Inclusion of vulnerable groups into the labor market Inclusion of vulnerable groups into the labor market. Experience from Slovakia WG2: Social policy and employment Skopje, 12. April 2018 Daniel Škobla (Institute for Research on Labor and Family, Bratislava)

Structural problems related to labor market in Slovakia Structural changes in economy (privatization,de-industrialisation, robotization, digital economy) Huge regional differencies within Slovakia in terms of economic performance and thus socio-economic parameters Industry structure focused on car manufacturing (and thus undiversified) Existance of large vulnerable group of population, disadvantaged on the labor market (Roma population …), which are literally cut off from the labour market

Positive turn in situation on labor market (2016) Contributing to this turn are robust economic growth as well as active labor market policies funded by European funds GDP growth rate of more than 3% in both 2016 and 2017 There has been substantial fall in unemployment rates and an increase in employment rates: the employment rate continued to improve, attaining 63% in 2017; the unemployment rate had decreased from almost 20% in 2001 to 9% in 2017. Risk of poverty rate (people falling below 60% of median income) is at 12%

Active labour market policies (ALMPs) Government programmes that intervene in the labour market to help the unemployed find work Financed mostly through the European Social Fund The European Social Fund (ESF) expenditures in Slovakia aim at improving several areas of the labour market: the employment of young people, their education and training opportunities, increased support for marginalised and vulnerable groups (e.g. marginalised Roma communities), and improved quality of public administration. For the funding period of 2014-2020, a “Operational Program Human Resources” defined six priority axes in line with the Europe 2020 Strategy: 1) education, 2) youth employment initiative, 3) employment, 4) social inclusion, 5) integration of marginalised Roma communities, and 6) technical facilities in communities with a presence of marginalised Roma communities

The most important ALMP measures 1 Allowance to support the employment of disadvantaged job seekers (paid to employer, up to 500 EUR, up to max. 24 months) Subsidies for student’s/graduate’s first regularly paid jobs (aimed at young people below 29 years, who have not had any previous regular job experience, employers can receive subsidies for creating a job for a period of six to twelve months, up to 555 EUR) Contribution covering transport costs to workplace (paid to employer, up to 50% of the costs) Contribution to support the development of local and regional employment (paid to municipality, for disadvantaged job seeker 50+, up to 750 EUR; for 9 month) Contribution to support job maintenance (paid to employer for serious operational reasons; up to 50% of the wage compensation granted to the employee; for 9 month)

The most important ALMP measures 2 Contribution to setting up a sheltered/ protected workshop or sheltered/ protected workplace (to cover part of the cost of setting up a job for a disabled citizen 6,500 EUR) Contribution to maintaining a disabled citizen in workplace (up to max. 195) Contribution to personal assistant (up to 875 EUR/month)

The most important ALMP measures 3 Compensation of part of travel expenses related to job-interview (paid directly to job seeker, up to 35 EUR) Contribution to enterprenership (paid to disadvantadged job seeker who commit himself/herself to enterpenesrhip for 3 years; up to 5,000 EUR) Allowance related to graduate practice (paid to graduate; up to 6 months; 130 EUR) Work attendance allowance (transport by public transport, up to a maximum of EUR 135 per month) Job Mobility Support Contribution (a job-seeker who changed residence more then 70km; up to max. 400 EUR; up to 12 month)

The most important ALMP measures 4 Contribution to activation activity through volunteer service (20 hours/month, up to 6 months; at living minimum = app. 200 EUR) Contribution to activation activity in the form of smaller services for the municipality (reimbursement of part of the costs of equipment and material related to organization of municipal services) ------ Activation contribution (part of the system of social protection, up to 60 EUR/month to registered job seeker) Since 2014, assistance to materially deprived people has been conditioned by their active participation in public “activation works” for at least 32 hours per month.

The most important ALMP measures 5 Education and training for the labor market (training on its own initiative, pay 100% of the eligible costs, up to a maximum of EUR 600) Education and training for the job provided by the Labor Office Several re-qualification programs (contributions related to retraining to job seekers) Several (app. 13) large-scale “national projects” funded by the ESF, which support the employment (usually up to 12 month) of graduates, workers 50+, low-skilled and long-term unemployed

Social enterprises (“work in progress”) The law on social enterprises was passed in March 2018 Support of entrepreneurship that have some ‘socially defined goal’ (profit is not primary goal) & reinvest 50 % of profit (can be firms, municipalities, NGOs..) Providing access to low interest-rates loans (through national holding) Providing access to grants (funded from EU funds – app. 70 million EUR earmarked) Compulsory: mix of loan and grant

However, problems remained High rate of long-term unemployment Those particularly vulnerable are low-skilled workers and Roma population Regional differences: unemployment and new jobs differs markedly across regions Comparatively low salaries Gender gap: The female employment rate in Slovakia has been lower than the employment rate of men (55% and 70% in 2017, respectively); Salaries: gender pay gap app. 20%

Thank you for your attention danielskobla@gmail.com