Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - The future of the European Employment Strategy (EES): "A strategy for full employment and better jobs for all"
Date: 2003-01-14
Institutions: European Commission
Subjects: European Employment Strategy, labour market

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 14.1.2003
COM(2003) 6 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND
THE COMMITTEE OF THE REGIONS

The future of the European Employment Strategy (EES)
"A strategy for full employment and better jobs for all"

Introduction.................................................................................................................................3

1.

1.1.

1.2.

1.3.

1.4.

2.

The EES: a key component of the Lisbon agenda ........................................................4

Responding to medium and longer term challenges.....................................................4

Instruments focused on implementation and results.....................................................6

Ensuring consistency with other processes...................................................................7

Better governance .........................................................................................................8

A new generation of Employment Guidelines..............................................................8

2.1.

Three overarching objectives........................................................................................9

2.1.1.

Full employment ...........................................................................................................9

2.1.2. Quality and productivity at work ..................................................................................9

2.1.3. Cohesion and an inclusive labour market ...................................................................10

2.2.

Focus on priorities ......................................................................................................11

2.2.1. Active and preventive measures for the unemployed and the inactive.......................11

2.2.2. Making work pay........................................................................................................11

2.2.3.

Fostering entrepreneurship to create more and better jobs .........................................12

2.2.4.

Transforming undeclared work into regular employment ..........................................12

2.2.5.

Promoting active ageing .............................................................................................13

2.2.6.

Immigration ................................................................................................................13

2.2.7.

Promoting adaptability in the labour market ..............................................................14

2.2.8.

Investment in human capital and strategies for lifelong learning...............................14

2.2.9. Gender equality...........................................................................................................15

2.2.10. Supporting integration and combating discrimination in the labour market for

people at a disadvantage .............................................................................................15

2.2.11. Addressing regional employment disparities..............................................................16

2.3.

Delivery and governance ............................................................................................16

2.3.1.

Effective and efficient delivery services.....................................................................17

2.3.2. A strong involvement of the Social Partners ..............................................................17

2.3.3. Mobilisation of all relevant actors ..............................................................................18

2.3.4. Adequate financial allocations....................................................................................18

Annex: Examples of possible indicators and targets for the ees...............................................20

2

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE
AND THE COMMITTEE OF THE REGIONS

The future of the European Employment Strategy (EES)
"A strategy for full employment and better jobs for all"

INTRODUCTION

When  the  Luxembourg  Jobs  Summit  (November  1997)  launched  the  European
Employment  Strategy  (EES)  on  the  basis  of  the  new  provisions  in  the  Employment
title of the Treaty, the ambition was to achieve decisive progress within five years.

The  Communication  of  17  July  20021  reviewed  the  experience  of  five  years  of  the
EES  under  the  "Luxembourg"  process  and  identified  major  issues  for  the  debate  on
the future of the EES.

The Communication stimulated an active debate at the level of all institutions, leading
in particular to a Resolution from the European Parliament2, and a joint position from
the Employment Committee and the Economic Policy Committee that was submitted
to the Council. The European social partners and other  stakeholders have  also made
contributions  to  the  debate.  The  debate  confirmed  the  important  contribution  of  the
EES to the improved employment performance and the convergence of  employment
policies within the EU over the past five years. It also emphasised the need to revamp
the EES with a view to aligning it more closely to the Lisbon Strategy and addressing
new emerging challenges.

Following  on  and  completing  the  Communication  on  evaluation,  the  Commission's
Communication of 3 September 2002 on the streamlining of the annual economic and
employment  policy  co-ordination  cycles3  received  a  broad  support  from  EU
institutions at the end of 2002. This was followed by the presentation in November of
the  draft  Joint  Employment  Report4  in  which  the  Commission  gave  general
orientations for the way forward.

With a view to the adoption of the Employment Guidelines in the light of the political
orientations  of  the  Spring  European  Council,  according  to  the  new  streamlined
procedure, the purpose of this Communication is to present an outline for the revised
strategy  complemented  by  examples  of  existing  concrete  objectives  and  targets  and
considerations and suggestions for possible new targets. This will offer the basis for
an  open  discussion  with  all  interested  parties,  especially  the  Member  States,  the
European Parliament, representative organisations of the Social Partners and the civil
society. In line with the new and streamlined approach for the overall Lisbon agenda
follow-up, the Commission will make  a  formal  proposal  of  Employment  Guidelines

1 COM(2002)416  of  17  July  2002  "Taking  stock  of  five  years  of  the  European  Employment

Strategy".

2 PE 316.370 of 25.09.2002
3 COM(2002)487
4 COM(2002)621 of 13.11.2002

3

                                                
and Recommendations, in the light of this debate and of the general political guidance
issued by the Spring European Council. This will lead to adoption by the Council at
the end of the first semester 2003.

The present text is a document for discussion. The Commission will submit, in April
2003,  in  the  light  of  the  conclusions  of  the  Spring  European  Council,  its  detailed
proposals for the BEPGs and the Employment Guidelines in a manner which ensures
consistency of approach across the two documents.

As part of the transition towards a streamlining of policy co-ordination processes, this
Communication is presented together with the Commission Synthesis Report and the
Implementation Report on the Broad Economic Policy Guidelines and on the Internal
Market,  as  an  input  for  the  Spring  European  Council.  While  the  Synthesis  Report
contains the key messages which  the Commission addresses  to the Spring  European
Council,  this  Communication  presents  in  more  detail  the  implications  of  such
messages as regards employment policy.

1. 

THE EES: A KEY COMPONENT OF THE LISBON AGENDA

At  the  Lisbon  European  Council,  the  European  Union  defined  a  comprehensive
strategy aimed at long term economic growth, full employment, social cohesion, and
sustainable  development  in  a  knowledge  based  society.  There  is  now  widespread
agreement  that  the  EES  should  be  designed  as  a  key  tool  to  underpin  the  Lisbon
strategy in the enlarged EU. In doing so, the EES will also contribute to economic and
social cohesion.

1.1. 

