EN Official Journal of the European Union C 311/7

Opinion of the European Economic and Social Committee on ‘Employability of young people — matching training with industry needs in an age of austerity’

2014/C 311/02

Rapporteur: Mr Dumitru Fornea

Co-rapporteur: Mr Tommaso Grimaldi

On 11 July 2013 the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on

Employability of young people — matching training with industry needs in an age of austerity.

The Consultative Commission on Industrial Change, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 8 April 2014.

At its 498nd plenary session, held on 29 and 30 April 2014 (meeting of 30 April), the European Economic and Social Committee adopted the following opinion by 156 votes in favour and 2 votes against.

1. Conclusions and recommendations

1.1 The severe Youth unemployment crisis requires that governments, employers, workers and civil society work harder and together to promote, create and maintain decent (1) and sustainable jobs. The issue has become a political as well as an economic challenge. The EESC has already stresses that a real growth strategy at EU and national level is needed to support the creation of better and more stable jobs for young people. The EESC considers that it is paramount for governments to make impressive and corrective efforts to keep the crisis from worsening.

1.2 As agreed by the European Council in its conclusions of June 2013, the EESC considers that Member States should make every effort to ensure that the Youth Employment Initiative (YEI) and the Youth Guarantee (YG) are fully operational without delay. The allocation of national and European funds for education and training, Youth employment and long-term unemployment must be substantially increased.

1.3 The EESC strongly recommends that the concrete action plans already adopted by MSs to tackle youth unemployment and youth employability be submitted for regular evaluation, with civil society involvement. The EESC believes that in those plans and programmes, concrete measures should be taken to enable young graduates to have workplace skills, including among others management and team work expertise, problem-solving and creativity abilities to improve their versatility and possibilities on the labour market.

1.4 The EESC recommends that Member States, and all the authorities involved, should consider the employability as an ongoing process which affects the entire working life. Member States should foresee and create tools and conditions in order to help people to update, improve and evaluate their employability level. Increasing the recognition and transparency of skills and qualifications has an important role to play in matching the employability of youths searching for jobs with the needs of the market as well their mobility. EESC supports EU policies to increase the recognition and transparency of skills, competences and qualifications and their related tools, such as the EQF, ESCO, Europass and the quality assurance and credit systems.

1.5 The EESC affirms with conviction that the responsibility of employability is not only individual. Employability is a matter that should be faced and shared by all stakeholders: governments, social partners, universities, schools, local authorities, individual workers, among others. An improved partnership between enterprises and education institutions is strongly recommended, and in this regard, high quality in-company training programmes should be promoted in line with the principles and the methods of the European Alliance for Apprenticeships and the proposed Quality Framework for Traineeships.

1.6 Member States should provide incentives to those universities and R&D units that offer degree courses in line with globalised market needs. This could also be useful in terms of promoting a high level of professionalism.

1.7 Concerned by the recent trends of reducing education budget in several MS, the EESC recommends that EU Members allocate enough resources to ensure that education personnel provide a quality education for all. The teaching profession in Europe is not seen as an attractive one and suffers from shortages, a problem that could increase in the near future (2). Decent working conditions, salaries and pensions are necessary to make Education an attractive career option.

1.8 The EESC welcomes the EC's decision to establish the Erasmus + programme, which also fosters cross-border vocational training, and hopes that, as agreed, this will be fully operational without delay. The agreement reached between the European Parliament and the Council on the recognition of professional qualifications is particularly welcome.

1.9 The EESC welcomes the Framework of Actions on Youth Employment agreed by the social partners in June 2013. At a time of economic and social crisis, Europe must fully utilise the potential of its population from all socio-economic backgrounds, while ensuring cost-effectiveness.

1.10 The EESC reaffirms its conviction that EU initiatives designed to tackle the problem of youth unemployment should result in concrete measures that will promote an effective industrial policy aimed at advancing European industry and boosting its competitiveness in a socially acceptable and sustainable way.

1.11 The EESC recommends that the MS pay particular attention to the negative effects of the systematic use of temporary contracts for young people, which has also important implications for social security nets (fewer contributions) and the social cohesion of Member States.

1.12 The EESC feels that investment to improve youth employability is crucial for the future of European economies and societies. The initiatives approved should be easily accessible for all young people without discrimination or gender bias, and they should be accompanied by concrete measures for inclusion. Relevant stakeholders (including social partners and youth organisations) at local, regional and national level should be involved in designing, implementing and evaluating the outcomes of these initiatives.

