Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Community activities concerning analysis, research and co-operation in the field of employment-Final report
Date: 2004-04-28
Institutions: European Commission
Subjects: EU employment policy, activity report, cooperation policy, employment aid, labour market

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.4.2004 
COM(2004) 323 final 

. 

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

Community activities concerning analysis, research and co-operation in the field 
of employment-Final report 

. 

EN 

   EN 

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

Community activities concerning analysis, research and co-operation in the field 
of employment-Final report 

The  Council  Decision  98/171/EC  of  23  February  1998  established,  for  the  period  from  1 
January 1998 to 31 December 2000, Community activities concerning analysis, research and 
co-operation (ARC) among Member States in the field of employment and the labour market. 
In accordance with Article 10 of this Decision the Commission hereby submits the final report 
on the activities carried out under this programme. 

1. 

BACKGROUND  

This programme had been prepared in the mid-90s to provide a basis for the activities carried 
out  by  the  Commission  in  support  of  policy  initiatives  in  the  field  of  employment.  These 
activities  originally  arose  from  the  strategy  set  out  in  the  White  Paper  Growth, 
Competitiveness and Employment and the Essen Conclusions. In 1997 the Employment Title 
of  the  Treaty  was  agreed  in  Amsterdam  but  Article  129,  providing  incentive  measures,  was 
not  yet  operational.  The  provisions  on  employment  policy  coordination  were  implemented 
early according to the suggestions of the European Council on Employment in Luxembourg. 
This led to the intensification of the need to support the employment policies and in particular 
the  development  of  the  European  Employment  Strategy.  Hence,  the  ARC  programme  was 
seen as an interim measure for carrying out necessary activities in support of the Employment 
Strategy, until the new Decision on Employment Incentive Measures was adopted on the basis 
of  Article  129  of  the  Amsterdam  Treaty1.Over  the  three-year  period,  the  programme 
developed  an  essential  supporting  role  for  the  Employment  Strategy2.  This  final  report 
presents  an  overview  of  the  programme  after  the  end  of  the  period  in  which  activities  were 
launched and implemented. The last commitments were made in December 2000. The nature 
of  some  of  the  major  studies  launched  particularly  in  the  latter  part  of  the  programme, 
however, meant that many were only completed in the course of 2001 and some in 2002.  

The main objectives of the programme were the following: 

•  Fostering co-operation in analysis, research and monitoring; 

•  Identifying  best  practise  and  promoting  exchanges  and  transfers  of  information  and 

experience; 

•  Developing an active information policy. 

1 
2 

OJ L 170 of 29.6.2002, p. 1. 
Due to extended initial consultation procedures, activities could only start in the second half of 1998. 

2 

 
 
  
 
                                                 
2. 

THE ACTIVITIES  

The  activities  carried  out  as  part  of  the  ARC  programme  can  be  grouped  under  headings 
which reflect the objectives defined in decision 98/171/EC (see section 1) 

•  Statistics related work; 

•  Analysis and studies; 

•  Identification and transfer of good practice; 

•  Mainstreaming of employment; 

•  Dissemination of information; 

•  Special  events  (Presidency  Conferences,  meetings  and  exchanges  with  the  USA  and 

Japan).  

In  general,  activities  served  to  achieve  more  than  one  of  the  programme  objectives  as  they 
were presented. For instance,  results from analysis and research increased awareness on the 
European Employment Strategy (EES) and research activities underpinned the selection and 
dissemination of good practice. The following table provides an overview of the multiple role 
of  activities  by  indicating  the  relationships  between  the  main  objectives  and  the  activities 
under the programme.  

Cross-reference  table  highlighting 
objectives and activities 

internal  coherence  between 

Co-operation  in  analysis, 
research and monitoring 

Exchange 
transfer 
practice 

of 

and 
good 

Information policy 

Objectives → 

Activities ↓ 

Statistics 

Analysis & studies 

Good practice 

Mainstreaming 
employment  

Dissemination 
information  

Presidency events 

of 

of 

++ 

++ 

+ 

+ 

+ 

++ = very relevant,+ = relevant, 

+ 

+ 

++ 

+ 

++ 

++ 

+ 

+ 

++ 

+ 

++ 

++ 

3 

 
 
  
 
 
 
 
3. 

