Connect with us

Economy

Reducing unemployment: EU policies explained

SHARE:

Published

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

After uneployment in the EU had steadily increased since 2013, the COVID-19 pandemic led to a rise in 2020. Find out how the EU works to reduce unemployment and fight poverty.

Although EU labour market conditions and workers’ rights have significantly improved in recent years, the fight against unemployment and the consequences of the COVID crisis remain challenges for the European Union owhile working towards quality jobs and a socially inclusive Europe.

Find out more about how the EU protects jobs and workers affected by the coronavirus pandemic.

Efforts have been made in a number of areas, including helping young people enter the labour market, combating long-term unemployment, upgrading skills, and facilitating workers' mobility in the EU.

EU unemployment rate

In April 2021, the unemployment rate in the eurozone was 8%, down from 8.1% in March 2021 and up from 7.3% in April 2020.

Advertisement

EU vs member state competencies

EU countries are still primarily responsibe for employment and social policies. However, the EU complements and coordinates member state actions and promotes the sharing of best practices.

According to article nine of the Treaty on the Functioning of the European Union, the EU should consider the objective of a high level of employment when defining and implementing all of its policies and activities.

Advertisement

European employment strategy 

In 1997 EU countries established a set of common objectives and targets for employment policy to fight unemployment and create more and better jobs in the EU. This policy is also known as the European employment strategy (EES).

The European Commission monitors and implements the strategy through the European Semester, an annual cycle of coordination of economic and employment policies at EU level.

The social and employment situation in Europe is evaluated in the context of the EU Semester and based on the Employment Guidelines, common priorities and targets for national employment policies. In order to help EU countries move forward, the Commission issues country-specific recommendations, based on their progress towards each goal.

How it is funded

The European Social Fund (ESF) is Europe’s main instrument to ensure fairer job opportunities for everyone living in the EU: workers, young people and all those seeking a job.

The European Parliament proposed to increase funding in the EU’s budget for 2021-2027. The new version of the fund, known as the European Social Fund Plus (ESF+), with a budget of €88 billion, focuses on education, training and lifelong learning, as well as equal access to quality employment, social inclusion and combatting poverty.

The Employment and Social Innovation Programme (EaSI) aims to help modernise employment and social policies, improve access to finance for social enterprises or vulnerable people who wish to set up a micro-company and to promote labour mobility via the EURES network. The European Jobs Network facilitates mobility by providing information to employers and jobseekers and also features a database of job vacancies and applications across Europe.

The European Globalization Adjustment Fund (EGF) supports workers losing their jobs due to globalisation, as companies may shut down or move their production to non-EU countries, or the economic and financial crisis, in finding new work or setting up their own businesses.

The Fund for European Aid to the Most Deprived (FEAD) supports member state initiatives to provide food, basic material assistance and social inclusion activities to the most deprived.

The updated version of the European Social Fund Plus merges a number of existing funds and programmes (the ESF, the EaSI, the FEAD, the Youth Employment Initiative), pooling their resources and providing more integrated and targeted support to citizens.

Fighting youth unemployment

Among the EU measures to combat youth unemployment is the Youth Guarantee, a commitment by member states to ensure that all young people under the age of 30 years receive a good-quality offer of employment, continued education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education. The implementation of the Youth Guarantee is supported by EU investment, through the Youth Employment Initiative.

The European Solidarity Corps allows young people to volunteer and work in solidarity-related projects across Europe. The Your first EURES job platform helps young people aged 18 to 35, and interested in gaining professional experience abroad, find a work placement, traineeship or apprenticeship.

Right skills, right job

By promoting and improving skills acquisition, making qualifications more comparable and providing information on the demands for skills and jobs, the EU supports people in finding good-quality jobs and making better career choices.

The New Skills Agenda for Europe, launched in 2016, consists of 10 measures to make the right training and support available to people and to revise a number of existing tools, such as the European CV format Europass).

Challenge of long-term unemployment

Long-term unemployment, when people are unemployed for more than 12 months, is one of the causes of persistent poverty. It remains very high in some EU countries and still accounts for almost 50% of total unemployment.

To better integrate the long-term unemployed in the labour market, EU countries adopted recommendations: they encourage the registration of long-term unemployed with an employment service, individual in-depth assessment to identify their needs, as well as a tailor-made plan to bring them back to work (a job integration agreement). It would be available to anyone unemployed for 18 months or more.

Long-term absence from work often leads to unemployment and to workers leaving the labour market permanently. To retain and reintegrate workers into the workplace who suffer from injuries or chronic health problems, in 2018, the European Parliament formulated a set of measures for member states to work on, such as making workplaces more adaptable through skills development programmes, ensuring flexible working conditions and providing support to workers (including coaching, access to a psychologist or therapist).