Responding to medium and longer term challenges

the  Lisbon  employment 

Past  reforms  have  helped  to  increase  resilience  of  employment  to  the  economic
slowdown,  to  boost  employment  by  more  than  10  million  jobs  and  reduce
unemployment  from  10.1%  to  7.4%  (ie  by  4  million  people)  and  long-term
unemployment from 5.2% to 3.3% over the lifetime of the Luxembourg process. This
means that reforms must be sustained and extended to create another 15 million jobs
needed  to  achieve 
target.  While  notable  structural
improvements  have  taken  place  in  the  EU  labour  markets,  important  structural
weaknesses  remain,  and  these  need  to  be  tackled  with  determination.  The  EU
employment and participation levels remain insufficient. Unemployment remains high
in a number of Member States, particularly amongst certain categories such as young
people (3 million unemployed in 2001), older workers, women or people with specific
disadvantages. Coinciding with this, bottlenecks are appearing in  certain sectors and
regions of the EU. The gender gaps remain important, be it in terms of employment,
unemployment,  pay  or  sectoral  and  occupational  segregation.  Effective  gender
mainstreaming is far from being implemented in all Member States. Wide disparities
within and between regions persist. It is also essential to reverse the decline in labour
productivity growth.

These  structural  weaknesses  are  shared  by  both  existing  and  future  Member  States,
although their scale may differ. Whilst the employment situation amongst Candidate
countries  varies  substantially,  major  challenges  include:  the  need  to  increase  labour
supply to contribute to sustained economic growth; the need for employment rates to
catch up, especially for men and with particular attention for older workers; the need
to ensure an orderly flow from agriculture and industry to services without generating

4

increasing  regional  disparities  in  the  medium-term;  and  the  need  to  upgrade  and
update  skills  to  enable  candidate  countries  to  compete  effectively  in  the  enlarged
Union  and  the  global  economy.  Major  reforms  of  the  labour  market  have  been
undertaken  in  all  candidate  countries  over  the  last  decade  and  the  EES  will  need  to
support them in managing their economic and social transformation.

While  addressing  the  remaining  structural  deficiencies  characterising  the  EU  labour
market, the EES should also reflect the new employment challenges ahead.

Demographic trends constitute a specific challenge for the medium and longer term.
They  reveal  an  ageing  workforce  and  a  long  term  decline  of  the  working  age
population. They will tend to constrain labour supply, economic growth potential, and
the  sustainability  of  social  protection  systems.  Consequently,  raising  labour  force
participation5has  become  a  priority,  and  the  potential  role  of  workers  from  third
countries is receiving more attention.

Globalisation  and  the  move  towards  a  knowledge-based  society  are  further
accelerating the pace of economic restructuring, bearing the risk of skills erosion and
social exclusion. A positive management of economic and social change is becoming
a  top  priority  for  employment  policy.  Investing  in  human  capital  is  a  central
requirement  to  attain  the  Lisbon  objective  of  becoming  the  most  competitive
knowledge-based economy. The increasing share of services in the economy, the pace
of technological change, the increase in the knowledge/information share of the value
of  production,  and  the  scale  of  economic  and  social  restructuring  all  strengthen  the
case for such investment. The EU suffers from under-investment in human capital and
from insufficient investment in ICT tools that are necessary to raise productivity and
quality at work.

Working life is becoming more complex as working patterns become more irregular. A
number of transitions now need to be accounted for, including the transition between
school  and  working  life,  between  jobs,  between  different  working  status,  between
working  life  and  retirement  and  between  work  and  training,  career  breaks  and  care
periods.  This  latter  point  raises  the  issue  of  an  equal  share  of  wage  and  non-wage
work  between  women  and  men.  The  balance  between  flexibility  and  security  is
becoming a tangible concern for an increasing share of the labour force.

The EES must provide a policy response to the above challenges structured around the
ambitious Lisbon goal of full employment, quality at work ("better jobs") and social
inclusion.

The overall coherence between the EES and the Lisbon agenda will be supported by
the alignment of the time frame of the EES to the medium term horizon of 2010, with
a  mid-term  review  in  20066.  This  review  will  coincide  with  the  review  of  the
structural  funds,  ensuring  proper  coherence  and  mutual  support  between  policy  and
financial instruments, in particular the European Social Fund.

5 See the Joint Report "Increasing labour force participation and promoting active ageing" submitted
to the Barcelona European Council, adopted on the basis of COM(2002) 9 final of 24.01.2002.

6 See Barcelona conclusions § 30.

5

                                                
1.2. 

Instruments focused on implementation and results

The  open  method  of  coordination  of  the  EES  based  on  art.  128  of  the  Treaty  has
proved its value. Following the request of the Barcelona European Council calling for
a  strengthening  of  the  EES  and  the  conclusion  of  the  Council  debate  on  the
"streamlining",  consideration  must  be  given  to  the  optimal  use  of  the  instruments
provided by the Treaty and developed by the practice so far.

Stable and result- oriented Employment Guidelines

It is now widely considered that, after the successive revisions introduced since 1997,
the  Guidelines  have  become  complex  and  that  they  should  be  simplified.  In  an
enlarged  Union  and  considering  the  wider  set  of  actors  on  which  they  will  call,  the
Guidelines  should  provide  more  general  guidance  and  approaches  for  employment
policy  reforms,  with  an  identification  of  priority  actions  and  clearly  defined
responsibilities.

The  Council's  agreement  on  streamlining  supports  the  Commission's  proposal  for
greater stability of the Guidelines. Experience has shown that important labour market
measures  often  take  time  to  design,  adopt  and  implement,  and  even  longer  to
demonstrate their impact in the labour market. While the Treaty provides  for annual
guidelines,  and  exceptions  could  be  made  on  justified  grounds,  changes  should  be
avoided until the mid-term review planned in 2006.

Effectiveness also calls for more result-oriented guidelines, leading to less emphasis
on methods used, and better definition of results to be achieved. This should be based,
where possible, on appropriate quantitative targets.

Specific policy guidance through recommendations

the  EU,  and  with  more  result-oriented  Guidelines, 

Since they were first used in 2000 employment recommendations have proven to be
effective in maintaining the momentum of policy  reforms.  With  increasing  diversity
within 
issuing  of
recommendations will be all the more important. These recommendations allow for a
justified differentiation in policy guidance between Member States according to their
respective  situation,  and  a  way  to  focus  on  implementation  in  line  with  the
streamlining  approach.  They  will  be  reviewed  annually  and  may  be  updated  if
required  in  the  light  of  changes  in  the  economic  or  social  situation  or  policy  of  the
country concerned.

the 

Focus on implementation through NAPs

The NAPs have been provided for by the Treaty and will need to remain the basis for
an  effective  reporting  on  implementation  of  the  Employment  Guidelines  as  a  free-
standing part of the national "Implementation package". They have proven to be a key
tool for multilateral surveillance within the EES. The NAPs need to provide essential
pieces  of  information  covering:  the  main  elements  of  a  policy  response  to  the
guidelines; 
to
recommendations; progress towards targets; new policy directions and initiatives; and
the budgets involved, notably in relation to the ESF.

impact  of  measures 

taken  previously; 

follow-up 

the 

the 

6

Stability  of  the  Guidelines  will  facilitate  the  reporting  process  and  reduce  the
corresponding burden on Member States.

