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COMMISSION OFTHEEUROPEAN COMMUNITIES
A*■»****;M%^COM(82)719final
Brussels.5november19°2
COMMUNICATION OPTHECOMMISSION
TOTHEJOINTMEETINGOPMINISTERS OPFINANCEANDECONOMICAFFAIRS
ANDEMPLOYMENT ANDSOCIALAFFAIRS
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COMMUNICATION OFTHECOMMISSION
TOTHEJOINTMEETINGOFMINISTERS OFFINANCEANDECONOMICAFFAIRS
ANDEMPLOYMENT ANDSOCIALAFFAIRS
Contents
1.Introduction
2.Theeconomicsituation :prospectsanduncertainties
3.Communityinitiatives intheeconomicandsocialfield
(i)Strengthening theeconomicenvironment
(ii)Reorganisation ofworkingtime
(iii)Increaseofemploymentopportunities foryoung
people

1.-
Communication oftheCommissiontothejointmeeting
ofMinistersoffinanceandeconomicaffairs,
employment andsocialaffairs,
16November1982.
1.Introduction
Inresponsetotheincreasingly acuteproblemofunemployment in
theCommunity,theEuropeanCouncilin1981summonedaJointCouncil,with
theparticipation ofMinistersoffinanceandeconomicaffairsandof
employment andsocialaffairs.ThiswasheldinLuxembourg on11June1981.
Thepurposewastodevelopahigherdegreeofmutualunderstanding ofall
aspectsoftheunemployment problemandtoexamineincommontheeconomic
andsocialsituationandthescopeforfurtherCommunityinitiatives aimed
atcomplementing andstrengthening adjustmentpoliciesintheMemberSta­
tes.
TheJointCouncil,inparticular,examinedwaystoimprovethe
generaleconomicenvironment,toreduceunemployment andtoincreasethe
capacityofoureconomiestoadapttoeconomicchanges.TheJointCouncil
expressedinterestinexaminingtheexperienceofsomeMemberStateswith
respecttoadaptationofworking-time andstressedtheimportanceofcom-
battingyouthunemployment andofensuringappropriateprofessional
experienceforyoungpeople.Theanxietieswhichpromptedthecallingof
the1981JointCouncil,however,havebeenincreasedratherthanallayed
sincethenbythetrendinunemployment andothereconomicindicators.
Thisreinforcestheneedforacomprehensive strategyofrecovery,
comprising arangeofpolicieswhichcantogethercallforthastronger
socialconsensus.

ThepresentCommunication,afterashortanalysisofthecurrent
economicsituationandprospects,takesstockofdevelopments onvarious
pointsofinteresttotheJointCouncilandidentifiesareaswherepar­
ticularfurtherCommunityinitiatives andcoordination effortsare
required.Thediscussionshouldalsotakeintoconsideration thevarious
communications andproposalstotheCouncilwhichareunderexamination .
TheCommission wishestounderlinethatthesecommunications and
proposalstogetheraimatprovidingamorecomprehensive strategytocope
withthepresenteconomicdifficulties .TheCommissionaskstheCouncilto
expressitssupportbothfortheactionsfiguringinthisCommunication and
fortheotherinitiatives alreadyproposedtotheCouncil.
2.Theeconomicsituation:prospectsanduncertainties
SinceJune1981,unemployment hasincreasedsharplyandbySep­
tember1982exceeded11millionpersons(morethan10%ofthelabour
force).Thisdeterioration isinteraliatheresultofthepoorgrowth
performance intheCommunitysincethen:theCommunity'sgrossdomestic
producthardlyroseatallduringthesecondhalfof1981andstagnatedin
thefirsthalfof1982,mainlyasaresultofweaktrendsinexports
(+0,3%overthesecondhalfof1981)andininvestment(-3,8%overthe
secondhalfof1981)intheCommunity.
Although\herateofinflationhasbeenreducedin1982toabout
10%onaveragefortheCommunitythedivergenceofinflationratesamong
MemberStatesremainsveryhighwiththeincreaseinconsumerprices
rangingfrom23to5%.Thedeficitonthecurrentaccountofthe
Community'sbalanceofpayments,whichreached1,4%ofgrossdomesticpro­
ductin1980,maybereducedto0,7%ofGDPin1982.Thegeneralgovern­
mentborrowingrequirement,ontheotherhand,isestimatedat5,0%ofGDP
in1982oralmostthesameasin1981.Inboththeseareasdifferences bet­
weenMemberStatesareverylarge,withbudgetdeficitsrangingfrom15%
tolessthan1%ofGDPandexternaldeficitsreaching9%ofGDPinone
casewhilesomeMemberStatesrecordasurplusupto4%ofGDP.

