Europe 2020 Joint Assessment Framework draft proposal

Europe 2020 Strategy Europe's new strategy for smart, sustainable and inclusive growth 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

ESF in the Europe 2020 EGL GL 7: Apply Flexicurity principles, “... making appropriate use of European Social Fund and other EU funds” GL 8: Increase responsiveness of education and training systems to current and emerging labour market needs (e.g. low carbon and resource efficient economy. “The ESF and other EU funds should be mobilised where appropriate by Member States to support these objectives.” GL 10: The extension of employment opportunities is an essential aspect of Member States’ integrated strategies to prevent and reduce poverty and to promote full participation in society and economy. Appropriate use of the European Social Fund and other EU funds should be made to that end.

What is the purpose of the JAF? Analytical tool for evidence based policy making under the Europe 2020 EGL Identifying major employment challenges and early warnings on potential risk areas Supporting country examination in spring Contribute towards AGS, JER,SPC annual review of social dimension, macroeconomic surveillance Analysis of specific thematic areas (e.g. Flexicurity, quality in work)

What are the main elements of JAF? Quantitative and qualitative assessment tools for identifying key challenges Target tracking device Employment Performance Monitor (EPM)

Assessment methodology Basis: Policy areas and indicators Step 1: Quantitative element Step 2: Qualitative element Step 3: Identifying priorities and reaching an overall assessment

Mainly EMCO policy areas

Mainly SPC policy areas Policy areas Corresponds to integrated guideline nr Preventing poverty through inclusive labour markets, adequate and sustainable social protection and access to high quality, affordable and sustainable services XXX 11aBreaking the intergenerational transmission of poverty – tackling child poverty XXX 11bActive inclusion – tackling poverty in working ageXXX 11cTackling poverty in old ageX 12Social inclusion of groups at special risk and anti- discrimination XX

Indicators Initial list of Core indicators Supplementary indicators

Example ALMP area Main indicators ALMP expenditures per person wanting to work ALMP expenditure as % of GDP (cat. 2,4,5,6,7) Activation/Support Activation of registered unemployed New start/Prevention Follow up of participants in regular activation measures Supplementary indicators: Activation of long-term unemployed in regular activation (LMP cat. 2- 7) Inflow into long term unemployment (young 6 months, adult 12 months) Proportion of entrants in regular/assisted activation measures taken up by persons not yet long term unemployed

Step 1: Quantitative assessment General approach –Make data comparable through a standardisation formula –Look at level values and change over time

Quantitative assessment 1.Identifying one key overall outcome indicator per policy area plus several relevant sub-indicators 2.Standardise key indicator and sub- indicators 3.Visualise situation per country 4.Per policy area, assign countries to performance groups through clustering methods

Selection of indicators Example Policy area 1. Increase labour market participation Overall objective: raise employment (alternatively, raise participation) Overall indicator: employment rate (alternatively activity rate (20-64)) Sub-indicators: –Employment gender gap –Employment rate of popn (55-64 overall, men, women) –Average duration of working life –Employment rate of youth –Employment rate of low-skilled persons –Employment rate of non-EU nationals

Selection of indicators Policy area 11b. Inter-generational transmission of poverty: tackling child poverty Overall objective: Reduce poverty and exclusion of children Overall indicator: Children at risk of poverty or exclusion Sub-indicators: At-risk- of poverty rate of children – Children in households suffering from severe material deprivation – Children in jobless households – Impact of social transfers (excl. pensions) in reducing child poverty – Early school leavers

Standardistaion and visualisation

Step 2: Qualitative assessment Complements and corrects quantitative assessment Main elements: –Accounting for change over time –Accounting for data problems –Accounting for changes not yet reflected in data –Covering (sub-)areas for which no adequate indicators are available

Step 3: Priorities PriorityDefinition High Given the national context, solving this challenge is more crucial for improving employment outcomes than solving other challenges. Medium Solving this challenge is less crucial for improving employment outcomes than solving other challenges. Low Solving this challenge is not very crucial for improving employment outcomes.

Step 3: Overall assessment JAF DECISION TREE STEP 1 Quantitative Performance Check STEP 2 Qualitative Performance Check STEP 3 Assessing priority KECPR High Low-- High Medium-- High -- Medium Low-- Medium -- High-- Low -- Medium-YES Low HighYES-

Areas of further work Finetuning list of indicators Further detailing of quantiative assessment methodology Detailing of qualitative criteria and criteria for determining priorities