Greece,
money available for resettlement to help southern Italy, Portugal and south-
unemployed people move for work. It is ern Spain.
estimated that ESF support helped
one million people get back to work The ESF was reformed again in the 1990s
between 1960 and 1973. to meet the demands of the Single Market,
and a growing list of funding applications.
Multiannual programmes were introduced
Keeping pace with change and decided on through a partnership
between the Commission and the Member
Over the years, the ESF has been reformed States. Then, in 1994, the ESF was
and adapted to keep pace with Europe’s deployed to ensure that as many people
needs. In the early 1970s, for example, as possible could get jobs.
technical innovation meant that many farm
workers were leaving agriculture – they Today, along with providing support to a
received support to retrain for other jobs. In wide range of projects that help people
addition, the ESF started to help people who into employment, the Fund also gives a
were looking for work in other EEC countries hand to socially excluded people – includ-
by funding language courses and advice ing migrant groups – helping them to inte-
about living in a foreign country. grate into the labour market.10 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
Branching out By way of example, Youthstart was
established in the 1990s to help young
The ESF’s growing sophistication and remit people without qualifications get their
have seen its budget expand over the years first job. INTEGRA, launched in 1995,
from around 1 % of total Community spend- offered groups such as single parents,
ing to over 7 % today. The Fund’s success the homeless, refugees and ex-prisoners
has also spurred the EU to develop other a way into the labour market. EQUAL was
programmes and funding packages tailored launched in 2000 to find ways of tack-
to the needs of particular groups, or to deal ling discrimination and inequality in the
with specific employment and social issues. labour market.
Box 1.1 The added value of working at EU level
The main reason for funding through networking and the sharing of
programmes at EU level is that they are best practices. Creating synergies in this
able to offer a return or outcome that way helps to produce innovation and
cannot be met solely by national or local lasting cooperation between countries
spending. They make it possible to jointly and civil society organisations. In
address commonly identified societal addition, a secure and well-managed
and economic challenges that cannot be flow of EU money can be used to
met by one region or country alone. ‘leverage’ funding from other sources.
The ESF and other funding mechanisms
There is added value in the fact that
mentioned in this brochure also aim to
EU funding is allocated over a seven-
enhance European solidarity, cohesion
year programming period, which allows
and address disparities. For example,
for strategic planning and undisrupted
Europe’s less well-off regions might
support for employment and social
only have 35 % of the EU population (1),
inclusion measures. This is particularly
but they benefit from two-thirds of the
valuable during a period when there is
Structural Funds (ESF and ERDF) budget.
uncertainty surrounding national budget
resources. EU-level programmes also
provide an opportunity to pool resources
and expertise across Member States (1) L eaflet: The European Social Fund:
Investing in People.In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 1 1
EU’s multiannual financial people in or at risk of poverty and social
framework – supporting exclusion. It is worth noting that the actual
employment and social share of the ESF will be set in light of the
policies specific challenges the Member States
need to address in the areas covered by
The multiannual financial framework (MFF) the ESF and is therefore very likely
defines the Community’s policy priorities to increase.
between 2014 and 2020. Through the
MFF, the EU has committed to investing EUR 6.4 billion (in current prices) has been
about one trillion euro over the next allocated to the new Youth Employment
seven years. Initiative (YEI). The YEI is linked to the ESF
and will provide extra support to the
Much of the MFF is geared towards meet- regions which are most affected by high
ing the objectives of Europe 2020, which rates of youth unemployment.
is the EU’s overarching strategy for gener-
ating sustainable growth, jobs and com- In addition, these other EU social and
petitiveness – as well as to support the employment programmes are included in
Country Specific Recommendations issued the MFF:
by the Council in the framework of the yy The Fund for European Aid to the
European Semester. Most Deprived (FEAD) amounts to
more than EUR 3.8 billion for 2014 to
For the first time, the ESF has been allo- 2020. The FEAD helps Member States
cated a minimum share of the Cohesion to provide material assistance – such as
policy budget of 23.1 %. That means at food and clothing – to society’s poorest
least EUR 80 billion (in current prices) has people as well as social inclusion meas-
been set aside for the ESF for 2014 to ures directed to the most deprived peo-
2020. That gives a funding stream of more ple, to help them integrate better into
than EUR 10 billion per year during this society.
new programming period to contribute to yy The EU programme for Employ-
meeting the employment and poverty tar- ment and Social Innovation (EaSI)
gets laid down in Europe 2020. These call accounts for EUR 920 million between
for 75 % of 20 – 64 years old to be in 2014 and 2020. EaSI funding is used
employment and at least 20 million fewer to support labour mobility, encourage12 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
social entrepreneurship and make it improve the competitiveness of farming
easier to access microcredits. and forestry.
