# EUR-Lex - 52012DC0173 - EN

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# 52012DC0173

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a job-rich recovery /* COM/2012/0173 final */**

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COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

Towards a job-rich recovery

Introduction

Europe's 2020 Strategy for smart,
sustainable and inclusive growth sets a target of 75% of 20-64 year olds in employment
by 2020[1].
If the target is to be met, employment in the EU will have to increase by 17.6
million additional jobs from its current level. However, during the crisis, the
employment rate has fallen to 68.9% (3Q2011)[2],
with EU unemployment remaining persistently above 9.5% since early 2010 and climbing
to 10,2% mark in February 2012. Although employment gains of 1.5 million were
recorded by mid-2011, these have done little to offset the 6 million job losses
incurred in the EU since 2008. The deceleration of growth since mid-2011, with
a less favourable outlook for 2012[3]
and widening divergences between Member States and regions, have only increased
the challenge in terms of employment, social inclusion and combating poverty. [4]

Besides a recession expected in some countries
and a protracted sovereign-debt crisis, economic activities in Europe are being
reshaped by longer-term structural transformations affecting Europe's relative
competitiveness in the global economy, such as the need for a changeover to a green,
low carbon and resource-efficient economy, demographic ageing coupled with
complex population flows, and rapid technological changes combined with the
rise of large emerging economies. These structural changes affect and will
continue to affect labour markets in various ways, particularly when it comes
to creating and maintaining jobs. Dynamic and inclusive labour markets, where
people possess the right skills, are essential if the competitiveness of the
European economy is to rise, rather than decline, on the back of these
developments.

Article 3 of the Treaty establishes full
employment and social cohesion as EU objectives. These objectives remain the
core concerns of EU citizens and are at the heart of Europe 2020. Prospects for
employment growth depend to a large extent on the EU’s capacity to generate
economic growth through appropriate macroeconomic, industrial and innovation
policies. At the same time, strengthening job-rich growth undeniably calls for
employment policies that generate favourable conditions for job creation,
facilitate positive transitions, increase the labour supply and improve its
geographic and skills matching with labour market needs. Besides contributing
to a recovery in the short-term, employment policies also form part of
essential social investments that prevent a build-up of larger social and
fiscal costs over the longer term[5].
The EU's 2012 Annual Growth Survey calls for resolute action to step up job
creation and ensure a job-intensive recovery, and this message was forcefully
echoed by Heads of State and Government at the 2012 Spring European Council.[6]

This policy Communication seeks to complement
the employment priorities of the Annual Growth Survey with medium-term policy
guidance in function of the Europe 2020 employment objectives. It builds upon
the Employment Guidelines[7],
sets out actions requiring particular emphasis in the present context and aims
at building trust among all actors and generating confidence to put the
necessary employment reforms in motion. In doing so, it also responds to the
call from the European Council[8]
to back up the new economic governance with a closer monitoring of employment
and social policy, particularly where these can have an impact on
macro-economic stability and growth[9].

The Communication is accompanied by a
series of Staff Working Documents, elaborating on how employment policies
intersect with a number of other policy areas in support of smart, sustainable
and inclusive growth. Taken together, this “Employment Package”, not only carries
forward the EU's 2020 flagship initiative on “New skills and jobs”, but also helps
to deliver, through better synergies, on flagship initiatives such as “Digital
Agenda for Europe”, “Innovation Union”, “Youth on the move”, “Resource-efficient
Europe”, “An Industrial Policy for the Globalisation Era” and “European
Platform Against Poverty and Exclusion”. The Employment Package also shows how
the EU budget, in particular the European Social Fund, can be mobilised in
support of labour market reform and help deliver the necessary investment
within the context of an economic downturn.

While labour market dynamics will need to
be generated mainly at national level, this Communication puts EU levers into
motion in support of a job-rich recovery, addressing both the demand and supply
sides of the labour market and taking further steps towards creating a genuine EU
labour market.

1.           SUPPORT JOB CREATION

Support for job creation and (re)allocation
of labour should be aimed at growing sustainable activities, sectors and
businesses, particularly among SMEs[10].
Policy must further target improvements in both productivity and employment,
contributing to an allocation of human resources that corresponds to economic
and social needs as identified in the Europe 2020 Strategy and strikes the
right balance between tradable and non-tradable sectors. It should also improve
the labour market situation of more vulnerable groups, such as young, female,
less-skilled, older workers as well as those from a minority background.
Reflecting the key structural economic challenges faced by Europe,
cross-cutting measures need to be complemented by specific action in sectors with
particularly strong potential for driving job-rich growth.

1.1.        Step up job creation
across the economy by encouraging labour demand

Employment policies help create conditions
favourable to job creation. In doing so, they can mobilise the EU budget (and
in particular the European Social Fund) in support[11]. Besides supply-side measures,
such as skills and activation investment, and labour matching services, there
are also a number of tools that impact positively on labour demand:

–
Target hiring subsidies to new hiring.
Hiring subsidies have been used extensively
by Member States as a way of cushioning the unemployment effects of economic
crisis, and are usually targeted at disadvantaged groups. Creating the right
kinds of incentives and hiring subsidies should motivate employers to engage in
net new recruitment, thus creating jobs that would otherwise not be
created. Targeting vulnerable groups such as young people or the long-term
unemployed, can have positive effects particularly where hiring subsidies are
combined with additional efforts to help the target population.

–
Reduce the tax wedge on labour in a budgetary
neutral way by shifting towards environmental[12], consumption or property taxes
with proper monitoring of redistributive effects. In many Member States,
there is scope for reducing employer social security contributions which account
for a lion’s share of the tax wedge. Targeting a reduction at the most vulnerable
groups - especially low wage earners - is expected to have positive impacts on
their employment in the longer term too, making it a preferred tool for
enhancing labour demand. Nevertheless, design and implementation needs to be
carefully prepared so as not to have an adverse effect on the employment
prospects of groups that are (narrowly) ineligible. Moreover, there may be
deadweight costs if reductions are not properly targeted.

–
Promoting and supporting self-employment, the
social enterprises and business start-ups. Jobseekers
who are motivated to start up and run businesses may have to overcome
considerable barriers, including a lack of professional or business skills,
mentoring possibilities, and difficulties in accessing finance. Fostering
entrepreneurial mind-sets, greater availability of start-up support services
and microfinance, as well as schemes converting unemployment benefits into start-up
grants, play an important role in facilitating self-employment and creating new
jobs. Support should be targeted at groups with the greatest potential (such as
unemployed workers with professional skills, women or young people), and should
rely on close cooperation between employment services, business support and
finance providers. Social economy actors and social enterprises
are important drivers of inclusive job creation and social innovation and
require specific support, including through public procurement and access to
finance.

–
Transform informal or undeclared work into
regular employment. Undeclared work is illegal. It
also has serious budgetary implications through decreased tax and social
security revenues. It has a negative impact on productivity and working
standards, skills development and life-long learning. It represents only a
tenuous basis for pension rights and access to health care. Preventing and
counteracting undeclared work, implementing fully Directive 2009/52/EC on sanctions
and illegal workers, as well as helping undeclared workers integrate in the
regular labour market helps in the process of fiscal consolidation, creating a better
level playing field for businesses and improving quality of employment. Improved
cooperation among Member States is needed.

–
Boost 'take home' pay. In-work benefits are used by several Member States either to
alleviate in-work poverty or to encourage the take-up of work. Common features
of schemes that supplement workers’ earnings include the targeting of low
income individuals or households and a gradual phasing-out with the increase of
the earned income. The higher ‘take home’ pay represents an employment
incentive for less skilled workers while, for a given level of wage, employers
will more easily fill vacancies with wage pressure alleviated. Yet in designing
in-work benefits, low-wage traps should be avoided. Positive effects are
achieved where there are significant earnings disparities at the bottom of
income distribution.