TheannualnumberofnetentriesintotheLabourforceintheearly
'eightiesremainsfortheCommunityasawholeclosetoonemillionpeople
(1).Overthisdecadethenetentrieswillgraduallydecline,butremain
positive.Inordertoachieveanoticeablereductionofunemployment,in
additiontoabsorbingthenetentries,thetotalnumberofjobsintheCom­
munitywould,therefore,havetoincreasebyconsiderably morethan
1millionperyearoverthenextfewyears.
Themedium-term outlookforeconomicgrowthandemploymentremains
bleak.Thereasonsforthenewandunexpected weakeningofeconomic
prospectsarecomplex:
-thehighlevelofinterestratesresultingfrominstability anddisorga-
nisationoftheinternational monetarysystemhascertainlybeenamajor
factor;
-moreoverinternational tradehasstagnated :indeedthefinancialdif­
ficultiesofmanylessdevelopedcountriesaswellassomecentrally
plannedeconomieshaveforcedthemtoreducetheirimportsfromtheCom­
munity.AtthesametimemanyOPECcountriesweretoanincreasing
extentlimitingtheirpurchasesfromabroad;
-withintheindustrialised countriesmanyfirmshaveexperienced
increasingproblemsinservicingtheirdebtsandhaveconsequently been
cuttingdownoninvestment,stockbuiIdingandemployment.
Thepresenteconomicdifficulties arenotonlyduetothesefactors,
butalsototheCommunity'sdifficultyinadaptingtochangesin
theeconomicenvironment andinundertaking necessarystructuralandinsti­
tutionaladjustments :
-toolittlehasbeenaccomplished intermsofsubstitution ofoilbyother
energysources;asaresulttheCommunity'sdependenceuponimportedoil
remainsexcessive;
(1)Unpublishedestimatecalculated byEurostatonthebasisof1979
participation rates.

-inmanyMemberStates,
theneedtomaintainaincomeformationhastakeninsufficient account
profitableanddynamicenterprisesector;of
-despiteconsiderableeffortstocontaintheriseinsocialexpenditure
severalMemberStateshavebeenunabletoadaptthelevelandpar­
ticularlythegrowthofpublicexpendituretoconditionsofslowerGDP
growth;asaconsequence budgetdeficitsinsomecountrieshaveincreased
tosuchproportionsthattheirfinancingiscreatingseriousinternalor
externalproblems;
-moreover,facedwiththeneedtocontainbudgetdeficits,governments have
tendedtoreducetheshareofthosepublicexpenditurecategories which
contributedirectlytoeconomicdevelopment aswellastoimprovedcom-
petitivity andthustotheconditionsforhigheremployment;
-existingrigiditiesinthelabourmarkethavebeenreinforced bythe
reluctanceoftheworkforcetocontemplate geographical andoccupational
mobilityinthefaceofincreasingly insecureemployment,housingdif­
ficultiesandalackofvacanciesforotherfamilymembers.
Inanycasethesedifficulties aswellasthestructuralmeasures
necessaryforfindinglastingsolutionsrequirethatallthesocialpart­
nersbewillingtocooperateeffectively inthecreationofabettersocial
consensus. s
3.Communityinitiatives intheeconomicandsocialfield.
Europe'smostpervasiveproblemisnowthehighandgrowinglevel
ofunemployment .Giventheseverityofthecurrentrecessionandthe
recentsharpaggravation ofunemployment,economicandsocialpolicyinthe
Communityshouldbegearedevenmoredirectlytowardsthecreationofan
economicenvironment morefavorabletoemploymentcreation.TheCommission
hasalreadypresentedinseveraloccasionstheeconomicpolicymeasures
whichitconsidersappropriatetothisend:theCommissionwishesto