The Joint Employment Report

The  Treaty  establishes  the  Joint  Employment  Report  as  the  basis  for  the  European
Council's conclusions on the employment situation. In the streamlined approach, this
report  will  constitute  the  specific  contribution  of  the  Employment,  Social  Affairs,
Health  and  Consumer  affairs  (ESHC)  Council  to  the  Spring  European  Council,
containing key policy messages on employment and labour market issues.

Building on evaluation and mutual learning

The added value of the EES is closely linked to its capacity to foster mutual learning
and to develop a culture of evaluation to improve the quality of policies and measures.
The peer review programme7 has proven to be a valuable tool in this respect and will
in future facilitate transfer of know how between existing and new Member States. It
should be considered as a key component of the EES and wider dissemination of its
results should be achieved.

Based  on  the  experience  of  the  major  EES  evaluation  programme  organised  by  the
Commission  and  Member  States  in  2001/2002,  an  ongoing  evaluation  programme
should be developed at EU as well as national level. The new Employment Incentive
Measures Programme8 should be exploited to support relevant projects.

Indicators play a major role in the evaluation of national employment policies and of
the  EU  labour  market  performance.  They  need  to  be  underpinned  by  solid  statistics
and harmonised data. Member States should make the necessary investment to collect
the  relevant  data.  The  recently  developed  Labour  Market  Policy  database9  will
provide a precious tool to monitor the future guidelines.

1.3. 

Ensuring consistency with other processes

A  better  articulation  with  related  policy  co-ordination  processes  -  either  well
established  and  Treaty  based  in  the  case  of  the  Broad  Economic  Policy  Guidelines
(BEPGs)  -  or  more  recent  such  as  in  the  area  of  education  and  training,
entrepreneurship, social inclusion, pensions and immigration- will be a priority for the
future of the EES.
The  recent  agreement  on  streamlining10  provides  a  good  basis  for  a  stronger
complementarity  and  consistency  between  the  EES  and  the  BEPGs.  It  confirms  the
role  of  the  BEPGs  as  an  overarching  economic  policy  co-ordination  instrument  and
the  leading  role  of  the  EES  in  giving  direction  to  and  ensuring  co-ordination  of  the
employment policy priorities to which Member States should subscribe.

7 Http://peerreview.almp.org
8 Decision N° 1145/2002/EC, 10.06.2002
9 Office for official publications of the European Communities, 2001.

Cat. N° KS-36-01-920-EN-N

10 Report adopted by EPSCO and ECO/FIN Council on 03.12.2002 on "Streamlining of the policy co-

ordination processes"

7

                                                
On  3  December  2002  the  Council  confirmed  that  "facilitating  participation  in
employment for those wanting and able to work" was a major objective for the Social
Inclusion  Strategy,  to  be  pursued  in  the  context  of  the  EES.  While  the  scope  of  the
open  method  of  co-ordination  in  the  field  of  inclusion  largely  exceeds  the
employment and labour market sphere, both strategies share a common purpose in this
area and should therefore be closely co-ordinated.

Similarly, there are important interactions between the EES and  the  open  method of
co-ordination for pensions, under which Member States have agreed a set of common
objectives and a framework for policy exchange regarding the provision of adequate
and  sustainable  pensions  in  the  face  of  demographic  ageing.  Important  aspects  of
Member States' strategies for the future of pensions fall to be pursued within the EES.

In  June  2002  the  European  Council  expressed  its  determination  to  speed  up  the
development  of  a  common  EU  policy  on  immigration.  The  growing  importance  of
immigration  in  helping  the  EU  to  cope  with  the  impact  of  demographic  ageing  on
employment and economic growth highlights the need to ensure greater coordination
with the EES.

1.4. 

Better governance

From  the  very  beginning  the  EES  was  an  open  process.  The  Luxembourg  Jobs
Summit  in  November  1997  appealed  "for  the  combined  efforts  of  all  concerned:
Member States, regions, social partners and Community institutions, in order to take
the  unique  chance  now  available  to  change  the  course  of  events  by  involving
themselves  in  the  new  coherent,  determined  approach  set  out  by  the  European
Council …" Since then the message has been confirmed by many European Councils.
The White Paper on Governance acknowledged the positive innovation given by the
“open method of co-ordination”, illustrating that it can contribute to a new system of
more effective, efficient and democratic government in the EU.

A forceful and sustainable implementation of the EES requires a raising of awareness
amongst  the  population  and  an  increased  visibility.  Participation  of  all  interested
stakeholders should be fostered, in line with the Commission principles on minimum
standards  for  consultation,  in  order  not  only  to  increase  effectiveness  of  policy
development and implementation, but also to enhance an improved governance of the
process, thereby also contributing to a better integration of the EES objectives in the
overall  framework  of  national  policies.  This  requires  a  further  development  of  the
territorial  dimension  of  the  EES  both  at  regional  and  local  level,  through  a
partnership-based strategic policy-mix, the activation of civil society organisations to
enrich policy development, and a stronger involvement of parliamentary bodies in the
process.  Furthermore,  the  Commission  intends  to  intensify  the  tripartite  social
dialogue on employment.

2. 

A NEW GENERATION OF EMPLOYMENT GUIDELINES

The  new  generation  of  Employment  Guidelines  will  reflect  the  above  mentioned
principles.  A  restructuring  –  moving  away  from  the  present  "horizontal  objectives"
and specific guidelines clustered under four  "pillars" – appears necessary  in view of
the need to reflect new challenges for the EU as well as the need  for  simplification.

8

Without prejudging at this stage the precise architecture of future guidelines it would
seem necessary for them to reflect the following elements:

– 
– 
– 
– 
– 

three overarching objectives reflecting the Lisbon balance
a stronger emphasis on the delivery and governance of the EES
the identification of a limited number of priorities
specific messages addressed to the social partners
the definition of appropriate targets.

The  fixing  of  targets  has  been  a  major  "acquis"  and  success  of  the  European
Employment  Strategy.  The  revision  of  the  strategy  in  the  direction  of  more  result-
oriented guidelines calls for an adaptation of targets. The targets should underpin the
three  overarching  objectives  and  the  specific  priorities  for  action  identified  below.
Examples  of  areas  and  indicators  for  possible  targets,  many  of  which  are  already
agreed  at  EU  level,  are  included  in  the  annex  for  consideration  prior  to  the
Commission's formal proposal for the Guidelines after the Spring European Council.

2.1. 

Three overarching objectives

The future guidelines should aim at maintaining the momentum for structural reforms
in  the  labour  market  as  part  of  a  strategy  to  promote  and  manage  change  in  both
current  and  future  Member  States.  Reflecting  the  political  balance  of  the  Lisbon
agenda,  the  proposed  Guidelines  should  foster  three  complementary  and  mutually
supportive objectives

2.1.1.  Full employment

Achieving the full employment goal by raising employment rates towards the Lisbon
and Stockholm targetsis crucial for EU economic growth and for the sustainability of
social  protection  systems.  The  Joint  Employment  Report  2002  demonstrated  that,
although  Member  States  are  adopting  a  more  strategic  approach  towards  these
objectives  (by  identifying  better  the  potential  labour  reserves  and  looking  at
comprehensive  policy  responses),  progress  towards  full  employment  requires
continued efforts especially in view of the uncertain economic conditions.

The Lisbon and Stockhom targets for the employment rate overall (67% in 2005 and
70% in 2010 on average for the EU), for women (respectively 57% and 60%) and for
older workers (50% in 2010) are, therefore, central to the Guidelines. Member States
have  been  encouraged  to  set  their  own  national  targets  in  this  respect.  Moreover,
higher  employment  and  economic  growth  must  be  underpinned  by  growth  in  the
labour supply.

Raising employment and participation rates calls for a broad policy mix incorporating
both demand and supply side measures. Other EU and national policies are relevant in
this respect, especially those influencing the macro-economic climate and the general
environment for job creation.

2.1.2.  Quality and productivity at work

The  Lisbon  agenda  calls  for  more  and  better  jobs  and  the  EES  should  reflect  this
balanced approach. Quality is at the heart of the European social model and covers a
number of dimensions, as established by the European Council in Laeken at the end of
2001. This includes in particular satisfaction with pay and working conditions, health

9

and safety  at  the  work place,  the  availability  of  flexible  work  organisation,  working
time arrangements and the balance between flexibility and security.

As  underlined  by  the  Joint  Council/Commission  report  on  "Increasing  labour  force
participation  and  promoting  active  ageing"  presented  to  the  Barcelona  European
Council, the quality of the jobs on offer has an influence on the decision to enter the
labour market but also to stay in a job or on the labour market. The move towards jobs
of a higher quality is also closely correlated to the move towards a knowledge based
economy;  evidence  shows  that  the  bulk  of  recent  job  creation  has  taken  place  in
skilled  and  knowledge  intensive  sectors.  Quality  is  also  strongly  correlated  with
productivity  and  can  thus  make  a  key  contribution  towards  increasing  the  EU
competitiveness.

It  is  essential  that  full  attention  is  given  to  increasing  productivity,  in  particular
through continued investment in human capital, technology and work organisation.

2.1.3.  Cohesion and an inclusive labour market

The  reduction  of  unemployment  and  of  the  remaining  disparities  in  access  to  the
labour market, both in socio-economic and regional terms, is a matter both of equity
and of efficiency of the EES.

Access  to  a  job,  ensuring  opportunities  to  acquire  the  skills  necessary  to  enter  and
remain in the labour market (reflecting in particular the wide use of ICT and the move
to  a  knowledge  based  society),  and  the  possibility  to  progress  in  terms  of  pay  and
qualifications are major factorspromoting social inclusion. A comprehensive approach
towards disadvantaged persons needs  to address the  problems  faced  not  only  by  the
unemployed,  but  also  by  all  inactive  persons  wanting  to  work.  The  long-term
unemployed  (about 5.5 million in 2001) represent a  group with a high risk  of social
exclusion. Taking into account all unemployed and inactive persons wanting to work,
the  EU  had  an  unused  labour  supply  potential  of  well  over  23  million  in  2001.
Disabled persons alone represent a population of 38 million in the EU; only 46% of
those  reporting  a  moderate  disability  and  24%  of  those  reporting  a  severe  disability
are  in  work.  As  the  EU  launches  the  European  Year  of  the  Disabled  in  2003,  it  is
crucial  to  recognise  the  difficulties  faced  by  the  persons  concerned  in  accessing  or
remaining  on  the  labour  market  and  to  take  decisive  steps  to  better  exploit  the
employment potential of the disabled.

There is often a strong regional or local dimension to labour market exclusion. Many
current  and  future  Member  States  display  wide  regional  disparities  in  terms  of
employment and unemployment. Certain rural or urban areas suffer from particularly
strong  unemployment  or  inactivity.  The  EES  should  address  such  inequalities  and
support economic and social cohesion.

10

2.2. 

Focus on priorities

Reflecting the evaluation of the first five years of the EES as well as the debates over
the  past  months  on  the  future  of  the  EES,  the  Commission  considers  that  the
following priorities, which support the above mentioned three overarching objectives,
would be most relevant for the future guidelines. Some specific suggestions, based on
experience with the EES,  are explored below  under each  of  the priorities  for  debate
and  consideration  before  the  Commission's  formal  proposal  for  Employment
Guidelines.

2.2.1.  Active and preventive measures for the unemployed and the inactive

One of the most significant impacts of the EES so far has been the introduction or the
strengthening in all Member States of a preventive and a more active approach to the
unemployed.  Such  an  approach  is  of  particular  relevance  in  a  context  of  economic
slowdown and wide-scale restructuring.

This  approach  should  be  consolidated  with  the  objective  of  minimising  entry  into
long-term unemployment. Making the right offer to the right person at the right time
could  be  a  guiding  principle  in  this  respect.  Such  an  approach  would  rely  upon  an
early identification of the needs of each jobseeker and the design, at an early stage, of
a  personalised  action  plan,  with  a  view  to  a  sustainable  integration  in  the  labour
market.

More ambition could be pursued regarding the offer of active measures to jobseekers.
Given that the existing activation target of 20% has been exceeded by most Member
States  and  in  view  of  the  need  to  still  improve  performance  in  terms  of  effective
integration  of  the  unemployed  on  the  labour  market,  it  would  seem  appropriate  to
raise the target substantially. This should be accompanied by a stronger focus on the
quality  of  programmes,  the  effective  integration  of  beneficiaries  into  the  labour
market  and  on  cost-effectiveness  drawing  on  the  lessons  from  evaluations  so  far.
Opening  active  measures  to  all  non-employed  persons  wishing  to  reintegrate  the
labour  market  –  whether  or  not  registered  unemployed  –  should  become  a  higher
priority in view of the need to  raise  labour force participation. More attention could
also be given to people currently employed and at risk of unemployment.

