Slide 1

Report
Mapping lifelong learning needs and
responses in the context of the
Economic Crisis in the EU
Interim Report Presentation
Daniela Ulicna
Gothenburg (Sweden) 2 October2009
Impact on employment
 Across Europe the nbr of unemployed grew by 5.4m (21.5m in
March 2009)
 In some countries the growth was more than 5 percentage points
(Estonia, Spain, Ireland, Lithuania and Latvia)
 Some other countries less than one percentage point (Austria,
Germany or the Netherlands)
25.00
20.00
15.00
Increase 2009Q02-2008Q02
10.00
2008q02
5.00
NL
AT
CY
DK
SI
CZ
LU
RO*
BG
MT
IT*
DE
UK
BE
PL
FI
SE
EL*
EU-27
PT
FR
HU
SK
IE
EE
LT
LV
ES
0.00
Unemployment rate 2Q2009 (%) – seasonally adjusted
Source: Eurostat
Most affected groups of population:
 Men (contrary to the trend worldwide): growth in male
unemployment steeper than female (almost twice)
 Young people and especially young men:
– 5m young people unemployed
– Growth by 4.8 percentage points for young people in general
– Young men – growth by 6 percentage points (3.4 for young women)
 Low skilled
 Migrants
Most affected sectors:
 Among industrial groupings: intermediate goods and construction
– decrease in employment by 7.9% and 6.9%
 Sectors:
– textile, leather and wearing apparel manufacturing over 10%
decrease in employment
– These are sectors that were already restructuring prior to the crisis
 Services know lesser decrease – most concerned administrative
and support sectors (-4.1%) and accommodation and food (2.1%);
Public budgets
Difference in total government expenditure and revenue in 1Q2008 and 1Q2009 (as % of GDP) and growth of debt
1Q2008 and 1Q2009 (as % of GDP)
Source: Eurostat
Impact on participation in ET
 Possibly negative impact on pre-school education
 Growth in demand for post-compulsory ET  especially HE
 But unlikely to have any positive influence on early school
leaving
 Increased demand for continuing training  result of public
initiatives
Issues related to these impacts
 Need to avoid that children from most vulnerable families missout on pre-school education
 Increased HE participation – will students be able to pay for it?
 Continuing training – will the training provision be flexible
enough? Will it be adapted and effective?
Impact on provision of ET
 Increased interest in teaching profession
 At the same time some countries envisage/ fear job cuts
 HE provision will most likely remain unchanged (maybe bigger
classes)
 Continuing training: important differences exist across countries
in development of this provision – will it raise???
 Pressure on guidance services
Impact on financing of ET
 Households budgets might decrease;
 Employers’ provision of apprenticeships – decrease (unless
subsidised);
 Employers’ investment in training of active workforce - ??
 Public financing - ??
 If the trend remains the same as till now (expenditure as % of
GDP) than de facto decrease:
– Some countries announce cuts: CZ, NL, IT, LV, RO
– Others growth: SE
EU measures
 EU Recovery plan (€200,000m and call for smart investment)
 European Social Fund – reprogramming, stepping up advance
payments, temporarily no need for co-financing:

Accelerating €19 billion of planned funding to help people to stay in work or move towards new jobs,
through upgrading skills, encouraging entrepreneurship and improving public employment services under
the European Social Fund. For the period 2009-2010, the Commission can reimburse Member States'
declared expenditure at a rate of 100%. That means there is no need for national co-funding so that projects
that help people can be put in place more quickly.
 Steering national subsidies: towards general and transferable skills,
achievement of a qualification, specific target groups
Anti-crisis packages
 Maintaining employment (e.g. temporary unemployment, reduced working times);
 Modernising capacities of public employment services (e.g. public private
partnerships);
 Increasing access to labour market (e.g. temporary rebates on social security
contributions);
 Supporting household revenues (e.g. additional support to income, mortgage
protection)
 Training measures (AT, BG, EL, DE, FI, FR, HU, PT, RO, SI, SE, UK):
– E.g. Sweden – 75,500 additional training places at different levels
– E.g. Portugal – traineeships, dual training for unemployed, support to those who have
increased their qualifications
Measures in anti-crisis packages – 29 OECD countries
apprenticeship schemes
Income support for job losers and
low paid
training for existing workers
fiscal measures for low earners
other payments or in-kind support
social assistance
Measures to help unemployed find work
generosity or coverage of
unemployment benefits
training programmes
work-experience programmes
job-finding and business start-up
incentives
job search assistance and matching
Measures to support labour
demand for job-seekers
and vulnerable workers
activation requirements
short-time work schemes
20
Reductions in non-wage labour costs
Job subsidies, recruitment incentives
or public sector job creation
25
Other training
measures
15
10
5
0
Source: OECD 2009 Employment Outlook
Concrete measures
 Young people at risk of dropping out - ? – France has created a
specific fund (€961m)
 VET: priority in securing apprenticeship placements (e.g. NL, PT, UK)
 HE: opening up or funding of additional places (e.g. IE, SE, SK, UK)
Job security
Employment
Security
Income
security
Combination
security
Numerical
flexibility
Temporary
placements
other firms
Worker pools
Use of benefits
as
wage
subsidy
or
educational
support
Mortgage
support
Working
time
flexibility
Shorter working
hours
Joint employership
Part-time
unemployment
benefits
Leave schemes
(including
educational)
Functional
flexibility
Work
accounts
in
time
Reduced
working hours
Internships in
other firms
Job rotations
Retraining for
new job
Validation of
non-formal
and informal
learning
Extra
unemployment
benefits
as
compensation
Increased
family
allowance
Retraining
Wage
flexibility
Adjustment
wages
of
Supplement
wage in new
job
Education and Training as elements of Flexicurity in times of crisis
Source: GHK, CERGE-EI and Madsen 2009
Continuing training
 Preventive measures:
– Reduced working time combined with training (AT, DE, HU, IE, NL,
UK)
– Subsidised training (BE, CZ, EL, SI, UK)
– Extension of educational leave (AT, BE)
 Unemployment work transition:
– Several countries extend existing ALMP programmes (FI,NL,UK);
– New measures (AT, BG, IT, PT, SE)

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