No C 131/70 Official  Journal  of the European  Communities 12. 6. 76 
consulted  at important  stages.  This  will  enable  it 
to make  its contribution  towards  implementing 
the general  principles  contained  in the Commis-
sion's  communication  to the  Council.  In this connection,  the procedure  used  by the Commis-
sion when  dealing  with  medium-term  economic 
policy  should  be followed  in order  to guarantee 
the desired  regular  flow  of information. 
Done  at Brussels,  31 March  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the coordination  of national  employment  policy  instruments 
The opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 137th  plenary  session  held  on 25 and  26 February  1976  the Committee, 
acting  on a proposal  from  the  Bureau,  decided  to deliver  an opinion  on the 
abovementioned  subject  on its own  initiative. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at 
its 138th  plenary  session,  held  in Brussels  on 31 March  and  1 April  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the fourth  paragraph  of Article 
20 of its Rules  of Procedure, 
Having  regard  to: (i) the Bureau's  proposal  that 
the Committee  should  draw  up an opinion  on the 
coordination  of  national  employment  policy 
instruments;  (ii) the decision  which  the Commit-
tee, sitting  in plenary  session,  took  to that  effect 
on 26 February  1976, 
Having  regard  to the opinion  of the  Section  for 
Social  Questions  of 11 March  1976, Having  regard  to the  report  submitted  by the 
rapporteur,  Mr Laval, 
Having  regard  to the  discussions  at its 138th 
plenary  session  of 31 March  and  1 April  1976 
(meeting  of 1 April  1976), 
Whereas  employment  problems  in the  Member 
States  are  becoming  increasingly  similar,  par-
ticularly  in the current  crisis,  which  is characte-
rized  by rising  unemployment; 
12. 6. 76 Official  Journal  of the European  Communities No C 131/71 
Whereas  attempts  have  been  and  are being  made 
to define  and  coordinate  employment  policies,  as 
sought  by  the  Treaties,  recommended  by the 
Commission  and  the  Council,  and  called  for in 
numerous  Committee  opinions; 
Whereas  the  Member  States  employ  different 
methods  and  whereas  this  constitutes  an obstacle 
to the achievement  of the above  objectives; 
Whereas  the national  employment  services  must 
play an important  role  within  the framework  of a 
policy  of full  and better  employment; 
Whereas  a distinction  must  be made  between 
labour  market  policies,  in the narrow  sense,  and 
employment  policies,  in a broad  sense,  on which 
the Committee  has to express  its views; 
Whereas  objectives  vary  and  are  implemented 
using  instruments  that  are in some  cases  fragmen-
tary and  in others  homogeneous; 
Whereas  experience  has  been  gained  and  short-
comings  have  been  observed, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote: 
1. General  features  of Member  States'  employ-
ment  policies 
1.1. By  and  large,  employment  policy  instru-
ments  were  established  between  1945  and  1970, 
that is to say  before  structural  unemployment 
began  to affect  the entire  EEC  so critically. 
1.2. These  instruments  will  therefore  have  to 
be expanded  considerably  to cope  with  the pre-
sent situation,  and  the  vitally  needed  additional 
instruments  will  have  to be created. 
1.3. Since  the advent  of the present  crisis,  the 
Community  bodies  have  been  repeatedly 
approached  by representatives  of the workers,  i.e. 
of the  people  who  are  hardest  hit (loss  of their 
jobs). 1.4. The  most  recent  figures  published  by the 
Community  (December  1975)  show  that  the 
situation  is still  deteriorating.  There  are  now 
5300000  persons  out  of work  in the nine  Mem-
ber States  (or on average  5-5%  of the  working 
population,  but  reaching  10%  in Ireland).  The 
average  increase  over  1974  is approximately  60% 
(Denmark  + 103*5%,  United  Kingdom  + 
81-4%,  Belgium  -I- 79-5%,  France  + 71%,  Italy 
+ 12%).  The  latter  percentage  is partly  due  to 
the Italian  Government's  policy  of subsidizing 
firms  which  cut working  hours  rather  than  sack 
staff. 