–
Modernise wage-setting systems to align wages
with productivity developments and foster job creation. Wage-setting mechanisms ensuring that real wage growth reflects
productivity developments and local labour market conditions are a
pre-condition to ensure that output growth adequately translates into growing
labour demand and ultimately job creation. In
accordance with national practices of collective bargaining, wage developments
should take account of the competitive position of the Member States. Although
wage moderation or adjusment might be necessary for some sectors or Member
States, targeted increases, which help sustain aggregate demand, might be
feasible where wages have lagged significantly behind productivity
developments.

1.2.        Exploit the job creation
potential of key sectors

Today's Europe faces profound structural
transformations as identified in the Europe 2020 Strategy, in particular the
transition towards a green, low carbon and resource efficient economy, the
demographic ageing of our society and rapid technological advances. To tackle these challenges and convert them into opportunities, our
economy will require a fundamental transformation over the next decade. Transforming the economy along these paths will
increase competitiveness and provide important sources of growth and jobs, as
well as addressing economic and social needs. The AGS
2012 identifies three main areas, each of which offers an important job
creation potential.

–
Job growth in the green economy has been
positive throughout the recession and is forecasted
to remain quite strong. Only the energy efficiency and renewable energy sectors
could create 5 million jobs by 2020[13].
The evolution of markets for products and services, R&D and innovation
policy, new regulatory frameworks and market-based instruments will change our
industrial and economic structures towards greater resource-efficiency, leading to a redefinition of many jobs across almost all sectors. While
high-carbon sectors will face the challenge of the transition to a low carbon
and resource-efficient economy with many jobs in this sectors to be transformed,
new jobs in green and low-carbon sectors will be created, affecting territories
differently. If the transition towards a green and resource efficient economy
will initially benefit mainly high-skilled workers, the upgraded and
sustainable manufacturing and services are likely in due course to provide a
number of medium-skilled jobs, while lower skilled and older workers will need
to adapt. Supportive labour markets and a vision of the
skills needs are essential for supporting and developing a green and resource
efficient economy, as documented in the accompanying Staff
Working Document.[14]
Managing such a major transition successfully calls for joined-up efforts on
the part of the EU and Member States.

–
Employment in the EU health and social care
sectors is growing fast due to population ageing
and an expansion of services to better meet quality requirements and rising
demand for personalised care and professional social services. The size and
fast growth of these sectors (twice the employment growth overall) suggests
they will remain a key driver in providing new jobs in the years to come. To
exploit this job creation potential, the sectors have to overcome several
challenges. These include the increasing shortages of health professionals; an
ageing health workforce with insufficient new recruits to replace those who are
retiring; the emergence of new healthcare patterns to tackle multiple chronic
conditions; the growing use of technologies requiring new skill mixes; and
imbalances in skills levels and working patterns. In addition, recruitment and
retention are hampered by demanding working conditions as well as by low and
slowly growing wages. Maintaining an adequate supply and quality of health services
under increased budget constraints is both a social and employment challenge
and is documented in the accompanying Staff Working Document.[15] In addition, as consequences
of demographic and family changes and the need for better life-work balance,
new services covering broad ranges of activities are created and are a source
of job creation, also documented in an accompanying Staff Working Document on
which a public consultation is launched[16].

–
The demand for ICT professionals continues to
grow. Employment among ICT practitioners grew by
around 3% a year, with labour demand outstripping the supply. Development and
uptake of ICT applications will become crucial for boosting international competitiveness
of European business and in turn increasing employment. Making European firms
and workers more ICT literate and competent will demand considerable efforts in
terms of education, as well as skills policies for workers, and infrastructure,
as depicted in the accompanying Staff Working Document[17].

1.3.        Mobilise EU funds for job
creation

The funds of the Cohesion Policy (ESF, ERDF
and the Cohesion Fund) as well as EAFRD and EMFF are important sources of
investment stimulating sustainable growth and job creation. They contribute to
the strengthening of economic, social and territorial cohesion in the Union.
For 2014-2020 the Commission has proposed to closely align these financial
instruments with Europe 2020 objectives[18].
It is crucial that national, regional and local authorities use the available
resources fully and to maximum result in order for Europe to develop and
realise its economic potential, increasing employment as well as productivity.

The European Social Fund (ESF) co-finances
labour market activation measures, including hiring subsidies, professional and
entrepreneurship training courses and microfinance schemes, as well as design
and roll-out of employment policies across the EU. For the period 2014-20, the
Commission has proposed minimum ESF shares representing a volume of at least €84
billion, addressing investment priorities such as access
to employment for job-seekers and people without work; sustainable integration
of young 'NEETs' into the labour market including through 'youth guarantees';
self-employment, entrepreneurship and business creation; as well as education
and social inclusion investments and capacity-building in public administration.

The European Regional Development Fund
(ERDF) contribution to job creation 2014-2020 will be strengthened by the
proposed concentration of resources on research technological development and
innovation, on enhancing the competitiveness of SMEs and supporting the shift
towards a low-carbon economy, including the promotion of renewable energies and
energy efficiency. ERDF will also invest in the ICT sector and complements ESF
financing for promoting employment and supporting labour mobility, such as by
financing education, training and employment service infrastructure and
supporting self-employment and business creation. It will also support health
and social infrastructure investments

The European Progress Microfinance
Facility provides support for the self-employed and micro-companies by
providing guarantees and funded investments for microfinance intermediaries
across the EU. This is expected to leverage up to €500 million of microcredit with
funding from the 2007-2013 period, and the Commission has proposed to extend it
in the period 2014-2020 to address underserved market segments and improve
access to finance for social enterprises. Availability of microfinance is also
supported by a number of revolving instruments co-financed by the ERDF or ESF.

The European Globalisation Adjustment
Fund (EGF) which the Commission also proposed to continue in the 2014-2020
period, helps manage restructuring processes by co-financing re-skilling and
job-search measures for those workers affected by large-scale redundancies
resulting from changing global trade patterns.

The European Agricultural Fund for Rural
Development (EAFRD) supports job diversification into non-agricultural
activities and development of small rural businesses, including by investing in
skills,knowledge transfer and start-up aid for young farmers.

The European Fisheries Fund, to be
incorporated in 2014-20 in a single European Maritime and Fisheries Fund
(EMFF), supports the transition to sustainable fishing as well as
diversification of local economies, including through trainings and small
business support.

JOB
CREATION

The Commission proposes:

–
a Set of Key Employment Actions for the Green
Economy;

–
an Action Plan on Healthcare Employment;

–
a Set of Key Actions for ICT Employment,

each of
which is annexed to this Communication and further elaborated in the
corresponding Staff Working Documents.

The Commission launches:

–
a consultation on the potential for quality jobs
in personal and household services;

–
a consultation on setting up an EU-level
platform between labour inspectorates and other enforcement bodies to combat
undeclared work, aimed at improving cooperation, sharing best practice and
identifying common principles for inspections by the end of 2012;

The Commission urges the Member States and the
Council to:

–
          take the Europe 2020 Strategy forward
without delay and, building on the policy orientations in the present
communication, adopt an ambitious approach and policies for job creation as
part of their National Job Plans (in their National Reforms Programmes).

2.           RESTORE THE DYNAMICS OF LABOUR MARKETS

Labour markets are only dynamic if
employment policies facilitate the transitions that enhance productivity and
job quality, if the workforce has adequate skills, and if people are mobile
enough to respond to the geographic trends in job vacancies. The Europe 2020
Strategy places particular emphasis on labour market reform, the development of
human capital and geographical mobility for making the EU labour force better
equipped for change and providing job opportunities.

2.1.        Reform labour markets

The EU's common principles of flexicurity
remain an important policy milestone in building dynamic labour markets,
seeking to engage Member States on a firm path of integrated structural labour
market reforms. Flexicurity brings together a number of labour market policies
(contractual arrangements, active labour market measures, lifelong learning,
and social protection systems), in an integrated and consistent way, to boost
both flexibility and security and make labour markets more resilient to the
processes of economic adjustment.