underlineyetagainthatthesemeasures,-whichmustbetakenatnational
andCommunitylevgls,areabsolutepre-conditions foralastingimprovement
intheemploymentsituationintheCommunity.Theseeconomicpolicy
measuresconcentrate onstabilisingtheinternational monetaryandfinan­
cialsituation,onimprovingthecompetitivity oftheeconomyandon
buildingontheachievements ofthefightagainstinflation.Thedangers
andrisksofthepresenteconomicsituationcanonlybecheckedand
reversediftheappropriatepoliciesarebackedbyastrongersocialcon­
sensusandabroadei–basedwillingnesstoacceptandsharetheadjustment
processinpublicfinanceandlabourcosts.Moreoverwhilenotforgetting
theeconomicconstraints andthefactthatrigorousmeasuresarenecessary,
effortsshouldbemadetoensurethattheburdenofthepresenteconomic
difficulties doesnothaveanexcessiveimpactonthemorevulnerable
groupsandthatexistingsocialinequalities arenotfurtherwidened.
TheCommissiondevelopsbelowelementsofthosepolicieswhich
areofparticularinteresttotheJointCouncilunderthethreefollowing
headings:
(i)Strengthening theeconomicenvironment;
(ii)Reorganisation ofworkingtime;
(iii)Improvement ofemploymentopportunities foryoungpeople.
ι
(i)Strengthening theeconomicenvironment
Themainobjectiveofeconomicandsocialpolicymustbethe
recreationofsucheconomicconditionsthatenterprisesarepreparedto
investandtoabsorbtheincreasedlabourforceinprofitableandcom­
petitivejobs.TheCommissionthereforeconsidersitnecessaryto
constructthebasisforinvestment-led growththrough,notably,initiatives
aimedatimprovinginternational economicandfinancialstability,

atincreasingconvergence andstabilitywithintheCommunitywhile
achievingthebestpossiblelevelofactivity,andatpromotingstructural
changeandexpansionofinvestmentinthemediumterm.
a)International economieandfinancialstability
Inthisarea,theCommunity,actingonthebasisoftheEMS,must
endeavourtoensurethataneffectivemonetarycooperation beestablished
betweentheUnitedStates,JapanandtheCommunityalongthelinesofthe
conclusions oftheVersailles Summit.Itisindeedessentialforstabilisa­
tionandadjustmenteffortsinMemberStatestobesuccessfulthatthe
wholeinternational monetarysystemismanagedinsuchawayastoallow
interestratestodeclineinlinewiththeslowdownofinflationandto
assureabetterstabilityinexchangerates.
Moreover,intermediate financingtosupportadjustmentpoliciesand
toeliminatetherealriskofacumulative downturninworldtrademustbe
providedbytheindustrialised countriesandtheirmainfinancialinstitu­
tions.Asthelargesttradingblockintheworld,theCommunityhasapar­
ticularinterestinensuringstabilityintheinternational monetaryand
financialsystem;theCommunity,inparticular,isinfavourofincreasing
theresourcesavailabletodevelopment ingeneralandnotablytheInter­
nationalMonetaryFundandtheWorldBankasanecessarycomplementtothe
privatecapitalflows.TheCommunity'sowndevelopment aidprogrammes,
moreover,haveanimportantroletoplayinthefinancingofdevelopment
effortsintheLDC'sandtheCommission,inthecontextofageneralreview
ofaidpolicies,hasrecentlysuggestedanincreaseinCommunityresources
forthispurposetooneperthousandoftheCommunity'sGDPoverthecoming
10years(1).However,evenacontribution atthislevelwouldonlybea
smallcomplementtotheeffortswhichmustbemadebytheMemberStates.
(1)Commission memorandum ontheCommunity'sdevelopmentpolicy,
C0M(82)640Final.