Major outcomes expected from the preventive and active approach includereductions
in youth unemployment and in long-term unemployment .

2.2.2.  Making work pay

The system of financial incentives is one of the main determinants of participation in
the labour market and has been an important consideration both for the Employment
Guidelines and the BEPGs. The balance between income from work - resulting both
from level of pay and level of taxation - against income in unemployment or inactivity
determines the decision to enter and to remain on the labour market. The objective of
"Making work pay" should be pursued both from the point of view of the jobseeker
and from that of the employer. In line with the recommendations of the Joint Report
on  increasing  labour  force  participation,  there  is  a  need  for  a  systematic  review  of
tax/benefit systems with a particular focus on eliminating unemployment and poverty
traps,  encouraging  women  to  enter,  remain  in  or  reintegrate  into  the  labour  market

11

after an interruption, and on retaining older workers longer in employment.In addition
taxation on labour particularly for the low-skilled workers should be such as to reduce
the attractiveness of undeclared work and to encourage job creation.

2.2.3.  Fostering entrepreneurship to create more and better jobs

Innovation and entrepreneurial activity are key drivers for increased competitiveness,
growth and the creation of sustainable jobs of higher productivity and better quality.
Fostering  entrepreneurship  depends  on  a  broad  policy  mix,  encompassing  in
particular:  better  regulatory  and  administrative  framework,  access  to  skilled  labour
force,  fostering  more  positive  attitudes  towards  entrepreneurship  and  managerial
skills,  a  supportive  financial  environment,  well  functioning  product  and  labour
markets and favourable conditions for research and innovation.

The streamlining of the Employment Strategy with other relevant processes,  and the
movement towards simpler and more result oriented guidelines, would suggest a more
focussed approach concentrating on aspects with more direct relation to human capital
and  the  job  creation  potential  of  new  enterprises.  Items  for  attention  could  include:
improving awareness of entrepreneurship as a career option and building managerial
skills of present or potential entrepreneurs throughout the education system in order to
support the creation and development of businesses; women entrepreneurship and the
setting-up  of  business  by  unemployed  or  inactive  persons  and  young  people;  the
reduction of administrative, tax or financial barriers to the hiring of staff, especially in
innovative  and  small  firms;  awareness  raising  of  the  social  responsibility  of
enterprises  (Corporate  Social  Responsibility);  assistance  to  enterprises  in  order  to
facilitate  improvements  in  work  organisation  and  working  conditions,  including  in
relation  to  the  introduction  of  new  technologies,  for  example  through  appropriate
information and counselling.

2.2.4.  Transforming undeclared work into regular employment

Undeclared  work  affects  all  Member  States  in  variable  degrees  and  is  usually
connected  with  low  quality  jobs  with  little  or  almost  no  security  to  the  job  holders,
sometimes involving illegal immigrants. Undeclared  work  undermines  the  financing
and  delivery  of  social  protection  and  public  services.  Tackling  undeclared  work
requires  a  policy-mix  combining  both  preventive  actions  and  the  application  of
sanctions. Policy initiatives to be promoted could include simplification of procedures
and  legislation;  increased  public  awareness  of  the  possible  negative  effects  of
undeclared  work  and  the  shadow  economy;  exchange  of  information  and  increased
communication; co-operation between authorities; lowering the tax burden on labour;
effective surveillance and sanctions; and the full implementation of the Action Plan to
combat illegal migration11.

It  is  vital  that  Member  States  improve  data  collection  and  monitor  progress  in  this
field, including impact evaluation of policy initiatives.

11 Adopted by the Council on 28 February 2002 (OJ/C142 of 14th June 2002)

12

                                                
2.2.5.  Promoting active ageing

Reaching the Stockholm target of an employment rate of 50% for older workers (55-
64) by 2010  and the  Barcelona objective of raising by  five  years the average age  at
which people stop working in the EU by 2010 constitute major challenges for the EU
and  the  Member  Sates.  As  provided  in  the  joint  report  on  "increasing  labour  force
participation  and  promoting  active  ageing"12,  this  calls  for  a  dynamic  preventative
approach  structured  around  major  objectives  such  as:  creating  more  jobs  and  better
quality in work; making work pay; promoting higher and adaptable skills at work and
making  work  a  real  option  for  all.  Building  on  this  framework,  the  report  calls  for
priority  to  be  given  to  the  formulation  of  comprehensive  strategies  and  to  joint
government  /social  partners  initiatives  to  retain  workers  longer  in  employment,  a
targeted  review  of  tax/benefit  systems,  more  comprehensive  across  the  board
approaches to tackling gender gaps in pay and labour market access, providing better
support  for  persons  with  care  responsibilities,  and  reviewing  efforts  to  effectively
reduce school drop outs.

2.2.6. 

Immigration

Given  ageing  and  related  skills  gaps,  fulfilling  the  Lisbon  objectives  by  2010  and
beyond  will  notably  depend  on  the  shape  and  dynamics  of  immigration  in  the  EU.
Economic immigration could be relevant for overcoming short run labour shortages in
several sectors. In the long run, immigration may have an impact on the way in which
the  EU  copes  with  ageing  and  demographic  imbalances  and  their  impact  on
employment  and  economic  growth.  The  EU  must  primarily  mobilise  its  current
human  resources,  including  migrant  workers  currently  residing  legally  in  the  EU.
However  immigration  policies  can  also  play  a  role  in  tackling  labour  market
imbalances.  Such  policies  must  be  designed  in  a  manner  supporting  the  long-term
development objectives of the countries of origin.

The contribution of immigrants to employment and economic growth will depend on
their integration in the labour market and their successful inclusion into society. The
unemployment  gap  between  EU  nationals  and  non-EU  nationals  must  be  reduced.
Employment  oriented  measures  should  be  related  to  comprehensive  integration
strategies,  with  due  consideration  given  to  the  impact  of  migration  on  countries  of
origin. A number of key challenges need to be addressed in such strategies. Examples
include promoting full participation and employment for 2nd generation migrants (who
often  experience  serious  social  and  employment  problems);  addressing  the  specific
needs  of  immigrant  women;  and  fighting  illegal  immigration  and  undeclared  work
(bearing  in  mind  that  both  phenomena  feed  on  one  another).  Other  policies  should
also  be  developed  aimed  at  granting  immigrants  rights  and  responsibilities
comparable to those of EU citizens in order to ensure their full participation in social,
cultural and civil life.

The further development of EU immigration policy  including the establishment of a
transparent,  common  framework  for  the  admission  and  conditions  of  residence  of
migrant workers and their mobility in the EU is a priority.

12 See the Joint Report "Increasing labour force participation and promoting active ageing" submitted
to the Barcelona European Council, adopted on the basis of COM(2002) 9 final of 24.01.2002.

13

                                                
2.2.7.  Promoting adaptability in the labour market

The capacity of firms and their workers to manage change in a positive way will be a
key  to  the  success  of  future  employment  policies.  This  depends  on  a  good  balance
between  flexibility  and  security  in  the  labour  market.In  addition  to  the  regulatory
framework to be defined by governments, negotiation between the social partners has
a key role to play under this priority.

Flexibility should continue to be encouraged, in particular in terms of the availability
of different contractual or working time arrangements. At the same time, steps should
be  taken  to  prevent  a  segmentation  of  the  labour  market  between  different  types  of
workers  and  to  facilitate  transitions  between  different  forms  of  work.  A  better
dissemination  of  initiatives  to  modernise  work  organisation  and  improve  internal
flexibility within firms should be encouraged.

A  dynamic  approach  to  security  should  also  be  fostered,  reflecting  the  major
contribution of access to training.  While  investment by enterprises in the training of
adult workers represents 2.3% of total labour costs, according to most recent available
data, an increase is imperative in order to promote the adaptability of the workforce,
raise  productivity  and  encourage  active  ageing.  Improved  working  conditions  –
including health and safety at work - are also part of the necessary balance between
flexibility  and  security  and  are  particularly  needed  to  achieve  an  increase  in  labour
force participation,  notably  for older workers  and the disabled. The  reduction of  the
numbers of accidents at work and occupational diseases in a high priority could thus
be contemplated both at EU and at national level.

2.2.8. 

Investment in human capital and strategies for lifelong learning

Significant  progress  has  been  achieved  with  respect  to  the  development  of  lifelong
learning strategies in the past few years.However much remains to be done. This is a
key  requirement  for  improved  quality  at  work  and  productivity,  and  as  a  factor
promoting labour force participation and social inclusion.

An  effective  policy  response  requires  action  from  all  concerned,  including  public
authorities,  individuals,  enterprises,  social  partners,  NGOs  and  learning  providers.
Governments  should  take  the  lead  in  establishing  the  building  blocks  for  lifelong
learning strategies13. They should review public expenditure with a view to redirect it
towards  human  capital  accumulation  and  to  increase  the  efficiency  of  investment  in
education and training. Reducing school failure and drop outs and raising the level of
education, laying the  ground for future access to lifelong learning, remain important
challenges for many current and future Member States. In addition, public authorities
should  provide  for  quality  standards  and  design  incentives  for  employers  and
individuals to enhance the volume and quality of private investment in human capital.

Firms need to invest more in the training of adults to increase productivity, to update
the skills of those in employment, and to retain workers longer at work. The growing

13 Such  building  blocks  were  defined  in  the  Commission's  Communication  on  "Making  a  European
area of Lifelong Learning a Reality", COM (2001) 678 and consist of: partnership working, insight
into  demand  for  learning,  adequate  resourcing,  facilitating  access,  creating  a  learning  culture  and
striving for excellence.

14

                                                
inequality in access to training, to the disadvantage of less skilled and older workers,
is  a  matter  for  serious  concern.  The  current  trend  whereby  firms'  investment  in
training declines with the age of workers should be reversed.

The recent Commission Communication on "European benchmarks in education and
training"14 provides relevant benchmarks to be used in the context of the EES.

2.2.9. 

 Gender equality

A  continued  increase  of  participation  of  women  in  the  labour  market  is  crucial  for
achieving  the  Lisbon  targets  on  employment,  particularly  by  encouraging  older
women to stay longer in  the  labour  market and  facilitating participation for mothers
with small children.

Strengthening gender mainstreaming in other employment policy areas would appear
necessary  for  example  by  adopting  a  comprehensive  approach,  by  conducting
systematic  gender  impact  assessment  for  new  policy  proposals,  by  developing
institutional  mechanisms  and  monitoring  systems,  and  by  increasing  training  and
awareness-raising.

In  order  to  increase  employment  growth  and  improve  quality  in  work  employment
policies would need to focus on the structural inequalities of the labour market. These
inequalities  include  gender  gaps  in  employment,  unemployment  and  non  standard
forms of employment; gender segregation in sectors and occupations; the gender pay
gap;  and  the  advancement  of  women  into  decision-making  positions.  The  under-
representation of women in the key areas shaping the future knowledge based society,
namely higher education and research has to be reduced significantly.

In addition it is important to promote more favourable conditions for women and men
to  enter,  re-enter  and  remain  in  the  labour  market.  Examples  of  these  reconciliation
policies include: adequate provision; access and quality of care services for  children
and  other  dependants;  equal  share  of  care  and  household  responsibilities;  an
encouraged take-up of parental and other leave schemes by men, and possibilities for
flexible work arrangements for both women and men.

In  this  respect,  the  Barcelona  target  in  terms  of  provision  of  childcare  facilities  is
essential15.

2.2.10.  Supporting  integration  and  combating  discrimination  in  the  labour  market

for people at a disadvantage

The  integration  of  persons  at  a  disadvantage  in  the  labour  market  is  important  to
prevent  social  exclusion,  to  raise  the  employment  rates,  and  to  provide  for  the
sustainability of social protection systems.

It would seem necessary for Member States to identify those persons or groups with
particularly  low  involvement  in  the  labour  market  (for  example  in  relation  to

14 COM(2002)629 dated 20.11.2002
15 The conclusions of the Barcelona European Council set the aim "to provide childcare by 2010 to at
least  90%  of  children  between  3  years  old  and  the  mandatory  school  age  and  at  least  33%  of
children under 3 years of age"

15

                                                
disability, ethnic origin, family situation, age, place of residence etc) and to develop
appropriate  policy  responses,  based  if  possible  on  quantified  targets.  This  would
require a greater effort to improve data and monitoring on the respective position of
people considered to be at a disadvantage, while respecting the right to protection of
personal  data.  Based  on  existing  evaluations,  policy  responses  should  use  a
combination of well-targeted active and preventive labour market measures; measures
to  promote  the  creation  of  adequate  job  opportunities;  recruitment  incentives  for
employers and measure to raise awareness; opportunities for job creation in the social
economy  or  in  sectors  responding  to  new  demands  should  be  further  exploited.
Support  should  also  come  from  a  wider  set  of  accompanying  measures,  policies
making  work  a  real  option  for  those  concerned,  and  measures  to  eliminate
discrimination  in  the  labour  market,  based  in  particular  on  the  relevant  EU
directives16.

2.2.11.  Addressing regional employment disparities

Regional  employment  and  unemployment  disparities  remain  a  persistent  problem.
Addressing these disparities would be of particular importance for employment policy
as low performing regions make it more difficult to achieve the Lisbon employment
targets. Efforts to bridge regional disparities are  also essential  in  order  to  strengthen
cohesion across the European Union.

Raising the quality of the human capital through significant investment in skills and
lifelong  learning  is  key  to  achieving  this.  The  skills  composition  of  the  workforce
differs  considerably  across  regions,  with  a  concentration  of  the  low  skilled  in  the
under  performing  regions.  These  regions  also  have  low  levels  of  labour  market
participation of women.

Partnership at the local and regional level is essential to fully exploit the potential of
job creation and to develop strategies to address skill gaps more effectively. The role
of the Public Employment Service is also important both to identify regional and local
opportunities and to improve the functioning of the labour market by addressing skill
gaps  and  bottlenecks.  Finally  more  could  be  done  to  enhance  the  capacity  of  the
Social Economy to create more jobs and enhance their quality.

In  many  Member  States,  wage  agreements  need  to  take  better  account  of  regional
differences in productivity and in labour market conditions.

2.3. 

Delivery and governance

The  evaluation of the first five  years of EES revealed the added value of  the  policy
co-ordination  method  applied  in  the  field  of  employment  but  also  highlighted  better
governance  as  a  key  issue  for  the  future.  In  its  Resolution  of  September  2002  the
European Parliament emphasised the need to better  integrate  the  EES  with  national,
regional  and  local  labour  market  policy  in  the  Member  States  and  with  the  ESF
policies. In particular it called for a closer involvement of national parliaments, local
actors,  NGOs  and  the  civil  society  in  the  European  employment  process,  and  for  a
stronger commitment by the social partners.

16 Council Directives 2000/43/EC of 29 June 2000 and 200/78/EC of 27 November 2000.

16

                                                
Improving  the delivery of the  EES should  therefore  be  a  major  priority  for  the  next
generation of guidelines.

2.3.1.  Effective and efficient delivery services

Success  in  the  implementation  of  employment  policies  depends  on  a  number  of
operational services. This was clearly recognised in the recent accession negotiations
where  "institution  building"  received  much  attention  as  part  of  the  "Community
acquis".

Delivery services which play a particularly important role in  the  context  of the  EES
would deserve attention. These include notably:

– 

– 

– 

– 

Employment  services:  modern  employment  services  are  necessary  for  an
effective  and  efficient  implementation  of  active  and  preventive  strategies,
involving  individual  case  management.  They  are  also  responsible  for  an
effective matching of demand and supply in the labour market. This involves
notably  promoting  the  transparency  of  labour  markets  at  local,  regional,
national,  as  well  as  EU  level  to  facilitate  workers'  mobility.  Employment
services also often have a responsibility in managing immigration flows.
Social re-integration services relating to their labour market integration role.
Experience  shows  the  need  for  a  close  co-operation  between  employment
and social services to avoid the development of two-tier systems depending
on the status of jobseekers, and in promoting pathways for integration.
Training services which – relying on a mixed public/private market-need to
deliver  quality  training  adapted  to  personal  needs  as  well  as  matching  the
demand for skills in the labour market
Labour  inspectorates  which  can  help  firms  improve  the  working  conditions
and sanction serious offences, including undeclared work.

2.3.2.  A strong involvement of the Social Partners

The European Council in Barcelona urged "the Social Partners to place their strategies
in the various territorial (European, national, regional and local) and sectoral spheres
at the service of the Lisbon Strategy and Objectives. To that end they should produce
an annual report on their efforts both at national level, in the Employment Plans, and
at European level. This should be submitted directly to the Social Summit". Barcelona
also underlined that the reformed EES must "reinforce  the role and  responsibility  of
social partners in implementation and monitoring of the guidelines17."

As announced in their joint declaration to the European Council in Laeken, the Social
Partners adopted a multi-annual work programme on 28 November 2002 to address a
number  of  important  issues  which  support  the  Lisbon  strategy  for  the  years  2003-
2005.  It  will  cover  reporting  on  social  partners'  actions  in  Member  States  to
implement the employment guidelines as well as other relevant initiatives in the fields
of  gender  equality,  stress  and  harassment,  active  ageing  and  mobility,  telework,
undeclared  work  and  managing  the  social  consequences  of  economic  change.  At
Laeken  social  partners  also  expressed  their  wish  to  replace  the  Standing  Committee
on Employment and set up a tripartite concertation body for growth and employment.

17 Barcelona Conclusions, § 29 and 30.

17

                                                
This suggestion was taken up by the Commission, which proposed a tripartite Social
Summit for  Growth and Employment to be held  each  year  on  the  eve  of  the  Spring
European Council.

While fully respecting the autonomy of the Social Partners, there would be a case for:

– 

– 

– 

inviting  Member  States  to  build  their  employment  policies  on  a  strong
partnership  with  social  partners  at  all  levels,  from  the  stage  of  designing
policies to the implementation, reporting and evaluation;
inviting  the  social  partners  at  national  level  to  contribute  to  the  successful
implementation of the guidelines in all areas where they have responsibility;
in  this  context,  some  of  the  guidelines'  priorities  may  be  drawn  to  the
attention  of  social  partners,  such  as  economic  restructuring,  active  ageing,
human  capital  and  lifelong  learning18,  work  organisation  and  the  balance
between flexibility  and  security,  reducing  the  gender  pay  gap  or  combating
discrimination;
inviting  the  social  partners  at  EU  level  to  contribute  to  the  success  of  the
strategy,  especially 
their
contribution to the Tripartite Social Summit for Growth and Employment.

joint  work  programme  and 

through 

their 

2.3.3.  Mobilisation of all relevant actors

The  first  generation  of  Employment  Guidelines  tried  to  foster  the  involvement  of
stakeholders in the EES, particularly of the Social Partners and territorial authorities.
Much progress was made concerning the development of a true territorial dimension,
but civil society is still absent from the process. Furthermore, the NAPs are too often
perceived  as  "owned"  by  ministerial  departments  and  are  not  fully  or  coherently
integrated in the overarching national policy framework, partly as a result of lack of
parliamentary involvement.

Member States could be encouraged to disseminate more targeted information about
the  objectives  and  the  procedures  of  the  EES,  thereby  increasing  its  profile  and  the
will and capacity of potential stakeholders to become involved. They should actively
involve all stakeholders (including the civil society)  and appropriate levels of policy
or administration in the development and implementation of national strategies should
be  encouraged  and  supported.  Partnership-based  local  and  regional  employment
strategies should be encouraged and supported. NAPs should be fully integrated in the
national  decision  making  framework,  thereby  ensuring  improved  coherence  and
terms  of
consistency.  Good  practices 
parliamentary involvement, should be spread.

in  some  Member  States,  notably 

in 

2.3.4.  Adequate financial allocations

The  effectiveness  of  the  EES  requires  that  the  implementation  of  the  employment
guidelines  is  also  reflected  in  financial  provision.  A  closer  involvement  of
parliamentary bodies in the NAP process should in itself facilitate a better integration
of employment strategies in the national policy framework and the proposed changes

18

Inviting the social partners to implement the agreed joint " Framework of Actions for the lifelong
Development of Competencies and Qualifications"

18

                                                
of the timetable under the streamlining agreement should allow for a better integration
in the national budgetary cycle, as the NAPs will be finalised in the Autumn.

The Berlin European Council of 1999 established the European Social Fund (ESF) as
a  key  financial  instrument  to  support  the  European  Employment  Strategy.  However
ESF  and  the  other  Structural  Funds  still  need  to  be  more  focused  on  delivering  the
EES.  The  challenge  is  to  ensure  that  the  Structural  Fund  programmes  are  more
responsive  to  the  changing  needs  in  regional  and  national  labour  markets,  and  that
they continue to get appropriate match funding to impact on these specific problems.
The Mid-term review of the programmes, due in 2003, provides a first opportunity to
review and, where appropriate, redirect, programmes to better deliver the priorities of
the  National  Action  Plans  for  Employment,  and  to  better  address  country  specific
labour markets weaknesses.

*

******

The present Communication is intended to support and complement the Commission's
Spring  Report,  which  is  the  Commission's  contribution  to  the  Spring  European
Council.  It should  provide the  basis for wide  consultations  of  the  EU  institutions  as
well as all stakeholders in the period preceding it. On the basis of these consultations
as  well  as  the  conclusions  of  the  Spring  European  Council,  the  Commission  will
present a formal proposal for Employment Guidelines and Recommendations in April
2003.

19

ANNEX: EXAMPLES OF POSSIBLE INDICATORS AND TARGETS FOR THE EES

INDICATOR

Full employment

(cid:1)  Employment rate

-Overall
-Women
-Older workers

(cid:1)  Annual increase of EU labour supply

Active and preventive measures for the
unemployed and the inactive

(cid:1)  LTU prevention

Existing targets
at EU level
(2010)

Current situation in
the EU

Targets for
new EES
(2010)19

Lisbon and
Stockholm targets
67% (2005), 70%
57% (2005), 60%
50%

64.5% (2001)
55% (2001)
38.8% (2001)

0.7% (annual average
1995 - 2001)

5 Members States fully
complying (Draft
JER2002, COM(2002)
621)

Every young and
adult unemployed
to be offered a
new start before 6
or 12 months
respectively
(Employment
Guidelines)

(cid:1)  Proportion of unemployed participating

20%

Average 33% (2001)

in active measures

(Employment
Guidelines)

(cid:1)  Reduction in youth unemployment

ratio

Three best 51% (2001)

7.1% average EU 2001

Average of 3 best
Member States 3%
(1997 - 2001)

(cid:1)  Reduction in long term unemployment

3.1% average EU 2001

Average of 3 best
Member States 1%
(1997 - 2001)

19  Appropriate targets could be defined after the Spring European Council on relevant issues identified

amongst the areas indicated in this table.

20

                                                
37.8%

Member States to
set national
targets
(Employment
Guidelines)

Employed: 6%

Self-employed: 17%
(1997)

Wide variations between
Member States

Raise by 5 years,
i.e to 65 years

59.9 years

8.3 p.p.

Making work pay

(cid:1)  Reduction of tax burden on low wage

earners

(cid:1)  Reduction in the numbers of working
poor20 as % of working population
(employed and self-employed)

Fostering entrepreneurship to create
more and better jobs

(cid:1)  Birth rate of entreprises

(cid:1)  Survival rate of new entreprises

Transforming undeclared work into
regular employment

(cid:1)  Reduce undeclared work

Promoting active ageing

(cid:1)  Increase of effective average exit age

Immigration

(cid:1)  Reduction of unemployment gap

between non EU nationals and EU
national

Promoting adaptability in the labour
market

(cid:1)  Reduce gap in access to training of
workers on part-time and fixed-term
compared to full-time/permanent
contracts

(cid:1)  Investment by enterprises in training of

adult workers

2.3% (1999) of total
labour cost

20 Working poor defined as people who are in employment and who  have an equivalised disposable
income  below  60%  of  national  median  equivalised  disposable  income.  Equivalised  disposable
income is defined as the household's total disposable income divided by its "equivalent size".

21

                                                
(cid:1)  Number of accidents at work and
occupational diseases per 100.000
employees

Investment in human capital and
strategies for lifelong learning21

(cid:1)  Reduction of school drop out rate

Index figures (1994 =
100, 1999 = 90)

19.4%

10% at EU-level
and half 2000
percentage in
each Member
State

(cid:1)  Raising educational attainment of 25-
64 year olds (upper secondary)

80%

63.8%

(cid:1)  Participation of adults in education and

training

15% at EU-level
and no Member
State below 10%

8.4%

(cid:1)  Per capita investments in human

resources

Substantial annual
increases; targets
to be set at
national level

Gender equality

(cid:1)  Gender gaps
-Employment
-Unemployment

(cid:1)  Gender gaps in pay

(cid:1)  Gender gaps in supervisory role

(cid:1)  Coverage of childcare services for 0-3

33%

(cid:1)  Coverage of childcare services for 3
years old to mandatory school age

90%

Supporting integration and combating
discrimination in the labour market for
people at a disadvantage

(cid:1)  Reduction of unemployment gap for
people at a disadvantage (e.g. ethnic
minorities, people with disabilities)

Member States to
set national target
(Employment
Guidelines)

18 p.p.
2.3 p.p.

16% (1998)

7 p.p. (1998)

7-70%

50-90%

21 The Commission has proposed these targets in the framework of its Communication on "European

benchmarks in education and training", COM(2002) 629.

22

                                                
Addressing regional employment
disparities

(cid:1)  Dispersion of regional employment

rates

For data see Spring
Report 2003

23