1.13 Concrete national and local measures should continue to be developed to offer a lifelong learning accessible to all, with social partners and civil society participation and regular outcomes evaluation.

1.14 In work-based learning models, such as dual learning systems, a significant part of the training is conducted within companies. Young workers should have the possibility to alternate between learning in school and on-the-job training in a company. The EESC is convinced of the success of dual learning systems like implemented in some Member States. Shared responsibilities both on public as well as on business side to invest in the future is key for successful apprenticeship schemes.

1.15 The Committee recommends that steps be taken to ensure the quality and relevance of the proposed activities, and to establish an appropriate framework, whereby the responsibilities, rights and obligations of each stakeholder are clearly formulated and are enforceable in practice. The social dialogue between employers and trades unions should continue to be developed, and utilised as an important tool to identify future labour market perspectives, to foster job creation, to share training practices more adequate to labour market needs and to encourage young women and men to improve their skills and capabilities in order to better respond to the developing needs of industry.

1.16 The current economic and social crisis is imposing constraints on the EU Member States' budgetary decisions, especially those subject to fiscal adjustment programmes — a situation that is exacerbated by the reduction in the EU's own budget. Considering the central role covered by education in the development of employability conditions, the EESC recommends that Member States improve the resources allocated for quality education that should be considered not as expenditure but as essential investment to overcome the crisis and build a better future for all. In view of this, the EESC has endorsed the European Citizens Initiative on ‘Education is an investment! Do not count education as part of the deficit!’ (3). The Committee warns that the cuts being applied to education and training budgets are in danger of turning vital initiatives and proposals into mere statements of good intention. Taking into consideration the importance of education and training in tackling youth unemployment, the EESC strongly recommends that the EC organises a ‘European education and training day’ in 2015.

1.17 The EESC considers that industries and enterprises should invest in production facilities and implement their salary and communication policies in order to increase the attractiveness of the industrial sector. Improving the dialogue between enterprises and vocational training associations could represent an important step in order to face the theme of employability and could reduce the mismatch between demand-side and supply-side.

1.18 All the initiatives adopted to improve youth employability should be adequately funded, via the ESF and other Structural Funds. The EESC recommends that, when using the Structural Funds, particular emphasis should be placed on youth employability, including action to re-programme unspent funds where appropriate

2. Introduction

2.1 European industry comprises a wide range of companies, including large companies, SMEs, and micro-industries with different labour requirements. It therefore needs workers with different skills and capacities. These differences should be taken into account when designing education and training systems. The social dialogue between employers and trades unions should continue to be developed and utilised as an important tool to identify future labour market perspectives, to foster job creation, to share training practices more adequate to labour market needs and to encourage young women and men to improve their skills and capabilities in order to better respond to the developing needs of industry.

2.2 The EU and the Member States need an industrial policy that facilitates growth and encourages the creation of new high-quality jobs (4). The EC considers that a strong partnership is needed between the EU, Member States and industry, in order to ensure an effective cooperation framework and to stimulate investments in technologies and human resources giving the European industrial sector a competitive advantage over global competitors. To tackle this and the general issue of employability in industry, the EC gave assurances (5) that one of the pillars of the new industrial policy would be investments in people and skills.

2.3 The financial crisis which started in 2008 has severely wounded many European economies and until now recovery has been developing very slowly. An issue that could make the recovery more difficult and which consequences for the future could be even more disturbing is the youth unemployment crisis, which requires governments, employers, workers and civil society to work together to promote, create and maintain decent and productive jobs.

2.4 European leaders seem to take this crisis seriously, but as the Committee has stressed in previous opinions (6), the new initiatives won’t help to solve the problem unless they address the roots of it. The issue has become a political as well as an economic challenge. It would be wrong to generalise — the situation is certainly not the same in every country and at local level, but for many young Europeans, however, completing and funding their studies, finding not just a short-term job or a traineeship but a real job, starting their own project or business, living independently or raising a family are all part of the same daily struggle. Even if unemployment is not a new phenomenon in Europe, increasing youth unemployment is one of the most visible effects of the current economic crisis, both in relation to job destruction and the non-creation of jobs (7).

