LFS user presentation EMCO Katerina Aristodemou EMCO Support Team – EMCO IG LAMAS meeting 29 June 2016

EMCO – EMCO IG EMCO is an advisory committee for Employment and Social Affairs Ministers in the Employment and Social Affairs Council (EPSCO) which plays an important role in the development of the European Employment Strategy. The EMCO Indicators Group is the subgroup of EMCO responsible for the selection and development of indicators required to monitor the employment strategy

EMCO IG core business (1) Preparation of the annual update of the Employment Performance Monitor (EPM) Refinement of the indicators and methodology used under the Joint Assessment Framework (JAF) Preparation of a contribution to the EMCO's report to be submitted to the October's EPSCO Council as input to the preparation of the AGS

EMCO IG core business (2) Development/ evaluation of Indicator Frameworks for monitoring the Council Recommendations on The Youth Guarantee The integration of the long-term unemployed into the labour market Analysis of the results of the data collections Pursue work, in the area of employment, on improving the scoreboard of key employment and social indicators Pursue work in the area of benchmarking employment policies

1. Employment Performance Monitor (EPM) (1) Is a joint EMCO - Commission report which summarising the JAF assessment It is used to Monitor the progress towards the ER target Identify at a glance the main employment challenges for the European Union and for each Member State It aims at providing a good overview of results both at MS level and in the EU

Employment Performance Monitor (EPM) (2) It is adopted by the EPSCO Council As form this year: October EPSCO Council It will be accompanied by a horizontal summary paper Aim: to feed in to the preparation of the AGS

Structure of the EPM PART I – EU dimension PART II – MS dimension Progress towards the EU-28 employment rate headline target Overview of Key Employment Challenges and particularly good labour market outcomes per Member State and per policy area PART II – MS dimension Progress towards the national employment rate target Key indicators on labour market performance Key employment challenges and good labour market outcomes PART III – Reading from JAF modules Annex EPM dashboard Statistical data Benchmark

Progress towards the EU-28 employment rate headline target

Key Employment Challenges and particularly good labour market outcomes Summary overview of Key Employment Challenges and particularly good labour market outcomes C=challenge G=good labour market outcome

Identification of Key Employment Challenges (KEC) and Good Labour Market Outcomes (GLMO) Step 1: Quantitative assessment based on JAF indicators – combination of levels and 3-y changes Step 2: Qualitative assessment that qualifies and complements the findings from step 1. Use of other data sources Step 3: Prioritising challenges and identifying key challenges and good outcomes per MS

KEC and GLMO Employment policy area Key employment challenge Particularly good labour market outcome 1. Increase labour market particpation Low participation of older workers Low participation of non-EU nationals   2. Enhancing labour market functioning; combating segmentation Increased risk of labour market segmentation, especially for the young 3. Active labour market policies Above average long-term unemployment incidence despite significant investment in ALMP 4. Adequate and employment oriented social security systems High tax wedge, especially for low wage earners At-risk of In-work poverty below the EU average 5. Work-life balance 6. Job creation 7. Gender equality 8. Improving skill supply and productivity; Lifelong learning Participation in LLL is below average and declining over time 9. Improving education and training systems Share of adults with medium/high education is low 10. Wage setting mechanisms and labour cost developments Decelerating but still above-average 3-year increase in nominal ULC. Real ULC growth is slightly below the EU average.

EPM dashboard New in 2015 Includes the main indicators under the 10 JAF Policy Areas (mostly LFS based) Aim: identify common EU "trends to watch" and "positive recent trends" Focus: y-o-y changes and 3-y changes for each Member State and the EU

2. Monitoring Council Recommendations Two Indictor Frameworks developed within EMCO: YG – adopted, 2nd data collection launched LTU – under development Indicators at 3 levels of monitoring Aggregate level (mostly LFS based) Direct level Follow-up level Integrated to JAF as modules Results included in the EPM

3.Scoreboard of Key employment and social indicators (1) An analytical tool allowing better and earlier identification of major employment and social problems Integrated part of the JER Aim: Assessment of MS performance and identification of MS with problematic levels/changes 6 Indicators: UR Youth unemployment: Youth UR, NEET rate Real Growth in GHDI At risk of poverty rate (18-64) Inequalities S80/S20

Scoreboard of key employment and social indicators (2) Assessment based on methodology jointly developed by EMCO IG – SPC ISG Based on a combined assessment of MS performance using levels and y-o-y changes Outcome Summary table

Outstanding specific methodological issues Developments of indicators for monitoring: participation in the labour market for those furthest away from the labour market skills mismatches and anticipation of skills needs wage-setting mechanisms labour mobility Reconciliation of work and private life Improvement of the NEEDCARE variable Improvement of the NEET rate indicator Variance estimates Scoreboard EPM dashboard

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