Europe 2020 Latest developments Anette Björnsson European Commission, DG EMPL

Remind: the targets relating to employment and social policy By 2020: 75 % employment rate (% of population aged years) < 10% early school leavers & min. 40% hold tertiary degree 20 million less people should be at risk of poverty

Annual Growth Survey, 2012 – challenges for employment Many people moving in and out of employment Working conditions being adjusted to changing environments Higher share of long-term unemployed → higher risk of social exclusion Ageing population shows its impact at the labour market.

Annual Growth Survey, 2012 – mobilising labour for growth Revision of wage-setting mechanisms to reflect productivity developments Enhancing labour mobility Restricting access to early retirement and other exit mechanisms Promote business creation and self-employment Facilitate development in sectors with the highest employment potentials

Annual Growth Survey, 2012 support employment of young people Target NEET Better apprenticeship and trainee contracts Reduce the excessive rigidities in relation to permanent contracts thereby ensuring better access to labour market Adapt education and training systems to labour market needs Review quality and funding of universities and vulnerable groups Further improve the effectiveness of the social protection system Implementation of active inclusion strategies Ensuring access to services

Employment package The stronger link between the agreed fiscal consolidation and the labor market measures It complements the employment priorities of the AGS with medium-term policy guidance to Member States to pursue a job-intensive recovery, thus focus on job creation 17.6 mil jobs needs to be created before 2020 Investment in skills Job mobility

Support job creation -Targeting hiring subsidies towards new recruitments -Reducing the tax wedge on labour in a budgetary neutral way by shifting towards environmental, consumption or property taxes -Promoting and supporting self-employment, social enterprises and business start-ups -Transform informal or undeclared work into regular employment -Boost 'take home' pay to fight in-work poverty or to encourage the take-up of work -Modernise wage-setting systems to align them with productivity developments and support aggregate demand -Exploit job creation in potential key sectors -Green jobs -Health care -ICT

Reform labour markets to secure inclusive transitions, by -Using internal flexibility to reduce insecurity and fiscal costs -Guaranteeing decent and sustainable wages and avoiding low-wage traps -Developing a mutual responsibilities culture vis-à-vis the use of benefits -Combatting labour market segmentation through adequate contractual arrangements -Anticipate economic restructuring -Developing lifelong learning policies as a key to employment security -Delivering employment opportunities for youth

Governance Better EU employment and social governance is needed to complement economic and fiscal policy coordination and achieve the Europe 2020 goals Labour market participation, unemployment and labour costs pay are integral elements in ensuring macroeconomic stability and correcting imbalances Interconnected and interdependent European economies and labour markets require a stronger coordination of Employment & Social policies in line with the European Employment Strategy

Conclusion on the EU employment package The Communication presents a new focus, approach and proposals to fuel labour demand in particular with regard to 3 sectors It sends a clear message that a balanced approach to minimum wage setting plays a role in boosting aggregate demand and fighting poverty Proposes to involve the Social Partners more closely in setting priorities at EU and national levels It firmly strengthens EU employment and social policy cooperation

Development in Croatia and the EU employment package Pilot project on the evaluation of the ALMP In the light of the employment package it is important that the evaluation of the ALMP will be further developed Skills needs analysis are carried out The courses organised in order to accommodate the needs are in nature short-term. Next step would be longer-term perspective Many programs implemented to increase the educational level of the labour force in general and the unemployed in particular A strategy for the lifelong learning is a natural next step Promotion of flexible working arrangements Monitoring of the outcome and evaluation of the measures for these arrangements Wage setting mechanisms and the development in the economy Both in Croatia and in the EU the wage setting mechanisms will be a challenge in the coming years Informal economy/undeclared work a challenge in the coming years