Promoting workers’ mobility

Making it easier for people to work in another country can help tackle unemployment. The EU has a set of common rules in place to protect people’s social rights related to unemployment, sickness, maternity/paternity, family benefits etc. when moving within Europe. Rules on the posting of workers establish the principle of same pay for same work at the same workplace.

Find out more about what the EU does about globalization's impact on employment.

Find out more about EU social policies

Find out more 

Agriculture

Common Agricultural Policy: How does the EU support farmers?

Published

on

From supporting farmers to protecting the environment, the EU's farm policy covers a range of different goals. Learn how EU agriculture is funded, its history and its future, Society.

What is the Common Agricultural Policy?

The EU supports farming through its Common Agricultural Policy (CAP). Set up in 1962, it has undergone a number of reforms to make agriculture fairer for farmers and more sustainable.

Advertisement

There are about 10 million farms in the EU and the farming and food sectors together provide nearly 40 million jobs in the EU.

How is the Common Agricultural Policy funded?

The Common Agricultural Policy is funded through the EU budget. Under the EU's budget for 2021-2027, €386.6 billion has been set aside for farming. It is divided into two parts:

Advertisement
  • €291.1bn for the European Agricultural Guarantee Fund, which provides income support for farmers.
  • €95.5bn for the European Agricultural Fund for Rural Development, which includes funding for rural areas, climate action and the management of natural resources.

How does EU agriculture look today? 

Farmers and the agriculture sector were affected by COVID-19 and the EU introduced specific measures to support the industry and incomes. Current rules on how CAP funds should be spent run until 2023 due to delays in budget negotiations. This required a transitional agreement to protect farmers’ incomes and ensure food security.

Will the reform mean a more environmentally-friendly Common Agricultural Policy?

EU agriculture accounts for about 10% of greenhouse gas emissions. The reform should lead to a more environmentally friendly, fairer and transparent EU farm policy, MEPs said, after a deal was reached with the Council. Parliament wants to link CAP to the Paris agreement on climate change, while increasing support to young farmers and small and medium-sized farms. Parliament will vote on the final deal in 2021 and it will come into effect in 2023.

Agriculture policy is linked to the European Green Deal and the Farm to Fork strategy from the European Commission, which aims to protect the environment and ensure healthy food for everyone, whilst ensuring farmers’ livelihoods.

More on agriculture

Briefing 

Check legislative progress 

Continue Reading

Agriculture

Proposed lift on USA lamb ban welcome news for industry

Published

on

The FUW met with the USDA in 2016 to discuss lamb export opportunities. From left, US agricultural specialist Steve Knight, US Counselor for agricultural affairs Stan Phillips, FUW senior policy officer Dr Hazel Wright and FUW President Glyn Roberts

The Farmers’ Union of Wales has welcomed news that the long standing ban on importing Welsh lamb into the United States is to be lifted soon. The announcement was made by UK Prime Minister Boris Johnson on Wednesday 22 September. 

The FUW has long discussed the prospect of lifting the unjustified ban with the USDA in various meetings over the past decade. Hybu Cig Cymru - Meat Promotion Wales have highlighted that the potential market for PGI Welsh Lamb in the USA is estimated to be worth as much as £20 million a year within five years of the export restrictions being removed.

Advertisement

Speaking from his Carmarthenshire sheep farm, FUW Deputy President Ian Rickman, said: “Now more than ever we need to explore other export markets while also protecting our long established markets in Europe. The US market is one we are keen to develop much stronger relationships with and the news that this ban could soon be lifted is most welcome news for our sheep industry.”

Advertisement
Continue Reading

Economy

Sustainable urban transport takes centre stage for European Mobility Week

Published

on

Around 3,000 towns and cities across Europe are participating in this year's European Mobility Week, which started yesterday and will last until Wednesday, 22 September. The 2021 campaign has been launched under the theme ‘Safe and healthy with sustainable mobility', and will promote the use of public transport as a safe, efficient, affordable, and low-emission mobility option for everyone. 2021 is also the 20th anniversary of car-free day, from which the European Mobility Week has grown.

“A clean, smart and resilient transport system is at the core of our economies and central to people's lives. This is why, on the 20th anniversary of the European Mobility Week, I am proud of the 3,000 cities across Europe and beyond for showcasing how safe and sustainable transport options help our communities to stay connected during these challenging times,” said Transport Commissioner Adina Vălean.

For this landmark year, the European Commission has created a virtual museum showcasing the history of the week, its impact, personal stories, and how it links with the EU's broader sustainability priorities. Elsewhere, activities around Europe include bicycle festivals, exhibitions of electric vehicles and workshops. This year's event also coincides with a public consultation on the Commission's ideas for a new urban mobility framework, and the European Year of Rail with its Connecting Europe Express train.

Advertisement

Continue Reading
Advertisement
Advertisement
Advertisement

Trending