b)Increaseofconvergence andeconomicstabilitywithintheCommunity
WithintheCommunityadvantageshouldbeincreasingly takenofthe
contribution whichtheEuropeanMonetarySystemcanbringtothebuilding
ofamorestableenvironment whichismoreconducivetothedevelopment of
realactivityandthustotheimprovement oftheemploymentsituation.The
EMSin1981and1982hasgivenproofofitscapacitytoaccommodatecentral
rateadjustments whilemaintainingitscohesioninfaceoftheinstability
ofthedollar.AsproposedbytheCommissioninitscommunication of
February1982(1),itisnecessaryatthesametimetostrengthentheEMS
mechanisms andtoreinforcetheconvergence ofeconomicperformances
throughaclosercoordination ofeconomicpolicies.Inthisrespect,
domesticmonetaryandbudgetarypolicies,aswelLaseffortstonarrow
divergences inpriceandcostdevelopments shouldcontributesubstantially
tobalanceofpaymentsadjustment.
Inviewofthisobjective,butalsowiththepurposeoffreeing
budgetaryresourcesforhighpriorityexpenditure,theCommissioninits
Communication onBudgetaryDisciplineandEconomicConvergence (2)proposed
aframeworkforareductionofgovernmentbudgetdeficitsandabetter
controlofmedium-term trendsinpublicexpenditure.Generalsupportfor
theprinciplesofbudgetarydisciplineoutlinedinthiscommunication would
contributesignificantly tomoderatinginflationexpectations andfacili­
tateareductionofinterestrates.
Theimplementation ofthesepoliciesmustbegraduatedinresponse
totheemploymentsituationandtheoverallcyclicaldevelopment anddif­
ferentiated accordingtothesituationoftheindividual MemberStates:
-mostMemberStatesareinneedtoreestablishurgentlycontrolovertheir
budgetsaswellastointensifytheireffortstobringaboutalasting
deceleration ofinflation;
(1)C0M(82)133Final.
(2)C0MC82)422Final.

-atthesametime,inviewofthepresentriskofcumulativedeflation,
countriesrecordingasatisfactory slow-downininflationandwhichare
inamorefavorablefinancialpositionshouldavoidactiontooffset
increasesinbudgetdeficitsthatwouldresultfromafurtherworsening
oftheeconomicsituation.Interestratereductionshouldstillbea
priorityobjectiveinpresentcircumstances .Butasandwhenthescope
forinterestratereductionisexhausted,ifnoimprovementisinsight
andprovidedthatthepaceofinflationhasslowedmarkedlyandthatthe
publicfinancesarenotexcessivelyoutofbalances,budgetpolicyini­
tiativestosupporteconomicactivitycouldbecomewhollycompatiblewith
monetarypolicyobjectives.Suchbudgetaryactioncouldtypically
includetaxcutsorchangesintaxandexpenditurestructuresdesignedto
havemaximumsupply-side andemploymentbenefits.
c)Medium-term policyandstructuralchange
TheCommunityshouldnowtakeallpossiblesteps,includinga
betterutilisation ofitsowninstruments,toimprovethemedium-term eco­
nomicprospectsthroughasetofpoliciesaimedataccelerating structural
changeandstrengthening thecompetitiveness ofenterprises.Initsreview
oftheproblemofinvestmentintheCommunity(1)submittedinJuly,the
Commissionstressedthataninvestmentdriveisnecessarytosafeguardthe
competitiveness oftheCommunity'sindustry,torelaxtheenergy
constraint,topermitareturntogrowthandtocreatenewjobs.Strong
supportforanexpansionofinvestmentasamajorinstrumentofemployment
creationwasalsoexpressedintheresolutionoftheCouncil(Social
Affairs)of12July1982(2).
Amobilisation ofresourcesinfavourofinvestmentisnecessary :
inparticularanincrasingshareofsavingsmustbedirectedtowardspro­
ductiveactivity.Adequatemechanismsshouldbeputinplacetoensure
(1)C0M(82)365Final.
(2)OJC181/121July1982.