Throughout the crisis,
a number of Member States have been engaged in important structural labour
market reforms and temporary measures for preserving employment. Yet it is
clear that progress towards more flexibility and
security has been modest and uneven. Against the backdrop of budgetary
constraints, the ongoing EU debate on flexicurity in the context of the
flagship initiative An Agenda for New Skills and Jobs has enabled a
number of necessary measures to be identified to help labour markets adjust in
response to the crisis and to structural challenges in the context of Europe
2020. [19]

Further steps in structural labour market
reforms should address notably the following aspects:

2.1.1.     Securing labour market
transitions and inclusive labour markets

–
Use internal flexibility to reduce insecurity
and fiscal costs. The crisis has shown that
internal flexibility can be very effective in times of economic contraction as
a means of maintaining employment and lowering adjustment costs. The use of
working-time accounts or hours banks, short-time working arrangements (STWA)
and collective bargaining opening clauses on some working conditions have
helped save jobs and the competitiveness of firms, by avoiding or delaying
layoffs. Although STWAs often reduced productivity somewhat, they nevertheless
helped maintain skills, employment and confidence and their costs have been
generally lower than the cost of unemployment benefits. However, as the fiscal
space to finance such schemes is currently more reduced than two years ago,
social dialogue at company and higher levels has assumed a more important role
in helping to find optimal solutions for internal flexibility.

–
Decent and sustainable wages and avoiding
low-wage traps. Even before the crisis, having a
job has not always been a guarantee against poverty, and the EU in-work poverty
rate is still above 8%. The risk of in-work poverty is high, particularly in
countries with uneven earnings distribution and low minimum wages, among people
with temporary contracts and in low work intensity and single parent households[20]. Setting minimum wages at
appropriate levels can help prevent growing in-work poverty[21] and is an important factor in
ensuring decent job quality. Most Member
States currently have statutory or otherwise legally binding or generally
applicable minimum wages in place[22].
The impact of the minimum wage on both demand and supply can differ markedly
across Member States, depending on the level set, as well as other labour
market policies and institutions. Wage floors need to be sufficiently
adjustable, with the involvement of the social partners to reflect overall
economic developments. Differentiated minimum wages, as already applied in
several Member States, can in that context be an effective means of upholding
labour demand.

–
Make transitions pay. Labour market flexibility requires security in employment
transitions. A lifelong career characterised by a number of moves, sometimes
upwards but also horizontal or even downwards, is now a reality for many
workers, and particularly for young workers. The quality of the transitions
will determine the quality of a worker's career. Security throughout one’s
career, including during the transitions between different types of labour
market status (e.g. training to employment, maternity leave to employment,
transitions towards self-employment and entrepreneurship etc.), is essential in
order to provide individuals with the necessary means to maintain their
employability and make transitions work. Some areas deserve particular
attention: the transition of young people from education to work,
where there is evidence to show that apprenticeships and quality traineeships
can be a good means of gaining entry into the world of work, but there are also
recurring examples of traineeships being misused; the integration of women
in the labour market, by providing equal pay, adequate childcare, eliminating
all discrimination[23]
and tax-benefit disincentives that discourage female participation, and optimizing
the duration of maternity and parental leave; and transitions of older
workers in the context of the modernisation of pension systems and
extending working lives which require comprehensive measures, such as
tax-benefit incentives, access to lifelong learning through career guidance and
training, flexible working arrangements for those who need them, and safe and
healthy workplaces.

–
Mutual responsibilities to support
transitions from unemployment towards employment. The current high levels of unemployment require that the unemployment
benefits schemes supporting the transitions from unemployment back into work are
sufficiently adaptable to stimulate a rapid return to sustainable employment.
During the crisis, unemployment benefits coverage has in some cases been
extended to include some previously unprotected groups, particularly temporary
workers, and extending rights in other situations. While taking into account
the strained budgetary situation in most Member States, it is essential that
these are maintained while the crisis is still having an impact. Where labour
demand is weak, the cutting of benefits could increase the risk of poverty
without increasing outflows from unemployment. Activation requirements should
be part of a mutual responsibilities approach that maintains incentives for
work whilst ensuring income, providing personalised job-search assistance and
guarding against the risk of poverty.

–
Ensure appropriate contractual arrangements
to combat labour market segmentation. The rights
associated with contractual arrangements are another factor that makes the
quality of transitions fragile. Evidence shows that most of the new jobs
created in recent years (even before the crisis) were based on temporary
contracts and other non-standard forms of employment[24]. This has increased the
fluidity in the labour market and made it easier for firms to adapt labour
input to new forms of production and work organisation. Two directives[25] have established part time and
fixed term work on the basis of the equal treatment principle, while a more
recent Directive[26]
seeks to regulate temporary agency work in a similar way. A pronounced
preference on the part of employers for these contractual relationships may be
due to the much higher severance costs for open-ended/standard contracts. Moreover,
in many cases these jobs do not serve as a stepping-stone for more permanent
forms of work. There is therefore a need for measured and balanced reforms in
employment protection legislation in order to remedy segmentation or to halt
the excessive use of non-standard contracts and the abuse of bogus
self-employment. More generally, all types of contractual arrangements should
give jobholders access to a core set of rights (including pension rights) from
the signature of the contract, including access to lifelong learning, social
protection, and monetary protection in the case of termination without fault.

–
Anticipate economic restructuring. In spite of adverse market conditions, many EU companies and their
workforces have, by and large, engaged creatively in restructuring processes
that have been constructive, effective and instrumental in limiting job losses,
through innovative arrangements, often with the support of public authorities
and the EU. In fact, over the last two years, there has been a strong demand
for measures to support the reallocation of resources between firms and
occupations. These measures include changes in employment protection
legislation and business practices related to corporate restructuring, as well
as appropriate training and activation policies that, together with suitably
designed unemployment benefit systems, help displaced workers towards different
jobs and professions. The Commission will build on the response to its Green
Paper on restructuring[27]
so as to disseminate best practices and ensure an appropriate follow up.

–
Develop lifelong learning as a key to
security in employment. Access to lifelong
learning, within either employment or unemployment situations, is essential if
employability is to be maintained. In this respect, the commitment of employers
to training their workforce, particularly in the case of low-skilled and older
workers, is essential. For the unemployed, in particular the lower-skilled and
vulnerable groups, individualised career guidance and training on market
relevant skills is essential. But new technologies combined with globalisation have
also increasingly reduced medium-skilled tasks, necessitating important
re-skilling policies for medium-skilled workers. The recession has accelerated a
polarisation in employment (hollowing out medium skilled jobs), with a risk to
increasingly segregate employment into low-quality and high-quality blocks, and
thereby limiting career mobility opportunities, which need to be addressed.

–
Deliver youth opportunities. The European youth suffers most from the economic crisis
and the structural labour market problems, as set out in the recent Youth
Opportunities Initiative.[28]
The Commission reconfirms its commitments to tackle the dramatic levels of
youth unemployment, including by mobilizing available EU funding.[29] Echoing a call by the European
Council,[30]
the support for transition to work, e.g. through youth guarantees, activation
measures targeting young people, the quality of traineeships[31], and youth mobility should be
prioritised.

2.1.2.     Mobilising all actors for a
better implementation

–
Reinforce social dialogue. The success of employment policies depends crucially on the
existence of a consensus around reforms. In many cases, responsibility for design
and implementation is not in the hands of governments alone, but also in the
hands of the social partners. Strong social dialogue is a common feature in
those countries where labour markets have proved to be more resilient to the
crisis. In the first phase of the crisis, the contribution of social partners
in implementing internal flexicurity solutions was fundamental in cushioning
the shock of the recession. It is essential to establish a shared path of
reforms that create the conditions for sustainable creation of quality jobs in
the future, and where social partners play an active role at all levels in the
preparation and implementation of such reforms. In a growing number of
companies, this contribution has taken the form of transnational company
agreements, through which agreed responses are given at European level to the
challenges generated by the crisis, and mechanisms are set up to manage change.
Transnational company agreements already cover more than 10 million employees;
their role needs to be better recognized and supported.