yy The European Globalisation Adjust- yy The European Maritime and Fisheries
ment Fund (EGF) has a maximum Fund (EMFF) helps Europe make the tran-
annual budget of EUR 150 million sition to more sustainable fishing practices
between 2014 and 2020. The EGF funds while supporting coastal communities as
up to 60 % of the cost of projects that they diversify their economies.
help redundant workers find other jobs
or establish their own businesses. The Common Provision Regulation (2) provides
a common framework of rules for the pro-
gramming period 2014-2020 for these five
Funding – the bigger picture Funds, supporting the idea of better inte-
grated and coordinated policies. Cutting ‘red
The ESF is one of the EU’s five European tape’ and targeting investments are also
Structural and Investment Funds (ESIF), objectives for the new funding period, along
which are used to promote jobs and with the introduction of simpler account-
growth. The others are: ing rules.
yy The European Regional Development
Fund (ERDF), which supports projects
dedicated to innovation and research, The Cohesion policy
the digital economy, SMEs and the low
carbon economy. The ESF, Cohesion Fund and the ERDF are
yy The Cohesion Fund, which aims to used to support the EU’s Cohesion policy,
reduce economic and social disparities which has a key role to play in delivering the
while promoting sustainable develop- Europe 2020 strategy. It aims to tackle eco-
ment in the poorer EU regions. Funding nomic, social and territorial disparities across
here can be used to develop infrastruc- Europe. The importance of the Cohesion
ture, such as transport networks. policy is reflected in the fact that it accounts
yy The European Agricultural Fund for for more than 32 % of the EU budget for
Rural Development (EAFRD) seeks to 2014-2020 – that is EUR 351.8 billion (3).
(2) Regulation (EU) No 1303/2013
(3)
http://ec.europa.eu/regional_policy/thefunds/
funding/index_en.cfm. See also: EU factsheet:
A new Cohesion Policy for jobs and growth
in Europe.In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 1 3
Chart 1.1 Cohesion policy as a share of the EU’s budget 2014-2020
ESF, YEI 7.7 %
Cohesion policy:
Minimum 23.1% Structural Funds
of Cohesion policy ERDF and
~ EUR 11 billion / year Cohesion Fund
25.1 %
Other EU policies
(agriculture,
research, external,
etc) 67.2 %
Priorities for the future Poverty and social exclusion have also been
on the rise since 2009, especially in the
The prolonged economic crisis, which southern and eastern European Member
started in 2008, still casts a shadow over States. In 2012, almost 124 million people
Europe’s immediate future. That crisis were classed as being in or at risk of poverty
sparked a recession that has pushed and social exclusion, compared to about
unemployment to record highs across the 114 million in 2009. Fighting poverty and
EU. Around 26 million people (10.8 %) social exclusion remains a central objective
were looking for work in the EU in January of funding instruments like the ESF and
2014. The unemployment rate for young FEAD. In fact, at least 20 % of the ESF budget
people is even worse, and stood at 23.4 % in each Member State will be earmarked to
at the start of 2014. That means about promote social inclusion, combat poverty and
5.6 million people under the age of 25 are any discrimination between 2014 and 2020.
struggling to get their adult lives off to a Among other things, funding will be made
good start. available to help marginalised groups, such14 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
as migrants and the Roma, find their place number of longer-term challenges. The
in the labour market. world of work is ever-changing due to the
introduction of new technologies and the
Over the next programming period, therefore, rigours of competing in a global market-
the EU’s funding instruments for investing in place. Europe’s workers must be adaptable
people will have a vital role to play in getting and learn new skills if they are to retain
people back to work and out of difficulties. their place in the labour market. Up-skilling
Training, investment in skills, lifelong learning, the workforce is particularly important as
counselling, career advice, mobility schemes the economy grows ever-more sophisti-
and much more are on offer to improve cated. The European Commission esti-
people’s employability and strengthen the mates that by 2020, 35 % of jobs will
competitiveness of Europe’s workforce. require high qualifications and 12 million
jobs will be lost that previously required
no qualifications at all. About 80 million
Longer-term challenges people in the EU are estimated to have
only low or basic skills, which is why fund-
These funding instruments will also help ing is committed to projects that give more
the EU and its Member States cope with a Europeans access to training and lifelong
© BelgaImageIn v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 1 5
learning schemes. In this context it is very Good governance
important to find out what skills Europe
will need in the future. This information can Weak administrative structures can seri-
then be used to provide training in areas ously hamper a country’s economic devel-
that match what the economy needs going opment and reduce the efficiency of public
forward. spending, be it from local, national or Euro-
pean sources. In addition, public adminis-
Due to a dip in birth rates over recent dec- trations in some EU countries need to be
ades and the fact that people are living more responsive to people’s needs and
longer, Europe’s population is getting older. develop a culture that is open to change
Our ageing society means Europe must and innovation. At the same time, the
maximise the chances everyone has of capacity building of stakeholders who are
getting a job and staying in employment. charged with delivering employment, train-
Older workers must be supported so they ing and social policies and programmes –
can remain in the labour market for longer. including partners and civil society
The ESF, for example, promotes active age- bodies – needs to be further built up. ESF
ing by backing projects to help older work- funding is therefore being used to promote
ers keep their skills and learning up to date. good governance by helping Member
Meanwhile, childcare and dependent carer States improve the quality of their public
schemes are used to ensure that women administrations. ESF money will continue
in particular are free to look for work or to be channelled into projects that aim to
re-enter the labour market after a break. modernise Public Employment Services,
Support is also on offer to help disabled improve human resources strategies in the
people who are capable of working civil service and improve the business
get jobs. environment.16 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
Contribution from the Hellenic
Council Presidency:
Ioannis Vroutsis, Minister of Labour,
Social Security and Welfare
society and economy and the strengthen-
ing of social cohesion, focusing on creating
quality training opportunities, improving
skills and providing sustainable employ-
ment for all.
In particular, taking into account the major
challenges we are facing, namely the
acceleration of economic recovery and the
mitigation of the effects of the economic
crisis, the resources of the European Social
Fund will be used to:
© European Union
Α) Strengthen employment, particu-
larly for young people, through:
yy improved and innovative employment
policies such as on-the-job training and
employment programmes in sectors
What will be Greece’s main priorities in that are essential to the Greek economy,
using its nearly EUR 4 billion allocation leading to certification;
from the European Social Fund in yy linking education and training systems
2014-2020? How will this funding help to the labour market;
address the employment and social crisis yy increased access to lifelong learning,
your country is facing? especially for vulnerable popula-
tion groups;
During the period 2014-2020, the Euro- yy business restructuring and improving
pean Social Fund will make a strong con- employees’ skills in order to redirect
tribution to the dynamic evolution of Greek business to new markets and to improveIn v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 1 7
the organisation of work and production, How do you expect Greece to benefit
focusing on areas with good develop- from other EU-level funding opportuni-
ment potential. ties, such as the EaSI programme and its
instruments for microfinance or social
Β) Strengthen social inclusion and enterprises, or the Fund for European Aid
fight poverty, particularly through sup- to the Most Deprived?
port for and/or the development and pro-
motion of the social economy and social Besides the resources available from the
entrepreneurship. ESF and other Structural and Investment
Funds under the Partnership Agreement,
It should be noted, however, that needs Greece also intends to capitalise on the
related to poverty and social exclusion will opportunities for the development of
be prioritised by the regions on the basis human resources offered by other financial
of local conditions and developmental instruments and funds. We would like to
needs, acting in accordance with the mention the following in particular:
framework and guidelines provided by rel- yy Fund for European Aid to the Most
evant national and regional strategies. Deprived: This fund provides staple
goods such as food, clothing, medi-
Furthermore, we must note the effort cines, etc. to vulnerable groups and
being made to achieve maximum synergy maintains the material contribution
between the resources allocated by the and distribution of these goods. In
ESF and other funds such as the Fund for addition, it provides support services
European Aid to the Most Deprived, the to the beneficiaries to bring about
Internal Security Fund and the Asylum, social inclusion in an integrated man-
Migration and Integration Fund, as well ner. The use of this fund’s resources is
as national resources (guaranteed mini- intended to complement the Structural
mum income). and Investment Funds, particularly the18 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
European Social Fund resources and services, training, business start-ups,
the investment priorities of Thematic etc.). Having successfully implemented
Objective 9, “Promoting social inclu- an assistance programme for the staff
sion and combating poverty.” The laid off at ALDI HELLAS during the pro-
budget for the 2014-2020 Program- gramming period 2007-2013, Greece
ming Period for Greece amounts to has already submitted two applications
EUR 280.9 million. this year for the staff laid off at NUTRI-
yy European Globalization Adjustment ART ABEE (Katselis), with a budget of
Fund: This is a fund which provides EUR 10 160 000 for 1 010 beneficiaries,
short-term assistance through coordi- and those at SPRIDER STORES SA, with
nated action targeting individuals who a budget of EUR 12 151 500 for
were affected by massive layoffs due 1 311 beneficiaries. It is clear that
to the global financial crisis or the activity will continue throughout the
impact of globalisation at company or 2014-2020 programming period,
sector level. Planned interventions to investigating the possibility of interven-
support people laid off consist of “soft” tions from the fund to cover new
ESF-type interventions (consulting instances of massive layoffs.In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 1 9 yy European Union Programme for What do you consider to be the most Employment and Social Innovation important novelties in the EU’s 2014-20 (EaSI Programme): This programme, which financial instruments for employment is a continuation of the “Progress” Commu- and social inclusion? nity Programme, includes the potential offered by the microcredit tool that Greece During the 2014-2020 Programming is going to use to strengthen business start- Period, the country plans to use financial ups and employment, particularly in the tools with an emphasis on microcredit to dynamic sector of the social economy. strengthen social entrepreneurship.
CHAPTER 2 © European Union
In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 2 1
The European Social Fund
Introduction Europe back to work is not just about sup-
porting individuals. The ESF also focuses on
To this day, the ESF remains the EU’s key reforming and modernising Public Employ-
instrument for investing in people and ment Services – the ‘jobcentres’ which so
strengthening the competitiveness of many people rely on to find work.
Europe’s workforce. Every year, it funds
tens of thousands of projects and pro-
grammes all across Europe to improve Fostering inclusiveness
people’s employment prospects, tackle
poverty and social marginalisation, provide Europe is one of the world’s most prosper-
education and lifelong learning opportuni- ous regions, and many of its citizens enjoy
ties, and improve public administrations. lifestyles and living standards that are the
The Community’s Multi-annual Financial envy of others. Nevertheless, around
Framework (MFF) for 2014-2020 once 124 million people in the EU – that is 24 %
again puts the Fund at the centre of efforts of the population – are considered to be in
to improve the economy, help people into or at risk of poverty and social exclusion.
work and encourage greater social inclu- The EU is committed to changing this situ-
sion. At least EUR 80 billion (in today’s ation and uses the ESF’s resources to help
prices) has been allocated to the ESF, to bring about positive change in the lives of
be spent over the next seven years. Europe’s less well off. Millions of euro are
committed each year to projects which sup-
port society’s most disadvantaged as they
Just the job strive to get into work, out of low paid jobs
and to access decent services. There is a
Getting more people into better jobs is a strong focus on supporting groups in society
particularly pressing issue at the moment as that are struggling the most, including disa-
many parts of Europe suffer high rates of bled people, the Roma, and ethnic and
unemployment. People need the skills and migrant communities. For the new program-
training required by the labour market of ming cycle, at least 20 % of the Fund’s
today – and tomorrow. The ESF provides help resources must be used to support projects
in this area to national, regional and local that enhance social inclusion.
organisations. Apprenticeships schemes,
traineeships, outplacement initiatives and
efforts to help people move across the EU Better education
for work all receive support from the ESF – as
do projects to assist budding entrepreneurs Education is the key ingredient for Member
and the self-employed. Finding ways to get States’ competitiveness and anyone who22 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
wants to get on in life. Without a good updated IT and e-government systems,
education, and subsequent training oppor- and for the sharing of information and
tunities, a person is less likely to get and good practice.
retain a good job and more likely to suffer
poverty and social exclusion. The cycle
starts with school – it is vital that young Supporting Europe 2020
people leave formal education with good
qualifications which will help them to enter The ESF is playing a crucial role in deliver-
the labour market or go on to university. ing Europe 2020 objectives, which is the
For older people and those already in jobs, EU’s ten-year strategy for growth, jobs and
education and training opportunities can social inclusion. Europe 2020 does more
help build their careers and keep pace with than address the recent economic crisis – it
change in the workplace. These issues are has been designed to tackle Europe’s long-
addressed by the ESF as it supports a term needs by creating smart, sustainable
range of projects across Europe – from and inclusive growth. Funding priorities for
those which seek to stop youngsters from the ESF in the 2014-2020 programming
dropping out of school to those which pro- period have been fully aligned with the
vide lifelong learning opportunities to the strategy’s objectives – both at EU and
older generation. Funding is also allocated national levels.
to help reform higher education systems
and improve the way educational institu- The strategy has established five headline
tions work. targets to be achieved by 2020 covering
employment, research and development,
education, climate and energy, social inclu-
Improving public services sion and a reduction in poverty. The ESF
has an important part to play in meeting
Poor quality, inefficient public services can a number of these targets. For employ-
hold a country back and stifle economic ment, the goal is to ensure that 75 % of
growth. The EU understands this, which is all 20 to 64 years olds are in work. For
why it is helping many of the less well off poverty and social inclusion, the EU’s ambi-
Member States to strengthen and modern- tion is to lift at least 20 million people out
ise their public administrations. The goal of poverty and social exclusion. The Fund’s
is to deliver better and more responsive role in providing learning and training
services to individuals, businesses and opportunities also means it plays a part in
society at large. The ESF is being deployed meeting Europe 2020’s education targets,
to assist with this huge undertaking. Sup- which are to reduce school drop-out rates
ported projects and programmes have to below 10 % and to ensure that at least
been developed to provide training for civil 40 % of 30-34 years olds complete tertiary
servants, new management systems, education.In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 2 3
Flagship initiatives regions that are most badly affected by
youth joblessness.
To deliver the strategy, the EU and its
Member States have developed seven
flagship initiatives to push through Linking policy and funding
change in key areas. The ESF is being
harnessed to help drive change, notably The Europe 2020 strategy is implemented
in relation to employment, poverty and monitored through the European
and youth. Semester. This is a yearly cycle which
ensures proper coordination of economic
The European Platform against Poverty and budgetary policies. All the Member
and Social Exclusion aims to generate States must translate the Europe 2020
actions across all policy areas including the targets into their own national and regional
labour market, access to healthcare and plans and policies for growth. Proper coor-
education. The decision to allocate at least dination of these activities at EU level
20 % of the ESF’s budget to tackle poverty helps to ensure that everyone is moving in
and social exclusion will help the Platform the right direction in order for Europe 2020
meet its objectives. to deliver maximum impact across the
Community. As part of the semester, there-
The Agenda for New Skills and Jobs fore, the European Commission analyses
concrete goals include equipping people the Member States’ programmes for eco-
with the right skills for the jobs of tomorrow nomic and structural reforms and then
and delivering reforms that make the labour delivers country specific recommendations
market more flexible and secure. The ESF‘s for the next 12-18 months.
commitment to projects that give people
the training they need to get good jobs com- The Semester starts when the Commission
plements the A genda’s approach. adopts its annual growth survey, which
establishes EU priorities to boost jobs and
The Youth on the Move initiative growth in the coming year and ends with
seeks to improve the opportunities young country specific recommendations
people have in the realms of education addressed to Member States. Program-
and employment. The ESF has had, and ming and implementation of the ESF have
will continue to have, a key role in tack- to take into account these country specific
ling Europe’s high rates of youth unem- recommendations and support the chal-
ployment by funding training schemes lenges they address, and also help the ESF
which give young people the skills and to tackle other long-term challenges such
life confidence they need to enter the as the ageing population and shrinking
labour market. For 2014-2020, the ESF workforce, globalisation and the need to
will support the rolling out of the Youth reform public employment services and
Employment Initiative (YEI) in the improve public administrations.24 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
Key principles for the new regions experiencing youth unemployment
programming period rates above 25 %. At least EUR 6.4 billion
(in current prices) will be allocated to sup-
For 2014-2020, the role of the ESF has port Member States as they implement
been strengthened so it can deliver what the Youth Guarantee scheme. This policy
the EU needs for advancing in terms of jobs, initiative seeks to ensure that all young
economic growth and social solidarity. people under 25 receive a decent offer of
yy The ESF enjoys a minimum share of work, training or continued education
the Cohesion policy budget of at least within four months of becoming unem-
23.1 % in order to invest in people. In ployed or leaving school/college.
total, the ESF will amount to more than yy The EU and its Member States have
EUR 80 billion over the next seven years. worked closely to ensure that the ESF
The actual ESF share will be set in light funding for 2014-2020 will be concen-
of the specific challenges Member States trated in areas that can achieve real
face in the areas covered by the Fund. results. That means focusing on a lim-
The introduction of a minimum share ited number of priorities to generate a
puts an end to the gradual reduction of critical mass of funding which will make
money allocated to the ESF from the a greater impact on Member States’ key
Cohesion policy over the past 25 years. challenges.
yy At least 20 % of the ESF must be com- yy There is greater support for transna-
mitted to social inclusion. This will tional cooperation through a common
ensure that disadvantaged groups and framework and for social innovation
people will get more support in terms of via testing and developing ideas and
boosting their employability and escaping models that address social need in areas
poverty. This allocation will also help the such as employment and education.
EU and its Member States meet their yy For this programing cycle, ESF implemen-
Europe 2020 target for bringing down tation will be achieved through even
levels of poverty and social exclusion. closer cooperation between the Euro-
yy Promoting equality between men and pean Commission, public authorities,
women, as well as equal opportunities social partners and civil society
for all, will be integrated into all actions organisations that operate at national,
supported by the Fund. In addition, spe- regional and local levels.
cific initiatives will be developed in this yy Rules for the implementation of projects
area throughout the programming period. which receive support from EU structural
yy There is a greater focus on combating and investment funds have been simpli-
youth unemployment. The YEI has been fied. This will make it easier for Member
designed to help young people not in States to deliver ESF co-funded activities
employment, education or training in and focus on getting results.In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 2 5
Case study 2.1
Helping the young Balancing work and childcare
James, 23, from Newquay in the Stephan from Vienna, Austria is able to
UK has been able to take his love of juggle a busy career as an academic with
skateboarding and turn it into work, the demands of parenthood, thanks to a
thanks to a course backed by the ESF. childcare project co-financed by the ESF.
“We’ve sent skate “It really helped”,
ramps all over England explains Stephan.
and run skate parks,” “I could only continue
says James. “I love with my research
living in Newquay because of the nursery.
and being able to It meant I managed
© European Union
© European Union
skate and surf, and to work on my thesis
being able to make and take care of my
a living from my daughter.”
passion. It just makes
me really happy.”
A story of hope from Greece
A rehabilitation scheme supported by
Promoting entrepreneurship
the ESF helped Georgia move out of
Anna, 25, from Lublin residential care and start work. The
in Poland trained project is run by the New Horizons
to be a lawyer but Cooperative, based in Corfu, Greece.
tough employment New Horizons employs people who
conditions made her are coping with mental illness to work
re-think her career alongside its regular
© European Union
choice. She received staff. Georgia found
help from an ESF- work in the scheme’s
supported project gardening and
for budding women environmental team.
entrepreneurs and now
“I love everything about
runs her own kindergarten.
© European Union
the job,” says Georgia.
“They gave me financial support, but I “It has changed my life
also received trainings in management, completely, especially
accountancy and marketing”. the planting.”26 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
Focusing on four themes labour market. Funding is provided for a
vast array of activities which give people
For the 2014-2020 programming period, the skills and confidence they need to get
the ESF will cover four thematic areas, a job or keep their current one, including:
which will contribute in taking Europe’s training and apprenticeship schemes; job
economy forward and addressing the key counselling and careers advice; work
challenges and issues faced by the EU and placements and mobility initiatives; sup-
its Member States: port for entrepreneurs, including start-up
yy Getting and keeping people in employ- funding and advice; schemes so people
ment, with a specific focus on young can balance the demands of work and life;
people. and help for workers and companies that
yy Social inclusion and combating poverty. are coping with change.
yy Better and more accessible education.
yy Improving the quality of public adminis- Local organisations, including public
tration and governance. employment services, social enterprises
and NGOs, run ESF-supported projects,
The thematic areas should not be seen in which are dedicated to improving the
isolation, there are links between them in employment prospects of millions of Euro-
terms of what must be achieved over the peans every year, especially those who
next seven years. For example, some find it most difficult to get jobs, such as
measures to address overall unemploy- the long-term unemployed, marginalised
ment will be complementary to those groups and disabled people.
designed to address youth joblessness.
Some themes complement the work of As the Fund embarks on a new program-
others, such as better education and ming period, it has a lot of success to build
improving public administration. However, on. For example, just between 2007 and
dividing the ESF’s scope into thematic 2011, 2.4 million people who took part in
areas makes it easier to shape national ESF-supported employment programmes
and regional programmes, according to found a job within six months of participat-
local needs. ing in a project.
Getting and maintaining Opening-up a world
people in employment of opportunity
The ESF offers support across the EU to The economic crisis has left a lot of people
help people of all ages and social situa- looking for work, but many have found that
tions find their place in the labour market, their skill-set is not what is required in the
and promote structural reforms to enhance modern economy. The jobs market has
the competitiveness of the European changed over the years with sectors suchIn v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 2 7
as IT and services coming to the fore as aspects of the modernisation process
manufacturing and heavy industry go could include: strengthening connections
into decline. with the “demand side” of the labour mar-
ket by increasing services to employers;
The frustration for Europe’s economy and encouraging partnerships with other
jobless is that labour market mismatches employment services; and forging cross-
mean that there will be job vacancies out border cooperation.
there, but people have to be appropriately
trained to fill them. In fact, by 2020, it is
estimated that 73 million jobs will be Boosting mobility
available due to the retiring workforce.
Sometimes people have to move to find
The ESF is a key instrument to make sure work and go where their talents are most
these and other vacancies can be filled as in demand. The ESF will play an important
it backs thousands of projects across role in supporting both sending and receiv-
Europe in order to make the necessary ing Member States to address social inclu-
reforms and equip people with the skills sion challenges faced by mobile EU citizens
required by the labour market. Another with poor labour market and social integra-
goal is to help those in work stay in work. tion. The ESF will invest in transnational
That is why the ESF provides assistance to mobility, for example by financing lan-
work-life balance schemes, which allow guage and orientation trainings, the costs
people to effectively reconcile the of the transnational mobility itself, integra-
demands of a job and the need, say, to tion measures in a host country, and many
bring up children or care for a dependent. other activities dealing with the impact of
labour mobility and the free movement of
On the institutional side, the ESF will be workers. In addition, the ESF will support
used going forward to help modernise pub- the development of national comprehen-
lic employment services so that they can sive mobility strategies, including the
provide better support measures to job- development of cross-border and transna-
seekers and employers looking for the right tional mobility services, initiatives, funding
personnel. Such measures are essential if arrangements and tools.
the EU is to meet the Europe 2020 target
of getting 75 % of 20 – 64 year olds into
work. ESF funding could be used to help Life is for learning
public employment services make best use
of labour market intelligence relating to Lifelong learning schemes help workers
local needs and to stimulate collaboration keep their skills up to date so that they
with other labour market actors, both pub- can extend their careers or adapt to the
lic and private. Access to careers guidance changing needs of Europe’s labour mar-
will also need to be improved. Other ket. The ESF is used across Europe to28 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
finance lifelong learning schemes, which such as disabled people and women
improve people’s employability. Between returning to work.
2007 and 2013, EUR 32 billion – about
42 % of the total ESF budget – went
towards lifelong learning. About five mil- Support for entrepreneurs
lion young people, 5.5 million people with
low-level skills, and about 576 000 older Small and medium sized enterprises
people undertook lifelong learning with (SMEs) are the lifeblood of the European
help from the ESF in the first half of the economy. They account for 99 % of all
last funding period. businesses and provide two out of three
private sector jobs across the EU. There-
fore, nurturing the entrepreneurs who go
Helping people to work longer on to establish SMEs has to be a priority
and smarter for the ESF. Micro-financing can be offered
to start-ups, which is especially useful to
As Europe faces up to the challenge budding business people who cannot get
posed by an ageing population, keeping loans from banks or other traditional
older workers in the labour market will sources of lending. ESF projects also pro-
become ever-more important – it is also vide self-employed people with training
a key goal of Europe 2020. Retaining which helps them set up and run their own
expertise will keep Europe’s economy businesses. Courses cover things like finan-
competitive and ensure vacancies are cial planning, accounting, marketing and
filled. The ESF supports structural legal issues. There is also help with net-
reforms to reach these goals, along with working and the development of sound
actions and training for active ageing to business plans.
ensure older workers keep their skills up
to date, or learn new ones, so they can
go on working in good jobs. Efforts here A focus on young people
also include promoting the right working
conditions for the older generation. The ESF has for some time been the EU’s
Therefore the ESF supports employers main tool to equip young people for the
that want to offer more part-time and world of work. The Fund backs programmes
flexible working arrangements, which are and projects promoting structural reforms
often favoured by older people, along which open-up access to training that give
with initiatives to adapt work places. under 25s the skills and confidence they
Such initiatives also help other groups need to enter the jobs market and thrive
find their place in the labour market, in the world of work.In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 2 9
Case study 2.2 The value of work placements
Unemployed people living in Seville, of working life, and to give them
Spain are being helped into the labour a feel for what it takes to prosper
market through a scheme which in the work place.
provides work placements in local
Participants usually stay in the EPES
companies.
programme for between two and
The Professional Experiences to six months. They are enrolled in
Employment Programme (EPES) is workshops which run for four days a
tailored to the needs of people who week. In addition, EPES collaborates
have few qualifications and little or with local companies to find suitable
no previous work experience. Those placements.
targeted for assistance include people
Figures available to 2012 show that
under 30, the long-term unemployed
628 individuals and 463 companies
and immigrants.
took part in EPES. What is more,
EPES’s main aim is to provide the 215 (34 %) of the participants ended up
unemployed with an understanding getting jobs thanks to the programme.
Case Study 2.3 No drop-outs here
Starting out in life can be particularly together to identify at-risk young people
tough for young people who drop during their final years at school. The
out of school early or leave without project used work-based tools to help
qualifications. In Belgium, the ESF participants plan their career choices.
‘From Drop-out to Drop-in’ (DODI) These included the My Digital Me
project helped youngsters make the website where qualifications could be
switch to working life. DODI brought matched to jobs, and which allows the
together several schools and regional young people to build their own portfolio
employment organisations. They worked of skills and training needs.30 I I n v e st ing in p e op le : E U fu n di n g fo r e m ploy m e n t a n d s o c i al i n c l u s i o n
The economic crisis has seen a sharp money should help about one million
increase in youth unemployment across young people.
most of Europe. In 2013 it stood at an aver-
age rate of more than 23 % in the EU as a
whole, up from 16 % in 2008. In some coun- Skills are the key
tries, the picture is even bleaker, especially
in Spain and Greece where youth unemploy- If the employment goals of Europe 2020
ment rates have climbed from 25 % to 54 % are to be achieved, ways must be found
and 22 % to 57 % respectively. In total, to equip the EU’s young people for the
about 5.5 million under 25s are out of work jobs of today and tomorrow. That is why
in the EU. This serious and structural prob- the ESF provides millions every year to
lem is not only a personal tragedy for all fund training and apprenticeship schemes
those affected, it is also bad for Europe’s that are specifically tailored to the needs
economy as, despite the crisis, there are of this group. Along with learning skills,
over two million unfilled vacancies in the EU. there is often a focus on mentoring and
counselling which is particularly valuable
The EU and its Member States are acutely to young people who have never
aware of the problems caused by high worked before.
rates of youth joblessness and are deter-
mined to act through a series of policy There is also plenty of support for young-
measures and initiatives which are sup- sters who have dropped out of school early
ported by the ESF, including the Youth and have few, if any qualifications. The ESF
Employment Initiative (see Box 2.1). supports initiatives that offer motivated
young people ways back into formal edu-
In recent years, Structural Funds have been cation so they can get those vital qualifica-
deployed to help combat spiralling youth tions and become more employable. In
unemployment via the so called “youth addition, for hard-to-reach youngsters,
action teams” in the eight Member States projects are available that offer training in
with the – at the time - highest levels of more informal ways. A good example of
youth unemployment, namely Greece, this type of work comes from the Czech
Ireland, Italy, Latvia, Lithuania, Portugal, Republic where a mix of theatre work, job
Slovakia and Spain. Around EUR 4.2 billion training and counselling is giving young-
of ESF funding was re-allocated to help sters who have left institutional care the
young people, among others, gain speedier opportunity to take qualifications and gain
access to training and the jobs market. The self-confidence.In v e st ing i n pe o ple : E U fu n di n g fo r e m ploy m e n t an d s o c i al i n c l u s i o n I 3 1
Box 2.1 The Youth Employment Initiative – help where it is most needed
The Youth Employment Initiative (YEI) What the YEI can offer
has been designed to support young
The YEI will finance schemes and
people who are not in employment,
initiatives that are similar to those
education or training (NEETs) in EU
that receive support from the ESF. This
regions that are experiencing youth
complementarity will amplify the support
unemployment levels above 25 %.
provided for the implementation of the
Funding for the YEI comes from two Youth Guarantee by funding activities to
sources: help NEETs directly. The focus is, however,
yy EUR 3.2 billion has been allocated on an individualised approach towards
from a specific EU budget dedicated addressing the needs of very young people
to youth employment; and in a tailored way.
yy A further EUR 3.2 billion comes from YEI funding can be used for: traineeships
ESF national allocations. and apprenticeships; job placements;
The European Commission has decided reductions in non-wage labour costs; good
to make all the money available in quality wage and recruitment subsidies;
2014-2015, rather than over the full mobility measures for jobs and training;
start-up support for young entrepreneurs;
seven year programming period, due to
measures to give young people a second
the gravity of the situation concerning
chance; and vocational programmes.
youth unemployment. The funding
The YEI will be run under the rules of the
can also be topped-up with additional
ESF: the link between the two will allow
funding from the ESF or national
for the YEI to be fully integrated into ESF
sources.
programming. This is to make sure that the
Supporting the Youth Guarantee initiative enhances, rather than replaces,
ESF actions in the regions that are worst
The YEI and the ESF are key tools for
affected by youth unemployment.
delivering the EU’s Youth Guarantee
Scheme, which will be implemented in Building partnerships will remain a key
all Member States. It guarantees that aspect for developing both ESF and YEI
every young person aged under 25 is activities. Key stakeholders here include
entitled to receive a good quality offer public authorities – especially the ESF
of employment, continued education, managing authorities – employment
an apprenticeship or a traineeship services, careers guidance counsellors,
within four months of having become education and training institutions, youth
unemployed or having left formal support services, trades unions and
education. employers.You can also read
