Social Europe Employment and labour mobility of youth and older age groups in the EU Jan Behrens European Commission, DG Employment, Social Affairs and Inclusion Vilnius, 12 May 2015

Social Europe The EU Economy recovers modestly reaching pre- crisis levels Employment levels still below pre-crisis Source: Eurostat, National Accounts Note: DG EMPL calculations for GDHI

Social Europe Source: Eurostat, LFS, data non-seasonally adjusted. Change in employment in the EU, by age Recent labour market trends Age group trends in employment show increases for all - still mainly the older workers

Social Europe Employment rates in EU member states, 2014 q 4

Social Europe Employment rate in EU; by age, gender and education 2014 Q 4

Social Europe Employment rate by age and educational attainment level in 2013, % Educational progression EU28

Social Europe EU28 Active pop, LOW scen. Active pop, HIGH scen. Shrinking working age population- potential employment paths

Social Europe Source: Eurostat, series on unemployment, seasonally-adjusted data Unemployment rates - total (left axis) and youth (right axis), EU and EA Unemployment Unemployment in the EU slowly recedes from high levels followed for the first time by a mild reduction in long-term unemployment Long-term unemployment in the EU

Social Europe EU citizens working in other EU Member States  Around 8 million econ. active EU citizens living in another MS in 2013 (3.3% of the labour force)  But remains below number of econ. active third-country nationals (10.6 millions or 4.3%) …and ten times lower than in the USA  Sharp increase in mobility since 2004 (enlargement), but falling since crisis  Mainly driven by job opportunities/ higher wages in host country  Shifting age patterns

Social Europe Labour mobility Economic benefits of freedom of movement of workers: broader economic opportunities, matching labour supply with demand, job creation, dissemination of knowledge and innovation Some risks: If geographically or sectorally concentrated (eg health professionals leaving) Mobility package (expected by end 2015): Analyse and report objectively on mobility flows Prevent errors, abuse and fraud Adapt current provisions (eg coordination of social security)

Social Europe European Employment Strategy TFEU Title IX: Employment -The European Employment Strategy (EES) - Europe 2020 and the European Semester for economic policy coordination - The 2012 Employment Package

Social Europe The Open Method of Coordination Joint Employment Report Employment Guidelines Country specific recommendations 2. European Council's Conclusions approves JER 1. Commission drafts: 3. Council of Ministers of Employment (EPSCO) issues: 4. Member States draw: 6. Commission evaluates NRPs and proposes recommendations 7. Council adopts: National reform programmes

Social Europe Employment Guidelines GL 7 Increasing labour market participation of women and men, reducing structural unemployment and promoting job quality GL 8 Developing a skilled workforce responding to labour market needs and promoting lifelong learning GL 9 Improving the quality and performance of education and training systems at all levels and increasing participation in tertiary or equivalent education GL 10 Promoting social inclusion and combating poverty

Social Europe Youth unemployment rate, EU MS, February 2015 Situation for youth (15-24 y) Unemployment declined, but remains high, considerable differences across the EU prevail Youth unemployment rate, February 2015 and lowest and highest rates since 2008

Social Europe Key challenges for youth Both cyclical and structural factors Performance of education and training Availability of quality work experience Labour market segmentation

Social Europe Youth Guarantee  Council Recommendation of 22 April 2013: Member States ensure that all young people up to 25 receive a good-quality offer of employment, continued education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education PES: Central YG provider

Social Europe Council Declaration on a European Alliance for Apprenticeships Council Recommendation: Quality Framework for Traineeships Mobility for young people

Social Europe Youth 2014 CSRs target mainly: 1.Youth Guarantee reference: BG, ES, HR, IE, IT, PL, PT, SK 2.Youth Guarantee related reforms BE, BG, CZ, ES, FR, HR, HU, IE, IT, LT, PL, PT, RO, SE, SI, SK 3.Reach out to NEETs: BG, ES, HU, HR, IT, LV, PL, PT, RO, SE, SI, SK

Social Europe Older workers: challenges  Labour supply- Declining working-age population calls for higher employment rates ('productivity squeeze')  Sustainability and adequacy of pensions –  Duration of working lives, gender gaps  Eurobarometer 2011: barriers to employment  Active Ageing and creating an age friendly work environment

Social Europe Active ageing – Guiding principles EMCO/ SPC a) Removing disincentives in tax-benefit structures and remuneration b) Age management in work places and labour markets -Providing access to life-long learning and career counselling - Promoting healthy ageing at work c) Work life balances -Broad range of policy domains. Key role of social partners Active Ageing Index 20

Social Europe Extending working lifes Duration of working life (years, 2012) and employment rate of older workers (%, 2013) Source: Eurostat 2014 CSRs target mainly on: 1.Keeping people longer in labour market: AT, BE, BG, CZ, DE, FI, HR, LT, LU, MT, NL, PL, SI 2.Enhancing older workers' employability: AT, BE, BG, CZ, FI, FR, LT, LU, NL, PL, RO, SI 3.Sustainability/adequacy pension system: AT, CZ, DE, HR, PT 4.Harmonisation of retirement age men and women: AT, BG, HR, RO

Social Europe Thank you ! For more details…. Please consult DG EMPL website gId=en On Europe it-happen/country-specific- recommendations/index_en.htm