thatsuchamobilisation actuallyoccursandhasthedesiredpositive
employmenteffects:itistheresponsibility ofbusinessestoachievea
genuineimprovement intheircompetitivepositionbymakingfullandeffec­
tiveuseofinvestmentopportunities .Suchaneffortmustresultinan
effectiveincreaseoftheshareofinvestmentinGDP.Thisimpliesinter
aliatheadaptationofexistingindexationmechanismswithaviewto
excludingfactorsoutsidecorporatecontrolsuchastermsoftradelosses,
consequences ofexchangeratedepreciation andchangesinindirecttaxa­
tion.Suchpoliciesshouldbeimplemented withoutprejudicetomeasures
necessarytoprotectincomesofthelowestpaid.
Althoughthegenerallevelofcapacityutilisationisamajor
determiningfactorforinvestment,theweaknessofinvestmentintheCom­
munitysincethefirstoilshockisalsoattributable touncertainties
aboutinflationandexchangerates,rigiditiesandregulations andother
economicandsocialobstacles.EffortstopromoteinvestmentintheCom­
munitymusttherefore,inadditiontoageneralpolicyconducivetomacro­
economicstability,includebothinitiativestoeliminateorreducesuch
obstaclesaswellasvariouspositivemeasurestoactivelyimprovethe
investment climate.
Publicauthorities haveaparticularresponsabilityinthefieldof
investment :whileunderthebudgetaryconstraint,theypossesspowerof
regulation andfinancialmeans;inaddition,inconditionsoflowgrowth,
theyarelessconstrained bytheneedforimmediatereturnsontheinvested
capitalthantheprivatesector.Publicinvestmentshouldbedirected
towardsthestimulation ofinvestment andemploymentgrowthintheprivate
sectorandwouldthuscontributetorestoringbusinessconfidence.
Adetailedproposalforinitiativestopromoteinvestment was
recentlypresentedbytheCommissiontotheCouncil(1).Inthiscom­
munication,theCommissionconsidersthatmeasuresoughttobetakenboth
intheMemberStatesandatCommunitylevel:
-nationalmeasuresshouldconcentrate onincreasingcorporateresources
availableforinvestmentandreinforcingtheefficiencyofinvestment
aidsandsubsidies,andonrestructuring thepublicbudgetsinfavourof
(1)C0M(82)641Final.

10.-
development-orientated expenditure;
-measurestobeadoptedatCommunityLevelinfavourofinvestmentshould
includeastrengthening oftheCommonMarketaswellasactioninthe
fieldofenergy,industrialinnovationandofR+D,inactivitiessuchas
information technologyandbio-technology ,andintheareaofindustrial
reconversion .
InordertoprovidetheCommunitywiththemeanstopursuesuchpolicies,
theCommissionhassubmittedtotheCouncilproposalsofabudgetarynature
(financialincentivesforinvestmentinthefieldofrationaluseof
energy,non-quotasectionoftheRegionalFund).Inaccordancewiththe
conclusions oftheEuropeanCouncil,theCommissionhasalsosubmittedto
Council,inOctober1982,.aproposalforanewtranche(3000millionECU)
fortheNewCommunityInstrumentforthefinancingofinvestmentin
infrastructure andenergy,andproductiveinvestmentingeneralwith
prioritygiventoinvestmentinsmall-andmedium-sized firms.
(ii)Reductionandreorganisation ofworkingtime
Reductionsinworking-time havetakenplaceaspartofgeneraleco­
nomicdevelopments thiscentury,thebenefitsoftheincreasesachievedin
productivity beingdividedbetweenincreasedleisureandariseininco­
mes.Morerecently,inviewofthepronouncedincreaseinunemployment and
thepooremploymentprospectsforthemedium-term,thequestionhasarisen
whetheranacceleration oftheprocessofworking-time reductionbeyondthe
actualtrendsmightcontributetoreducingunemployment particularly when
combinedwithareorganisation ofworkinghours.
AtEuropeanCommunitylevelthedebateonreducingandreorganising
working-hours andexpandingwork-sharing wasLaunchedinvarioussettings
in1978and1979,withaCouncilresolutionof18December1979fixingsome
generalCommunityprinciplesinthisfield.Inviewofsocialandeconomic
developments inthemeantime,theCouncil(SocialAffairs)on27May1982
requestedtheCommissiontopresent,beforetheendoftheyear,amemoran­
dumontheadaptationofworking-time .Aspartofitspreparatory work

