COUNCIL RESOLUTION of 21 December 1992 on the need to tackle the serious and deteriorating situation concerning unemployment in the Community

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,

Whereas there are currently 16 milion unemployed people in the Community (some 10 % of the Community's workforce), a total which is more than 400 % higher than in the 1960s;

Whereas it is necessary that the Community employment situation, which has seriously deteriorated, be tackled by effective policies on the part of the Member States supported by the Community institutions;

Whereas the Commission's 1992 Report 'Employment in Europe' states that, despite its creditable record on job growth in the 1980s, the Community is now faced with a very serious and deteriorating situation with regard to unemployment, which threatens to become a central problem in the 1990s;

Whereas the Commission's Report 'Issues for debate: Employment and the labour market in the 1990s' emphasizes inter alia that long-term unemployment persists at high levels; nearly half the total number of unemployed people have been out of work for more than a year, and some 30 % of long-term unemployed people have never worked at all;

Wheres, in their joint opinion of July 1992 concerning 'A renewed cooperative growth strategy for more employment', both sides of industry, in the framework of the Social Dialogue, called for a non-inflationary, lasting and employment-growth trend leading to a reduction in unemployment and enhancing the competitiveness of enterprises;

Whereas the conclusions of the European Council in Birmingham in October 1992 expressed concern at lower growth and increasing unemployment in the Community and called for the sustained implementation of sound policies for the creation of the new and lasting jobs that are needed;

Whereas in its resolution of October 1992 the European Parliament urged the Council to take action to tackle the problem of unemployment;

Whereas in addition to achieving environmentally sustainable economic growth it is necessary to seek other policies in order to reduce unemployment;

Whereas the conditions and problems encountered in different parts of the Community vary considerably and all the parties concerned, including both sides of industry, should be involved in seeking new and differing combinations of policies to respond appropriately to specific circumstances,

HEREBY ADOPTS THIS REGULATION:

THE COUNCIL:

1. EMPHASIZES that:

(a) high levels of unemployment represent a major waste of talent and resources, and are demoralizing and damaging for the individuals concerned;

(b) the unemployed usually have lower standards of living and income than those in jobs;

(c) not only is unemployment a grave problem generally, but it is a particularly serious matter for certain regions and areas of the Community, notably the less-favoured regions, and for vulnerable groups in society; combating unemployment in such regions and areas and among such groups is therefore a vital part of economic and social cohesion within the Community.

2. AGREES the following principles and considerations as the necessary framework for the effective operation of labour market policies:

(a) the reduction of unemployment depends critically on economic growth which is non-iflationary, lasting, environmentally sustainable and employment-creating, and which is therefore based on productive investment, on improving the competitiveness of enterprises, and on sound conditions of economic demand;

(b) this demands not only investment, but also changes in working practices that will make it possible to take full advantage of changes in technology and markets, and to enhance the skills of the workforce;

(c) in addition to achieving economic growth, there is a continuing need to identify and pursue other effective policies in order to achieve the desired reduction in unemployment;

(d) the task of tackling unemployment lies first and foremost with the Member States, but there is also an important contribution which can be made through discussion and coordinated supporting action at the level of the Community;

(e) greater convergence and economic and social cohesion in the Community and greater stability in currency markets are all needed to increase the prospects for business growth and investment;

(f) the completion and effective working of the Single Market must be achieved as quickly as possible, and the competitiveness of the Community's enterprises on the world market must be enhanced;

(g) it is of great importance that both sides of industry at European level as well as within Member States participate closely in the search for solutions to the problems of unemployment and in creation of lasting employment.

3. Welcomes the initiative of both sides of industry in their Joint Opinion of 3 July 1992 in calling for activity to develop a renewed cooperative growth strategy for more employment.

4. UNDERLINES the importance of achieving growth and improved competitiveness of enterprises, especially by means of:

(a) prompting enterprises to increase the efficiency and adaptability of their production systems, for example by promoting the speedy introduction and transfer of new technologies, while recognizing also the need to develop human resources and to enrich the content of jobs;

(b) providing accessible information, support and advice for the establishment and continued success of new enterprises, especially small and medium-sized enterprises;

(c) avoiding the imposition of rigidities which would hold back the creation and development of employment, while respecting the legitimate rights of employees.

5. STRESSES that effective labour market policies and measures also have a key role to play in reducing unemployment and helping to ensure the creation of lasting, rewarding jobs which provide the right levels of protection for employees; and DRAWS PARTICULAR ATTENTION to the following labour market policies and measures as having had an especially beneficial impact:

(a) high quality services for those who are looking for jobs and for employers who are looking for new employees, which in turn entail:

(i) information which is available to each unemployed person about job and training opportunities and which is clear, timely and readily accessible;

(ii) the provision as appropriate, and in a manner tailored to the needs and circumstances of the individual, of job advice, counselling, work experience and/or training, particularly in the case of long-term unemployed people;

(iii) ready access for employers to suitable applicants for the jobs which are on offer;

(iv) improved labour mobility, and correction of any rigidities and unintended barriers to such mobility where they are demonstrated to exist;

(b) training and vocational education which provide those seeking work with the skills needed to secure and to retain jobs, in particular:

(i) basic education and training which equip young people with the knowledge, skills and motivation needed to participate successfully in the labour market;

(ii) improved levels of standards and skills, embodied in vocational qualifications;

(iii) training and vocational education which is adapted to the demand for labour from employers at the local level;

(iv) training which enables the individual to respond successfully to changes in technology and the market;

(c) conditions to foster developments in the labour market likely to favour growth of jobs which provide the right levels of protection for employees, in particular:

(i) well-organized patterns of work for those who want them, which reflect the needs of enterprises and workers in modern economies;

(ii) growth of the service sector, including services of particular benefit to individuals;

(iii) job sharing in all its forms and similar voluntary approaches to the structuring of work;

(iv) the breaking down of outdated stereotypes concerning women, disadvantaged groups and older workers, and, taking into account the labour market situation in each Member State, seeking to remove obstacles to work for people who have reached the minimum age at which entitlement to retirement pension begins;

(v) structures to assist local growth and development.

6. Accordingly, CALLS ON the Commission:

(a) to have close regard to the concerns, principles, considerations, and the labour market policies and measures set out in this Resolution, in particular in future editions of the 'Employment in Europe' report and other publications and proposals with a bearing on employment;

(b) to take into account, inter alia, the terms of this resolution, in particular concerning training and services for the unemployed, when dawing up its proposals for the forthcoming review of the Structural Funds and in particular of the European Social Fund;

(c) to improve the production and secure wider dissemination and utilization of information, in particular that collected through the employment survey networks, and of the analyses undertaken in the 'Employment in Europe' reports;

(d) in close collaboration with the Member States, the ILO, OECD and other authoritative bodies, to conduct a continuing, specific examination of the effectiveness of policy responses to the present unemployment problem; and to present a first report on the findings to the European Parliament, Council and both sides of industry in 1993;

(e) to pursue its work to improve labour mobility at Community level, in particular through Regulation (EEC) No 2434/92 (Eures)(1) .

7. CALLS ON the Member States:

(a) to promote dissemination and discussion of the matters addressed by this resolution within each Member State, notably by way of both sides of industry;

(b) to pay close regard to the terms of this resolution in drawing up and operating their own labour market policies and measures.

8. UNDERTAKES:

(a) to discuss once every six months, in appropriate fora, including as appropriate the Standing Committee on Employment, key aspects of the employment situation in the Community and/or relevant labour market programmes and policies, and to promote dissemination of the conclusions of those discussions;

(b) to discuss each year the most recent annual report from the Commission on 'Employment in Europe' and to propose to the Commission issues to be addressed as part of the following year's report and to be disseminated more widely;

(c) to bring this resolution to the attention of the European Parliament, the Economic and Social Committee and both sides of industry in the framework of the Social Dialogue, and to seek their comments on the resolution with a view to informing continued consideration at Community level of the problem of unemployment.

(1) OJ No L 245, 26. 8. 1992, p. 1.