2.5 Many EU positive initiatives (like the YGI) will offer job training and apprenticeships. However they do not always guarantee access to a job. And this highlights a major disconnect: jobs are normally a consequence of economic growth. The EESC has already stressed that a real growth strategy at EU and national level is needed to support the creation of better and more stable jobs for young people. The EESC considers that it is paramount for governments to make impressive and corrective efforts to keep the crisis from worsening. As the EC has pointed out, ‘young people hold the key to Europe's future dynamism and prosperity’ (8).

2.6 The concept of ‘employability’ has no single universally accepted definition, it is a dynamic concept and there is a general trend towards a broadening it to include contextual factors. Despite its importance in labour market discourses, is difficult to measure and there are multiple approaches to defining employability. As such, employability is affected by both supply-side and demand-side factors which are often outside the individual's control. At a time of economic and social crisis, Europe needs to fully utilise the potential creativity, energy and capacities of its population, from all socio-economic backgrounds. Strong and very active civil society organisations play an important enabling role.

2.7 Employability is largely determined by the quality and relevance of the education and training provided by national and local authorities. While noting that local authorities are working to strike the right balance to enable improvements in this respect, the EESC considers that the current education and training systems do not always coherently reflect decisions taken at European level. Despite the Commission calls, in the context of the OMC, to local authorities to share their institutional responses to the problems of youth mobility and training, improve the quality of training, certification and updates, respond appropriately to the needs of the labour market, comply with a timetable of achievements related to shared objectives and with benchmarks and results, analyse and integrate the findings of studies and research, there are still too many institutional obstacles and an absence of real commitment standing in the way of a real European shared area of Education and Training.

2.8 Employers are aware of the skills and capacities of today’s employees, but need to be more aware of the skills and capacities of future employees in a fast changing workplace, in particular because of the development of technologies that make it vital for employees to continually acquire and update their skills. Companies have different characteristics and different needs, making it essential for education and vocational training to be adaptable and flexible in the skills they teach. As the EESC stressed in its opinion SOC/476, a better and more relevant cooperation between education institutions at all levels and industry is strongly needed.

2.9 Given that education and vocational training are not the only elements that shape the employability of an individual, focusing on education alone is too restrictive an approach. Quality traineeship schemes, work-based learning (in school or companies) or apprenticeships and targeted employment programmes must be considered key ways of getting young women and men onto the labour market, but they cannot be seen as the ultimate solution to the problem of employability. It is important to recognise that labour markets are embedded in society and culture, as are economic institutions, and that informal norms and customs also shape labour market practice.

2.10 The EESC believes that what has been discussed and approved at European level on education and training cannot be reduced merely to an exchange of good practice. In this respect, it is hoped that training systems will be capable of responding to employment needs, creating new professionals that can cope with the constant changes in work organisation and modern society. Considering, therefore, the deadlines laid down for ET 2020 and the Bruges Declaration, the EESC calls for an evaluation and a careful analysis of how commitments are implemented in practice and objectives achieved.

3. General comments

3.1 In a number of opinions, the CCMI has highlighted a host of economic, industrial and social issues including employability and re-skilling, in particular during the current crisis (9). Linked to the proposed Guarantee for youth employment approved by the European Commission in June 2013, the European social partners (10) presented a Framework for joint action on the employment of young people focusing on knowledge, the transition from school to work, employment and the development of entrepreneurship.

3.2 Young people are the present and the future of Europe and a rich source of dynamism in our societies. However, the social and economic inclusion of young people presumes and requires a sequence of successful transitions. In a context in which the transition to adult life has become more complex, quality education for all and inclusive labour markets are key vehicles of those successful transitions. A holistic approach is needed to foster dynamic, open and mobile labour markets for young people with measures and appropriate resources focusing on the creation of more and better jobs, high-quality learning outcomes, and a better match between skills supply and demand, including through the spread of work-based learning across Europe.

3.3 Civil society organisations in many Member States (in particular those hardest hit by the current crisis) have in various ways stressed the importance of combining an individual approach to labour market needs with a collective approach (the context, environment, work organisation and working conditions) that would take account of young people's expectations and aspirations. To be fully effective, such measures should be incentivised by European funding and growth — enhancing measures, and not limited to the EUR 6-8 billion under the Youth Employment Initiative, a sum that should be substantially increased.