1.5. Self-employed  persons  are  finding  it 
increasingly  difficult  to transfer  to paid  employ-
ment  in the secondary  and  tertiary  sectors.  This 
has led to increased  underemployment  in certain 
areas  (agriculture,  craft  industries,  small  shop-
keepers). 
1.6. The  figures  would  have  been  even  higher 
had it not been  for various  factors  such  as: (a) the 
withdrawal  from  the  labour  market  of a large 
number  of people  who  have  been  temporarily  or 
permanently  discouraged  from  looking  for work 
by the  crisis;  (b)  the return  home  of many 
migrant  workers  from  non-member  countries; 
and (c) measures  taken  in certain  Member  States 
leading  to early  retirement,  etc. 
1.7. In  addition,  in many  countries,  job secur-
ity is no longer  a prerogative  of the public  sector. 
The number  of workers  liable  to lose  their  jobs 
was proportionally  lower  in 1975  than  it was  at 
the time  of the  depression  in the  thirties,  for 
example. 
1.8. The  shortcomings  of employment  policies 
are due  to a large  number  of factors.  The  most 
important  of these  should  be stressed  and  exam-
ined by the Committee  in more  detail. 
1.8.1.  Coordination  is vital  in the formulation 
and implementation  of  employment  policy. 
National  plans  for stimulating  economic  recovery 
have  been  marked  by disarray,  rivalry  and  con-
tradictions;  they  have  all been  based  on excessive-
ly national  — or even  regional  — considerations, 
which  have  often  been  strongly  influenced  by 
domestic  policy  factors,  without  any  due  regard 
for the Community  dimension,  even  though  they 
have  sometimes  been  modified  following  Com-
munity  meetings. 
1.8.2.  Employment  policy  must  take  full 
account  of the 'overall'  and  'structural'  aspects  of 
No C 131/72 Official  Journal  of the European  Communities 12. 6. 76 
the crisis.  Some  quarters  have  insisted  for  too 
long  on considering  the crisis  as strictly  'cyclical'. 
1.8.3.  Employment  policy  must  recognize: 
(a) that  one  quarter,  and  in some  Member  States 
as much  as one-third,  of the  unemployed  are 
under  25 years  of age;  and  (b) that  this  cannot 
simply  be attributed  to the traditional  causes  of 
unemployment  among  young  people  (unwilling-
ness to employ  young  people,  lack  of vocational 
training  etc.).  In some  quarters,  unemployment 
among  young  people,  which  will  probably  persist 
in the years  to come  (even  if there  is an economic 
recovery),  is also  attributed  to a change  in society 
and in attitudes. 
1.8.4.  Employment  policy  must  also  make 
allowance  for changing  attitudes  to the role  and 
position  of women,  which  were  touched  on in the 
Directive  on equal  treatment  between  men  and 
women('). 
1.8.5.  Educational  systems  rarely  make  for 
flexibility  and  multiple  skills.  But  employment 
policy  presupposes  that  training  systems  are 
closely  tailored  to the needs  of the labour  market. 
This  is rarely  achieved. 
1.8.6.  There  are  some  striking  differences 
between  Member  States  as regards,  for example, 
the purpose  of placement  and  the roles  played  by 
employers  and  employment  offices  in finding 
work  for the unemployed  (in Italy,  if an employer 
says that  he has a certain  number  of vacancies,  he 
is obliged  to accept  the persons  supplied  by the 
employment  office). 
1.8.7.  National  employment  services  have 
themselves  been  affected  by the  general  labour 
shortage  in recent  years.  This  shortage  of staff, 
coupled  with  the  dependence  on  government 
action,  means  that  national  employment  services 
have  in most  cases  inadequate  resources  for 
tackling  the present  situation.  Furthermore,  little 
is known  about  the roles  which  undertakings  play 
in employment  policy,  and  there  is often  no 
coordination  with  the  public  management  of 
employment. 