FINANCIAL PROCEDURES  

The financial procedures which were used to carry out this programme were those that govern 
similar activities in the Commission. In summary they involve:  

•  Open tenders for all major projects over € 100,000. 

•  Restricted calls for tenders, which were considered only in exceptional circumstances. The 

rules were similar to those of the open tenders.  

•  Calls  for  expression  of  interest  or  calls  for  proposals  for  the  award  of  subsidies  to 
interesting and innovative projects in Member States, particularly those that contribute to 
the exchange of good practice and experience. The procedures for the calls for proposals 
were also lengthy and resource consuming, with some 8 months from start to finish. 

•  There  were  limitations  on  the  number  and  the  amount  of  ad  hoc  subsidies.  These  were 
effectively limited to events that had a close policy link with the priorities of the incumbent 
Council Presidency. 

•  A  limited  number  of  Direct  Agreements  were  used  for  very  small  and  urgently  needed 

activities in line with the existing thresholds for DAs at the time.  

4. 

STATISTICS RELATED ACTIVITIES (SECTION 1.2 IN THE ANNEX) 

With  the  support  of  the  ARC  Committee,  considerable  importance  was  placed  on  statistics 
related  activities  in  the  programme.  This  had  two  aims:  first,  the  improvement  of  the 
reliability  and  comparability  of  statistics  in  the  field  of  employment  which  are  used  for 
analysis  and  for  measuring  performance  of  the  employment  strategy.  Second,  the 
development  of  appropriate  tools  and  methodology,  to  improve  the  measurement  of  policy 
indicators in connection with the employment strategy. This involved financial assistance to 
Eurostat  for  the  development  of  comparable  statistics  and  for  the  other  elements  of  the 
programme  for  the  analysis  and  policy  support  for  the  employment  strategy.  This  financial 
assistance was managed by Eurostat and used for new projects to improve the reliability and 
comparability  of  statistics.  Emphasis  was  placed  on  the  development  of  the  continuous 
Labour Force Survey, which supplies the data for up-to-date and accurate employment trends 
in the Member States based on agreed performance indicators. Funding was also used for the 
series of ad hoc modules of the Labour Force Survey. They provide information on specific 
topics, not covered by the regular survey. These included modules on working time and on the 
transition  from  school  to  work.  A  major  project  carried  out  throughout  the  life  of  the 
programme  was  to  establish  a  labour  market  policies  database,  a  key  instrument  for  the 
evaluation  of  the  National  Action  Plans.  This  work  was  carried  out  in  collaboration  with 
Eurostat. 

Other projects connected with this heading included the study to develop the diamond charts 
approach included in the Joint Employment Reports of 1998 and 1999, and a project which 
was launched in 2000 to develop a range of indicators of labour market flexibility including 
the following elements: labour supply availability, health situation of the labour force, level of 
education and training, capacity to utilise new technology, working time flexibility, industrial 
relations at both the micro and macro level, labour  cost flexibility, labour taxation, contract 
flexibility, and labour mobility. All of these covered all 15 EU Member States, the USA and 
Japan. 

4 

 
 
  
 
Moreover,  at  the  end  of  2000,  a  pilot  survey  of  the  unemployed  was  launched  with  the 
voluntary participation of ten Member States in order to monitor guidelines on activation and 
prevention. The purpose was to improve comparability of data and provide additional insights 
on  national  administrative  and  statistical  systems.  The  results  were  useful  for  the  policy 
impact evaluation of the Employment Strategy. 

Statistics  activities  have  contributed  to  a  better  understanding  of  indicators  used  in  the 
National  Action  Plans,  through  an  increased  use  of  data  from  the  new  databases.  Overall, 
work  on  statistics  has  contributed  to  a  more  coherent  elaboration  of  the  Joint  Employment 
Report. 

5. 

ANALYSIS AND STUDIES (SECTION 1.3 IN THE ANNEX)  

The  activities  carried  out  under  this  heading  of  the  programme  are  designed  to  support  the 
assessment  and  further  development  of  the  employment  strategy.  To  this  end,  they  fall  into 
two main categories: 

•  Specific support for the implementation of the Employment Guidelines; 

•  Research  into  labour  market  issues  which  relate  to  the  further  development  of  the 

employment strategy. 

