EMPLOYMENT PACKAGE
(a)
(21616)
11191/00
COM(00) 549
(b)
(21617)
11189/00
COM(00) 548
(c)
(21640)
11190/00
COM (00) 551
|
Draft Council Recommendation on the implementation of Member
States' employment policies.
Draft Council Decision on guidelines for Member States' employment
policies for the year 2001.
Draft joint employment report 2000.
|
| Legal base:
| (a) Article 128 (4) EC; —; qualified majority voting
(b) Article 128 (2) EC; consultation; qualified majority voting
(c) Article 128 (2) EC; —; qualified majority voting
|
| |
| Document originated:
| (a) (b) (c) 6 September 2000
|
Forwarded to the Council:
| (a) and (b) 13 September 2000
(c) 7 September 2000
|
| Deposited in Parliament:
| (a) and (b) 3 October 2000
(c) 11 October 2000
|
| Department: |
Education and Employment |
| Basis of consideration:
| (a) EM of 15 October 2000
(b) EM of 11 October 2000
(c) EM of 15 October 2000
|
| Previous Committee Report:
| None; but see (20492) 10992/99; HC 34-xxix (1998-99), paragraph 5 (27 October 1999) and HC 34-xxxi (1998-99), paragraph 14 ( 10 November 1999)
|
| To be discussed in Council:
| 27 November 2000 |
| Committee's assessment:
| Politically important |
| Committee's decision:
| (All) Cleared |
Background
34.1 These three documents together make
up a package of guidance (sometimes known as the "Luxembourg
process") for the development of Member States' employment
policies, in accordance with Article 128 EC. The draft joint employment
report (document (c)) provides the analysis which informs both
the guidelines for Member States' employment policies (document
(b)) and the recommendations on the implementation of those States'
policies (document (a)). Member States are required to take account
of the guidelines in drawing up their own policies and to write
National Action Plans each year reporting on their implementation.
We considered a similar employment package last year[107].
The documents
— Guidelines for Member States' employment
policies for the year 2001 (document (b))
34.2 This year's guidelines have been influenced
by four key factors: the Lisbon Summit conclusions, the mid-term
review of the Luxembourg process, the analysis of the joint employment
report (document (c)), and the need for simplification in parts
of the document.
34.3 The mid-term review found that the
Luxembourg process was proving successful, and agreed that the
four-pillar structure of the guidelines (employability, entrepreneurship,
adaptability and equal opportunities) should be retained until
a full impact assessment of the strategy in 2002.
34.4 As a result of the Lisbon Summit, a
new introductory horizontal section has been added to the guidelines.
This reiterates the overall goal of full employment, and emphasises
the importance of lifelong learning and the role of the social
partners.
34.5 In addition, some changes have been
made to individual guidelines.
— Draft joint employment report 2000 (document
(c))
34.6 The report presents a comparative assessment
of the way in which the Member States have implemented the 1999
guidelines and transposed the 2000 guidelines into their National
Action Plans. Part I provides an overall analysis across the four
pillars; Part II analyses the situation in each Member State.
34.7 The Executive Summary of the report
states:
"The employment situation
in the EU has steadily improved over the last couple of years,
reflecting the positive overall economic climate as well as progress
in reforming the labour markets. Long-standing problems, such
as high unemployment and low participation in employment, start
to be effectively addressed, while new challenges, such as labour
shortages and skill gaps, are emerging."
34.8 It also notes that, while much has
been achieved, there is an uneven implementation of the four pillars.
More needs to be done in the areas of adaptability and —
to a lesser extent — of entrepreneurship. There is also
need to strengthen the role of the public employment services
and to implement the employment strategy at local level. Although
the European Social Fund has been given a key underpinning role,
the relevance in this context of the other structural funds is
not sufficiently recognised.
34.9 The section on the UK in the second
part of the report comments on the way the Government has responded
to last year's recommendations, as well as providing an overview
of the employment situation. In relation to the recommendations,
it notes progress on the issues of the gender pay gap, child care
provision and relations with the social partners. On statistical
monitoring, it notes that the UK provides two indicators on active
measures to improve employability. One, using the common definition,
shows that UK falls well below the target, the other, using its
wider definition (which allows it to include the Job Seekers Allowance
regime) records 100% achievement.
34.10 In relation to the general situation
and the challenges ahead for the UK, the report comments:
"The UK's favourable
employment growth continues, although some structural challenges
need tackling. The tightening labour market is showing signs of
skill gaps across a range of sectors, with particular shortages
reported in IT-related occupations as well as a lack of basic
and generic skills. Although falling, much of the remaining long-term
unemployment is concentrated within workless households, amongst
disadvantaged groups, and in a number of geographical areas, presenting
associated problems of social exclusion. The UK has the lowest
labour force participation rates for lone parents in the EU. Inflows
into long term unemployment of both the young and adults (17%
and 11% respectively) still exceed those of the best performing
Member States....
"Certain labour market policy challenges face
the UK. The main weakness in providing active support to prevent
adult long-term unemployment is the over reliance on intensive
job search through the Job Seekers Allowance regime (JSA). For
most adults more intensive support is not provided until the 24
month point when they move on to the New Deal. Flagship policies
for lifelong learning are still to be fully implemented three
years after they were announced. There is little detail on progress
towards meeting national targets. In addition policies need to
target those with basic skill problems, and show how access and
opportunity will be ensured for these groups. There is little
detail towards meeting national targets. This is a particular
problem for older workers. Social partners have an important role
in promoting workplace learning to tackle basic skill levels and
helping address low labour productivity."