1.9. National  employment  services  operate  in 
accordance  with  the economic  and  social  policies 
0) OJ No C 286,  15. 12. 1975. pursued  by their  respective  governments.  Conse-
quently,  their  effectiveness  and  their  potential 
contribution  towards  the coordination  of employ-
ment  policies  at EEC  level  depend  heavily  on the 
way in which  Member  States  plan,  implement 
and coordinate  their  economic  and  social  policies. 
1.10.  In  addition,  national  employment  ser-
vices  are restricted  in their  scope  for action  by the 
fact that  components  of an active  employment 
policy  aimed  at full  and  better  employment  fall 
within  other  spheres  of government  action 
(investments,  creation  of jobs,  monetary  policy,' 
adjustment  of the domestic  market,  etc.). 
1.11.  The  economic  measures,  the fight  against 
inflation  and  the  monetary  steps  which  are  cru-
cial to a better  employment  situation  in the 
Community  will  be examined  by the ESC's  Sec-
tion for Economic  and  Financial  Questions.  This 
examination  will  have  to take  account  of the 
present  opinion  and  the accompanying  report. 
1.12.  The  present  opinion  will  not  therefore 
encroach  on this  field.  It seeks  simply  to work  out 
in broad  outline  how  employment  policies  could 
be coordinated. 
1.13.  The  Economic  and  Social  Committee 
wanted  above  all to list  the  instruments  which 
Member  States  have  at their  disposal.  These 
instruments  will  be compared,  evaluated  in some 
respects,  considered  in the  light  of EEC  Direc-
tives,  and  viewed  in the  context  of the  current 
employment  crisis. 
1.14.  As  the  Committee  stated  some  weeks 
ago, the present  crisis  is a challenge  to industrial 
society  and  to the  European  Community.  The 
Committee,  which  should  be the social  conscience 
of the  Communities,  must  make  an all-out  con-
certed  bid  to work  out  Community  remedies.  A 
knowledge  of the tasks  and  structure  of Member 
States'  employment  services  is a prerequisite  here. 
2. Tasks  and  structure  of national  employment 
services  in the Member  States 
2.1. The  information  compiled  by the  study 
group  in the course  of its work  shows  that,  on the 
whole,  the  tasks  performed  by  the  various 
employment  services  in the  Member  States  are 
12. 6. 76 Official  Journal  of the European  Communities No C 131/73 
very similar.  The  main  functions  are tabulated  in 
the report  of the section. 
2.2. Most  national  legislations  are based  on 
the ILO  principles  on  unemployment  and 
employment  services  (Washington  Convention  of 
1925,  Convention  No 88,  Recommendation  No 
83 of 1948,  Recommendation  No 37 of 1949, 
and Convention  No 122  of June  1964). 
2.3. As  a general  rule,  national  employment 
services  seek  first  and foremost  to achieve  a better 
quantitative  and qualitative  balance  on the labour 
market. 
2.4. However,  a close  scrutiny  of these  ser-
vices,  reveals  that,  besides  the features  peculiar  to 
certain  Member  States,  there  are also  considera-
ble organizational  differences.  Administrative 
procedures  and  practices  vary  considerably  from 
one country  to another.  Responsibilities  have  also 
been  apportioned  differently  at both  national  and 
regional  level.  This  makes  it difficult  to draw 
comparisons  and  does  not facilitate  cooperation 
between  national  employment  services. 
2.5. In  a study  published  in 1967  on man-
power  services  in the Member  States,  the Com-
mission  made  the following  observation: 
'In short,  the main  functions  of the manpower 
services  are broadly  similar  in all the Member 
States.  The  chief  differences  lie in: (i) the means 
at the disposal  of the individual  countries  for 
tackling  specific  tasks;  (ii) the varying  degrees 
to which  functions  are carried  out.  The  pro-
blems  and circumstances  quite  frequently  make 
it necessary  to place  the emphasis  on urgent, 
top-priority  matters.' 