5.1. 

SPECIFIC SUPPORT 

Analytical support was necessary in order to give concrete substance to the policy orientations 
advocated by the Employment Guidelines. ARC supported work on the early identification of 
the  unemployed,  a  study  on  the  skills  gap,  a  study  on  unemployment  benefit  systems  and 
active labour market policies in relation to the preventive approach, and a series of projects 
related to entrepreneurship. 

5.2. 

ANALYTICAL RESEARCH 

Prospective  analysis  and  studies  advance  our  understanding  of  the  functioning  of  the 
European labour market and underpin the long-term development of the Employment Strategy 
by  identifying  new  issues  and  challenges.  Throughout  the  period  of  the  programme,  the 
Employment in Europe report has continued to present a quantitative analysis of employment 
trends  and  policy  challenges  in  the  Union.  Improvements  in  the  formulation  of  the 
Employment Strategy were examined at special events supported by the programme. Themes 
in 
included 
entrepreneurship, the service industry and aspects of job quality.  

labour  market  officials  from 

the  USA  and  Japan 

joint  events  with 

The effects of globalisation were the focus of a number of studies that have pointed out the 
dominant  role  of  technological  advances  and  the  importance  of  active  policies  by 
governments.  In  1999  the  programme  included  a  market  survey  that  showed  a  continuous 
shift towards market services as a share of total employment, due to globalisation. All aspects 
of employment in the services sector were examined in depth in further analysis, publications 
and at events organised under the programme. Research work under the programme has also 
revealed  the  employment  potential  of  the  cultural  sector  in  Europe  and  particularly  of  the 
audio-visual industry, which is characterised by a high percentage of freelancers and micro-
enterprises.  

5 

 
 
  
 
A  study  reviewed  policies  to  combat  undeclared  work  and  confirmed  that  a  policy  mix, 
appropriate for each Member State, is necessary and should include both  preventive  actions 
and  sanctions.  An  analysis  of  patterns  of  employment-enhancing  growth  pointed  out  the 
importance of investment growth for job creation and examined the impact of other factors.  

Another study looked at wages and job quality in Europe and found earnings mobility in the 
European economies to be greater than that of the USA. For many individuals in the EU, low-
pay  employment  is  a  transitory  situation  but  there  is  also  a  group  of  people  that  tend  to  be 
stuck in a low pay/no pay cycle. Women are severely under-represented in high-wage jobs in 
Europe.  

An analysis of tax benefits systems demonstrated the need for accurate monitoring of benefits 
and  a  report  on  restructuring  public  expenditure  confirmed  that  both  active  and  passive 
policies for employment are continually increasing in importance in Member States’ budgets.  

Enlargement started to become a major preoccupation of the programme and a study looked at 
the impact of enlargement on employment and the labour market, in particular resulting from 
the liberalisation of trade, capital flows and free movement of workers.  

Information  and  results  of  the  studies  were  published  regularly  on  the  web  together  with 
theoretical  analysis  and  practical  illustrations.  Findings  from  analysis  and  studies  under  the 
programme  were  used  as  major  input  in  several  Commission  documents:  the  Joint 
Employment Report and the Employment in Europe report that are produced every year and 
in the first of the Commission's Spring Reports. In addition, these studies provided material 
for Commission Communications and Commission working papers that were discussed in the 
Employment  Committee  (EMCO)  that  has  an  advisory  status  to  promote  coordination 
between Member States on employment and labour market policies. 

6. 

IDENTIFICATION AND TRANSFER OF GOOD PRACTICE (SECTION 2 IN THE ANNEX) 

This  part  of  the  programme  was  based  on  the  earlier  work  done  in  the  Commission  in 
developing the concept of Action-Research Programmes and the exchange of information and 
good  practice,  with  particular  emphasis  on  the  ability  to  replicate  successful  policy 
approaches  and  projects.  This  work  had  resulted  in  the  establishment  of  the  Mutual 
Information  System  on  Employment  Policies  (MISEP)  and  the  Community  System  of 
Documentation  on  Employment  (SYSDEM)  programmes  relating  to  labour  market  policies 
and  documentation  respectively,  and  the  Local  Employment  Development  and  long-term 
unemployment programmes.  