4. Specific comments

4.1 The principles and the working methods of the European Alliance for Apprenticeships and the Quality Framework for Traineeships, reinforces the EESC's conviction that apprenticeships, internships in enterprises and traineeships are important means for young people to acquire skills and work experience, and should form part of corporate strategies. The Committee recommends that MS and industry ensure the quality and relevance of the proposed activities, and to establish an appropriate framework, whereby the responsibilities, rights and obligations of each stakeholder are clearly formulated and are enforceable in practice.

4.2 Considering that obtaining recognised university degrees at various levels is important but it is no longer enough, the Committee believe that while implementing the YG plans and programmes concrete measures should be taken to enable young graduates to have workplace skills, including among others management and team work expertise, problem-solving and creativity abilities to improve their possibilities at the labour market.

4.3 In work-based learning models, such as dual learning systems, a significant part of the training is conducted within companies. Young workers should have the possibility to alternate between learning in school and on-the-job training in a company. The EESC is convinced of the success of dual learning systems like implemented in some Member States Shared responsibilities both on public as well as on business side to invest in the future is key for successful apprenticeship schemes.

4.4 Stimulating learning makes sense, provided that this task does not depend solely on the effort that each person can and must make. Otherwise, the groups that are already the most disadvantaged or marginalised will, collectively, remain segregated. Concrete national and local measures should continue to be developed to offer a lifelong learning accessible to all, with social partners and civil society participation and regular outcomes evaluation.

4.5 When reviewing education/training systems it is important to ensure that Education can remain an attractive and competitive profession. Revitalising the teaching profession is also in tune with the developing needs of the labour market. Highly motivated and well-prepared teachers are needed to be able to handle the diverse range of demands from society, industry and students.

4.6 Education, training and careers advice should support young women and men in their efforts to gain a better education, qualifications and skills. Career guidance materials should include clear information about available jobs and career prospects on the labour market (11). The EESC welcomed the European Commission's decision to establish the Erasmus + programme, which also fosters cross-border vocational training, and hopes that, as agreed, it will be fully operational in 2014. The agreement recently reached between the European Parliament and the Council on the recognition of professional qualifications is particularly welcome.

4.7 Member States should provide incentives to universities and R&D units that offer degree courses in line with globalised market needs; this could help to promote a high level of professionalism.

4.8 Introducing mandatory training could be considered a kind of ‘career insurance’. However, apprenticeship and traineeship must not become a way of disseminate cheap or unpaid labour. Industry best practices should be recognised and abuses should not be tolerated. Any learning or training period must result in a diploma or certificate recognising the qualifications gained.

4.9 Taking into account the existing differences between young men and women entering labour markets, the EESC emphasises the importance of approaching youth unemployment with an appropriate gender perspective, including concrete action where required. The Council Recommendation on Establishing a Youth Guarantee thus specifies that YG schemes should pay attention to the gender and diversity of the young people who are being targeted (12).

4.10 To improve employability, every effort must be made to reflect actual conditions on the ground. The more policy measures do this, the greater their chance of boosting employability. Any action designed to foster economic development must be linked to on-the-ground conditions as this is the only path to sustainable excellence. Creating local partnerships will be useful to increase dialogue and actions to confront Youth unemployment. Local institutions, universities, youth organisations, public authorities and vocational training bodies, unions and employers operating in the same local area should find way of working together to identify possible common strategies. Local characteristics and needs will be better recognised and taken in to account to improve employment opportunities for young people.

4.11 Member States should include entrepreneurship courses in school curricula and promote entrepreneurship in work-based learning models, in line with the new Entrepreneurship 2020 Action Plan launched by the European Commission. Entrepreneurship should be considered as a broad concept encompassing more than just business start-ups. People have to learn and understand how to be entrepreneurs in their own lives from a young age. Entrepreneurship education should prepare people for life by teaching them to show initiative, take responsibility and analyse situations. The EESC believes that developing skills and competences such as creativity, initiative, tenacity, and teamwork are essential for all, not just for future entrepreneurs who want to set up businesses. These skills should equip a generation to work effectively in all sectors and drive the infrastructure needed for a successful European economy.

4.12 The Commission recognises that Europe ‘needs a thorough, far-reaching cultural change’ (13), to introduce effective entrepreneurial learning methodologies in the classroom. The EESC also recommends that changes be introduced in teacher training and Member States should be advised to make sufficient provision for teacher development in this area. Policy delivery is contingent on appropriate staff, which needs to be trained and supported.