–
Redefine the primary and core services of
Public Employment Services (PES). PES are the key
implementers of activation policies that contribute to smooth labour market
transitions. In order to fulfil their tasks in a comprehensive manner, PES need
to transform themselves into "transition management agencies"
delivering a new combination of the "active" and "passive"
functions that support sustainable transitions throughout workers’ careers. The
major building blocks should be state of the art labour market intelligence, active
and preventive labour market measures as well as employability support at an
early stage, delivery of individualised services, harnessing the use of
e-services and the development of strong partnerships, in particular with other
employment services, including in other Member States.

–
Pool resources and focus on effective
partnerships. In times of scarce funds for
investment, pooling financial and material resources is as vital as gathering
actors around a common objective. One example could be the pooling of resources
by groups of employers. By linking up around similar recruitment and training
needs, groups of SMEs are capable of overcoming their individual inability to
attract qualified staff and establish joint human resources policies.
Partnerships at the appropriate territorial level can help make transitions
work by encompassing public, private and third sector employment services,
social security organisations, municipalities and regional governments,
education and training providers, career guidance providers, NGOs, welfare
institutions and so on. The composition of the partnerships should be
determined by the complementarities of service provision, as well as
cost-effective allocation of resources.

LABOUR MARKET REFORMS

The Commission urges
the Member States and the Council to:

–
Take the Europe 2020 Strategy forward without
delay and, building on the policy orientations in the present communication,
adopt an ambitious approach and policies for  labour market reforms as part of
their National Job Plans (National Reforms Programmes).

The Commission will:

–
Present a proposal for a Council Recommendation
on a Quality Framework for Traineeships by the end of 2012, on the basis of a
Commission services consultation[32];

–
Present a proposal for a Council Recommendation
on Youth Guarantees by the end of 2012 and support activation measures
targeting young people in the context of Youth Guarantee schemes;

–
Develop further action to disseminate good
practice and promote debate with respect to Transnational Company Agreements;

–
Elaborate by 2012 with the European network of
Public Employment Services a European action plan for the delivery of relevant
and effective employment services on the ground and its practical implementation
in terms of PES models, goals and tasks in light of the Europe 2020 targets;

–
Map new forms of employment, such as the pooling
resources by employers, and report on common priorities for corresponding
policy responses to support actions which make organisations more agile and
responsive to changes while boosting durable employment retention and job
creation.

2.2.        Invest in skills

The European Vacancy Monitor indicates that
high skills levels remain important with also an increasing number of vacancies
for which the appropriate skills are not available[33]. Skills needs in EU labour
markets must be anticipated, and mismatches swiftly acted upon. Equipping
workers with the skills necessary for jobs is essential in order to help make
job creation happen. Europe and its Member States must have a sound
understanding of these needs in order to better anticipate economic change and
address skills mismatches. Despite the high levels of unemployment, skills
shortages have been identified in specific sectors and/or regions. The mismatch
between skills available and the needs of the labour markets concern all Member
States, but affect them to varying degrees. To address these challenges,
several countries have started to put in place national strategies and tools to
remedy these skills mismatches. At European level, a start has been made on
setting up actions and instruments announced in the Europe 2020 flagship
initiative “An Agenda for New Skills and Jobs”. Across the EU, the European
Social Fund is a key source of skills investments, with over € 30 billion of
ESF funding programmed for skills and life-long learning in 2007-2013.

2.2.1.     A better monitoring of
skills needs.

A number of EU instruments have been
developed to forecast and anticipate skills needs: The European Vacancy Monitor
provides labour market information on short-term vacancies and tensions, while the
Cedefop has regularly developed long-term forecasts and Eurofound – for its
part - provides essential information from employers’ and workers’ surveys on
working conditions, one of the explanatory elements of mismatch. The Commission
has recently also supported the setting up of European Sector Skills Councils
to acquire a deeper understanding of the needs at sectoral level.

However, Europe still does not have a
comprehensive view of its skills needs. The EU Skills Panorama, to be launched
by the end 2012, is the first step towards the converging of all existing
anticipation tools. The Panorama will provide a single overview of European,
national and sectoral findings on the short-term to medium-term prospects for
jobs and skills needs as they evolve up to 2020. The Panorama will help
identify emerging skills shortages in specific occupations across or within
sectors. It will be a resource for skills observatories at national, regional
or sector level and for education and career guidance practitioners, as well as
employment and services advisors. Cooperation between EU bodies carrying out
forecasts and surveys such as Eurofound and Cedefop will also be improved. By
focussing more systematically their analysis on a country basis they will
further nourish the understanding of the national development and inform the
Europe 2020 structural reform agenda. Convergence of tools and instruments will
remain the most important priority in order to govern skills needs more
effectively.

2.2.2.     A better recognition of
skills and qualifications.

EU tools such as the European
Qualifications Framework (EQF) or the Europass CV have been put in place to
help people moving across education institutions, companies, sectors and
countries throughout Europe and facilitate transparency of skills and
qualifications. On the basis of the EQF developments, reference
of the European qualifications level should be included in all individual
qualifications in Europe. The national qualifications framework should also
open up to qualifications issued at economic sector level. The Europass CV will be complemented with a European Skills
Passport, incorporating an overview of a person's skills, regardless of how
these skills have been developed.

2.2.3.     A
better synergy between the worlds of education and work.

A close cooperation
between the worlds of education and work, both at political and operational
levels, is essential to address skills mismatches. At political level,
cooperation between the relevant Council bodies (EPSCO and EYC) through the Committees
(EMCO, Education Committee) is necessary to ensure fruitful policy making.

At operational level, synergies are needed to facilitate the transition from education and
training to work. One way forward is through the introduction of short cycle
studies at tertiary levels particularly targeted to skills required in sectors
where skills shortages have been identified

Furthermore the Knowledge Alliances already
build a more structured cooperation between universities and companies creating
new curricula promoting entrepreneurship, problem solving and creative
thinking. Alliances between the education world and companies at EU level should
be expanded to vocational education and training providers to translate the analysis of the Sectors Skills Councils’ into
practical curricula and training methods.

The European multilingual classification of
Skills, Competences and Occupations (ESCO) which is currently being developed
should also help in promoting cooperation between labour markets and the education-training
sector as it links skills and competencies to occupations. Furthermore, the
link between skills tools such as the European CV and skills passports,
including the European Skills Passport, will facilitate transitions into and on
labour markets.

These tools and measures should be
accompanied by efforts to modernise education and training systems, increasing
the quantity, quality and relevance of skills supply. The Commission will
present an initiative in the second half of 2012 to harness education and
training to generate growth, jobs and competitiveness.

INVEST
IN SKILLS

In order to address skills mismatches in the
EU and enhance the anticipation of skills needs, the Commission will:

–
Seek, in cooperation with Member States and
social partners, that Cedefop and Eurofound complement their expertise at EU
and sectoral levels with stronger country-specific knowledge, and that cooperation
between both institutions is reinforced;

–
launch a EU Skills Panorama, notably based on
the European Vacancy Monitor by the end of 2012;

–
launch a new phase in the recognition of
qualifications and skills with guidance for a systematic indication of European
Qualification Framework levels in all new qualifications to be generated in the
EU and stronger complementarities with the Qualifications Framework for Higher
Education;

–
from 2013 onwards ensure that at least one
quarter of the qualifications issued every year have a reference of their
European qualification level;

–
launch the European Skills Passport by the end
of 2012;

–
support the setup of a network of
representatives from both employment and education representatives to support
the skills governance.