— Implementation of Member States' employment
policies (document (a))
34.11 In its explanatory memorandum, the
Commission states that the recommendations on implementation (made
for the first time last year) have played a useful part in focusing
Member States' efforts on the less successful aspects of their
performance. It explains that this year's recommendations differ
from the previous set in order to reflect both the extent to which
individual Member States have responded to recommendations and
the development of the process, especially in the light of the
Lisbon Summit. Even so, most of the existing recommendations have
been kept (or amended) since their implementation could not be
achieved in a single year.
34.12 The section on the UK repeats the
structural problems noted in document (b), and notes that the
current levels of occupational and sectoral segregation between
men and women are higher than the EU average. It then recommends
that the UK should:
"(1) improve the
balance of policy implementation of the guidelines, so as to strengthen
and make more visible efforts to modernise work organisation,
in particular by fostering social partnership at all appropriate
levels.
"(2) pursue efforts to reduce the gender
pay gap and take action to improve childcare provision, with a
view to making it easier for men and women with parental responsibilities
to take employment. Special attention should be given to the needs
of lone parents.
"(3) reinforce active labour market policies
for the adult unemployed before the 12 month point so as to increase
the number of people benefiting from active measures, and supplement
the support provided by the Jobseekers' Allowance Regime.
"(4) intensify efforts to implement initiatives
on life long learning, particularly those aimed at increasing
the general level of basic skills, demonstrating how access will
be ensured for those groups traditionally reluctant to take up
the opportunity, or unable to find suitable provision."
(Last year's recommendation on statistical monitoring
has been dropped in recognition of the progress made.)
The Government's views
34.13 In her three Explanatory Memoranda,
the Minister of State at the Home Office (Mrs Barbara Roche) comments
on the documents. On the guidelines, (document (b)), she
says:
"The Government supports
the European Employment Strategy and welcomes the Employment Guidelines
for 2001 and the Commission's efforts to ensure that they reflect
the goals set at the Lisbon summit. The Government is particularly
pleased to see the Commission's recognition in Guideline 1 of
the importance of giving every unemployed person a new start to
help them into a job as quickly as possible. This emphasis on
employability is reflected in the Jobseeker's Allowance regime
and the New Deals, with the focus on finding work but with additional
support available for those who need it.
"The Government aims to clarify a few points
in the proposal ensuring that the Guidelines focus on improving
outcomes and not necessarily increasing inputs, that the description
of active measures in Guideline 1 are carried through into other
Guidelines and that the role set out for social partners is appropriate
to the work organisational structure in the UK."
34.14 The Minister tells us that the Government
is generally content with the report, (document (c)) considering
that it gives a fairly accurate picture of the UK situation. She
continues:
"Extensive discussions
on working drafts of the Joint Employment Report have already
been held at official level with the Commission. For the most
part, we are content that our views have been taken into consideration.
However, there remain a few misinterpretations of UK policy, noted
below.
"The UK fiche states that the 'inflows into
long-term unemployment exceed those of the best performing Member
States'. Although correct, it ignores the fact that we also have
one of the highest rates of people leaving long-term unemployment,
and therefore have a smaller proportion of long-term unemployed
than most other EU Member States. UK policy is to intensify help
in proportion to the duration of unemployment to ensure that help
is focused on those most disadvantaged in the labour market.
The Commission have also questioned the JSA regime. The UK fiche
states that the 'main weakness in providing active support¼
is the over reliance on intensive job search through JSA'. However,
part I of the Report accepts that many Member States are increasing
participation in a wide range of active and individually tailored
measures. Intensive job search is such a measure and is fundamental
to our success in helping people to move quickly from unemployment
and into work. This approach, together with additional help and
support targeted at those most in need, is in line with OECD recommendations
as to effective labour market policy."
34.15 The Minister expresses general support
for the Commission's decision to make recommendations to individual
Member States, as set out in the implementation document
(a). She tells us that the UK will respond to the Recommendations
in next year's National Action Plan, along the following lines:
"(1) Modernise
work organisation, fostering social partnership: Modernisation
is already taking place at all levels, with evidence of increased
flexibility, and partnership working continues to be a priority,
fostered particularly by the Partnership Fund.
"(2) Reduce gender pay gap and improve
childcare: There is more to do, but we are seeing the impact
of various initiatives especially the reform of the careers services,
childcare strategies, New Deal for Lone Parents etc.
"(3) Reinforce active benefits regime
before 12 months: JSA is an active measure. From day one help
is tailored to individual need, and intensity increases gradually.
Most people leave the claimant count quickly (90% by 12 months),
so more intensive help is targeted at those with greatest need
— the long term unemployed. New Deal 25 plus is being improved.
The UK's focus on work has helped achieve one of the lowest shares
of long-term unemployment in the EU, despite the absence of duration
limits on availability of benefits.
"(4) Improve lifelong learning implementation:
The Commission suggests that the UK has a long lead in time for
initiatives already announced, but these initiatives are all within
timetable and involve wide-ranging institutional changes which
need to be right first time."
34.16 The Minister tells us that the documents
have already been discussed once. They will be discussed again
at the Employment and Social Policy Council on 27 November, and
are expected to be adopted at the Nice European Council on 7 December.
Conclusion
34.17 We get the impression from these
documents and from the Minister's comments that the Luxembourg
process has now bedded down, and is proving a useful way of taking
forward the European Employment Strategy.
34.18 We note that the UK comes quite
well out of the documents. While the Government disputes some
of its alleged shortcomings (most of which are long-standing points
of issue), it does so within the context of general support for
the process and the overall analysis. We are pleased to learn
that the recommendation about statistical monitoring, on which
we questioned the Minister last year, has been dropped, in recognition
of the progress made.
34.19 We clear all the documents.
107 (20492) 10992/99; see headnote to this paragraph. Back
| 
