Differential treatment of workers under 25 with a view to their access to the labour market Laura Todaro and Mirja Gutheil, Optimity Matrix

Contents Sections Study objectives, scope and methodology Challenges young people face in the labour market A rights-based approach to young people and employment Findings Conclusions Policy recommendations 2 Laura Todaro & Mirja Gutheil, Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Study objectives Overall objective: To provide a comprehensive picture of the latest developments on policy measures regarding differential treatment of workers under 25 in the EU with a view to their access to the labour market Specific objectives: assess the effectiveness of these measures, including outputs, outcomes, results/impacts include measures considered to be positively or indirectly (negatively) discriminatory assess compatibility with Directive 2000/78/EC on equal treatment in employment and occupation; and provide policy recommendations to the European Parliament 3 Laura Todaro, Mirja Gutheil Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Methodology Selection of Member States: Contextual analysis in 6 countries: Austria, Finland, France, Italy, Poland, the UK Selection of measures: transition from school to work approach labour market supply and / or demand side direct / indirect discrimination Tools: desk research telephone interviews output: country case studies on employment measures 4 Laura Todaro, Mirja Gutheil Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Employment of young workers: young entrants to the labour market EU28 unemployment rate (%) by age, 1998– Laura Todaro & Mirja Gutheil, Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Employment of young workers: young entrants to the labour market Unemployment rate (%) by country in the EU – June 2014 Laura Todaro & Mirja Gutheil, Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level 6

Comparison of forms of employment by age in the EU (2012) 7. Employment of young workers: working conditions of young people Form of employment EU28 15–24-year- olds EU28 25–54-year- olds EU28 55–64-year- olds Part-time employment as a % of total employment 31.0%17.2%22.5% Temporary employees as a % of total employment 42.2% 11.5%6.6% Self-employed as a % of total employment 4.4%14.4%24.5% Laura Todaro & Mirja Gutheil, Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Problem inherent to the nature of the group analysed? Unemployment to be expected due to lack of experience of young workers Skill mismatches Job search Many young people study full time (i.e. they choose to work part time - 30% ) Young people are more mobile and more subject to unemployment Are policies designed in a discriminatory way? Policies with short / long term gains Stepping stone to access the labour market (reduction of labour costs more attractive) Employment ‘trap’ (redundancies; traineeships) o Wage penalties, o Pension scheme o Low job tenure o Lower wages o Loss of benefits o Sectors with low added value o No training possibilities o Irregular hours. Risk of social exclusion 8 Policy challenges Laura Todaro, Mirja Gutheil - Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

A rights-based approach Several initiatives for youth and employment, but more attention to quantity and short term gains rather than quality and longer term gains. Regarding discrimination: More attention is paid to older workers, ethnic minorities and people with disabilities. Less attention is paid to young workers. Need for a rights-based approach to youth policy that integrates the norms, standards and principles of the international human rights system. EU Directive 2000/78/EC is the main legal tool to implement a rights-based approach, but ‘legitimate aim’ is too vague. Laura Todaro, Mirja Gutheil - Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level 9

Findings Incentives for employers are preferred by countries with Liberal Market Economies (LMEs) (UK, IT, PL) ALMPs (employability measures) are applied mostly in Coordinated Market Economies (CMEs) (AT, FI) ALMPs are more effective in the short term in LMEs Subsidised employment is not limited to a specific type of market economy (FR) Flexible work arrangements are less resilient during economic downturn Flexible labour markets have been better able to respond to increases in labour demands Segmented labour markets have worse employment outcomes following recession European Youth Guarantee positive especially in CME 10 Laura Todaro & Mirja Gutheil, Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Conclusions Employability measures (e.g. ALMPs) have a positive effect on young peoples’ integration into the labour market. Financial incentives to employers are effective. Subsidised employment has not always returned the same benefits as temporary employment. Youth employment measures taken in isolation are not positively or indirectly discriminatory per se. Outcomes depend on the interplay between the measure and the institutional and socio-economic context. Laura Todaro, Mirja Gutheil Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level 11

Policy recommendations (1) Enhancing Public Employment Services (PES) o Improve intense individualised career and job search assistance o Increase PES to PES dialogue for good practices exchange o Improve monitoring and performance systems Improving social partner participation o Reduce skills mismatch o Foster social dialogue Reviewing of apprenticeship and training design o Ameliorate quality and availability of apprenticeships o Promote implementation of common guidelines o Implement dual education and training systems 12 Laura Todaro, Mirja Gutheil Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Policy recommendations (2) Promoting policies at EU level: the European Youth Guarantee o Monitor impacts o Increase financial resources Ensuring compatibility with EU Directive 2000/78/EC o Define better ‘legitimate aim’ o Balance flexibility and social protection 13 Laura Todaro, Mirja Gutheil Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Thank you! 14 Laura Todaro, Mirja Gutheil Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

Contact details 15 For questions or comments please contact: Laura Todaro Policy Consultant 0044 (0) Optimity Matrix Kemp House City Road London EC1V 2NP Laura Todaro & Mirja Gutheil, Optimity Matrix European Parliament Workshop - Department A September 2014 Policy areas and current challenges in the field of Employment and Social Affairs at EU level

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