2.3.        Towards a European labour
market

Most European labour markets are
characterised by a coexistence of persistent high levels of unemployment in
many areas and bottleneck vacancies in high-growing regions or sectors[34]. Structural mismatches between
labour supply and demand are common. As emphasised in the 2012 Annual Growth
Survey[35]
labour mobility across Europe is too low[36]
compared to the overall size of the EU labour markets and corresponding active
populations, which has the effect of hindering adjustments in the allocation of
resources that could support economic and employment growth. Deepening European
labour market integration and ensuring effective matching between labour demand
and supply is crucial in order to enable all employment opportunities to be
exploited. In this respect, mobility not only means going to where the jobs
are, or having access to better jobs; it is also associated with improvements
in generic and occupational skills and increases adaptability and
employability.

2.3.1.     Remove legal, and practical
obstacles to free movement of workers

Mobility of workers in the EU continues to
face important obstacles. Some of them are cultural, such as language or
housing or discrimination, and are deeply rooted in society and difficult to
overcome in the short-term. For their part, language obstacles could be
overcome by funding of targeted training schemes on foreign languages for
workers on mobility. This requires action in order to create open attitudes
towards all the opportunities brought by mobility across Europe. Workers who do
choose to move face, nonetheless, other difficulties[37] which relate to the exercise
of rights conferred by EU law and the inadequacy of support to geographical
intra EU mobility. Although there is a large legislative "acquis"[38], European citizens still face
legal, administrative and practical obstacles when moving across borders:

–
Restrictions on free labour market access to
workers from Bulgaria and Romania are still
maintained by nine Member States, despite the overall positive impact that
labour mobility from these countries has had on the economy of receiving
countries[39].
Whilst recognising the Member States' right to apply these restrictions on
labour market access until 31 December 2013 in accordance with the Treaty of
Accession, the Commission reiterates the importance of gradually preparing for
the full application of EU law on free movement for Bulgarian and Romanian
workers.

–
The restriction of access to certain posts in
the public service to its own nationals in
accordance with Article 45(4) TFEU can be maintained under exceptional
conditions. The European Court of Justice has consistently held that this
exception is to be interpreted restrictively and covers only posts involving
direct or indirect participation in the exercise of powers conferred by public
law and duties designed to safeguard the general interests of the State or of
other public authorities[40].
Those criteria must be assessed on a case-by-case basis.

–
The lack of recognition of professional
qualifications remains a real problem to the
effective functioning of the Single Market and in particular to free movement
of workers and labour mobility. On 19 December 2011 the Commission adopted a
proposal to modernise the Professional Qualifications Directive[41] so as to adapt it to evolving
labour markets. The proposal introduces a European Professional Card for very
mobile professionals and provides better access to information and e-government
services.

–
The fear of losing out on social security and
pension rights is still a major issue for workers
and jobseekers who are thinking of moving across Europe. One major aspect is
the right of jobseekers searching for work in another Member State to keep
their entitlement to unemployment benefits for more than three months. Although
EU law provides the possibility for Member States to extend the right to this
entitlement to a maximum of 6 months, this right is not yet secured by the
respective national practices.

–
Moreover, many mobile workers are still unaware
of their rights and obligations. The Commission reiterates the need
to guarantee the correct application of the Regulations[42] on social security
coordination, as they place particular emphasis on the obligations of Member
States to provide active assistance to citizens in enforcing their rights[43]. Overall, the failure to apply
the existing EU rules means that the Commission will need to explore additional
enforcement mechanisms in the pursuit of effective free movement of workers. Insufficient
awareness of EU rights and difficult access to help when rights are not
respected also remains a wider issue. Within the framework of the Single
market, the Commission and Member States are working together to facilitate
access to information and free assistance services such as Your Europe Advice
and Solvit via the Your Europe portal.

–
Tax obstacles faced by EU citizens who move to another Member State to work temporarily or permanently
or cross borders every day to work raise significant obstacles to labour
mobility within the EU They range from difficulties in obtaining allowances,
tax reliefs and deductions in the country of work or higher progressive tax
rates applied to non residents, to double taxation problems.

2.3.2.     Enhance matching of jobs
and job-seekers across borders

With only 25 000 employers registered and
some 150 000 job placements/recruitments per year, the European Employment
Services tool (EURES) has not yet made full use of its direct employment
potential. The Commission therefore intends to focus EURES on matching,
placement and recruitment, giving it the biggest possible outreach and coverage
capacity, by rolling out innovative self services in all European languages and
full semantic interoperability in the exchange of national job vacancies and CV
data[44].
Consequently, EURES will be in a position to deliver easier and real-time
access to vacancies available in the EU, while presenting employers with a
living pool of candidates where they can find the skills they need to grow
their businesses.

EURES will also be expanded through
targeted labour mobility schemes supporting under- serviced occupations and
specific groups of workers with a high mobility propensity, as well as national
labour markets which are or will become recipients of European workers. In this
respect, EURES will make full use of the analysis of job vacancy and hiring
developed by the Commission via different tools such as the European Vacancy
Monitor[45]
and the European Job Mobility Bulletin[46].
Regular consultations with relevant stakeholders, such as social partners and
employment services, will further help EURES to tackle bottleneck vacancies for
which recruitment difficulties have been identified.

The goal is for EURES to become an entry
point and natural first choice for any citizen or legally resident worker and
job seeker and employer considering working or recruiting in another European
country, improving the efficiency of the European labour market.[47]

2.3.3.     Consider impacts of EU
inward and outward migration.

With labour needs
in the most dynamic economic sectors set to rise significantly between now and
2020, while those in low-skills activities are set to decline further, there is
a strong likelihood of deficits occurring in qualified job-specific skills. In
the short term, mobility within the EU could help alleviate specific labour
shortages and/or mismatches in EU-27. In the longer term, and especially in
view of the EU's demographic development, economic immigration by third country nationals is a key consideration for the
EU labour market. However, persistently high levels of unemployment in many
Member States have affected the public's acceptance of labour immigration,
while a number of Member States are facing EU outward emigration of high-skilled
people due to the economic crisis.

TOWARDS
A EUROPEAN LABOUR MARKET

Free movement of workers

The Commission will:

–
Present a legislative proposal by the end of
2012 in order to support mobile workers (information and advice) in the
exercise of rights derived from the Treaty and Regulation 492/2011 on freedom
of movement for workers within the Union[48].

–
In 2012, lend a new impetus to the work on the pension
portability Directive setting minimum standards for the acquisition and
preservation of supplementary pension rights.

–
Continue to improve the Your Europe portal to
offer a single entry point for information on EU rights and easy access to
personalised help services such as Your Europe Advice and Solvit.

–
Examine tax measures for
cross-border workers with a view to propose measures aiming at removing tax
obstacles faced by employed and dependent workers but also self-employed
individuals and pensioners.

The Commission urges Member States to:

–
Adopt the Commission proposal to modernise the
Professional Qualifications Directive so as to further facilitate the much
needed recognition of professional qualifications.

–
Raise awareness of rights conferred by EU law on
the anti-discrimination, gender equality and free movement of workers and open
and facilitate access by EU nationals to their public sector posts in
accordance with EU law as interpreted by the Court of Justice.

–
Reconsider the need to maintain existing
restrictions on free labour market access of Bulgarian and Romanian workers
until the end of the transitional period.

–
Export unemployment benefits for a period of
maximum 6 months to jobseekers entitled to such benefits and moving to another
Member State in order to find a job in accordance with Article 64 of Regulation
883/2004 on the coordination of social security systems.

–
Create more effective channels of communication
with mobile workers so that they can enjoy full access to information concerning
their rights and obligations when moving across Europe.

–
Facilitate cross-border tax compliance by
seeking greater alignment of tax claim and declaration forms, translating
information into other EU official languages and making greater use of
information technologies.