2.6. The  Committee,  for  its part,  has  also 
noted  that  the powers  and  structures  of national 
employment  services  vary  from  country  to coun-
try and  over  time.  Even  though  all Member  States 
have  a centrally  organized  network  of employ-
ment  services,  the powers  and  responsibilities  of 
these  services  and  the nature  and  aims  of their 
work  vary  appreciably.  In most  Member  States, 
employment  services  come  under  a government 
department,  but in some  they  are public  agencies 
enjoying  a large  measure  of autonomy.  But irres-
pective  of the status  of the employment  services, the question  must  be asked:  Are  they  really 
effective?  How  effective,  for example,  are  the 
placement  services? 
2.7. There  are of course  structural  differences 
in employment  from  one  Member  State  to 
another  (demographic  trends,  relative  importance 
of the various  sectors,  composition  of the work-
ing population,  level  of economic  and technologi-
cal development,  etc.).  This  gives  rise  to further 
difficulties. 
2.8. The  tasks  and  structure  of the  various 
national  employment  services  are set out in the 
report.  The  aim  is to compare  the most  important 
trends,  bring  out the main  similarities  and  differ-
ences  and  back  up the  conclusions  and  the 
concrete  proposals  on coordination. 
3. Initial  conclusions 
A. Employment  policies 
3.1. Following  this  summary,  one  remark 
should  be made  at the outset:  the definitions  and 
objectives  of employment  policies  should  have  a 
number  of basic  features  in common. 
3.1.1.  The  first  thing  is to get back  to a high 
and sustained  growth  rate.  It seems  fair  to 
say that  employment  in the Western  economies 
will only  reach  a healthy  level  through 
directed  growth  and  an appropriate  employment 
policy. 
3.1.1.1.  But  in view  of old,  new  and  foresee-
able attitudes,  we must  think  about: 
— the attitude  of the young  towards  work; 
— the exodus  from  certain  manual  jobs,  and 
massive  use  of labour  from  non-member 
countries; 
— the growth  of the  tertiary  sector  at the 
expense  of the secondary. 
No C 131/74 Official  Journal  of the European  Communities 12. 6. 76 
3.1.1.2.  The  search  for a better  quality  of life, 
and the development  of the services  sector  (entail-
ing the creation  of jobs)  are live  issues  in all the 
highly  industrialized  countries.  In this  context,  a 
certain  upturn  in farming  and the craft  industries 
cannot  be ruled  out;  such  an upturn  is consistent 
with  the priority  aims  of genuine  regional  devel-
opment.  It should  also  be added  that  the develop-
ment  of certain  forms  of part-time  work  raises 
complex  problems  which  need  studying. 
3.1.2.  Employment  policy  must  take  account 
of the new  world  economic  order  which  is being 
sought,  of the new  relationships  being  negotiated 
between  the  rich  and  poor  countries,  between 
users  and producers  of energy  and  raw  materials, 
between  the latter  two  groups  of countries  and 
those  countries  which  have  nothing  at all. 
3.1.2.1.  It  is necessary  to envisage  a new 
international  division  of labour,  and  gradual 
transfers  of activities. 
3.1.3.  As  regards  developing  new  activities, 
employment  policy  must  take  account  of current 
training  systems.  These  are inculcating  a higher 
and higher  level  of knowledge.  But  too  many 
jobs,  especially  in industry,  call for limited  know-
ledge.  In general,  however,  training  has a benefi-
cial effect  on employment. 
3.1.4.  Employment  policy  cannot  be formula-
ted without  taking  into  account  the increasingly 
important  role  played  by the multinationals  and 
major  national  companies  in setting  up factories, 
etc. and in creating  and abolishing  jobs. 
3.1.5.  Employment  policy  must  not  be con-
fined  to cyclical  difficulties.  It must  get to grips 
with  a number  of chronic  problems,  such  as: 
— regional  imbalances; 
— declining  industries  and  activities  (in the agri-
cultural,  craft  and other  sectors); 
— problems  peculiar  to certain  categories  of 
labour  (women,  the handicapped,  migrants, 
the young). 