theCommissionorganisedaseminaron5-7Octobertoreflectondevelop­
mentsinMemberStatesandoncurrentideasforthereorganisation of
working-time .Itwasnotedinteraliathatjobcreationandjobmain­
tenancethroughworkingtimereductionarebeginningtobecomeafeature
-alongsidewages,workingconditionsandproductivity arrangements -in
collectivebargaining.
Amoreefficientorganisation ofworkresultingfromsomereorgani­
sationofworking-time possiblyincombination withareductioninworking
hourscanleadtoanincraseinemployment.Howeverthiscontributionto
thereductionofunemployment dependsonanumberofprerequisites being
fulilled :
-first,thecompetitivepositionoffirmsshouldnotbeimpaired(i.e.
unitproductioncostsshouldnotincrease);
-secondly,theremustbesufficientflexibility inlabourmarketstopre­
ventbottlenecksarisinginthesupplyofspecifictypesoflabour;
-thirdly,schemesforthereorganisation ofworking-time musttakeinto
accountspecificconstraintsresultingfromdifferences inproduction
methodsand/orscaleofoperation.
Moregenerallytheseprerequisites meanthatanyattempttoreorga-
niseworking-time shouldbedesignedandnegotiatedatthemostappropriate
levelforassessingsatisfactorily difficultproblems,conflicting
constraints andpotentialadjustments infactorsofproduction.
Theneedtomaintainorreduceunitproductioncostsrulesoutfull
wagecompensation forthereductionintotalincomeresultingfromreduced
workinghoursanditmustbemadeclearthatthegreaterthewagecompen­
sation,thesmalleristhescopeforjobcreationeffects.

Overtimeworkingisforcertaintypesofenterprises,including
small-sized firms,anessentialelementofflexibilityinresponding,for
instance,tofluctuations inproductionoractivity.Insomesectors,
however,excessiveandsystematicovertimeworkisstillaregularfeature
andpartofexpectedincome.Thereisawidespreadgeneralagreementthat
systematicovertimeshouldbefurtherreducedandthatworking-time reduc­
tionsdesignedtoincreaseerrploymentopportunities shouldnotinsteadlead
toincreasedovertime.Measurestolimitthesystematicuseofovertime,
forexample,byintroducingtheprincipleof'time-offinlieu'insteadof
payment,needtobeundertakeninaccordancewiththeCommmunitypolicy
guidelinessetoutintheCouncil'sResolutionofDecember1979.
Greaterflexibility intheorganisation ofworking-time will,in
anyevent,becomeincreasingly necessarytoenableindustrytoadapttothe
requirements ofnewtechnology,inparticular bymakingitpossibleto
establishlongerproductionschedules.Thereisalreadyevidencethatthe
collectivebargainingprocesscan,inthiscontext,bringwithinitsscope,
negotiations onreductionsinworking-time designedtoincreasethenumber
ofjobsavailable.Suchdevelopments areseen,inparticular,incom­
petitivefirmsingrowthsectors.
Theprogressive reductionintheannualvolumeofworking-time is
not,therefore,justanendinitself,aswasthecaseduringperiodsof
economicgrowth,xbutcanalsobeameansofredistributing opportunities
foremployment.Whenspecificmeasuresforreorganising working-time can
meettheparticularneedsofindividualsectorsandcanalsofulfilthe
economicprerequisites referredtoabove,itcouldbepossibletoindicate
atCommunitylevelandforcertainsectorsthegeneralconditionsand
mechanismsfortheimplementation ofabetterorganisation ofworking-time .
Inanycasetheprecisearrangements concerningjobcreation,wagecompen­
sation,productivity improvements andsoonshouldbeleftfornegotiation
attheappropriate level.