Employment Observatory (section 1.1 in the annex) 

With  the  adoption  of  the  Employment  Guidelines  and  the  implementation  of  the  National 
Action Plans, this part of the ARC programme supported the activities carried out jointly by 
the  Commission  and  the  Member  States  in  monitoring  the  way  in  which  the  Guidelines  are 
translated  into  national  policies  and  actions.  The  European  Employment  Observatory  has 
consolidated  several  of  these  activities  and  has  become  a  reference  point  for  information, 
publications and focused analysis on national or sectoral labour issues. It has contributed to 
the production of the Joint Employment Report, the assessment of the National Action Plans 
and the Commission's Spring Report. 

Peer Review of best practice (section 2.1 in the annex) 

6 

 
 
  
 
A  key  element  in  the  Luxembourg  Process  consists  of  the  identification  and  evaluation  of 
employment  and  labour  market  policies  which  have  produced  good  results  in  originating 
countries.  The  Peer  Review  Method,  which  has  been  supported  throughout  the  life  of  the 
programme, aims at evaluating the transferability of employment and labour market policies 
through multilateral and independent expert assessment. A first round of reviews was carried 
out in 1998-99. In 1999 a further two-year programme was launched with a view to providing 
a more regular and solid information base for supporting the employment strategy. The results 
of the peer reviews continue to be published regularly on a website (http://www.peerreview-
employment.org) and were regularly included in major Commission documents like the Joint 
Employment  Report  and  the  policy  impact  evaluation  of  the  Employment  Strategy.  A 
conference  has  examined  the  role  of  the  peer  review  process  and  recognised  its  important 
contribution  to  mutual  learning, to  the  understanding  of  labour  market  policies  and  often  to 
helping in the transfer of good practice among Member States.  

Public Employment Services (section 2.3 in the annex) 

The Public Employment Services (PES) play a major role in explaining the policy measures 
arising  from  the  Employment  Guidelines.  This  is  reflected  in  the  activities  of  the  Public 
Employment  Services  that  have  been  supported  financially  by  the  ARC  programme.  Apart 
from  the  regular  twice-yearly  meetings  of  the  Heads  of  PES,  the  following  studies  have 
helped PES to adapt their work to the Guidelines: 

•  modernisation of the PES so that they could better support the objectives of the European 

Employment strategy; 

•  analysis of self-service systems by comparative exploration and impact estimation of such 

services in PES;  

•  support  for  organisation  of  events  leading  to  a  better  understanding  of  employment 

services delivery systems; 

•  involvement of the social partners in PES to enhance their efficiency; 

•  regionalisation of PES with identification of the difficulties encountered in that process and 

in implementing the EES.  

the  Joint  Employment  Report  was 

While 
the 
implementation of the Employment Guidelines in national policies, more in-depth studies of 
the  National  Action  Plans  for  Employment  (NAPs)  were  carried  out.  The  aim  was  to  study 
certain policy initiatives which occupy a central place in the NAPs in more depth, with a view 
to  assessing  their  impact  on  the  employment  situation  as  well  as  the  interaction  with  other 
social policies.  

instrument  for  assessing 

the  main 

7. 

MAINSTREAMING OF EMPLOYMENT POLICIES (SECTIONS 2.2 AND 3 IN THE ANNEX) 

Taking employment into account in Community policies and initiatives is a major element in 
the Employment Title of the Treaty (Art 127). It has been integrated into the ARC programme 
activities. 

Among the issues for which activities have been launched during the programme there were 
the following conferences supported by studies.  

7 

 
 
  
 
•  Sustainable development and employment; 

•  The employment potential of culture; 

•  Unemployment and public health; 

•  New areas of employment growth; 

•  Entrepreneurship and employment. 

At the end of 2000, a major study was also launched on the potential of Community policies 
for  employment  promotion.  The  aim  of  this  study  was  to  identify  the  policy  orientations/ 
actions  which  were  likely  to  play  a  key  role  in  support  of  employment  at  Community  level 
and their interactions with national actions for promoting employment. The studies aimed to 
assess,  qualitatively  if  necessary,  the  extent  to  which  these  policies  influenced  employment 
developments and how they were likely to do so. The results were included in a major report 
drawn up by the Commission in accordance with the provisions of Article 127.  

8. 

DIFFUSION AND DISSEMINATION (SECTION 3 IN THE ANNEX) 

Throughout the period of the programme, the Commission has pursued an active publication 
and  dissemination  policy.  Apart  from  the  Employment  in  Europe  report  and  the  Joint 
Employment Report, all studies with a wider application have been published either in printed 
form or, increasingly, on the internet. 

Furthermore,  the  Commission  considers  that  an  active  exploitation  of  the  results  of  studies 
and  research  projects  can  often  best  be  achieved  through  the  organisation  of  seminars  and 
workshops.  The  organisation  of  a  workshop  to  discuss  and  assess  the  results  of  studies  was 
therefore  an  integral  part  of  several  contracts.  The  study  was  presented  to  an  appropriate 
audience  of  academics  and  policy  makers.  Such  seminars  were  held  on  restructuring  public 
expenditure,  services  sector  employment,  entrepreneurship  and  employment,  concepts  and 
measurement  of  European  labour  market  flexibility/adaptability  indices,  mainstreaming  of 
employment and undeclared work.  

The annual "Employment Week" played a significant role in disseminating the objectives of 
the employment strategy to decision makers dealing with employment matters. It attracted a 
Europe-wide  audience  and 
included  presentations,  exhibitions,  and  conferences  on 
employment policy. The programme allowed the Commission to take a prominent position in 
the exhibition which it used to promote a better understanding by the stakeholders of the aims 
of the Employment Strategy. 

8.1 

CONFERENCES AND SEMINARS (SECTION 3 IN THE ANNEX) 

Calls  for  proposals  for  innovative  projects  in  support  of  the  Employment  Strategy  were 
launched  and  supported  by  this  programme.  Projects  were  required  to  be  linked  to  the 
Employment  Strategy,  and  to  be  innovative  and  trans-national.  Most  focussed  on 
methodology,  such  as  the  one  to  promote  the  benchmarking  process,  one  on  learning  from 
neighbours in the Southern Baltic Region, one developing regional learning networks and the 
annual conference of European Labour Economists which looked at mobility and migration, 
occupational choice and income distribution. Others focussed on specific policy areas such as 
employment in cities, arts graduates and the sports sector. 

8 

 
 
  
 
Exchanges with the USA, Canada, and Japan provided useful inputs. Joint events with labour 
ministry  officials  from  these  countries,  studies  and  publication  of  good  practice  in  labour 
market policies helped in the formulation of proposals for policy initiatives in the EU. The co-
operation  with  the  USA  and  Canada  is  continuing  in  the  EIM  programme  and  helped  in 
developing mutual learning and regular exchange of good practice.  

9. 

PRESIDENCY EVENTS (SECTION 3 IN THE ANNEX) 

Throughout  the  life  of  the  programme,  a  number  of  Conferences  held  in  the  context  of  the 
priorities of the incumbent Presidencies were regularly supported. Themes included: 

•  Social policy and the Amsterdam Treaty;  

•  A Working Culture ; 

•  Culture, new technology and employment;  

•  Jobs  Conference  of  the  EU  and  the  Organisation  for  Economic  Cooperation  and 

Development (OECD), on employment strategies;  

•  Conference on the peer review method and long term unemployment;  

•  Conference on a successful Monetary Union.  

These  Conferences  were  events  with  a  wider  impact  and  participation.  They  were  usually 
opened  by  Ministers.  Participants  included  officials  and  labour  market  experts  from  all 
Member States, social partners and on some occasion officials and experts from the Acceding 
and  the  European  Economic  Area  (EEA)  countries.  They  reviewed  and  discussed 
developments  in  selected  themes  relevant  to  the  European  Employment  Strategy.  Each 
Council  Presidency  has  given  particular  attention  and  prominence  to  these  events  and 
disseminated the results. For instance, one presidency Conference examined the peer review 
process  with  the  focus  on  the  long  term  unemployed.  Four  countries  presented  their  policy 
response to this problem and the discussions compared each approach within the context of 
the  EES.  At  the  end,  there  was  an  overall  evaluation  of  the  peer  review  method  from 
prominent  academics,  officials  and  experts  from  several  countries.  The  conclusions  of  the 
conference were very supportive of the peer review process, as a complement to the EES, and 
suggested improvements and wider dissemination of the results.  