European Employment Services (EURES)

The Commission proposes:

To
transform the European Employment Services (EURES) into a comprehensive
European employment instrument aligned with the Europe 2020 objectives, by:

–
Positioning it as a demand-driven European
placement and recruitment tool that satisfies economic needs, while fulfilling
the legal obligation of ensuring transparency of vacancies with innovative
on-line job matching tools, including mobile internet applications to ensure
the best possible outreach and availability;

–
Rolling out from 2013 the innovative online
self-service "Match and Map" to instantly provide users with a clear
geographic mapping of the European job offers matching users' profiles and
providing at the same time individual feedback on why jobs and skills do not
match, together with corresponding information on where learning opportunities
to acquire the missing skills are available.

The Commission calls on Member States to
enhance their use of EURES:

–
Ensuring that all relevant job vacancies from
all employment services are made systematically accessible at national level
and through EURES at European level;

–
Monitoring and enhancing the quality of job
vacancy data exchanged within the EURES system;

–
Working towards a better Europe-wide
interoperability of job vacancies and CVs, contributing to the development of
ESCO;

–
Mainstreaming EURES into the service offer of relevant
all labour market actors.

Migration

The Commission proposes:

–
to launch, before the end of 2012, a consultation
inviting broad debate with Member States, social partners and stakeholders on
what the role of EU policies should be regarding the opportunities of economic
migration.

3.           ENHANCE EU GOVERNANCE

The European Semester has been the first step in a new
approach being adopted at EU level whereby Member States and EU institutions
are trying to strengthen fiscal and economic coordination and build a coherent
economic policy. The Semester is also the effective governance method for
monitoring and steering the implementation of actions to support Europe 2020
goals. Moreover, the economic and fiscal policy coordination has been recently
strengthened by the "six-pack", the proposed "two-pack" and
the Treaty on Stability, Coordination and Governance in the Economic and
Monetary Union. Better EU employment governance and
coordination has become essential for at least two reasons. First, labour market participation, unemployment and labour cost
play a role in macroeconomic stability, and are taken into consideration in the
new regulation on the prevention and correction of macroeconomic imbalances.
Second, the crisis has further revealed the interdependence of EU
economies and labour markets, underscoring the need to accompany the new
economic governance with strengthened coordination of employment and social
policies in line with the European Employment Strategy provided for by the
Treaty.

3.1.        Complement reinforced
national reporting and coordination with enhanced multilateral surveillance.

The December 2011 European Council
acknowledged the importance of complementing a reinforced economic coordination
with enhanced monitoring of employment and social policies.[49] This political commitment was
further confirmed by the 2012 Spring European Council, which called for the
preparation of "National Job Plans" by Member States that set out
comprehensive initiatives on employment.

As an integral part of a Member State’s
National Reform Programme, the "National Job Plan" shall provide key
deliverables with regard to the employment guidance delivered by the European
Council, addressing structural labour market weaknesses and seeking to make a
short-to-medium term impact on jobs. The plans should include a clear timetable
on how, over the next 12 months, the multiannual reform agenda is to be rolled
out.

Besides strengthening the focus of NRPs on
improving employment outcomes, National Job Plans should also serve to improve
coordination of employment policies at the EU level. Enhanced peer pressure at
EU level may support implementation and help maintain focus. The main lever for
peer pressure remains the possibility for the Council to adopt county specific
recommendations as foreseen in the Treaty. In order to deepen policy
coordination, the Employment Committee has this year adopted new working
methods, with a series of peer reviews that will enable the Committee to reach
a multilateral position on the implementation of reforms, feeding into the
assessment by the Commission and the Council. Multilateral surveillance can also
be further enhanced by a labour market monitoring system based on objective
data and by an individual tracking scheme for countries that do not comply with
country–specific recommendations. It would allow for a continuous, transparent
and rounded surveillance of Member States' employment performances and progress
towards Europe 2020 headline targets.

3.2.        Reinforce the involvement
of the social partners

Social partners play an
important role at the national level in the defining labour market rules or setting
of wages, and strongly influence other structural policies through tripartite
consultations, such as in the area of social security. They are also key when
it comes to implementing measures such as apprenticeships or effective lifelong
learning. At the EU level, social partners are currently taking part, besides
consultations on relevant legislative proposals, in a biannual macro-economic
dialogue and also hold twice-yearly exchanges of views at the highest political
level in the Tripartite Social Summit[50].
Both the macro-economic dialogue and the Tripartite Social Summits constitute
important opportunities for involvement of social partners, also in the context
of the European Semester. There is however scope for
further improving the mechanisms for social partners' involvment in the
coordination of economic and employment policies at EU level, notably ahead of
the European Semester[51].

While the autonomy of social dialogue is
beyond question and national practices are being respected (according to
Articles 152 and 153§5 TFEU), in order for
European economic governance to be effective and inclusive, involvement of
social partners in elaboration and implementation of economic and employment
policies needs to be commensurate with the developments in surveillance and
coordination mechanisms. Wage-setting mechanisms are a case in point as
a number of wage-related issues have been raised in the country-specific
recommendations[52]
of 2011 and as the evolution of national unit labour costs is being monitored
in the context of preventing and correcting macroeconomic imbalances[53].

3.3.        Strengthen the link
between policy and funding

It will not be possible to build dynamic
and inclusive labour markets, reduce mismatches, upgrade skills and increase
geographical mobility without a significant financial investment in human
capital. That is why, in the Multiannual Financial Framework for 2014-20, the
Commission has proposed minimum allocations for the European Social Fund in
each type of region, amounting to an EU total of at least €84 billion. In
addition to the necessary (re)assessment of national budgetary priorities in
the context of smart fiscal consolidation, coordinated through the European
Semester, the close alignment of the EU budget with the Europe 2020 strategy in
the next programming period needs to be seized as an opportunity to increase
and improve the use that is made of EU funding to support Member States' reform
efforts.[54]

This calls for a close connection of the
priorities of the post-2013 Partnership Contracts and Operational Programmes
which benefit from ESF support with the orientations provided in the context of
EU economic governance and in particular of the upgraded governance of
employment policies. At the same time the Commission is promoting enhanced
coordination and integration of the funds to be covered by the Partnership
Contracts, including ESF and ERDF, as well as the EAFRD and the EMFF. This
approach aims at maximising synergies, including from the employment
perspective.

The strengthened peer review of reform
implementation and best practice exchange which will form part of the new role
of the Employment Committee should also include an assessment of the
effectiveness of the related investment effort with a view to its further
improvement, where needed.

The Commission proposes:

to reinforce coordination
and multilateral surveillance in the area of employment policies by:

–
publishing, together with the draft Joint
Employment Report and on an annual basis, a benchmarking system with selected
employment indicators. The system will be built in cooperation with the Member
States and be based on the existing Joint Assessment Framework and Employment
Performance Monitor which identifies key employment challenges and is developed
with Member States.

–
developing, by the end of 2012, in cooperation
with the Member States and all relevant actors, a scoreboard to keep track of
progress in the implementation of the National Job Plans, as part of NRPs, by
Member States, for the first time as part of the 2013 Annual Growth Survey
(Joint Employment Report).

to strengthen the involvement of the EU social
partners in the European Semester by:

–
establishing effective involvement of the EU
social partners on the main strategic priorities in the area of employment policies
i) in the context of the European Semester to exchange views on growth and
employment priorities; and ii) ahead of the Spring ECOFIN and EPSCO Council
meetings. The latter would involve the Presidency of the Council;

–
setting up, in full respect of the autonomy of
social partners conferred by Art. 152 of the Treaty, an EU tripartite format
for monitoring and exchange views on wage developments in relation to
productivity, inflation and internal demand, unemployment and income
inequalities.

to strengthen the link between employment
policies and relevant financial instruments through:

–
closely reflecting the priorities of National
Reform Programmes, and in particular National Job Plans, in preparing
Partnership Contracts and Operational Programmes for 2014-2020, including their
performance framework, taking into account relevant country-specific
recommendations and observations of the Employment Committee.

–
reviewing Partnership Contracts and Operational
Programmes where necessary in the light of relevant country-specific
recommendations as envisaged in Article 21 of the proposed common provisions
regulation for CSF Funds.