Anyreductioninunemployment resultingfromthesedevelopments
willinturnmeanlowerexpenditure onsocialbenefitsandtransfersand
increasedtaxreceipts.Governements couldthereforeconsidertowhat
extenttheymightshareinthecostsoflaunchingnewworking-time arrange­
ments.Theyshouldalsoseektoremovelegalorotherobstaclestoamore
flexibleorganisation ofworking-time .Inordertostimulatepolicycon­
vergenceacrosstheCommunityinthewholeareaofworking-time organisa­
tion,theCommissionwillinparticularseektoinitiateadiscussion on
possiblesectoralindicationsforaCommunityapproachinaccordancewith
theCouncil'sresolutionof18December1979whichcouldputintoeffect
generalindicativeguidelines onworking-time atEuropeanlevel.
MoreovertheCommissionhasalreadytabledproposalsonseveralof
theaspectsofworkingtimereorganisation dealtwithintheCouncil's
Resolution.Onflexibleretirement,forinstance,adraftrecommendation
isbeforetheCouncilurgingMemberStatestotakestepstogiveworkers
therighttochoosethetimeoftheirretirementfromagivenage,in
accordancewithcertainprinciples.ItishopedtoachieveCommunity-wide
resultsinthisareawhereseveralMemberStateshavealreadyachieved
appreciable employmenteffects.
TheCommission'sdraftdirectiveonvoluntarypart-timeworkshould
beadoptedbytheCouncilandonceimplemented wouldendthesituationin
whichpart-timeworkershaveworseemploymentconditionsthanfull-time
workers,thusmakingitamoreacceptableformofemploymentandcon­
tributingtothewiderdistribution ofwork.Amoreactivepromotionof
part-timeworkshouldbeundertakenifandwhenthisnewlegislation comes
intooperation.Inthecreationofnewpart-timejobs,forexamplethrough
"jobsplitting",theprinciplethatthepart-timeoptionisvoluntarymust
bemaintained.

(iii)Specialmeasurestoincreaseemploymentopportunities
foryoungpeople
Therearealmost4millionyoungpeopleunemployedinthe
Community-thatisabout40percentofallunemployedworkers.Youth
unemployment hasbecomeapervasivesourceofanxiety,butinspiteofthe
wholerangeofspecificmeasuresthathavebeenlaunchedinrecentyearsto
assisttheyoungunemployed,itisevidentthatyoungpeoplecontinuetobe
amongthemainvictimsoftherecession.Theyarenowexperiencing
increasingly longspellsofunemployment andincertainareasoftheCom­
munity,manyyoungpeopleleavingschoolseelittleprospectofever
gettingafootholdinthelabourmarket.
UnlessanduntiltheCommunity'smacro-economic policiessucceedin
bringingaboutanimprovement inthegeneraleconomicandemployment
situationthere willclearlycontinuetobeaproblemofyouthunemployment .
Specialmeasurestocombatyouthunemployment dohaveaseparaterationale
aslongastheydonotdetractfromthebroaderpolicymeasuresnecessary
tostimulateemploymentgrowth.
Themainfocusoftheconsiderable effortsalreadymadebynational
andCommunityauthorities hasbeenonimprovingthebasicskillsand
employabilityofyoungpeopleenteringthelabourmarketforthefirst
time..Moreemphasisneedstobeplacedontheactualtrainingcontentof
suchspecialmeasuresandonintegratingthevarioustrainingprogrammes on
offerwithinacoherentoverallpolicy.TheCommissionisaprincipal
instigatorofaCommunity-wide guaranteeoftrainingandworkexperience
foryoungpeople,aguaranteetowhichtheEuropeanCouncilcommitted
itselfinprincipleatitsmeetingon29/30March.TheCommissionhasmade
moredetailedproposalsinthissenseinitscommunication totheCouncil
onVocationalTraininginthe1980s(1),supportedbyitsOpiniononthe
ReviewoftheEuropeanSocialFund(2).
(1)C0MC82)637final
(2)C0M(82)485final