10. 

THE  ROLE  OF  THE  ARC  COMMITTEE,  LINKS  WITH  OTHER  COMMITTEES, 
PROGRAMMES AND ORGANISATIONS 

In  line  with  Council  Decision  98/171/EC  a  Committee,  composed  of  representatives  of 
research-related departments of employment and labour ministries of the Member States, was 
established  for  the  ARC  programme.  Its  main  tasks  were  to  discuss  and  approve  the  work 
programmes proposed by the Commission every year, and to be consulted on the individual 
projects  to  be  carried  out  within  each  work  programme.  The  Employment  Committee 
(EMCO) has been closely involved in the programme. 

Apart  from  the  approval  of  work  programmes,  the  ARC  Committee  followed  closely  the 
activities of major projects during implementation. There were presentations of studies to the 

9 

 
 
  
 
ARC, and regular presentations to the EMCO of papers and studies produced as a result of the 
programme activities. 

The  Commission  ensured  consistency  and  complementarity  of  the  ARC  programme  with 
other  initiatives  in  the  Commission  and  with  the  activities  of  other  organisations  or 
institutions.  The  main  objective  of  Commission  initiatives  in  this  area  was  to  underpin  the 
successful implementation of the employment strategy. 

The  ARC  was  distinct  from  other  programmes  due  to  its  horizontal  and  research  oriented 
nature. Its role was to support the employment strategy by undertaking analysis, research and 
cooperation activities in the field of employment and the labour market mainly at EU level. 
Only exceptionally has the ARC programme, in line with Article 129 of the Treaty mandate, 
co-financed  innovative  projects  that  support  the  employment  strategy  at  national  or  local 
level.  

However, a number of other Commission programmes complemented ARC and supported the 
implementation  of  the  employment  strategy  at  national  or  local  level.  In  this  context,  the 
objectives of the social inclusion programme were to enhance the effectiveness and efficiency 
of  Community  and  Member  States'  policies  and  actions  by  developing  the  capacity  of  the 
players  concerned  to  address  social  exclusion.  The  European  Social  Fund  underpinned  the 
employment  strategy  by  assistance  either  through  national  operational  programmes,  under 
Objectives 1, 2 and 3, or through the EQUAL community initiative programme. Support under 
Article 6 of the European Social Fund was directed towards innovative measures that prevent 
and  combat  unemployment  and  develop  human  resources  and  social  integration.  Article  6 
activities  constituted  a  direct  interface  between  policy  and  practice  and  facilitated 
communication  of  policies  to  practitioners  as  well  as  reactions  and  feedback  from  them.  A 
wide range of projects was supported by Local Development and Employment Initiatives that 
aimed either at establishing sustainable partnerships through the Territorial Employment Pacts 
or at promoting local job creation by innovative pilot projects in the third sector e.g. in areas 
not subject to market forces or the public sector.  

Co-operation  with  international  organisations,  Candidate  Countries  and  other  countries  in 
programme  activities  was  pursued  consistently.  Several 
international  organisations 
participated  in  ARC  activities  and  with  their  experience  and  expertise  provided  very  useful 
inputs. Cooperation with them helped in the brainstorming of difficult issues. Discussion with 
experts from the OECD or the International Labour Organisation (ILO) contributed to a better 
understanding  of  delicate  issues  in  the  labour  markets.  Close  contacts  and  common  events 
with the ILO and the OECD have helped to achieve a better definition of activities and avoid 
duplication in these activities.  

11.  HUMAN RESOURCES AND ARC  

The ARC as well as the Employment Incentive Measures programme depend on adequate in-
house  resources  to  prepare,  launch  and  implement  activities,  and  even  more  so,  to  support 
exploitation of the results and the drawing of meaningful and practical policy conclusions. It 
is  difficult,  however,  to  estimate  the  exact  amount  of  effort  required  on  the  part  of  each 
official managing activities under the programme. His/her work was integrated in each of the 
relevant  units  and  included  a  number  of  interrelated  tasks  promoting  the  Employment 
Strategy, for which the ARC activities provided valuable inputs. In addition, dissemination of 
the results required time and effort.  

10 

 
 
  
 
Experience  from  this  programme  in  the  Employment  and  ESF  Policy  Development  and 
Coordination directorate, has shown that at least one person dealing with financial matters and 
one official per unit involved in running the projects are required for an efficient management 
of this programme.  

Finally,  resources  for  ex-ante  and  mid-term  evaluation  are  necessary.  They  would  help  to 
identify measurable targets for the programme so that an ex-post evaluation could be able to 
assess the impact of the programme. Such resources are included in the EIM.  

12. 

SUMMARY AND CONCLUSION 

The  ARC  programme  on  Commission  activities  in  the  field  of  Analysis,  Research  and 
Cooperation  in  employment  was  conceived  in the  aftermath  of  the  White  Paper  on  Growth, 
Competitiveness and Employment and at a time when the Essen Conclusions shaped policies 
on Employment. It came into being just after the adoption of the first Employment Guidelines 
in the Luxembourg European Council of November 1997. At the same time the Amsterdam 
Treaty  had  just  articulated  necessary  Treaty  provisions  on  employment  and  indeed  the 
succeeding programme on Employment Incentive Measures (EIM) reflects more closely this 
link.  

The  important  contribution  made  by  the  ARC  can  only  be  understood  in  the  context  of  the 
Employment  Strategy.  The  strategy  encompasses  the  co-ordination  of  Member  States' 
employment policies on the basis of commonly-agreed employment guidelines that are in line 
with  the  coordination  of  macroeconomic  policy,  with  a  view  to  laying  the  foundation  for 
growth  and  to  boosting  employment.  While  not  specifically  designed  as  such,  ARC  has 
become  an  essential  tool  in  support  of  the  European  Employment  Strategy,  used  by  the 
Commission, the Member States, social partners and other actors. Each of its constituent parts 
has  contributed  to  the  monitoring  and  development  of  the  Strategy,  from  the  underlying 
analysis  of  current  and  prospective  issues  and  the  assessment  of  the  impact  of  Community 
policies, to the interactive process represented by the peer review process and the evaluation 
of the National Action Plans.  

The  programme  was  effectively  complemented  by  other  Community  initiatives,  and  the 
cooperation  with  outside  organisations  was  very  useful.  Exploring  further  synergies  with 
programmes  and  organisations  will  help  also  in  underpinning  the  European  Employment 
Strategy with all necessary information and policy suggestions.  

Social  partners,  due  to  their  networks  and  their  organisational  structures,  are  well  placed  to 
compile  information  effectively  and  to  promote  exchange  of  best  practice.  Further 
involvement of the social partners in the programme activities in their fields of competence, 
will further benefit the aims of the programme and of the Employment Strategy. 

A better use of channels for the dissemination of the results would have further increased the 
impact of the ARC programme. More human resources and continuous involvement of Non-
Governmental  Organisations  (NGOs)  would  have  helped  in  making  the  results  of  the 
programme more widely available. NGOs, in particular, can act as effective disseminators of 
information. They have access to networks and resources that can be very useful in making 
programme  activities  known  to  the  stakeholders  of  each  activity.  The  succeeding  EIM 
programme consistently tries to involve NGOs in its activities. 

11 

 
 
  
 
Overall,  the  programme  provided  a  framework  for  employment  related  initiatives  in  the 
Commission  and  supported  effectively  the  European  Employment  Strategy.  The  financial 
support  for  Eurostat  has  led  to  considerable  improvements  in  employment  statistics, 
particularly as regards the comparability and timeliness of data. Further improvements were 
evident as the continuous Labour Force Survey began to be implemented in Member States. 
The  Labour  Force  Survey  is  today  considered  the  most  authoritative  source  of  statistical 
information on the EU labour market. 

The studies supported by the programme explore the analytical ground for the development of 
the EES. The Employment in Europe report provided a solid overview of the trends and key 
challenges. 

The  Peer  Review  process,  the  European  Observatory  and  cross-country  studies  have  been 
major contributors to the Employment Guidelines and helped the Member States in delivering 
policy  initiatives  effectively.  The  joint  effort  of  the  directorate  for  Employment  in  the 
Commission, Eurostat and OECD to develop appropriate monitoring systems for active labour 
market  policies  produced  useful  results.  Further  involvement  of  the  Candidate  Countries  in 
most  of  the  programme  activities  would  have  been  beneficial  and  has  been  pursued  in  the 
subsequent EIM programme.  

