1. Annual Growth Survey and Draft Joint Employment Report 2012

2. 2nd European Semester: overall context (I)
Economic recovery has come to a standstill
GDP likely to stagnate (0.6% for 2012).
Unemployment levels likely to remain high (10% in 2012)
Difficulties with the sovereign debt and financial sector

3. 2nd European Semester: overall context (II)
To be implemented as part of strengthened economic governance
Member States’ progress in implementing recommendations is below expectations
Priority on implementation of agreed reforms and growth-enhancing measures
Focus on both reforms with short-term growth effect and longer-term perspective

4. Progress on Europe 2020 headline targets (I)
EMPLOYMENT 75% of the population aged should be employed
INNOVATION 3% of the EU's GDP should be invested in R&D
CLIMATE / ENERGY A reduction of CO2 emissions by 20%
Share of renewable energies up to 20%
An increase in energy efficiency by 20%
EDUCATION The share of early school leavers should be under 10%
At least 40% of the younger generation should
have a tertiary degree or diploma
POVERTY 20 million fewer people at risk of poverty

5. Structure of the 2012 Annual Growth Survey

6. 2nd AGS: five priorities
Pursuing fiscal consolidation
Restoring normal lending to the economy
Promoting growth for today and tomorrow
Tackling unemployment and the social consequences of the crisis
Modernising public administration

7. 2nd AGS: fiscal consolidation
Maintaining effective growth-friendly expenditure (including education, reinforcement of employment services and active labour market and social inclusion policies)
Building more effective, efficient and fairer tax systems (including shifting taxation away from labour towards taxation less detrimental to growth and attention to vulnerable groups)
Encourage moves from undeclared to regular work
Pursuing the modernisation of pension systems to ensure financial sustainability and adequacy and equalizing pensionable page
Aligning the retirement age with increasing life expectancy with a view to raising the effective exit age from the labour market
Restricting access to early retirement schemes and supporting longer working lives

8. 2nd AGS: tackling unemployment and the social consequences of the crisis (I)
3 priorities:
Mobilising labour for growth
Supporting employment especially of young people
Protecting the vulnerable

9. 2nd AGS: tackling unemployment and the social consequences of the crisis (II)
Mobilising labour for growth
Review wage-setting mechanism
Adaptation of UB combined with activation
Enhance labour mobility
Restrict early retirement access and supporting longer working lives
Promote self-employment and entrepreneurship
Facilitate high employment growth sectors

10. 2nd AGS: tackling unemployment and the social consequences of the crisis (III)
Supporting employment especially of young people
Most urgent needs and actions to support NEET
Targeting young people: apprenticeships, traineeships
Reform employment protection legislation, generate easier access for youth
Education and training to better reflect skills demand
Review quality and funding of universities

11. 2nd AGS: tackling unemployment and the social consequences of the crisis (IV)
Protecting the vulnerable
Further improving the effectiveness of social protection systems
Implementing active inclusion policies
Ensuring access to services to support integration to the labour market

12. Joint Employment Report: context
JER underpins and expands on the key messages contained in the AGS
Key-messages based on
Quarterly reviews –Employment and social situation in the EU
Country examination of the National Reform Programmes
Implementation of the country-specific recommendations
Thematic surveillance report
Key issues paper

13. Joint Employment Report: labour market and social trends
Slow employment recovery: gains do not offset losses
Employment increase mainly temporary and part-time jobs.
Emerging mismatches: jobseekers unable to match with growing vacancies
Tax wedge and non-wage labour costs high on low skilled
Situation of young people has worsened
Long-term and low-skilled unemployment on the rise
Social safety nets under stress

14. Joint Employment Report: priorities for the future
Stepping up job-creating capacity
Implementing comprehensive frameworks to tackle youth unemployment in line with the Youth Guarantee
Putting in place effective active labour market policies to maintain employability and put people back to work
Protecting the most vulnerable groups and those most hardly hit by the crisis including through more effective social protection systems, active inclusion strategies and smart consolidation
Investing in education and training

15. The European Semester: who does what and when?