EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 30.5.2008 
SEC(2008) 1939 
COMMISSION STAFF WORKING DOCUMENT 
 
Overview of main activities undertaken under Employment Incentive Measures (EIM) 
Programme 
 
accompanying the 
COMMUNICATION FROM THE COMMISSI ON TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EU ROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMI TTEE OF THE REGIONS 
 
on the Final Report on Community incentive measures in the field of employment (EIM 
Programme 2002-2006) 
  
{COM(2008) 328 final} 
EN    EN INTRODUCTION  
The activities, as stipulated by Article 2 of the EIM Decision1, were launched with the aim of 
contributing to the achievement  of the goal of the Lisbon Strategy to re-establish the 
conditions for full employment, or more pr ecisely, in accordance with Article 3, to: 
- underpin a coordinated approach to the employ ment policy in the Co mmunity within the 
overall aim of raising the em ployment rate set out by the European Council at Lisbon; 
- contribute to the development of a coordi nated strategy for employment through analysis, 
monitoring and support of actions ca rried out in the Member Stat es (MS), with due regard for 
the latter's responsibilities in this field; 
- develop, follow up and evaluate the European Employment Strategy (EES) with a strong 
forward-looking emphasis; 
- foster cooperation between MS in analysis, research and monitoring of labour market 
policies; 
- identify best practices and promote exchanges and transfers of information and experience; 
- develop the approach and contents of the EES, incl uding ways of cooperating with the social 
partners and relevant loca l and regional authorities; and 
- implement an active informati on policy responding to the pub lic's need for transparency and 
recognising the importance of ensuring that Eur opean citizens can be fully informed on all 
aspects of the EES; 
The analysis in the context of these activities shall to the ma ximum possible extent be gender 
specific. 
The report COM(2008) … reviews the ove rall implementation of the activities2 foreseen by 
the EIM Decision. This overview gives detailed  information on the following EIM project 
categories: 
Part A: Statistical work a nd development of indicators; 
Part B: Analyses, studies and surveys (incl udes conferences to present study results) 
Part C: Activities launched in the framewor k of European Year of  Workers' Mobility 
(EYWM)3 
Part D: Local Employment Development (LED)4 projects 
Part E: Networking 
                                                 
1 1145/2002/EC of 10 June 2002 
2 http://ec.europa.eu/employment_social/incentive_measures/activities_en.htm   
3 http://ec.europa.eu/employment_social/wor kersmobility_2006/index.cfm?language=EN   
4 http://ec.europa.eu/employment_social/local_employment/index_en.htm   
EN    EN A. STATISTICAL WORK AND DEVELOPMENT OF INDICATORS  
In the context of statistical work and the deve lopment of indicators, im portant projects to be 
mentioned are among others the ones sub-delegated to Eurostat5. 
(1) Labour Force Survey (LFS) ad hoc modules: 
- Lifelong learning, completed in 2003  
- Work organisation and working time arrangements, completed in 2004  
- Reconciliation of work and family life, completed in 2005  
- Transition from work into retirement, completed in 2006  
The ad hoc LFS modules from 2003 to 2006 were all financed by the EIM, which has not only 
made information available on the above-mentione d specific issues, but has also linked this 
information with the core data in the LFS.  
Pilot studies  to prepare for the 2008 LFS ad hoc modul e on the labour market  (LM) situation 
of migrants and their immediate descendants  were subject to a Ca ll for Proposals under the 
EIM in 2006. Grants were awarded for a) th e improvement of the response rate of non-
nationals/migrants in the LFS, the coverage of newly arrived migrants, and the coherence 
between LFS data on migrants and register or census data; b) the id entification of seasonal 
patterns on the number of specific sub-groups of migrants; and c) quality issues, such as study 
if nationality at birth is used  as a proxy of country of birth. The actual survey is being 
financed under PROGRESS.  
(2) Labour Market Policy (LMP) Database: 
Actions launched under EIM in 2002 aiming at harmonising the methodology and improving 
the data submitted to the LMP database on public expenditure and participants in active and passive LMP measures, as well as qualitative information for the description of policy measures and metadata. The LMP database is  useful for the monitoring of employment 
policies in the EES. The project  continues under the framewor k of PROGRESS, with a view 
to including all the MS.  
(3) Job Vacancy Statistics: 
Project launched under EIM in  2003 and aiming at collecting and developing annual and 
quarterly data on job vacancies. Since 2005, Eurost at has also worked on the legal basis for 
the implementation of quarterly statistics on job vacancies. The framework Regulation was 
adopted by the Council in February 2008 and will soon enter into force. 23 countries now provide quarterly statistics and more than ha lf of the MS provide annual statistics. This 
project will also continue  under the PROGRESS programme
6. 
(4) Integrated system of earnings  and labour cost statistics: 
Based on the work already ongoi ng under the Regulation (EC) 530/ 1999 concerning structural 
statistics on earnings and on la bour costs, this project was introduced in 2003 and aims at 
producing a coherent set of earnings and labour cost stat istics in terms of concepts and 
definitions in the data collected on a short-te rm, annual and a four-year basis. An important 
                                                 
5 http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1090,30070682,1090_33076576&_dad=portal&_schema=PORTAL 
6 http://ec.europa.eu/employment_social/progress/index_en.html 
EN    EN element of the integrated system has been the improvement of the overall coverage of 
economic activities and the coherence with the ot her business statistics and national accounts. 
(5) Ad-hoc business and consumer survey on the performance of the EU LM7: 
Project held in the framework of the Join t Harmonised EU Progra mme of Business and 
Consumer Surveys managed by the Economic and Financial Affairs DG (ECFIN)8. Results 
provide e.g. details on employers' and employees' opinions on forms of working 
arrangements. They furthermore give an additio nal basis for the formulation of employment 
policy objectives.  
For some larger Eurostat projects, the data were  not yet available for a ll countries at the time 
this Communication was written. Such a proj ect is for example the Continuous Vocational 
Training Survey (CVTS) , which is the only source that provides internationally comparable 
statistical data and indicators on continuing vocational training  in enterprises and related 
aspects of lifelong learning (LLL) to the MS , the Candidate Countries (CC) and the 
EFTA/EEA countries.  
Still in progress is also the Adult Education Survey (AES) , which was launched in 2005 with 
a view to helping the MS to cover their costs incurred in connection with the collection, 
processing and transmission of data on adult learning. AES is a 3- year project to be 
implemented by the MS between 2005 and 2007. The data will be published in two parts as they are arriving gradually. The first data set should be publis hed in 2008 and the final and 
complete publication is foreseen by 2009. 
The EIM support to the statistica l work carried out by Eurostat benefited to the work of the 
Employment Committee (EMCO)  working group on indicators
 in the following areas9: 
prevention and activation, vacancies, childcare, unemployment and poverty (low wage) traps, 
gender pay gap and regional disparities. Work wa s also initiated on care for the elderly, 
inactivity traps, undeclared work, efficiency of employment services and governance. These 
indicators are most relevant to policy de velopments in the co ntext of the EES.  
Among projects under the management of the Employment, Social Affairs and Equal 
Opportunities DG (DG EMPL), an  important project is the Public Employment Services 
(PES)10 Expert Group on Vacancies, which was created in 2001 in the context of the activities 
developed within the European PES Network. Sin ce then, experts from 15 PES in the EU and 
EFTA/EEA have contributed to the establis hment of the European PES Vacancy Monitor 
(EPVM)  by submitting their data on vacancy stocks  and notifications on a regular basis. 
While the process of collecting time series from  each PES is not yet complete, there is now 
sufficient data available in the EPVM to demons trate the potential of the monitor for deriving 
comparative information on the LM activities of the European PES. Consequently, the Expert 
Group has taken the decision to issue a limited number of shor t bulletins on developments in 
the vacancy business of European PES, ba sed on an analysis of the EPVM data.  
There is a wide recognition of the key role PE S played in the implementation of the EES, in 
particular when it comes to their preventative actions to reduce the inflows into long-term 
                                                 
7 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2006  (May 2006) 
8 http://ec.europa.eu/economy_finance/index_en.htm  
9 For some indicators, cooperation was established with other Community programmes (e.g. gender 
equality) 
10 http://ec.europa.eu/employment_social/employment_strategy/pub_empl_services_en.htm  
EN    EN employment and to improve access to jobs and relevant skills for di sadvantaged groups. The 
role of PES in processing job vacancies11 was addressed in a study, which brought together 
information required for an appropriate comparative interpretation of the quarterly statistical data the national PES produce for the EPVM . The study collected wider comparative 
information on the working methods that nati onal PES use in processing vacancies. Three 
relating seminars
 on profiling instruments and PES appr oaches to the unemployed and long-
term unemployment were organised in 2004, 2005 and 2006. 
The annual publication "Employment in Europe " report12, which is mainly based on statistics 
from Eurostat's data sources, was funded by EIM throughout the whole programme period is further dealt with below in Part B "Analyses, studies and surveys".  
B.
 ANALYSES , STUDIES AND SURVEYS  
In the area of analysis and researc h, the "Employment in Europe" report  presented, on a 
yearly basis, a quantitative analysis of empl oyment trends and policies in the Union, which 
was informed by EIM LM studies and statistical projects. The themes and topics covered by 
these studies included Active Labour Market  Policies (ALMP) and "making work pay"; 
health and quality in work; skills and human capital; disadva ntaged groups; enlargement; 
restructuring; migration; business dynamics a nd employment performance; the role of PES; 
and surveys .  
B.1 ALMP and "making work pay" 
A study was launched on the "Effect iveness and impact of ALMPs "13 and attention was given 
to the synergy between employment policy and other community policie s. This study draws 
systematic conclusions and derives policy reco mmendations from the available cross-country 
evidence on ALMP effectivene ss. Among different analyses, th is study draws systematic 
lessons from more than 100 evaluations that have been conducted on ALMPs in Europe. The 
picture that emerges from the quantitative analys is is surprisingly clear-c ut. Once the type of 
programme is taken into account, th e analysis shows that there is little systema tic relationship 
between programme effectiveness and a host of contextual factors, in cluding the country or 
time period when it was implemented, the m acroeconomic environment, and a variety of 
indicators for institutional feat ures of the labour market.  
A study on "Benefit systems and th eir interaction with ALMPs "14 was concluded in 2004, 
which focused on the way in which benefit schemes interact with ALMP. It demonstrated the interest and scope for improvi ng the effectiveness of activation policies. A second study on 
the same theme but which addressed the new MS only was launched in 2006. The final results of this study are expected to be available in 2008. 
The joint EC-OECD survey on "Monitoring worker s’ coverage and benefits from mandatory 
funded schemes, employer provided occupational  schemes and personal schemes in selected 
OECD and EU MS " was launched in 2006 as a follow-up of the 2005 survey on workers’ 
coverage and benefits from em ployer provided/occupation plan s in the EU MS. The OECD 
                                                 
11 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2003  (November 2003) 
12 http://ec.europa.eu/employment_social/employment_analysis/employ_en.htm  
13 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2005  (December 2005) 
14 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2004  (February 2004) 
EN    EN will enlarge the sample size and extend the scope of the survey in order to develop a 
monitoring tool enabling the syst ematic collection of comparable  historical data/information 
related to both funded statutory schemes, occupational and personal pension plans. The 
project will furthermore exam ine workers’ pension coverage  and plan rules (benefits, 
retirement ages, contributions, etc.) in selected OECD and all EU27 MS, focusing on new entrants and active/deferred members of pension schemes. The survey is still in progress. 
B.2 Health and quality in work (incl. undeclared work) 
The promotion of high quality in work
 is a central element of Europe's transition to a 
knowledge-based economy. It calls for improvements in several dimensions of quality in work: a good working environment for all; em ployee involvement and diversity at work; 
flexible work arrangements which promote better balance between working life and personal life; and health and safety at work. Most of th ese issues were dealt with by initiatives of the 
EIM. Based on analysis in the 2001 "Emplo yment in Europe" repor t and the indicators 
adopted by EMCO,  quality in work was well monitored both through the "Employment in 
Europe" and a Commission progress report
15. The scope for a furthe r harmonised indicator on 
the coverage of social security in atypical contracts16 was investigated. A major study on 
"Health and Quality in Work "17 analysed the relationship be tween different employment 
patterns and health outcomes including work on indicators in the EU, Japan and the US.  
Working time flexibility is an important elem ent of adaptability. During the impact evaluation 
of the EES carried out in 2002, no clear-cut empi rical data could be found on the effect of 
working time on productivity and job crea tion. The study "Impact of working time"18 assessed 
this relationship, reviewed macro-economic theory and the theory of the firm in this respect, and documented a sufficiently large number of case studies in differe nt EU countries and 
sectors. The aspects of integration in the LM under atypical contracts,  gender effects and job 
quality were also taken into account. The study was conducted through a comparative literature review, which explor ed social scientific theory relating to working time, 
employment, productivity and job quality. Th is also included an overview of national 
legislative reforms on working time with 25  representative case studies on working time 
regulation and agreements covering the nationa l and sector level, and company level.  
The study on "Undeclared work in an enlarged Union
"19 provided for the first time estimates 
on the extent of undeclared work in the MS  of the EU-25, Bulgaria and Romania and 
presented examples of good practice to transf orm undeclared work into regular employment. 
Following the interest expressed by the EP , the gender dimension was taken into full 
consideration. The study was follo wed in 2005 by a feasibility study  on the possibility and 
characteristics of a direct  survey on undeclared work . The feasibility study was completed in 
2007 and was followed up by a Eurobarometer survey financed PROGRESS, and the Communication COM(2007)628 "Stepping up th e fight against undeclared work"
20.  
                                                 
15 COM(2003)728 of 12.11.2003, at the request of the 2003 Spring European Council 
16 http://ec.europa.eu/employment_social/incentive_measures/activities_en.htm  (April 2005) 
17 http://ec.europa.eu/employment_social/employment_analysis/quality_sem05_en.htm  
18 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2006  (November 2006) 
19 http://ec.europa.eu/employment_social/employment_analysis/work_enlarg_en.htm  
20 http://ec.europa.eu/employment_social/employment_analysis/work_en.htm  
EN    EN B.3 Skills and human capital 
The EES and the report from the Employment Task force in particular, ha ve placed a renewed 
emphasis on the need to invest more and more effectively in human capital . The key to 
increasing such investment woul d be a more transparent and effective sharing of costs and 
responsibilities be tween public authorities, companies and individuals21. The two studies on 
"Human capital in a global and knowledge-based economy " assessed the link between human 
capital and growth at Eur opean (Part I), national (Par t II) and regional level22. In September 
2003, a joint EC-OECD Ministerial confer ence on "Human Capital, Employment, 
Productivity and Growth "23 was held in Brussels to allow a better understanding of the 
usefulness for firms and individu als of human capital expenditures and of the obstacles to be 
overcome. It was followed up in December 2004 by another joint EC-OECD event "Human 
capital and LM performance: evidence and policy challenges "24. The subject has also been 
discussed at the Presidentia l conference organised on 28 Oc tober 2003 (Milan) during the 
Italian Presidency of Council. The June 2004 Iri sh Presidency conference on investment in 
human capital furthermore focused on the pr omotion of enterprise  training and brought 
together examples of good pract ice and experiences, particularly  of employers, in the area of 
LLL and training. The conference addressed three themes: national experi ences of enterprise 
training, company experience of enterprise trai ning, and the role of innovation in training and 
policy.  
A review of the range of instruments for the pr ovision of incentives for work-based training 
was undertaken in the study "Instruments and incentives for promoting LLL "25. The study 
assessed the efficiency and effectiveness of these policies in the MS and drew up policy 
recommendations in the area. It furthermore c ontributed to a better u nderstanding of what 
works in practice and under which conditions th ese incentives are successful. The outcome of 
the study was presented in a Compendium of  Good Practice and a main report, "Policy 
instruments to foster training of the empl oyed". A second volume contains a summary and 
conclusions.  
Finally, a qualitative survey study on "Human ca pital as a factor for growth and employment 
at regional level in conjunction with industrial restructuring " was launched in 2006 with the 
aim to provide policymakers with basic informat ion required for the de sign of more effective 
strategies for a particular region, given its en dogenous assets. It estimated to what extent 
human capital could contribute to economic growth  to MS regions and in particular to those 
negatively affected by recent re structuring and outsourcing ac tivities in the economy. This 
included examining the problem of return to  employment of work ers hit by industrial 
restructuring . The survey was conducted in 16 MS a nd aimed at identifying and evaluating 
competencies that help workers to find a new job and assessing the importance of non-sector specific skills. Some of the conclusions showed that qualit ies like doing one’s work well, 
basic communication skills, flexibility and adapta tion capacity were - pr edictably - recognised 
as key ingredients in today's labour markets.  In their self-evalua tion most interviewed 
                                                
 
21 see also "Investing efficiently in education and tr aining : an imperative for Europe", COM(2002) 779 
final of 10.01.2003; "Education and Training 2010 – The success of the Lisbon strategy hinges upon 
urgent reforms", 2004 Joint Interim Report of the Council and the Commission 
22 http://ec.europa.eu/employment_social/employment_analysis/human_en.htm   
23 http://ec.europa.eu/employment_social/news/2003/sep/human_capital_conference_en.html   
24 http://ec.europa.eu/employment_social/employment_analysis/human_sem_2004_en.htm   
25 http://ec.europa.eu/employment_social/incentive_measures/studies/lll_comp_en.pdf ; 
http://ec.europa.eu/employment_social/incentiv e_measures/studies/lll_main_rep_vol1_en.pdf ; 
http://ec.europa.eu/employment_social/incentive_measures/studies/lll_summary_vol2_en.pdf   
EN    EN workers, whether self-employed, unemployed or  successfully reintegrated into a new job, 
reported all this as important.  
The final report is expected to be published before Summer 2008. 
B.4 Disadvantaged groups 
As the new EES aims at strengthening the cohesion and inclusion dimension , the issue of 
promoting social inclusion was taken on board. Th e study on "Policies for involving the social 
partners in the integration of pe ople at a disadvantage in the LM"26 developed an appropriate 
conceptual framework of classification for polic ies and measures to increase the involvement 
of social partners with a view to integrati ng disadvantaged groups into  the LM. It contained 
case studies from several MS (EU-25) and other non-EU countries, including existing 
evaluation material and illustra tions of “what works in practice?”, and identified the main 
strengths and weaknesses of current instruments a nd the main challenges to future policies. It 
concluded by highlighting the principal lessons emerging from the selected policies and 
pinpointed the implications for policy develo pment in relation to the integration of 
disadvantaged people into the LM. 
A critical part of the EES is the integration of a gender perspective  into the EU’s policies and 
programmes with specific actions in favour of women. The gender perspective was also taken 
into account in several of the EIM actions, such as work on indicators and statistics, the below-mentioned analysis of the gender ga ps, the studies on undeclared work, the 
effectiveness of ALMP, the migration of  women, just to mention a few. Gender 
mainstreaming was also subjec t to exchanges of good practice (peer reviews) and seminars 
and workshops. Analysis and research was carr ied out on the "Methodol ogical issues related 
to the analysis of gender gaps in em ployment, earnings and career progression "27, a project 
which included a workshop attended by experts on the issue in Brussels in September 2003.28 
The study served as a background for the Commi ssion Services Working Paper, "Gender pay 
gaps in European LMs - Measuremen t, analysis and policy implications"29.  
Unemployment is no doubt the most serious LM  problem for young people, but in order to get 
a full picture of the youth employment situ ation, the functioning of the LM has to be 
examined in a broad perspective. There are trends in quality and productivity at work which contribute to a growing LM segmentation wher e the young are often th e outsiders or on the 
margins of the LM.
 The study "Pathway to work – current practices and future needs for the 
LM integration of young people " the results of which is fore seen to be published in Spring 
2008, should provide a comprehensive and concis e analysis of the ma in quantitative and 
qualitative trends in the employment situati on of young people between 15-30 years old in the 
MS. It will also provide an analysis of MS policies addres sing youth employme nt problems, 
identify successful policies in individual MS  and formulate recommendations for improving 
young people's pathways to work in the future  and to increase quality and productivity at 
work in a balanced flexicurity approach for the young.  
                                                 
26 http://ec.europa.eu/employment_social/incentive_measures/studies/lm_integr_disadv_people_en.pdf   
27 http://ec.europa.eu/employment_social/employment_analysis/gender_index_en.htm   
28 http://ec.europa.eu/employment_social/employment_analysis/workshop_en.htm   
29 SEC(2003) 937, 04/09/2003  
EN    EN In the same context, the study "Ageing and employment: identification of good practices to 
increase job opportunities and mainta in older workers in employment "30 offered some 
reflections on the notion of good practice in the light of the re search conducted, identified the 
factors that seem to contribute the most to the successful introduction and development of age 
management and the factors that seem to act as  a barrier. It made some recommendations for 
action at European, national, company and indi vidual level and informed the EES where the 
objective of active ageing is prominent.  
B.5 Enlargement (incl. mobility) 
The Enlargement  was an issue of major interest for the EIM. Several studies analysed the 
impact of enlargement on employment and the LM. The study on the "Impact of economic 
and social integration on employment  in the context of enlargement "31, addressed some of the 
challenges policy makers are faced with at regiona l, national and EU level. It contributed to 
the assessment of the employme nt impact of integration.  
The countries of the EU, along with other economies in the worl d, are facing mounting 
pressure to respond to the challenges of globa lisation and increased competition from newly 
industrialised markets. Worker mobility, throu gh its two components, i.e. geographical and 
job mobility, should play an important role in  meeting people's desire for better living and 
working conditions, and businesses' demands for rapid labour force adjustment to new and 
changing skills requirements. In  its work programme for 2005, th e EIM highlights the need to 
underpin the Commission's efforts to support mobility  of workers, the obj ective of which is to 
strengthen the bases of the single European LM . The study "Empirical evidence on job and 
geographical mobility in the EU (migration flows) "32, which was finalise d in 2006, highlights 
major aspects of geographical and job mobility in the EU from the mid–1980s up to the mid–
2000s. Given data availability, a special focus was placed on the last decade. It furthermore 
constituted a background and an input for th e "Employment in Europe" Report in 2006 and 
also an empirical basis for two larger follo w-up studies on optimis ing geographic and job 
mobility in the EU , which were launched in the framework of the European Year of Workers 
Mobility (see Part C). The results of the la st-mentioned studies will be available in 2008. 
The study on "Industrial Restructuri ng in the Accession Countries (AC) " carried out an 
investigation of the industrie s and the skills requirement s likely to be affected by 
restructuring. It also identified and analys ed good practice and addressed the employment 
effects of foreign direct  investment in the region. The main  conclusion is that policies should 
facilitate and support structural change to alle viate its adverse effects on individuals who lose 
their jobs. They should also focus on those re gions hit the hardest by declining activities, 
notably by supporting the creation of small and medium-sized enterprises (SME), encouraging foreign direct investment through marketing of locations and information about 
the regions, and developing infrastructure and human resources in remote regions. A well-
attended seminar to discuss th e findings in the draft report was organised in Brussels in 
September 2004 and the final report was made  available in December the same year.
33 
                                                 
30 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2006  (March 2006) 
31 http://ec.europa.eu/employment_social/employment_analysis/impact_en.htm   
32 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2006  (June 2006) 
33 http://ec.europa.eu/employment_social/emp loyment_analysis/restruct_sem_en.htm   
EN    EN B.6 Restructuring 
In order to enhance the knowledge of the drivers behind large-scale restructuring  and to 
collect examples of how to manage and possi bly anticipate restructuring with the aim of 
preventing or reducing the nega tive employment effects thereo f, the European Commission 
launched a project consisting of two major studies, "Restructuring in Europe: the anticipation 
of negative LM effects " and the "Case studies on the LM impact of large-scale economic 
restructuring ", which were presented at the seminar "The role  of public authorities in 
anticipating and managing LM effects of economic  change and restructuring" in Brussels on 
23 June 200634. The case studies assessed the situation in four c ountries, Finland, Poland, 
Portugal and Turkey. 
The opening of the EU energy market  has been phased in sin ce the mid-1990s. The Lisbon 
European Council in March 2000 ca lled for liberalisation to be speeded up to create a single 
market for electricity and gas. In 2003, two Directives were a dopted setting deadlines for the 
full opening of the EU energy market (1 July  2004 for business customers and 1 July 2007 for 
households).  
Beside the impetus for creating in the EU the largest integrated energy market in the world, 
several further EU legislative acts have been a dopted in recent years that can be expected to 
affect the framework conditions of the energy market. 
Further to a Commission study on the effects of the liberalisation of the electricity and gas 
sectors on employment in EU -15, published in October 200135, a more in-depth study was 
undertaken for the enlarged EU-27 and Turk ey ("The impact on employment of the 
liberalisation of the EU electricity and gas sect ors and any other Directives in the field of 
energy policy "36). It was followed by a seminar and finalised in 2007. The study took into 
account the impact of all the key legislative acts  related to the energy sector and resulted in 
comprehensive material about the employment ch anges in the electricity  and gas sector both 
in respect to quantitative but also qualitative f actors. It further showed  that liberalisation has 
been accompanied by significant job cuts, but not al l parts of the sector were affected in the 
same way. The study confirms also in this sect or the general tendency towards more qualified 
employment, while there is no clear evidence for a link between training provision or working 
conditions on the one side and liberalisation on the other. 
B.7 Migration 
In 2003, a basic analysis of immigration and employment in the EU  was published in the 
"Employment in Europe" report37. It was updated in 2004, based on new Eurostat data, which 
allowed distinguishing 'foreign-bor n' from 'foreign nationals'. Fu rther aspects of this issue 
were examined in studies financed under the EIM. The study on "Potential Migration from 
Central and Eastern Europe into the EU-15-An Update "38 confirmed the results of the 
previous analysis on the subjec t and provided very useful insi ghts on the current dynamics of 
immigration. It concludes that migration from the CEEC-12 to the EU might be lower than 
                                                 
34 http://ec.europa.eu/employment_social/emp loyment_analysis/restruct_sem06_en.htm   
35 http://europa.eu.int/comm/energy/electricity/publications/index_en.htm   
36 http://ec.europa.eu/employment_social/employm ent_analysis/restruct_lib_gas_el07_en.htm   
37 In accordance with the conclusion s of the Thessaloniki Council calli ng for an accurate and objective 
analysis of migration and integration in Europe (§33 of Presidency Conclusions) 
38 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2003  (October 2003) 
EN    EN generally expected, both in the short and long run. In addition, five papers were prepared on 
"The contribution of immigration to labour supp ly and on the integration of immigrants into 
the LM and into society "39, dealing with the efficient practices  in the recruitment of migrants 
for economic activities; practices to promote the integration of mi grants into the LM; ways to 
identify labour and skill shor tages; the economic performance of the foreign-born and the LM 
performance of irregular a nd regularised workers.  
In 2005, the study project "Gaining from migration "40 was launched in cooperation with the 
OECD Development Centre. The objective was to  join forces with OECD to deepen our 
understanding of the economic a nd social implications of mi gration while promoting a high-
level dialogue among international migratio n experts, leading eco nomists and senior 
policymakers on the guiding principles towards a more effective integration of immigrants 
into host-country LMs and societies, while ensuring the successful economic and social 
development and transition of sending countries . In this context, a series of evaluative 
studies/working papers leading to four main polic y briefs was produced as well as a draft final 
report, which was discussed in Brussels during an expert seminar organised by the 
Commission in March 2007. The report, which includes several key policy messages, was 
finalised in July the same year. 
A better understanding is needed on the econo mic impact of migratio n including the role 
migration can play in alleviati ng labour shortages. The study "T he role of migrant women in 
the LM; current situation and future prospects ", which gives special attention to the situation 
of female migrant workers in particular , was launched in 2006. The project has three 
objectives: to draw a picture of the migrant wo men's representation in the LM in EU, how to 
improve LM participation of mi grant women in the EU, and how to better integrate the gender 
dimension in integration and immigration policies.  A seminar to discuss the draft final report 
was organised at the beginning of 2008 and the final report will become available in Spring 
2008. A joint EC/OECD conference on "Migrant wo men" which produced a series of expert 
papers and interesting conc lusions was organised in 200541. 
B.8 Business dynamics and employment 
The study "Business demography and employment "42 provides a set of equations and 
indicators, which can be used to analyse and monitor the progress towards the objective of 
business creation and growth-driven employme nt and recommendations regarding indicators 
for monitoring. The monitoring system consists of  two parts, the first being related to the 
monitoring of business and labour dynamics. Th e second part relates to the underlying 
environmental factors which determine bus iness creation and employment growth. 
A major project including a study and network of  "European LM analysts using firm-level 
panel data and linked employer-employee data "43, launched in 2006, built on a preparatory 
study from 2005 with a view to exploiting all pote ntial sources of such data at European and 
international level for the purpose of comparative analysis of LM issues. The network will be launched at a later stage as it depends on the result and findings of the study, which will be 
finalised at the beginnin g of 2008 when a conferen ce to present its final report is also planned. 
                                                
 
39 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2004  (July 2004) 
40 http://www.oecd.org/document/39/0,3343,en_2649_33731_36427431_1_1_1_1,00.html#Gaining  
41 http://ec.europa.eu/employment_social/employment_analysis/imm_migr_wom05_en.htm   
42 http://ec.europa.eu/employment_social/incentive_measures/activities_en.htm   
43 http://ec.europa.eu/employment_social/incentive_measures/activities_en.htm  
EN    EN A workshop linked on the issue, "Employment, productivity and wage structures in Europe ", 
was organised in April 2005. 
B.9 PES studies 
Guidance is a discipline that is part of any in dividual action plan and one that contains the 
various PES functions into an effective whole.  A survey on vocational guidance services in 
the national PES of the enlarg ed EU, "Career Guidance in Europe's Public Employment 
Services: trends and challenges "44, will contribute to the elabora tion of a PES service model, 
which is developed in connection with the specific EG on preven tion and activation. The 
survey, allowed a collection of data on national PES practices and became an important source for the national PES in the developmen t of their new service models. A follow-up 
seminar  on "The role of vocational guidance in th e PES service model for job-seeker action 
planning " was organised in 2006 to explore the a ppropriateness/modalities of implementation 
of the recommendations made in the report of  2005. The seminar outcomes included mutually 
agreed proposals for practical actions geared  towards enhancing the role of vocational 
guidance in the PES with particular refere nce to more effective action planning and 
prevention of long-term unemployment (LTU). 
B.10 Surveys 
In the context of the evaluation of the EES, a preparatory action for a conference organised by 
the Portuguese Presidency in 2007, the qualitative study on ten years of EES: "Analysis of the 
attitudes of the main actors in employ ment policy in 28 European countries "45, was launched 
in 2006. The study confirmed, on the basis of interviews of stakeholders, the impact of the EES on national reform agendas, notably in  the new MS, and the improved convergence 
around EES challenges and policies. At the same  time, the study identified the need for the 
EES to focus more on new challenges such as the development of human capital, worker's mobility and immigration.  
In the context of evaluation, it is also appropr iate to mention two pr ojects launched in 2006:  
The first was using the Eurobarometer to assess  the level of awareness of the EES and its 
supporting financial instrument, the European So cial Fund (ESF). This analysis was combined 
with a broader Eurobarome ter survey, "European employment and social policy
"46, on the 
public perception of social polic y challenges and reform across Europe. In the light of earlier 
results, the aim of the project was to further explore the level of know ledge of the EES – its 
existence, effectiveness and transparency – as we ll as of the financial instrument to support it: 
the ESF. To put this survey into a wider perspective, it also addressed differences/commonalities in the perception of  fundamental social values, social policy 
challenges and reform across the EU as well as  of the communication and perception of the 
EU's contribution in this context. The surv ey was carried out in the 25 MS, Bulgaria, 
Romania, Croatia and Turkey.  
The second project was a study whic h also related to the ESF, wh ich in 2007 celebrated its 50 
years of existence supporting employment initia tives in Europe. 2007 also coincided with the 
start of the next programmi ng period of the Cohesion Polic y (2007-13), which was an 
                                                
 
44 http://ec.europa.eu/employment_social/in centive_measures/ac tivities_en.htm#2005  (October 2005) 
45 http://ec.europa.eu/employment_social/incentive_measures/activities_en.htm  
46 http://ec.europa.eu/employment_social/incen tive_measures/studies/ebs261_esf_en.pdf   
EN    EN opportune moment to consider an d communicate the role that the ESF has played, evolving 
from being a tool principally supporting training and workers' mobility into a key instrument supporting employment policy across th e board, and more recently the EES. 
This study, "ESF – 50 years investing in people
"47, traced the history and evolution of the 
ESF from 1957 up to the present day, making links with the key developments in EU employment and social policy. A hardcopy version of the report is also available in English, 
French and German.  
In the context of ESF, the EIM also supporte d a Finnish Presidency conference on EES and 
ESF in 2006. 
C. 2006  EUROPEAN YEAR OF WORKERS MOBILITY (EYWM) 
In the context of the 2006 EYWM, several proj ects, which included two Calls for Proposals, 
were financed by the EIM Programme. 
It may be interesting to note that at present only 2% of the EU citizens are living and working 
in another MS. Although the unemployment rate in  the EU is high, an estimated number of 3 
M posts remain unfilled, due largely to the lack  of a mobility culture within the European 
work force. A further lack of work force in Eu rope is also foreseen in the future, due to 
negative demographic trends. 
Lessons were learnt from the Year. Whereas mobility  in the past mostly concerned the long 
term mobility of workers from the southern regions of Europe moving to the north, today all categories of workers are included and am ong those many young workers, some with a 
multiple mobility experience, which is often of a shorter duration.  
The psychological and practical obstacles that ma ke people hesitate befo re moving to another 
country were also brought forward and analys ed through studies an d exchange of best 
practice. Among the practical obs tacles should be mentioned family, spouses with own 
careers in country of origin, language, non-recognition of qualification and diplomas, taxation and social security. The psychological obstacl es are sometimes more difficult to define; 
hesitation combined with fear for the unknown, but also returning workers may face a LM 
that has changed during their absence and the m obility experience is not always recognised as 
something positive by employers.  
Solutions about how to deal with these obstacles were sought through discussions and 
exchange of good practice between  the MS. The importance of gi ving assistance in order to 
reintegrate returning worker s was equally acknowledged. 
In promoting the Year, the positive aspects of  mobility were further stressed. The cultural 
element, the opportunities offered to discover another country, its environment and to learn 
another language, etc., should give encouragemen t to the EU citizens to discover themselves 
what the European experience is all about. 
                                                
 
47 http://ec.europa.eu/employment_social/e sf/docs/50th_anniversary_book_en.pdf   
EN    EN Further information on the projects wh ich the EIM supported can be found at 
http://ec.europa.eu/employment_social/w orkersmobility_2006/index.cfm?language=EN  and 
http://ec.europa.eu/employment_socia l/incentive_measures/ activities_en.htm#2006 . 
In the context of the EYWM, EI M funded the following activities: 
- Logo, promotional and awareness-raising material , including the European Workers' 
Mobility poster and leaflet48 
- Support for the EU-level soci al partners to develop m obility related initiatives49: the overall 
aim of this restricted Call for Proposals was to provide support to  EU-level social partners to 
develop new activities or to pr ovide for follow-up of successfully implemented activities to 
promote Europe-wide geographical and occupational mobility of workers. The activities were to be conducted under the labe l of the EYWM 2006 (i.e. figure in the Year's programme of 
activities, carry the official l ogo, etc.) and were to be concei ved as launch events during the 
Year; 
- Launch conference
 (Brussels, February 2006)50  
- Joint EU-US seminar "Labour mobility in the EU and the US: Trends and Challenges 
ahead"51 
- Towards a European LM; pilot projects52: a Call for Proposals with a view to launching 
innovative actions in order to enhance the exch ange of best practice on workers mobility in 
the EU)53 
- The study on " Geographical mobility in the EU: op timising its social and economic 
benefits " aims at assessing geographical mobility in the EU both at regional and national level 
and with the objective to build on existing empi rical evidence, collect additional and updated 
evidence and evaluate current policies and de sign new ones in order to support geographical 
mobility and the creation of a European  LM, final report available by spring 2008;54 
- The study on " Job mobility in the EU: optimising its social and economic benefits " focuses 
on job mobility in the EU in relation to mo bility with the same employer (e.g. career 
advancement), occupational mobility, and job mobility proper (change of employer, final report available by spring 2008);
55 
- The study on " Employment of spouses and partners as an obstacle to mobility "56 shows that 
unawareness of assistance available for spouses  might be a major obst acle to (international) 
mobility and that a large part of companies are not fully aware of the regulations in force. However, a great number of couples and comp anies are capable of handling international 
                                                
 
48 Logo and promotional material  
49 Restricted Call for Proposals VP/2005/018: 
http://ec.europa.eu/employment_social/calls/2005/vp_2005_018/index_en.html   
50 Launch conference: 
http://ec.europa.eu/employment_social/w orkersmobility_2006/index.cfm?id_page=45   
51 http://ec.europa.eu/employment_social/employment_analysis/imm_mobility06_en.htm   
52 http://ec.europa.eu/employment_social/w orkersmobility_2006/index.cfm?id_page=504   
53 Call for Proposals VP/2006/014  
54 Call for Tender VT/2006/042  
55 Call for Tender VT/2006/043  
56 file:///V:/employment_social/incentive_measures/activities_en.htm#2006  (EYWM) 
EN    EN migration without assistance. In these cas es proper information concerning living and 
working conditions and LM opportunities might be sufficient. Therefore, information is a prerequisite for international mobility, but also good practice and awareness-raising. The 
study also pointed out possible side effects, su ch as biased public opinion, social tensions, 
etc., and cutbacks of international mobility an d the situation in the UK were brought up as 
examples in this respect; 
- The study " Innovative actions to prov ide good company practice on  worker mobility for 
SME and PES"57, whose results are expected to be avai lable in early spring 2008, will identify 
possible ways to overcome existing barriers to mobility and to capitalise on business practice 
related to workers' mobility. The main focus w ill be on best practice by medium-sized and 
large enterprises allowing and encouraging the geographic mobility of their workers. This 
good practice can be of great use for other SME and for the PES as providers of services to 
both workers and enterprises. The aim is to inves tigate into the reality of (larger) enterprises 
rather than developing theo retic models. SME can learn fr om good practices of large 
enterprises, while focusing on effective policies, in terms of mobility of staff and looking into good examples with the largest impact on workers' mobility;  
- "Europeans on the move - Portraits of 31 mobile workers"
58 (publication) 
- Publication of a 'Flash' Eur obarometer on the perception of rights and instruments in the 
area of workers' mobility : this survey assessed changes in individual perceptions and attitudes 
towards mobility at end of the Year. It al so assessed changes in relation to a broader 
Eurobarometer inquiry that was conducted at  the end of 2005. The changes in perception 
made it possible to draw preliminary conclu sions about changes in perception on the 
usefulness of mobility experiences as a means to increase employment in Europe and in particular a better matching between offer and de mand at European level. The results of the 
Flash were presented at the closing conference of the Year in Helsi nki, in December 2006; 
- Conference on "Workers' Mobility – What role for the social partners?
" organised to 
promote exchange of good practice; 
- European Job Fairs  organised simultaneously in 230 cities on 29 and 30 September 200659; 
- The "European Workers' Mobility Award "60  
- Seminar for Law Professionals  on the free movement of work ers in an enlarged Europe61 
- Series of initiatives of information and awareness-raising to emphasise mobility's 
contribution to more and better jobs  
- Closing conference  
- Evaluation of the Year  (still in progress) 
                                                 
57 Call for Tender VT/2006/046  
58 Europeans on the move - Portraits of 31 mobile workers  
59 European Job Fairs  
60 European Workers' Mobility Award  
61 http://ec.europa.eu/employment_social/w orkersmobility_2006/index.cfm?id_page=20   
EN    EN D. LOCAL EMPLOYMENT DEVELOPMENT (LED) 
In the area of local development, several proj ects were initiated and launched during the EIM 
Programme period. 
Among the LED key activities belongs the IDELE programme62, a 3-year programme 
launched by the Commission in November 2003 in order to iden tify, disseminate and 
exchange good practices among MS in LED. IDELE set up a similar methodology as that of 
the Mutual Learning Programme (MLP)63 with local actors bei ng encouraged to develop 
effective local development strategies by facili tating co-operation with their counterparts in 
other MS.  
Each year 4 themes were agreed with DG EMPL  which formed the basis of four seminars 
during each year. Prior to each seminar there was an intensive process of identifying good 
practice case studies relating to each theme. At  each seminar, 6-8 case studies were presented 
and discussed in detail, with the aim of extracting key succe ss factors and transferable good 
practice. The number of particip ants at each seminar was kept to about 30-35 people to ensure 
that there would be real disc ussion. Generally part icipants were invited by ECOTEC or DG 
EMPL on the basis of who could best contribute. Following each seminar a thematic report was produced, incorporating the background res earch and the findings from the seminar. 
Dissemination of the findings and the reports was a key part of the process. For each year, the 
IDELE programme also produced an overall report. 
With regard to information and communication activities, the Linking Local Actors network
64 
set up a website and now provides means for networking and close co operation between the 
Commission and local economic and employme nt development actors. It furthermore 
organises periodic peer reviews a nd events at Community, national,  regional and local levels.  
The evaluation of the preparatory measures projects  evaluated the series of 19 projects under 
the Call for Proposals "Preparatory measures  for a local commitment for employment" 
launched in 2001. The 19 projects aimed to high light innovative aspects of LED, to put 
forward proposals for the tran sfer of good practice, to draw  lessons for the design of 
mainstream employment policies, and to provi de advice as regards future activity. The 
evaluation highlighted positive results an d limitations, and put forward a set of 
recommendations in order to increase the imp act of this type of initiative in the future. 
In line with the provis ions of Article 4(3) of the Deci sion, EIM contribu ted throughout the 
whole programme period to OECD in the fram ework of its Local Economic and Employment 
Development programme  (LEED)65, focusing on the local integration of immigrants, skill 
upgrading for the low-skilled, and dissemination activities.  
The project "Promotion of Benchmarking within LED "66, launched in 2004, aimed at 
developing effective local employ ment strategies by learning fr om the experience of others 
who have faced, or are facing, similar issues in ot her localities. By the setting of standards and 
identification of synergies, benchmarking can constitute a "learning system", helping to 
                                                 