–
taking into account the assessment arising from
the funds’ performance framework in the preparation of National Reform
Programmes during the 2014-2020.

The Commission invites Member States and the
Council:

–
through the Employment Committee, to prepare the
mechanisms for reinforced multilateral surveillance in the area of employment;

–
to discuss and adopt these new mechanisms in the
framework of the Employment Committee, with an aim of early approval by Council
and full implementation during the European Semester 2013;

–
to make full use of the financing that will be
provided in shared management from -2014 onwards under the European Social Fund
to support investment in identified key employment challenges.

Conclusion

The aims of this communication is to show
the most effective ways at the current junctunre towards meeting the Europe 2020
employment target thus and reinforcing the employment dimension of the Europe
2020 Strategy. The communication seeks to do this in content, by providing substantive
guidance relevant in the context of Member State's National Job Plans, and by
suggesting ways to strengthen the employment dimension in EU governance:

- The Commission proposes policy guidance
on supporting job creation and labour market reforms, emphasing the importance
of investment, and invites the Council to adopt an ambitious approach to this
end.

- The Commission outlines steps to address
skills mismatches and to improve labour mobility lifting obstacles towads a
genuine European labour market.

- The Commission proposes ways to strengthen
multilateral surveillance, improve the involvement of social partners in employment
governance and further align policy and funding in order to maximise the
employment results achieved through EU budget instruments.

ANNEX

The three action plans in this annex (a
set of key employment actions for the Green Economy, an action plan for the EU
Health Workforce and a set of key actions for ICT Employment) are proposed in
line with section 1.2 "Exploit the job creation potential of key
sectors" of the present Communication. They are each also underpinned by
separate Staff Working Documents

A
Set of Key Employment Actions for the Green Economy

In response to the EPSCO Council
Conclusions December 2010 on 'Employment Policies for a competitive,
low-carbon, resource efficient and green economy', a set of key employment
actions is presented in view of achieving a successful transition to the
green economy.

The
Commission will:

1. Promote a mainstreaming of green employment into National Job
Plans

- by
working with the Employment Committee (EMCO) to build on its green employment
indicators and ensure consistent monitoring of reform measures;

- by
encouraging Member States to address labour relocation and retraining needs through
active labour market policies and life-long learning, including by
incorporating such policy responses into regional, urban or local development
strategies, as appropriate;

- by
emphasising in the 2013 European Semester the employment
dimension of resource efficiency and the implementation of necessary
reforms. In particular, Member States will be encouraged to make greater use
of environmental taxes and ETS revenues in shifting taxation away from labour.

2. Strengthen green skills intelligence

- by
ensuring that EU-level skills anticipation instruments (EU Skills
Panorama, ESCO, CEDEFOP and EUROFOUND surveys etc.) cover emerging green skills
needs;

- by
organising in 2013 a set of mutual learning actions with relevant
labour market actors, in particular on embedding the skills and training
dimension within wider national green growth strategies (DG EMPL Mutual
Learning Programme) and on the ways and means of working with business to
direct jobseekers and those at risk of redundancy towards emerging green
occupations (PES to PES dialogue);

- by
promoting further uptake of standardised skills certification schemes
through the Intelligent Energy Europe Programme in 2013/2014.

3. Promote greater use of EU financial instruments for smart green
investments

- by
engaging with the European Investment Bank to boost further the
capacity to lend to public and private ventures in the field of resource
efficiency and renewable energy;

- by
encouraging Member States to address in ESF-supported operational
programmes for 2014-2020 the needs for green training and PES’ capacity
to assist in green labour market transitions; and to concentrate ERDF
resourcs on energy efficiency and renewables investments in line with the
Commission's proposal;

- by
launching, in the context of the Progress Microfinance Facility, a microfinance
and social entrepreneurship stakeholders' forum in 2013 with a view to
engaging local financial intermediaries in promoting entrepreneurial activity
in the green economy;

- by
targeting innovative initiatives addressing the intersection between resource
efficiency and inclusive employment through the social experimentation
window of PROGRESS.

4. Build partnerships between labour market actors

- by
supporting cooperation projects on green jobs and transitions to a green
economy under the PARES Call for Proposals 2013 for innovative projects
between Employment Services;

- by
working with the European Social Partners on ways to facilitate the
shift to a low carbon economy through specific initiatives within their work
programme 2012-2014;

- by
raising awareness on the best bipartite and tripartite initiatives and
activities for green employment through the publication in 2013 of a good
practices handbook.

An
Action Plan for the EU Health Workforce

To
support Member States in addressing the challenges faced by the healthcare
sector and in line with Member States' commitment to work together in this
area, as enshrined in Council conclusions of December 2010, the Commission
proposes an Action Plan with the actions below.

The Commission will:

1. Improve health workforce planning and forecasting in the EU

- by
creating, by the end of 2012, a European platform of Member States and
professional organisations by launching a three year EU joint action on
forecasting and planning under the Health Programme to share good practice,
develop forecasting methodologies on health workforce needs and effective
workforce planning and improve EU-wide data on the health workforce;

- by developing
guidance, by 2014, on the exchange of education and training capacities in
health professions in order to make best use of existing capacities based
on the results of a study to be launched in 2013, mapping Member States'
education and training capacities in health, particularly in medical universities
and nursing schools;

2. Better anticipate skills needs in the healthcare sector

- by
supporting the creation of a European Skills Council on nursing and care workers
in 2013 to better analyse and anticipate skill needs in these professions, taking
due account of the proposed modernisation of the Professional Qualifications
Directive;

- by
fostering partnerships between education/vocational training providers and
employers in the healthcare sector through the work of a pilot Sector Skills
Alliance to be set up in 2013;

- by
promoting the exchange of good practice on continuous professional
development, to update skills and competence and to help retain healthcare
personnel through lifelong learning, through a review and mapping of national
systems and practices to be carried out in 2013;

- by
developing, by 2014, recommendations for the training requirements of healthcare
assistants including educational support for informal carers based
on an analysis of the scope of skills and competences required from healthcare
assistants, through setting up a pilot health care assistants expert
network and database;

3. Stimulate exchange on recruitment and retention of health workers

- by
launching, by 2013, a mapping of innovative and effective
recruitment and retention strategies in the healthcare sector with a
view to exchanging good practices between Member States through launching a
tender for the mapping and through exploring a joint action with Member States;

4. Support ethical recruitment of health workers

- By supporting
Member States' implementation of the WHO Global Code of Practice for the
International recruitment of Health Personnel through the development of a
common approach.

A
Set of Key Actions for ICT Employment

Good progress has been
made in the implementation of the Commission's Communication on "e-Skills
for the 21st Century"[55]. There is now a strong consensus on the need for a long-term
EU e-skills strategy building on active cooperation
between the Commission, Member States, regions and social partners to exploit
the employment potential of ICTs.

The Commission will: 1. Set up multi-stakeholder partnerships in order to - Improve the identification of labour-market mismatches between demand and supply of ICT-related job profiles - mobilise organisations and networks offering design, provision and certification of ICT skills training initiatives, with special focus on employability and certification of informal competences; - support awareness raising campaigns (European e-Skills Week[56], Get Online week), and promote ICT careers in order to attract and involve young people and underrepresented profiles such as women, mid-career workers and vulnerable groups; 2. Strengthen the European e-skills framework - by creating by 2013 a specialised section focusing on ICT careers on the European Skills Panorama website; - by further elaborating in 2012 the European e-Competences framework developed by CEN[57] to provide by 2013 descriptors of digital competences and a self-assessment tool for all learners which will be integrated in the forthcoming European Skills Passport; - by developing in 2013 European guidelines for e-learning based on business needs and best practices including industry-led initiatives; - by promoting short-cycle qualifications, both in higher education or vocational education and training, to provide focused and applied e-skills; 3. Support an increase in highly qualified ICT labour force - by developing during 2012 quality labels for ICT industry-based training and certifications compatible with the European quality assurance reference framework for vocational education and training (EQAVET); and developing in 2013 a pilot providing an interactive landscape of the ICT industry certifications and an online self-assessment test for ICT practitioners; - by promoting synergies between actions in the fields of ICT skills, entrepreneurship and cloud computing in the context of the forthcoming EU action plan on cloud computing; - further develop the EU initiative on e-leadership launched in 2012 to address the needs of entrepreneurs, managers, ICT practitioners and advanced users, with a focus on start-ups and SMEs; 4. Promote greater use of EU financial instruments for investments in ICT skills - by encouraging Member States to strengthen digital training within their education and training systems and boost e-inclusion through ESF-supported operational programmes in 2014-2020.

[1]               Communication from the Commission Europe 2020 – A
strategy for smart, sustainable and inclusive growth, COM (2010) 2020 of 3
March 2010; European Council Conclusions of 17 June 2010.

[2]               EU Employment and Social Situation Quartely Review,
March 2012

[3]               According to the Commission services' February 2012
Interim Forecast: the EU is set to experience stagnating GDP in 2012, and the
euro area will undergo a mild recession.

[4]               Accompanying Staff Working Document Labour market
trends and challenges.

[5]               As noted in the statement of
the Members of the European Council of 30 January 2012, “Growth and employment
will only resume if we pursue a consistent and broad-based approach, combining
a smart fiscal consolidation preserving investment in future growth, sound
macroeconomic policies and an active employment strategy preserving social
cohesion”.

[6]               European Council Conclusions of 1-2 March 2012.

[7]               Council Decision2010/707/EU of 21 October on
guidelines for employment policies of the Member States.

[8]               European Council Conclusions of 9 December 2011

[9]               European Council Conclusions of 9 December 2012.

[10]             SMEs created 85% of net employment growth over the
2002-2010 period.

[11]             Compliance with the EU State aid rules must be ensured
while keeping in mind the possibilities foreseen in these rules for the
employment aid, see in particular Articles 15, 16, 40-42 of the General block
exemption Regulation, Official Journal of the European Union, 9 August 2008,
L214

[12]             Communication from the Commission to the European
Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions, A Roadmap for moving to a competitive low carbon
economy (COM(2011) 112) shows that using revenues from the auctioning of ETS
allowances and CO2 taxation to reduce labour cost would have positive impacts
on employment.

[13]             Based on different models, by 2020, the implementation
of individual energy efficiency measures could lead to two million green jobs
being created or retained, while the job potential from renewable energy sector
development is estimated at three million jobs -Accompanying Staff Working
Document Exploiting the employment potential of green growth.

[14]             Accompanying Staff Working Document Exploiting the
employment potential of green growth.

[15]             Accompanying Staff Working Document An action plan
for the EU health workforce.

[16]             Accompanying Staff Working Document Exploiting the
employment potential of the personal and household services.

[17]             Accompanying Staff Working Document Exploiting the
employment potential of ICTs.

[18]             Communication from the Commission to the European
Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions , A Budget For Europe 2020 - Part I, COM(2011) 500 of
29 June 2011.

[19]             Accompanying Staff Working Document Open, dynamic
and inclusive labour markets.

[20]             Employment and Social Developments in Europe 2011; Is
working enough to avoid poverty? In-work poverty mechanism and policies in the
EU

[21]             OECD, divided we stand: why inequality keeps rising,
2011

[22]             http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Minimum_wage_statistics.
Minimum wage levels are between 30% and 50% of average gross monthly earnings.

[23]             Through the full application of Directive 2006/54/EC on
the implementation of the principle of equal opportunities and equal treatment
of men and women in matter of employment and occupation

[24]             http://ec.europa.eu/eures/home.jspLabour market and
social trends.

[25]             Directive 97/81/EC on part time work, Council Directive
99/70/EC of 28 June 1999 on fixed term work

[26]             Directive 2008/104/EC of the European Parliament and of
the Council of 19 November 2008 on temporary agency work.

[27]             Communication from the Commission Restructuring and
anticipating of change; what lessons from recent experience ? COM(2012)7 of 17
January 2012.

[28]             Communication from the Commission Youth Opportunities
Initiative, COM(2011) 933 of 20 December 2011.

[29]             The Accompanying Staff Working Document Implementing
the Youth Opportunities Initiative: first steps taken presents an interim
report of recent measures taken by the Member States to fight youth
unemployment. In February 2012, Commission action teams visited the eight
Member States with the highest youth unemployment rate. The results of these
missions will be integrated in the National Reform Programmes.

[30]             Statement of the Members of the European Council of 30
January 2012.

[31]             Accompanying Staff Working Document Quality
Framework for Traineeships.

[32]             Accompanying Staff Working Document Quality
Framework for Traineeship

[33]             Communication from the Commission Annual Growth Survey
2012, draft Joint Employment Report, COM(2011)815, Beveridge curve page 7.

[34]             Communication from the Commission Annual Growth Survey
2012, Draft Joint Employment Report, COM(2011)815 of 23 November 2011.

[35]             Communication from the Commission, Annual Growth Survey
2012, COM (2011) 815 of 23 November 2011.

[36]             In 2010, only 2,8% of the European working age
population (15-64) lived in a Member State other than their own (EU Labour
Force Survey)

[37]             June 2010 Special Eurobarometer on "Geographical
and labour market mobility"

[38]             The freedom to seek employment in any EU Member State
is also recognised in Article 15 of the Charter of Fundamental Rights of the EU

[39]             Report on the Functioning of the Transitional
Arrangements on Free Movement of Workers from Bulgaria and Romania,
COM(2011)729 of 11 November 2011

[40]             In particular in case C-290/94.

[41]             Commission Proposal for a Directive of the European
Parliament and of the Council, (COM(2011)883) of 19 December 2011

[42]             Regulation (EC) N° 883/2004 of
the European Parliament and of the Council, of 29 April 2004 and Regulation
(EC) N°987/2009 of the European Parliament and of the Council of 16 September
2009

[43]             The entitlement of everyone residing and moving freely
within the EU to social security benefits and social advantages in accordance
with Union and national law is also specifically recognised in Article 34 of
the Charter of Fundamental Rights.

[44]             http://ec.europa.eu/eures/home.jsp

[45]             http://ec.europa.eu/social/main.jsp?catId=955&langId=en.

[46]             http://ec.europa.eu/social/main.jsp?catId=955&langId=en

[47]             Accompanying Staff Working Document Reforming EURES
to meet the goals of Europe 2020

[48]             Official Journal of the European Union, 27.5.2011,
L141, p.1

[49]             European Council Conclusions of 9 December 2011 and
Council Conclusions (EPSCO) of 1 December 2011

[50]             In 2012, the Commission will propose to update the
Council Decision 2003/174 establishing the Tripartite Social Summit, in line
with provisions of the TFEU.

[51]             Council Conclusions (EPSCO) of 1 December 2011, point
9.5.

[52]             Council recommendations of 12 July 2011 on the National
Reform Programmes

[53]             Regulation (EU) No 1176/2011 of the European Parliament
and the Council of 16 November 2011.

[54]             Commission Proposal for a regulation of the European
Parliament and the Council laying down common provisions on the European
Regional Development Fund, the European Social Fund, the Cohesion Fund, the
European Agricultural Fund for Rural Development and the European Maritime and
Fisheries Fund covered by the Common Strategic Framework and laying down
general provisions on the European Regional Development Fund, the European
Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No
1083/2006, COM(2011)615.

[55]             Evaluation of the implementation of the Commission's Communication on e-Skills for the 21st Century, October 2010,
http://ec.europa.eu/enterprise/sectors/ict/files/reports/eskills21_final_report_en.pdf.

[56]             See http://eskills-week.ec.europa.eu.

[57]             European Standardisation Committee (CEN)