Howeverimportantthepursuitofaneffectivetrainingpolicymay
be,thecredibility oftrainingintheeyesofyoungpeoplewilldepend
largelyontheavailability ofemploymentthereafter.TheCommission con­
sidersthatspecialmeasurestopromotetherecruitement ofyoungpeople
andtoincreasethevolumeofemploymentopportunities foryoungpeopleare
justifiableiftoday'sgenerationofyoungpeoplearetoretainthecapa­
citytocontributetoeconomicrecovery.Theproblemofreintegrating,
botheconomically andsocially,workerswhohavehadnorealexperienceof
employment andhavebecomepartofthelong-termunemployedbeforetheyare
25,wouldotherwisebecomeinsurmountable .
TheCommission,therefore,believesthatitisnecessary,inthese
circumstances,radicallytoreviseexistingattitudestojobcreationand
recruitmentpolicies.Urgentconsideration needstobegivenbypublic
authorities andsocialpartnersaliketothefurtherdevelopment ofspecial
recruitment programmesforyoungpeoplelinkedtoreductionsinworking
time-forexamplebytheprovisionofpart-timejobsorsharedjobsfor
youngpeople,eitherasaseparateinitiativeorasacomplementto
flexibleretirementprogrammes.Differentkindsofemployment premiums
couldbeusedtostimulatethiskindofarrangement.Recruitment premiums
orotherformsofwagesubsidycanalsobeusedtohelpparticularly disad­
vantagedyoungpeopleobtainstableemployment andtopromotethe
employmentofyoungwomeninjobswheretheyaretraditionally underrepre­
sented.Suchmeasuresmaybecontroversial insofarastheydiscriminate in
favourofyoungpeople.Theyshouldthereforebeusedselectively,and
madeavailabletootherdisadvantaged groupssuchasthelong-term
unemployed.Conditionsneedtobeestablished toensurethatpremiumsdo
notsimplysubsidisetherecruitment ofyoungpeoplewhowouldhavebeen
takenoninanyeventnormakeofyoungpeopleareservesupplyofcheap
labour.
Inadditiontomeasurestostimulaterecruitement,thoughtneedsto
begiventoanewapproachtosubsidisedjobcreation.Therehaveinthe
pastbeenseveraltypesofinitiatives intheareaoftemporaryjob
creation-"make-work"programmessupportedbypublicfunds,temporaryjobs

16.-
inthepublicsectorandsoon.Thesehavemostoftenbeenoflimited
scopeanddurationandhavesometimesencounteredtheoppositionofpublic
serviceunions,themselvesaffectedbycutsinthepublicsector.Given
thesheerscaleofyouthunemployment,particularly inareasoftheCom­
munitywherethetraditionalprivatesectorofemploymentissimplynot
capableofgeneratingenoughvacanciestosatisfyfirstjobseekers,an
expansionofcertainformsofsubsidisedjobcreationisurgentlyrequired.
Particularattentionshouldbepaidinthisrespecttothe
employmentpotentialofvariousnon-traditional formsofenterprisewhich
youngpeoplecanbespecifically encouragedandtrainedtosetupforthem­
selves.Thereisalsoscopeforjobcreationpartiallysupportedbypublic
fundsintheintermediate areabetweenthetraditionalpublicandprivate
sectors,forinstanceintheareaofenvironmental protectionandsocial
services.Publicsubsidising ofcertainactivities,especiallythose
designedtobenefitlocalcommunities ortocontributetotherestructuring
oftheconomycanconsitutefrombothaneconomicandasocialpointof
viewamoreefficientuseofpublicresourcesthantheincomesupportthat
wouldotherwiseberequiredforunemployed youngpeopleandthelongterm
unemployed.
Alongsidesuchactions,amuchmoredevelopedsystemoflocal
guidanceandcounsellingcentersforyoungpeopleisrequired,tosupport
\
andencourageyoungpeoplenotonlywhentheyareabouttoenterthelabour
marketbutalsowhentheyaretryingtofinddurableemploymenbtwithinit
intheirteensandearly20s.TheCommunityhasaroletoplay,inpar­
ticularthroughitsvariousfinancialinstruemtns,insupportingtheexpan­
sionofspecialemploymentprovisionsforyoungpeopleandaswellasfor
otherdisadvantaged groupssuchasthelongtermunemployed.TheCom­
missionforitspartispreparinganewcommunication onyouthemployment
whichwillbesubmittedtotheCouncillaterthisyear.Italsointendsto
studyanumberofparticularrelatedissues,includingthepossibility of
settingemploymentquotasforyoungpeopleinpartorallofpublic

employment,theinfluenceofdifferenttypesofage-relatedsalaryscales
onemployers'choicesbetweenworkersandthespecificproblemsthatneed
tobetackledforthoseyoungpeoplewhoexperiencerepeatedandprolonged
periodsofunemployment .Betterunderstanding oftheseissuescouldhelp
strengthenpolicyinthefuture.