62 http://ec.europa.eu/employment_social/local_employment/project_idele_en.htm   
63 http://ec.europa.eu/employment_social/employment_strategy/peer_en.htm   
64 http://ec.europa.eu/employment_social/local_employment/lla/fo/index.do   
65 http://www.oecd.org/department/0,3355,en_2649_34417_1_1_1_1_1,00.html   
66 http://ec.europa.eu/employment_social/local_employment/publi_en.htm   
EN    EN transform local approaches into better governan ce. So benchmarking can be regarded as an 
important contribution to the implementation of the EES at local level. 
The project entailed a literature review, identif ication of case studies, fact-finding visits, and a 
conference. As well as a final report in Englis h and in French, there is a summary brochure, 
accessible to non-experts, availabl e in 20 EU official languages.67  
The study "New MS and LED: taking stock and planning for the future ", also known as 
FALDE: Fresh approaches to local de velopment of employment in the new M S68, identifies 
future priorities with respect to LED in the 12 new MS, in keeping with the goals of the EES and wider EU objectives, and thereby develop fu ture strategy with respect to LED in these 
countries and in the EU as a whole. 
In November 2001 the Commission adopted a Communication [COM (2001) 629] on the 
local dimension of the EES, suggesting ways to help local actors play their full part in the EES, in cooperation with national authorities an d Community institutions . A particular focus 
for the Commission has been to play a supportive role, and in line with that strategy a series 
of practical handbooks for developi ng local employment strategies
 for local actors was funded 
by the EIM. These handbooks provide a practical  tool indicating the best approaches for 
designing, developing, implementing, monitoring and evaluating successful LED strategies 
and activities. The key principles are presen ted, documented with examples and a list of 
useful contacts.  
There are today 16 handbooks available69 - one for each of the 15 MS that were EU members 
prior to May 2004, and a general one for the new MS and CC. Each handbook has a common first part, followed by country-specific chapters. 
In 2006, the same handbook project was launched for each of the 10 new MS as well as a 
general one for Bulgaria and Ro mania that were still AC at that time. The handbook will be 
available before the summer of 2008. 
A key event was the European Forum on local development
70, held during the Greek 
Presidency in Rhodes in 2003. This provided th e opportunity for key act ors at all levels 
(Community, national, regional and local) to discuss ways of  promoting LED and the EES 
and to exchange best practice. This high-pr ofile event enhanced vi sibility of the EES 
including the contributio n of local and regional level appr oaches for the general public.  
The joint conference on "LED in the EU an d the US: promoting successful policies and 
practices " offered an opportunity for pa rticipants from across the EU  and the US to engage in 
a dialogue on their respective approa ches to and experiences with LED. 
                                                 
67 http://ec.europa.eu/employment_social/local_employment/publi_en.htm   
68 http://ec.europa.eu/employment_social/local_employment/project_planning_en.htm   
69 http://ec.europa.eu/employment_social/local_employment/publi_en.htm   
70 http://ec.europa.eu/employment_social/local_employment/events_en.htm   
EN    EN E. NETWORKING  
E.1 European Employment Observatory (EEO)71 
The EEO contributes to the development of the EES through the provision of information, 
comparative research and evaluation on employme nt policies and labour market trends in the 
countries covered by the EEO (EU MS, CC and EFTA/EEA). 
On the EEO web site the latest news from th e EEO, information on the EES, electronic copies 
of the EEO Reviews and other EEO publicati ons, as well as links to other relevant 
international, European and country websites can be found 
E.2 Mutual Learning Programme (MLP) 
The MLP aims at facilitating the identificati on of good employment policies and their transfer, 
creating the opportunity for stakeholders in the MS to present their national examples of good 
practice at the EU level.  This is being realised through 3 types of activities: 1) Thematic Review 
seminars, which are attended by policy-makers and stakeholders from across Europe as well as 
key experts, who come together to debate on a priority theme; 2) Peer Review meetings, which 
present a selected policy  or measure to a group of peer coun tries which have expressed specific 
interest in the potential transfer of the policy to their own countries; and 3) national and joint 
follow-up activities, which are launched to  achieve the object ives of the MLP. 
E.3 Public Employment Services (PES) 
A number of high quality collaborative PES projects were co-financed, such as the 
development of benchmarking indicators of PES performance,  which included the related 
seminar on "Common performance indi cators and benchmarking procedures ". 
Other PES seminars  included subjects such as governance  and structural change in PES 
related to ICT developments and on the prom otion of mutual understanding of public and 
private employment services. 
Series of training seminar  was organised in 2002, 2003 and 2006 for the PES management  in 
those CC, which were to become the new MS in 2004, and in Romania, Bulgaria, Croatia and 
Turkey in 2006. The seminars, which were or ganised by the Commission in collaboration 
with the EU PES in order to ensure a coherent  transfer of practical knowledge and experience, 
focused on PES as a factor in the implementa tion of the EG and gene ral policy/strategic 
management issues related to the implementa tion of the EES and ESF, PES modernisation 
issues, participation in the EURES network, services to j obseekers/LTU and services to 
employers.  
E.4 LED Programmes and Network 
Both the IDELE Programme and the Linking Local Actors Network were dealt with more in 
detail under Part D of this document. 
                                                 
71 http://www.eu-employment-observatory.net/index.aspx   
EN    EN GLOSSARY 
ALMP Active Labour Market Policies 
AC Accession Countries  
CC Candidate Countries 
CEEC-12 12 Central and Eastern European Countries 
EEA European Economic Area 
EEO European Employment Observatory 
EES European Employment Strategy 
EIM Programme for Community incentive measures in the field of 
employment 
EMCO Employment Committee 
ESF European Social Fund 
EYWM European Year of Workers' Mobility 2006 
IDELE Identification, Dissemination and Ex change of good practice in the 
field of LED and promoting better governance 
LED Local Employment Development 
LEED The OECD programme: Local Employment and Economic 
Development programme 
LFS Labour Force Survey 
LLL Lifelong Learning 
LM Labour market 
LMP Labour Market Policy 
LTU Long-term unemployment 
MLP Mutual Learning Programme 
MS Member States 
PES Public Employment Services 
SME Small and medium-sized enterprises 
EN    EN