4.13 In earlier opinions, the EESC (14) has drawn attention to the implications for the employment of young women and men of reducing the role of permanent contracts, and recommended considering the risks arising from this development. Temporary contracts, which are now commonplace for young people, particularly at the start of their careers, have led to a more segmented labour market. The EESC recommends that the Member States pay particular attention to this aspect, which also has important implications for social security nets (fewer contributions) and the cohesion of Member State societies.

4.14 The current economic and social crisis is imposing constraints on the EU Member States' budgetary decisions, especially those subject to fiscal adjustment programmes — a situation that is exacerbated by the reduction in the EU's own budget. The Committee warns that the cuts being applied to education and training budgets are in danger of turning vital initiatives and proposals into mere statements of good intention. In view of this, the EESC endorses the European Citizens Initiative on ‘Education is an investment! Do not count education as part of the deficit!’.

4.15 All initiatives to improve youth employability should be implemented promptly across Europe, and adequately funded via the ESF and other Structural Funds. The EESC feels that this is crucial investment in the future of European economies and societies. These initiatives should be easily accessible for all young people without discrimination. Relevant stakeholders (including social partners and youth organisations) at local, regional and national level should be involved in implementation and evaluation of their outcomes. The EESC recommends that, when using the Structural Funds, particular emphasis should be placed on youth employability, including action to re-programme unspent funds where appropriate.

Brussels, 30 April 2014. The President of the European Economic and Social Committee Henri MALOSSE

(1) The Decent Jobs concept was formulated by the ILO’s constituents — governments, employers and workers — based on the understanding that work is a source of personal dignity, social cohesion, peace in the community and democracy and economic growth that expands opportunities for quality jobs and enterprise development. ILO, www.ilo.org.

(2) See ‘Key Data on Teachers & School Leaders in Europe’. 2013 Eurydice Report, European Commission.

(3) Initiated by Greek citizens and promoted by DIKTIO — ‘The Network’.

(4) The European Commission proposes that by 2020, the industrial sector should account for 16 % of the EU's GDP.

(5) European Commission, 10 October 2012, ‘A Stronger European Industry for Growth and Economic Recovery’.

(6) OJ C 68/11, 6.3.2012, p. 11-14, OJ C 143/94, 22.05.2012, p; 94-101; OJ C 299/97, 4.10.2012, p. 97-102; OJ C 11, 15.1.2013, p. 8-15;OJ C 161, 06.06.2013, p. 67-72.

(7) ‘In times of economic downturn, young employees are not only the “last in” but also the “first out”, since it is more costly for employees to lay off older workers. Young workers are less likely to have had company training, have fewer skills, and are often on temporary contracts’ […] ‘Even when youth are employed, they may not be in good jobs. In the developed world they are often on temporary contracts to make it easier to lay them off, or they are “underemployed” in jobs below their qualifications.’ (World Economic Forum — Youth Unemployment visualization 2013) http://www.weforum.org/community/global-agenda-councils/youth-unemployment-visualization-2013.

(8) COM(2013) 447 final, June 2013.

(9) ‘Industrial policy has a strong social dimension that affects all layers of society […] the education sector and universities, consumers and citizens. Industrial policy relates both to restructuring and anticipation. It should provide up-to-date education, training and information, and foster technology, innovation, creativity, and entrepreneurship. Demographic change must also be anticipated and reacted to appropriately.’OJ C 327, 12.11.2013, p. 82.

(10) ETUC, BUSINESS EUROPE, UEAPME and CEEP, 11 June 2013.

(11) OJ C 327, 12.11.2013, p. 58-64.

(12) ‘The Commission recognises that gender is one of the dimensions that policy measures should take into account in order to effectively fights youth unemployment.[…]. Young women are more likely than young men to be not in employment, education or training […] Young men more frequently experience a successful transition path (i.e. ending with a permanent contract). In contrast, young women are more likely to be part-time and temporary workers and to start in the doubly fragile position of a temporary, part-time job. The Council Recommendation on Establishing a Youth Guarantee thus specifies that Youth Guarantee schemes should pay attention to the gender and diversity of the young people who are being targeted.’ Commissioner László Andor, Employment, Social Affairs and Inclusion, May 2013.

(13) European Commission’s Communication on Entrepreneurship 2020 Action Plan.

(14) EESC opinion on ‘Youth opportunities initiative’, OJ C 299, 4.10.2012, p. 97–102.