3.1.6.  At  Community  level,  measures  dealing 
with  employment  problems  must  bulk  large  in all regional-policy  initiatives  and  initiatives  relating 
to individual  industries  or sections  of society. 
Given  the difficulty  of making  overall  evaluations 
and forecasts  with  respect  to employment,  in 
certain  cases  it would  be useful  to adopt  also  a 
sectoral  and a regional  approach. 
3.1.7.  In  conclusion,  one  thing  must  be said 
first of all: 
The cooperation  of the public  authorities  and  the 
relevant  economic  and  social  interest  groups  is 
essential  to taking  any  decision,  implementing 
any measure  or using  any instrument.  And,  what 
is true  at the national  level  is also  true  at the 
Community  level. 
B. Tasks  and  structure  of national  employment 
services 
3.2. The  fields  summarized  in the abovemen-
tioned  Commission  study  and  tabulated  in the 
report  of the section,  are covered  by the national 
employment  services  of most  Member  States.  It 
should,  however,  be remembered  that  the struc-
ture and  administrative  procedures  of these  ser-
vices  differ  considerably. 
3.2.1.  It  is suggested  that  the  Commission 
amplify  and  update  the  abovementioned  table. 
The questionnaire  drawn  up by the study  group 
as part  of its work  on the present  document  could 
serve  as a basis  for  systematic  research.  This 
questionnaire  forms  part  of the dossier  which  has 
been  assembled  for the purposes  of this  opinion. 
3.3. The  study  group's  enquiries  indicate  that 
the following  features  make  for a well-run  and 
effective  employment  service: 
— a consistent,  unified  system  allowing  an over-
all picture  of the various  aspects  of employ-
ment:  placement,  unemployment  insurance, 
training  and retraining,  aid to business  under-
takings,  labour  market  studies,  forecasts  and 
statistics,  etc.  It should  be added  that  some 
think  that  there  may  not be such  a good  case 
for physical  separation  of assistance  functions 
(placement)  and  checks  (compliance  with 
requirements  laid  down  for  eligibility  for 
unemployment  benefits); 
— close  involvement  of the two  sides  of industry 
in the  organization  and  running  of the 
employment  service; 
12. 6. 76 Official  Journal  of the European  Communities No C 131/75 
— run  as an efficient  service,  as part  of an active 
employment  policy  (particularly  important  in 
the case  of people  who  are  reluctant  to use 
employment  services  — executives,  women, 
young  graduates,  workers  in agriculture,  com-
merce  and  the crafts  sector); 
— use  of modern  technology  to obtain  a con-
stantly  updated  picture  of the labour  market. 
This  will  help  to match  supply  and  demand 
and ensure  that  workers  are  provided  with 
jobs in keeping  with  their  requirements  and 
that employers  get labour  with  the right  skills; 
— efforts  to improve  the  'image'  employment 
services  present  to their  'customers'; 
— highly-skilled  staff,  particularly  those  with 
placement  duties; 
— rational  location  of employment  services,  exis-
tence  of clearance  machinery  for  matching 
vacancies  and  job  applications  in different 
areas; 
— better  coordination  with  industry's  employ-
ment  policies. 
Some  organizations  with  a certain  degree  of 
administrative  and  budgetary  autonomy  already 
exhibit  all these  features. 
C. The  scope  for cooperation 
3.4. In  view  of the  foregoing  and  given  the 
provisions  of the  Treaty  and  the  guidelines 
spelled  out  in the introduction  to the report,  the 
Committee  thinks  that  cooperation  between  the 
national  employment  services  should  initially  be 
concentrated  on the following  areas: 
3.4.1.  Increased  exchange  of information  and 
experience  concerning  the organization,  running 
and powers  of national  employment  services  (this 
could  be achieved,  in particular,  through  an 
exchange  of officials).  It would  be useful  if the 
Commission  would  expand  and  update  its 1967 
study  on Member  States'  employment  services, 
and also  continue  to arrange  periodic  meetings  of 
the heads  of national  employment  services.  The 
Commission  should  try to provide  funds  to set up 
a small  Community  secretariat  to enable  the 
national  authorities  to arrange  to the best  effect 
the contacts  which  they  consider  desirable. 3.4.2.  Improvement  of the  comparability  of 
the statistics  and  concepts  used  in different  Mem-
ber States,  e.g.  the definition  of 'unemployment' 
and 'fitness  for employment'. 