Regarding the management of ARC, experience suggested that a reduction in the number of 
smaller  projects  and  an  increase  in  project  evaluation  activities  helped  in  achieving  a  better 
focus of the activities and economised on the required resources. This had an influence in the 
succeeding EIM programme which includes more evaluation work. Several additional factors 
need to be taken into account. Among them is the need for flexibility in the programme, quick 
response  to  market  developments  and  appropriate  focus  on  specific  unforeseen  problems  in 
the labour market.  

A trend, that started from the ARC programme and continued in the EIM programme, was the 
gradual  re-integration  of  key  analytical  activities  within  the  Commission  units.  This 
contributes to higher quality and coherent policy conclusions. For instance, the Employment 
in Europe report is now produced in-house and valuable help from programmes such as the 
ARC  is  only  sought  for  technical  aspects.  The  evaluation  of  the  European  Employment 
Strategy has also been produced internally. 

Finally,  the  knowledge  gained  managing  the  ARC  programme  has  been  very  useful  for 
improvements in the successive EIM programme. As this report has been drafted after the end 
of the ARC programme but during the third year of the EIM programme, it is apparent that 
such improvements benefited the new programme. For instance, the consistent streamlining of 
the EIM activities to the aims of the European Employment Strategy, and the implementation 
of an active information policy to increase awareness on the Employment Strategy, have been 
key factors in improving  the contribution of the incentive measures to the realisation of the 
Strategy's objectives. 

12 

 
 
  
 
Budgetary Annex 

Par 

ARC description 

1998 

1999 

2000 

1. 

Analysis of labour market and employment policies 

1.1 

Observation 

1.1.1 

- European Employment Observatory 

3.485.305 

1.988.194 

7.504.296 

0 

0 

1.053.238 

1.2 

Development of comparable statistics & indicators 

2.278.460 

975.992 

3.840.418 

1.2.1 

- Development of database on employment policies 

1.2.2 

- Contribution to Eurostat 

1.2.3 

- Comparative analysis of employment and unemployment by different 

measurement concepts (enterprise and re-integration of unemployed surveys),  

1.2.4 

- Comparative analysis of labour market performance: 

• 

Employment Benchmarking studies using diamond chart methodology 

1.3 

Analysis and studies 

1.206.845 

1.012.202 

2.610.640 

1.3.1 

- Employment impact studies: 

•  Globalisation ,Trade flows, direct investment in emerging economies 
•  Restructuring public expenditure 
• 

Employment impact of EMU and employment enhancing economic 
growth 
Labour market adaptability index and skills gap 

• 
•  Undeclared work,  
• 
• 
• 
•  Culture 

Tax benefits systems 
Identification high-risk unemployed 
Job quality and wages, Unemployment & public health 

- Employment in Europe Report 

1.3.2 

13 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Identification and transfer of good practices 

1.763.995 

2.729.214 

137.185 

Peer Review of best practices 

Good practices/Mainstreaming 

688.000 

1.500.040 

788.189 

829.418 

0 

0 

• 
• 
• 
• 
• 
• 

Transfer of good practice 
Environment and employment 
Entrepreneurship/venture capital 
Evaluations: 3rd system & employment/call for proposals 
Employment policy for people with disabilities 
Implementation support pilot on 3rd system & employment 

PES – Meetings Heads of PES 

39.924 

399.756 

137.185 

Cooperation with OECD – Leed Programme 

247.882 

0 

0 

2. 

2.1 

2.2 

2.3 

2.4 

3. 

1.708.193 

1.531.397 

724.830 

1.342.193 

1.160.897 

427.356 

Diffusion 

3.1 

Grants etc. 

Seminars and workshops 

• 
•  Call for Proposals 
• 
• 
• 

International conferences 
Presidency conferences 
Employment Week 

3.2 

Publication production costs 

366.000 

370.500 

297.474 

Divers 

TOTAL 

0 

84.900 

0 

6.957.493 

6.333.705 

8.366.311 

14