Making youth transitions pay: what role for PES? Wallis Goelen Head of Unit – Employment Services & EURES Budapest 28 April 2011 -

Presentation outline Issues & challenges Youth transitions: what do we know? Implications for PES What can PES do to step up to the challenge? Conclusions

Issues & Challenges Youth unemployment is a structural problem Even in good times rates were high Paradoxically: most educated youth generation ever Recession hit young workers hardest men vs women; ethnic minorities; low educated Little or non existant social security coverage Unemployment rate alone understates scale of the problem: low participation rate much more severe

Youth (15-24) participation in work force in EU fell as unemployment increased Source: Mobility in Europe Report 2010

Youth transitions: what do we know? First transition into labour market hardest yet most critical Recession increased transitions out of employment Reduced probability of moving out of unemployment and back into employment…resulting in: Evidence of youngsters returning to or remaining in education Concerns on LTU and huge deskilling among Youth

Transitions from one year to the next -Mobility in Europe 2010-

Proportion of employees (15-24) in temporary jobs, 2007 & 2009 Source: EU SILC data in Mobility in Europe Report 2011

Movements from Permanent (P) and /Temporary (T) jobs in EU , 2005-2007 Source: EU SILC data in Mobility in Europe Report 2011 Notes: T – temporary contract ; P – permanent contract

Implications for PES: repositioning EGL 7 - Employment services should be strengthened and open to all, including young people and those threatened by unemployment with personalised services targeting those furthest away from the labour market. EGL 8 - Member States should promote productivity and employability through an adequate supply of knowledge and skills to match current and future demand in the labour market (…) to support young people and in particular those not in employment, education or training (…) and intervene rapidly when young people become unemployed YoM Communication: Member States to introduce Youth Guarantees… to ensure all young people are in a job, training or work experience within 4 months of leaving school

Organisational implications for PES On going modernisation of PES Business Models IMPROVED OUTREACH CAPACITY TRANSITIONS BROKER PARTNERSHIPS PES actions for enhancing youth employment prospects

Stepping up to the challenge requires… IMPROVE OUTREACH CAPACITY Information & Communication Corporate image and brand New technologies & Social Media

Stepping up to the challenge requires… TRANSITIONS BROKER Activation: Youth Guarantees Early access to individualised services Skills anticipation to enhance matching

Stepping up to the challenge requires… PARTNERSHIPS Cooperation with education and training bodies Other employment services Community level actions

Conclusions Three fold challenge affecting Prevention, supply and demand Labour market policies must go hand in hand with education and a ‘services first’ philosophy Most comprehensive range of EU policy measures and initiatives to date Member States and PES must chose tools that suit them best

Thank you for your attention