3.4.3.  The  study,  planning  and  implementation 
of limited  joint  schemes  capable  of bringing 
about  tangible  improvements  for  particular 
groups  of workers  or in particular  regions  or 
sectors,  in cases  where  cooperation  between 
employment  services  seems  particularly  appro-
priate  and  feasible: 
— migrant  workers, 
— frontier  workers, 
— unemployment  among  young  people  and 
women, 
— regional  aspects  of employment  policy, 
— exchange  of experience  in the  area  of job 
creation, 
— application  of Community  legislation  on free-
dom  of movement  for  workers,  particularly 
the social  security  provisions. 
3.4.4.  Modification  and  expansion  of the 
European  Vacancy  Clearance  System  (SEDOC)  in 
the light  of experience  and  the views  expressed  by 
the national  employment  services,  so that  the 
System  can play  its full  role. 
3.4.5.  Use  of the  European  Social  Fund  as a 
prime  instrument  of employment  policy,  and 
promotion  of schemes  serving  as models  of EEC 
cooperation. 
3.4.6.  Establishment  of  necessary  contacts 
between:  (a)  all the  bodies  where  an  active 
employment  policy  can  be formulated  (Standing 
Committee  on Employment,  Tripartite  Confer-
ence);  and  (b) the Economic  and  Social  Commit-
tee, as representative  of all socio-occupational 
interest  groups. 
3.4.7.  Active  cooperation  on  a Community 
basis  in the  work  of the  International  Labour 
No C 131/76 Official  Journal  of the European  Communities 12. 6. 76 
Organization  —  particularly  on  the  World 
Employment  Conference,  the negotiation  of new 
conventions  and  work  on the implications  of the 
new international  division  of labour  for employ-
ment  in the industrialized  countries. 
3.4.8.  As  far  as the  Economic  and  Social 
Committee  is concerned,  this  cooperation  should 
take the form  of, for instance: 
— systematic  exchange  of information  and 
documents  by the International  Labour  Office 
and the Committee; 
— participation  — on lines  to be determined  — 
of Committee  representatives  in  certain 
activities  of the  International  Labour  Office 
(employment  conference,  regional  conferen-
ces, seminars,  etc.); 
Done  at Brussels,  1 April  1976. — arrangements  allowing  the Committee  to fur-
ther and  arrange  contacts  and  consultations 
between  the 'social  partners'  of the Member 
States,  in particular  on the  occasion  of the 
annual  labour  conference. 
General  conclusions 
4. If  the Committee  proposals  are implemen-
ted, they  will  open  the way  to improved  cooper-
ation  between  the national  and  EEC  authorities. 
This would  seem  to be a prerequisite  for  any 
major  progress  towards  the  coordination  of 
employment  policies  proper.  Progress  in the coor-
dination  of employment  policies  will  also  depend 
on: (i) the formulation  of common  aims  in the 
field  of full  and  better  employment;  and  (ii) the 
amount  of progress  made  towards  economic  and 
monetary  union. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the proposal  for a Council  Regulation  on the transitional  common 
organization  of the market  in sheepmeat 
The text  referred  to the Committee  has been  published  in Official  Journal  of the 
European  Communities  No  C 243  of 23 October  1975,  page  6. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 26 September  1975,  the Council  referred  the abovementioned  proposal  to the 
Economic  and  Social  Committee  in accordance  with  Articles  43 and  198  of the 
Treaty  establishing  the European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at 
its 138th  plenary  session,  held  in Brussels  on 31 March  and 1 April  1976. 
The full text of the opinion  is as follows: