COMMISSION STAFF WORKING DOCUMENT Accompanying the document Proposal for a Council Recommendation on Establishing a Youth Guarantee
Date: 2012-12-05
Institutions: European Commission
Subjects: access to a profession, dropout, job access, job vacancy, social integration, traineeship, young person, youth employment, youth unemployment

EUROPEAN 
COMMISSION 

Brussels, 5.12.2012  
SWD(2012) 409 final 

COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

Proposal for a Council Recommendation 

on Establishing a Youth Guarantee  

{COM(2012) 729 final} 

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COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

Proposal for a Council Recommendation 

on Establishing a Youth Guarantee  

1. WHAT CONSTITUTES A YOUTH GUARANTEE? 

1.1. The concept of a Youth Guarantee 

Young people struggle to find a foothold on the labour market. These difficulties have been amplified 
during the current crisis, with young people often being the first fired and last hired in such economic 
circumstances.  Youth-specific  responses  are  needed,  now  and  in  the  future,  and  in  this  context  the 
Commission is proposing a Council Recommendation on establishing a Youth Guarantee. 

Member  States  should  ensure  that  young  people  receive,  within  four  months  of  having  left 
school  or  becoming  unemployed,  a  good  quality  offer  of  employment,  continued  education,  an 
apprenticeship or a traineeship. 

This concept of a Youth Guarantee is not new. Already in 1981, the Nordic Council1 defined it as "a 
social  situation  where  all  young  people  are  guaranteed  genuine  opportunities  for  education,  training 
and employment in accordance with, on the one hand, the aspirations, capabilities and interests of the 
individual, and, on the other, the needs and objectives of society". One could add today “and of the 
economy”. 

Young people should be supported in such a way as to achieve a job outcome, enrolment in continued 
education, in an apprenticeship or in a traineeship. Depending on the individual situation the support 
needed  will  vary.  For  many  young  people  short  and  light  interventions  such  as  universal  vocational 
orientation,  education  and  labour  market  information  are  enough  for  them  to  achieve  the  desired 
placement on their own within the specified time period. Others will require a labour market entrants 
assessment,  vacancy  matching  and,  if  necessary,  a  short  CV  training.  Yet  others,  often  more 
disadvantaged young people (such as those with low skills or other barriers), will need deeper, longer 
and more complex interventions and the use of tangible offers in order to ensure that they too benefit 
from the Youth Guarantee. 

Indeed, the purpose of a Youth Guarantee is to ensure that nobody is left on their own, that all young 
people, who have not succeeded in securing an offer on their own, are, within a certain period of time, 
presented with an offer of a job, continued education, apprenticeship or a traineeship. 

Taking  into  account  the  current  high  rates  of  unemployment  across  Europe,  the  fact  that  the  most 
recent  estimates2  made  by  the  International  Labour  Organization  (ILO)  show  no  reversing  trend 
whatsoever in the next coming years, and in particular the unbearable number of more than 7.5 million 
of young people under 25 currently not in employment, education or training (NEETs), it is of utmost 

1 
2 

Youth Guarantee: Theory or Reality – Secretariat of the Nordic Council of Ministers – June 1981. 
http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_189461/lang--en/index.htm  

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urgency that a Youth Guarantee helps reduce those numbers and in any case put a stop to an increase 
of this group. 

The European Commission is thus calling on Member States to take action and to provide the Youth 
Guarantee to young people within four months of becoming unemployed or leaving formal education. 
As the success of the Youth Guarantee is dependent on a number of actors and actions (e.g. addressing 
issues  such  as  awareness  or  take-up),  the  Commission  proposes  a  set  of  guidelines  as  part  of  the 
recommendation and which are further discussed in section 3 of this Staff Working Document. 

1.2. Principles to consider when establishing the schemes 

When designing a Youth Guarantee scheme, a number of principle-based questions are likely to arise 
and  different  situations  in  individual  Member  States  (or  at  regional  or  local  level)  could  lead  to 
differences in how the scheme will be set up and further implemented. 

First,  it  should  be  noted  that  young  people,  although  requiring  specific  monitoring  and  intervention 
through a general Youth Guarantee, are not a homogeneous group and that they face different social 
environments; furthermore a particular focus will be needed on those young people particularly 
at  risk  of  becoming  or  staying  as  NEET.  For  example,  young  women  show  a  greater  NEET 
persistence and lower turnover than young men, especially in Southern and Eastern Europe (Bulgaria, 
Czech  Republic,  Greece,  Hungary,  Italy,  Malta  and  Poland),  where  young  women  present  a  higher 
share of annual NEET rate and always NEET in the 2006-2009 period and lower exit rates than men3. 
However, once women exit the NEET status, recurrence is less likely in some countries. The higher 
persistence  for  young  women  is  probably  due  to  the  fact  that  women  NEET  are  more  likely  to  be 
inactive  rather  than  unemployed.  When  designing  and  implementing  a  Youth  Guarantee  scheme 
Member States should pay attention to the gender dimension of the challenges. Currently the coverage 
rates  of  Active  Labour  Market  Policies  (i.e.  the  number  of  young  participants  in  %  of  the  NEET 
population 15-24) are lower for young women compared to men in all countries. The average coverage 
rate for young women is 26.3% relative to 33.9% for young males when considering ALMPs. Gender 
differences on coverage rates in Training reach 8.5 percentage points (13% for young women relative 
to 21.5% for men)4. 

Eurofound5  identified  eight  different  key  determinants  that  increase  probability  of  young  to  enter 
NEET  category:  i)  having  a  disability;  ii)  immigration  background;  iii)  low  education;  iv)  living  in 
remote  areas;  v)  coming  from  a  low  household  income;  vi)  having  parents  who  experienced 
unemployment;  vii)  having  parents  with  a  low  level  of  education  and  viii)  coming  from  divorced 
families. These determinants, especially when combined, can lead to low performance and sometimes 
also discrimination, both at school and on the labour market, making the next steps particularly hard 
for these young people. 

As a result, the schemes should tackle the situation of those young people currently furthest away from 
the  labour  market  who  may  not  yet  be  ready  for  a  real  job  offer  when  they  become  unemployed  or 
leave school and may require specific training offers and intensive coaching. Indeed, Eurofound6 has 
argued that experiences from Sweden show that placing young people in a job over a relatively short 

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Calculation from the European Network of Experts on Gender Equality. 
European Network of Experts on Gender Equality report on Starting fragile: gender differences in the 
youth labour market, 2012. 
Eurofound (2011) Young people and NEETs in Europe: First findings. 
Eurofound (2012) Youth Guarantee: Experiences from Finland and Sweden. 

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period of time may not offer long-term solutions. Structural concerns, such as skills and qualifications, 
need to be taken into account when providing a Youth Guarantee offer to a young person. 

Second, principles of mutual obligation, such as those applying to adults and their participation in 
active labour market policies, could be considered when designing a Youth Guarantee scheme. Indeed, 
it could be conceivable that the condition to receive an offer under the Youth Guarantee would be to 
register with an employment service. However, in this case, it would be important to tackle issues such 
as stigmatisation of registering in the first place and increased awareness of the benefits of registering 
with the employment service. 

Furthermore, in many countries payment of benefits (and sometimes also social assistance benefits) is 
linked  to  the  participation  in  an  activation  programme.  Sanctioning  benefits  if  young  people  do  not 
participate  in  the  Youth  Guarantee  would  be  a  means  by  which  to  ensure  that  young  unemployed 
people do take up the offers made to them, therefore limiting the impact of unemployment scarring7. 

There  are  however  also  caveats  to  such  an  approach  as  particularly  vulnerable  young  people  might 
then  take  a  further  step  away  from  employment  services  and  be  even  more  difficult  to  reach. 
Thoroughly tailored individual action planning and placements can prevent dropouts from occurring in 
the first place. 

In case dropout from activation (and loss of benefits) has occurred, mechanisms have to be in place to 
ensure that these young are not left alone, but that there are services to reach out to them and to keep 
contact  with  them  to  find  out  where  the  problems  are  and  how  to  get  them  back  on  the  pathway  to 
further  education,  vocational  training  and  any  other  labour  market  integration  measures  (e.g. 
traineeship, apprenticeship, etc.). 

Third,  when  designing  the  schemes,  the  potential  of  cycles  of  inactivity  should  be  addressed.  How 
should the scheme tackle early abandoners or those who make use of a guaranteed offer but then end 
up  having  to  resort  to  another  guaranteed  offer?  The  scheme  should  include  mechanisms  or  action 
plans  to  break  and  avoid  cycles  of  inactivity  for  young  people,  as  these  can  lead  to  further 
demotivation and destruction of their human capital. 

Fourth, a Youth Guarantee scheme could carry the potential of moral hazard if young people rely on 
an external organisation, such as an employment service, to deliver an offer to them. Such situations 
can be avoided in the design of the scheme, for example through introducing active and individualised 
guidance  at  the  start  of  the  process,  helping  the  young  person  to find  vacancies  or  study  places  that 
appeal to them and supporting their application to enhance their probability of success. 

Fifth,  Member  States  will  need  to  decide  at  which  level  to  implement  and  manage  the  Youth 
Guarantee.  For  Member  States  where  the  implementation  of  education,  training  and  employment 
policies  is  decentralised,  the  regional  or  even  the  local  level  can  be  the  relevant  one  in  terms  of 
implementation  while  it  would  be  important  to  ensure  a  mechanism  of  national  coordination  with  a 
national ministry, body or organisation to take the lead. This can help address the regional disparities 
or the local circumstances of e.g. suburbs, rural or remote areas existing inside a same country, whilst 
working as close as possible to the young people targeted. 

7 

Described below under sub-section 2.2. 

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Finally,  in  order  to  avoid  the  scarring  effects  of  unemployment  (see  also  section  2.2.)  it  is 
recommended to include rules on timing as part of a Youth Guarantee scheme8. The Commission 
proposes that Member States should offer the Youth Guarantee to all young people within four months 
of unemployment or leaving education. Rules on timing of interventions are already foreseen in many 
PES9. Beyond this, in many countries young unemployed people are already a priority group for early 
PES intervention10. 

1.3. Country-specific examples 

A  guarantee  that  comes  closest  to  the  one  outlined  in  the  Commission  proposal  for  a  Council 
recommendation in the sense of young people being offered a job, an apprenticeship, a traineeship and 
further studies can be found in Finland. Building on a long experience of youth guarantees the Finnish 
government  aims  to  make  the  new  guarantee  more  comprehensive  and  preventive  and  to  combine 
employment and education elements. This guarantee11 will be implemented from early 2013 onwards 
and in a nutshell reads like this: 

"Each young person under 25 and recently graduated under 30 will be offered a job, a traineeship, 
on-the-job  training,  a  study  place,  or  a  period  in  a  workshop  or  rehabilitation  within  3  months  of 
becoming unemployed." 

“Every school-leaver will be guaranteed a place in upper secondary school, in vocational education 
and training, in apprenticeship training, in a youth workshop, in rehabilitation or by other means12.” 

Besides the Finnish case, a variety of initiatives exist in other Member States13 that would support the 
success of a fully implemented Youth Guarantee (e.g. Czech Republic, Denmark and France). These 
are  for  example  programmes  for  the  development  of  career  management  skills  and  for  vocational 
orientation  at  schools,  career  guidance,  coaching  of  disadvantaged  young  people  to  prevent  dropout 
and  to  facilitate  the  transition,  assistance  for  job  search,  individual  guidance,  matching,  subsidies  to 
employers,  schemes  for  apprenticeships  and  vocational  training.  These  are  offered,  to  a  different 
extent  in  different  Member  States,  to  students,  young  unemployed,  drop-outs,  NEETs  and  disabled 
young  people.  Especially  apprenticeships  and/or  traineeships  are  frequently  used  to  support  young 
unemployed people.  

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Most  countries  include  all  young  people  searching  for  a  job  or  training,  see  European  Commission 
(2011) Comparative paper on youth integration, page 14ff.  
AT (guarantee for training within 3 months), BE - FOREM (within 4 weeks of registering need to be in 
linked  with  labour  market),  BE  -  VDAB  (within  4  months  of  registering  -  Youth  Action  Plan),  DK 
(interview within 3 months for young people under 30; everyone entitled to ALMP within 3 months), 
DE  (legal  provision  <25  immediately  placed),  FI  (all  young  people  under  30  are  provided  with 
guarantee),  PL  (within  6  months  offer  for  activation),  ES  (there  is  a  guarantee  for  either  training  or 
experience),  SE  (90  days  after  registering  offered  a  range  of  activities),  NL  and  LT  have  relevant 
guidelines  in  place,  SI,  BG,  CZ,  EE,  MT  and  FR  offer  supportive  measures  with  youth  as  a  priority 
group  (European  Commission  (Mobility  Laboratory),  2012:  PES  Crisis  response  questionnaire  2012, 
page 16). 
European Commission (2011) Youth Guarantees: PES approaches and measures for low-skilled young 
people, Thematic Synthesis Paper, chapter 4; Eurofound (2012) Recent policy developments related to 
those not in employment, education and training (NEETs), Dublin. 
Finnish Ministry of Employment and Economy , Youth Guarantee 2013: 
http://www.tem.fi/files/34025/Social_guarantee_for_youth_2013.pdf 
The development plan Education and Research 2011-2016 calls this an ‘educational guarantee’, a part 
of the Youth Guarantee. 
An overview of these measures is compiled in annex 1 of this document. 

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Typically, schemes are scheduled to start within a certain number of days or months after registration 
as  being  unemployed  –  although  generally  without  a  promise  that  it  will  result  in  a  job  offer, 
apprenticeship, traineeship or vocational training. All the initiatives are usually carried out through a 
Public Employment Service (PES) or another body within the public administration. 

Some of the measures to activate young people and reduce levels of unemployment are financed by 
the European Social Fund (such as in Bulgaria, the Czech Republic and Latvia).  

In Austria14, a "Training Guarantee" for young people up to the age of 18 was put in place in 2008, 
giving  young  people  who  cannot  find  a  company-based  apprenticeship  the  opportunity  to  learn  an 
apprenticeship trade at a supra-company training institution financed by the PES. Within this measure 
apprentices  with  special  needs  can  benefit  from  an  integrated  training  scheme  involving  partial  or 
prolonged apprenticeships. A “Job and Training Guarantee” for young people aged between 19 to 24 
under  the  action  programme  “Future  for  Youth”  ensures  that  unemployed  young  people  are  offered 
employment,  targeted  training  or  subsidised  employment  within  the  first  six  months  of  their 
registration  with  the  PES.  Alongside  basic  needs-oriented  subsidies  and  pay  rates  as  agreed  under 
collective  agreements,  quality-related  and  labour  market-related  incentives  are  offered  to  encourage 
employers  to  establish  additional  training  places  and  improve  the  quality  of  training.  Hence, 
employers  will  be  supported  if  their  apprentices  earn  excellent  or  good  grades  in  the  final 
apprenticeship examination. 

In  Sweden,  the  approach  is  to  stimulate  the  young  unemployed  to  be  active  in  job-seeking.  This 
scheme  starts  with  an  initial  period  of  three  months  of  intensified  support  and  follow-up  of  the 
individual's job seeking efforts. After this initial period, an active matching process begins, combined 
with enhanced action, which may be an apprenticeship or further education. 

1.4. EU level action towards establishing the Youth Guarantee   

The  political  drive  at  EU-level  to  support  young  people  in  their  transition  from  school  into 
employment has also been very strong over the past years.  

Already  in  2005,  the  Council  agreed,  in  the  context  of  the  Employment  policy  guidelines15  (2005-
2008),  that  “every  unemployed  person  is  offered  a  new  start  before  reaching  6  months  of 
unemployment  in  the  case  of  young  people”.  In  200816,  the  Council  reduced  the  time  period  to  “no 
more than 4 months” for young people having left school.  

As  by  2010  implementation  of  such  a  measure  across  the  EU  had  not  yet  taken  place,  both  the 
European  Parliament  (EP)  and  the  European  Youth  Forum  were  strongly  advocating  for  Youth 
Guarantees to be set up at EU level.  

In  the  "Youth  on  the  Move"  flagship  initiative17  of  September  2010,  the  Commission  presented  a 
framework of policy priorities to reduce youth unemployment, with a particular focus on facilitating 
the  transition  from  education  to  work  and  reducing  labour  market  segmentation.  The  Commission 

Youth and work in Austria: 

14 
https://broschuerenservice.bmask.gv.at/PubAttachments/ArbeituJugend2012engl.pdf?db=-1  
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Council Decision 2005/600/EC - OJ L 205/21 of 6 August 2005. 
Employment policy guidelines (2008-2010), Council Decision 2008/618/EC - OJ L 198/51 of 26 July 
2008. 
COM(2010)  1047  of  15  September  2010,  presented  in  the  framework  of  the  Europe  2020  and  the 
European Employment Strategies. 

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called in particular upon Member States to ensure that all young people are in a job, further education 
or activation measure within four months of leaving school and to provide this as a ‘Youth Guarantee’. 

The years 2011 and 2012 have seen repeated calls for this, in particular from the European Council, 
the  European  Parliament  and  the  European  Youth  Forum,  but  without  much  success  on  the  ground. 
The  Commission  announced  the  implementation  of  the  €4  million  EP  preparatory  action  on  Youth 
Guarantees in the Youth Opportunities Initiative Communication18 of December 2011 and reiterated 
its  commitment  to  Youth  Guarantees  in  the  Employment  Package19  of  April  2012  by  announcing  a 
proposal for a Council recommendation. 

The Danish Presidency organised a workshop on ways to fulfil a Youth Guarantee in the framework of 
the Informal Meeting of Employment and Social Affairs Ministers held in Horsens in April 2012. 

On their part, an EP resolution20 of 24 May 2012 and an opinion21 of 12 July 2012 from the European 
Economic  and  Social  Committee  (EESC)  have  commented  on  the  "Youth  Opportunities  Initiative" 
communication. Both included specific points on Youth Guarantees. 

As part of the yearly questionnaire sent to the PES Network on their adjustment capacity to the crisis, 
the  2012  edition,  launched  in  January,  included  a  module  on  actions  taken  to  address  youth 
unemployment. In June 2012, in the context of the meeting of the Heads of PES (HoPES), members of 
this network were asked to report on developments since January 2012, specifically targeting young 
people. 

As  a  follow-up  to  the  Employment  Package,  a  discussion  took  place  with  social  partners  on  the 
prospect of an initiative on Youth Guarantees in June 2012, and representatives of the European Youth 
Forum  and  of  cross-sectoral  social  partner  organisations  were  met  in  September  2012.  The  Youth 
Guarantee initiative was discussed once more Social Partners at the Social Dialogue Committee on 23 
October 2012. 

Finally,  on  29  June  2012,  the  European  Council  urged  Member  States  to  step  up  efforts  to  increase 
youth  employment,  with  "the  objective  that  within  a  few  months  of  leaving  school,  young  people 
receive a good quality offer of employment, continued education, apprenticeship or a traineeship". It 
further concluded that these measures can be supported by the European Social Fund (ESF) and that 
Member  States  should  use  the  possibilities  of  financing  temporary  recruitment  subsidies  from  the 
Fund. 

1.5. Rationale of the proposal   

The  Commission, along  with all  Member States, is very concerned about the current labour 
market  situation  for  young  people  and  its  persistent  deterioration.  The  dramatic  levels  of 
youth unemployment affect the whole of Europe: their costs are high now and in the future. 
The  savings  achieved  through  the  Youth  Guarantee  go  beyond  the  pure  social  protection 
expenditure savings achieved. Avoiding unemployment and the deterioration of skills would 
lead  to  longer-term  benefits  for  young  people  and  for  the  economy  through  lower 

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COM(2011) 933 of 20 December 2011. 
Towards a job-rich recovery, COM (2012) 173 of 18 April 2012. 
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2012-
0224+0+DOC+XML+V0//EN  
CESE 1579/2012 - SOC/450 at: http://www.eesc.europa.eu/?i=portal.en.soc-opinions.21992  

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unemployment over the course of the lifecycle, higher incomes (and therefore also higher tax 
incomes  and  social  security  contributions)  and  through  fewer  social  and  health  problems. 
Further information can be found in section 2. 

Following the lack of implementation of a number of political calls from both the Council and 
the European Parliament to set up Youth Guarantee schemes, it is now necessary to issue this 
recommendation  to  Member  States.  Indeed,  so far  only  a  limited  number  of  Member  States 
have taken measures towards implementing comprehensive Youth Guarantee schemes. 

Offering  guidelines  at  EU  level  on  tools  that  contribute  towards  effective  Youth  Guarantee 
schemes will enable Member States to make best use of Cohesion Funds, and in particular of 
the European Social Fund, in order to address youth unemployment and inactivity. 

The proposal recognises that different situations in individual Member States (or at regional 
or  local  level)  could  lead  to  differences  in  how  the  schemes  will  be  set  up  and  further 
implemented.  

2. AN INVESTMENT APPROACH: COSTS VERSUS BENEFITS 

Youth  unemployment  and  inactivity  are  expensive.  They  are  expensive  now  (in  terms  of  benefits 
being paid out and also in terms of foregone earnings), but they are also expensive in the future (as 
they lead to a number of scarring effects). Preventing unemployment and inactivity therefore has the 
potential  to  outweigh  these  costs  and  as  such  represents  an  opportunity  for  smart  investment  in  the 
future of Europe, its youth. 

2.1. The immediate cost of NEETs   

The  cost  of  young  people's  unemployment  or  inactivity  (i.e.  the  costs  of  young  people  being 
considered  to  be  NEET)  had  been  estimated  by  Eurofound  to  be  around  €10 0  billion  or  1%  of  the 
aggregated GDP of EU21 countries in 200822. 

In October 2012, Eurofound presented updated estimates, now including 26 Member States (all except 
Malta)23. The definition of a NEET was a young (15-29 year old) person who had remained outside 
employment, education or training for 6 months or more during the previous 12 months. The 6 months 
did not need to be consecutive. 

On  that  basis,  the  economic  costs  of  NEETs  were  deemed  to  stand  at  €119.2  billion  per  year, 
approximately  1%  of  the  aggregated  GDP  in  2008.  These  figures  correspond  to  the  sum  of  "public 
finance income", i.e. all public finance transfers and benefits from welfare to the individual, as well as 

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23 

Eurofound  (2012)  Young  people  and  NEETs  in  Europe:  First  findings.  Denmark,  Greece,  Finland, 
France, Malta and Sweden were excluded due to missing variables. The estimation is restricted to the 
current  cost  of  foregone  earnings  (€94billion)  and  public  finance  costs  in  terms  of  excess  transfer 
(€7billion).  The  analysis  used  the  2008  European  Union  Statistics  on  Income  and  Living  Conditions 
(EU-SILC) for the age group 16–29. The NEET group was defined as those who have been unemployed 
or inactive for a period of six months or more during the reference period of the survey. 
Eurofound (2012) Young people not in employment, education or training: Characteristics, costs and 
policy responses in Europe, Publications Office of the European Union, Luxembourg. 

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"resource  income",  i.e.  the  missing  contribution  of  the  individual  to  society  (in  terms  of  foregone 
earnings, unpaid taxes and unpaid social security contributions). Costs were calculated on the basis of 
a propensity score matching in order to ensure that the different characteristics of NEETs were taken 
into account24 and these costs were substantially higher than public finance costs (€8.8 billion public 
finance costs versus €111.3 billion resource costs) 

Eurofound also included an estimate of the costs of NEETs in 201125. The annual loss now stands at 
€153  billion  per  year ,  a  staggering  €34  billion  higher  cost  than  in  2008,  representing  a  relative 
increase  of  almost  28  percentage  points  in  3 years. As  a  share  of  GDP,  the  costs  are  now  1.21%  of 
GDP. 

At country level, the absolute costs are highest in Italy (€32.6 billion), followed by France, UK and 
ectively).  The  costs  proportionate  to  GDP  are 
Spain  (€22  billion,  €18  billion  and  €15.7  billion  resp
highest in Bulgaria and Greece (3.3% and 3.28% respectively), whilst Cyprus, Hungary, Ireland, Italy, 
Latvia and Poland all report annual losses of more than 2% of GDP. 

It should be noted that these findings do not consider the indirect costs of the deterioration of human 
capital and employability nor any increase in certain crime and health costs. 

Some  caution  should  also  be  used  when  interpreting  these  calculations:  as  some  NEETs  will 
undoubtedly  be  activated  through  education  or  training  measures  (rather  than  through  paid 
employment), the total cost, as calculated by Eurofound, would not be recovered through a successful 
Youth Guarantee. Furthermore, some young NEETs may not participate in the programme at all (for 
example very young mothers): here also this implies that not all of these costs would be recovered. 

In terms of inclusion and poverty, the fragile and instable labour market position of young people may 
intensify current and future social risks. 29.1% young people aged 16-24 in the EU were classified as 
living in poverty or social exclusion in 2010, an increase of 1.3 percentage points (pps) on 2009, and 
0.8 pps on 2008. However, when analysing these figures and undertaking country comparisons it has 
to  be  borne  in  mind  that  current  indicators  of  poverty  and  social  exclusion  do  not  fully  reflect  the 
situation of young people. Indeed, statistically, a young person living with his/her parents for financial 
reasons  will  not  necessarily be  considered  as  poor,  even  if  he/she  is  not  able  to  live  on  his/her  own 
earnings. 

2.2. The longer-term effects of having been NEET 

For  the  individual,  being  unemployed  at  a  young  age  also  carries  risks  of  "scarring".  A  growing 
amount of literature is showing that an experience of unemployment at a young age has a long-lasting 
negative  impact  on  both  future  income  levels  and  future  risk  of  unemployment.  The  corresponding 
positive  is  also  true:  the  experience  of  employment  also  increases  the  probability  of  future 

24 

25 

"All the individuals who are NEET are compared with their statistical twins, that is, non-NEET subjects 
who have similar propensity score values, and therefore similar characteristics. The comparison of their 
income and welfare transfer is performed and the average difference in earnings and welfare transfer is 
computed and considered as the individual cost of a NEET." 
On  the  basis  of  assumptions  on  the  increase  of  NEETs  using  LFS  data  and  discounting  to  present 
values. 

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employment26.  Beyond  this,  young  people's  health  status,  well-being  and  job  satisfaction  are  also 
impacted negatively through spells of unemployment27. 

Following  a  spell  of  unemployment,  the  probability  of  a  future  spell  of  unemployment  has  been 
estimated to be increased by 13-16%28. There is a higher risk of further unemployment through to age 
3329. 

At  the  same  time,  young  people  affected  by  unemployment  are  also  likely  to  experience  a  wage 
penalty: six months of unemployment at age 22 leads to an 8% lower wage at 23 and a 2-3% lower 
wage  at  ages  30  and  3130.  The  wage  penalty  also  applies  to  young  people  who  graduate  from 
university during a "bad economy": the initial wage loss immediately after graduation is 6-7% for each 
1 percentage point increase in the unemployment rate31. Even 15 years later, the wage loss stands at 
2.5%. Some estimates are gloomier, suggesting a scar of 13-21% at age 42, though reduced to 9-11% 
if repeated spells of unemployment are avoided32.  

In terms of duration of unemployment, the longer the spell of unemployment at a young age, the larger 
its negative impact33. Other findings show that it is the mere fact of being employed that matters (and 
conversely the mere fact of being unemployed has a negative impact): "young people who hold jobs 
can more easily find jobs in the future. This could be interpreted as benefits accruing from networking, 
or other skills in finding employment. Alternatively, employers could be more willing to hire people 
who have held previous jobs regardless, of the length of the employment spells"34. This would mean 
that even a short employment spell would be beneficial for future employment probability. 

Macroeconomic conditions (through witnessing increased unemployment) also have an effect on the 
young  generation:  young  people  who  are  aged  between  17  and  25  during  a  recession  have  less 
confidence in public institutions and believe that success depends more on luck than on effort35. 

Beyond  this,  the  impact  of  unemployment  or  inactivity  on  young  people  can  also  lead  to  societal 
consequences: if independent housing is not affordable for this group, they are likely to remain living 
with  their  family  and  delay  founding  their  own  family,  thereby  worsening  demographic  trends  and 
prospects. Furthermore, if the lack of opportunities to enter the labour market leads to young people 
leaving the EU to find jobs elsewhere, a phenomenon often affecting the highly qualified and therefore 
leading to a potential brain drain, this can also be costly to Europe's future competitiveness. 

Setting up the Youth Guarantee will cost money, but putting these costs into perspective with the costs 
of  doing  nothing  means  that  we  can  apply  a  rational  investment  approach  when  considering  young 

26 

27 

28 
29 

30 

31 

32 
33 
34 
35 

Doiron,  D.  and  Gorgens,  T.  (2008),  'State  dependence  in  youth  labour  market  experiences,  and  the 
evaluation of policy interventions', Journal of Econometrics, 145, 81-97. 
Bell, D.N.F. and Blanchflower, D.G. (2011), 'Young People and the Great Recession', IZA Discussion 
Paper No. 5674. 
Doiron and Gorgens (2008), op. cit. 
Gregg, P. and Tominey, E. (2005), 'The wage scar from male youth unemployment', Labour Economics 
12, 487-509. 
Mroz,  T.A.  and  Savage,  T.H.  (2006),  'The  long-term  effects  of  youth  unemployment',  Journal  of 
Human Resources, Spring, 41(2), 259-293. 
Kahn,  L.B.  (2010),  'The  long-term  labor  market  consequences  of  graduating  from  college  in  a  bad 
economy' Labour Economics 17, 303-316. 
Gregg and Tominey (2005), op.cit. 
Bell and Blanchflower (2011), op.cit. 
Doiron and Gorgens (2008), op.cit. 
Giuliano, P. and Spilimbergo, A. (2009), 'Growing up in a recession: beliefs and the macroeconomy', 
NBER Working Paper No. 15321. 

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people's  transitions  from  school  to  further  education  and  to  the  labour  market.  Gregg  and  Tominey 
already put forward the underlying rationale for a Youth Guarantee in 2005: "Interventions to reduce 
the  exposure  of  young  adults  to  substantive  periods  of  unemployment  could,  if  successful,  have 
substantial returns in terms of the individual's lifetime earnings and represent a good investment. In 
that  raising  educational  qualifications  after  substantial  youth 
addition 
unemployment can lead to enhanced wage recovery."36 

is  evidence 

there 

2.3. The costs of a Youth Guarantee 

Whilst  the  previous  two  sub-sections  have  demonstrated  that  a  successful  Youth  Guarantee  would 
yield substantial benefits to society and the individuals, this sub-section addresses the potential costs 
of implementing the guarantee. 

It  is  of  course  very  difficult  to  estimate  the  costs  of  a  Youth  Guarantee.  Nonetheless  this  has  been 
attempted by a number of stakeholders. 

In July 2012, the International Labour Organisation (ILO) estimated the costs of implementing a 
Youth Guarantee scheme in the Eurozone37. Their total cost estimate for the Eurozone stands at 0.45% 
of the Eurozone's GDP, or 21bn€. Their analysis is  based on the Swedish model of "special job-search 
support",  estimated  to  have  an  annual  cost  of  €6,000  per  unemployed  young  person   plus 
administrative  costs  (in  terms  of  resources  needed  for  Public  Employment  Services  to  serve  the 
programme)  at  €600  per  participant.  As  the  Commission's  proposal  for  a  Youth  Guarantee  goes 
beyond the Swedish model, this is only an indication of the potential cost of a Youth Guarantee. 

In  that  context,  one  should  consider  the  Austrian  example.  According  to  preliminary  governmental 
estimates, in 2011 the Austrian Public Employment Service dedicated approximately €382 million to 
young people under the age of 25 in terms of active labour market policies. More than one third of this 
expenditure  went  towards  supra-company  apprenticeships38  (approximately  €11,000  per  year  per 
supra-company apprenticeship place39 for those under 1840). Beyond this, the subvention of new jobs 
for young people costs around €3,600 per job supporte d. Considering in addition active labour market 
policies  such  as  further  training  or  career  counselling,  the  costs  of  the  measures  for  each  young 
unemployed person (between 19 and 24 years) amount to approximately €5,500 .  

A further way of measuring the costs of a Youth Guarantee could be a crude and simplistic calculation 
on the basis  of a pure job guarantee (providing all unemployed young people with a job).  Here, the 
calculation could be based on the existing minimum wage (where relevant), multiplied by the number 
of hours to be worked and the number of participants. Such a calculation was undertaken in the UK, 
on the basis of a guarantee that would pay for 6 months of work for 25 hours per week (the business 

36 
37 

38 
39 
40 

Gregg and Tominey (2005), op.cit. 
International Labour Organization (2012), 'Eurozone Job Crisis: Trends and Policy Responses', Studies 
on Growth with Equity, July 2012. 
See section 1.3. 
One place could accommodate several people over the course of one year if there is a high turnover. 
In December 2011 (2011/12 training year), 10,463 young people participated in a supra-company 
training scheme, see: BMASK, Austrian Federal Ministry of Labour, Social Affairs and Consumer 
Protection (2012), 'Youth and Work in Austria': 
https://broschuerenservice.bmask.gv.at/PubAttachments/ArbeituJugend2012engl.pdf?db=-1  

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would cover 10 hours of training a week). On the basis of the current minimum wage in place in the 
UK, this would cost £4,000 per job (approx. €5,000 )41. 

But when budgeting for a Youth Guarantee, more detailed analysis should be undertaken. The Finnish 
Government  will  introduce  its  renewed  Youth  Guarantee  in  2013  and  has  estimated  the  costs 
necessary as well as broken these down into various components. 

The  average  annual  total  per-person  cost  of  the  entire  guarantee,  including  a  "Skill  programme  for 
young  adults",  would  amount  to  €2,240 42.  This  cost  is  substantially  lower  than  that  calculated  for 
Sweden  and  Austria  and  this  could  be  due  to  different  characteristics  of  the  target  groups  and  also 
potentially  to  different  existing  infrastructures  that  could  be  used  to  implement  the  Guarantee  (e.g. 
well-established and trained employment service staff). 

As illustrated by the Finnish example, when calculating corresponding costs for young people across 
other  countries,  it  should  be  borne  in  mind  that  not  every  young  person  making  use  of  a  Youth 
Guarantee  would  be  placed  in  such  a  government-subsidised  apprenticeship  and  not  every  young 
unemployed person would need to make use of a Guarantee either (e.g. if they find a suitable offer by 
themselves within the first 4 months of unemployment or leaving school). 

Indeed, there are large differences in the required expenditure on each individual in order to provide 
all  young  people  with  the  Youth  Guarantee.  For  example,  the  Finnish  budgetary  costings  include 
costly  vocational  education  (at  €33, 800  per  participant),  intended  only  to  suit  the  needs  of  a  small 
minority (1,200) of all the young people to be covered by the entire guarantee (50,100). 

Of course the real cost of a Youth Guarantee will also depend on the national circumstances and the 
way in which it is set up and implemented in each Member State. As such, any estimates of the costs 
of a Youth Guarantee are subject to a number of caveats: 

The costs for a Youth Guarantee will be higher in those countries experiencing higher rates of NEETs 
or of youth unemployment. In these countries, making the most use of additional means of funding 
(such as through the European Cohesion Policy funds) will be important and gradual implementation 
could also be considered. 

The average duration (and cyclicality) of young people's unemployment will also have an impact on 
the estimates for establishing a Youth Guarantee within four months of becoming unemployed or 
leaving school. 

Different  starting  points  in  terms  of  existing  supporting  measures  (e.g.  well-trained  Public 
Employment  Service  staff  to  address  young  people’s  needs  and  circumstances)  will  also  have  an 
impact on the potential up-front costs needed. 

41 

42 

In  September  2012,  the  ILO  also  published  estimates  of  the  costs  of  youth  employment  guarantee 
schemes by making reference to on-going minimum wages: Global Employment Outlook: Bleak Labour 
Market Prospects for Youth. 
Finland has allocated €60million a  year to the main component of the youth guarantee, to reach 46,100 
participants  and  including  a  variety  of  interventions,  such  as  vocational  education,  training 
compensation  for  employers,  wage  subsidies,  support  for  young  immigrants,  enhanced  public 
employment  services, job-coaching  and  start-up grants. However,  the  Finnish Government  recognises 
that these costs are not sufficient to solve all the issues and therefore also suggests including the "Skill 
programme  for  young  adults"  into  any  total  costings  for  the  Youth  Guarantee.  This  particular 
programme will cost a maximum of €52 million per year for 4,000 participants (and additionally, 5000 
a  year  places  will  be  freed  up  through  efficiency  savings).  This  yields  a  total  maximum  annual 
budgetary expenditure of €112 million for 50,100 participants. 

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It  should  be  noted  that  the  longer-term  costs  of  a  Youth  Guarantee  will  also  be  influenced  by 
demographic developments: in the future, as a result of lower fertility rates, youth unemployment will 
structurally be reduced as a problem (as long as labour supply qualitatively matches labour demand). 

2.4. Comparing costs and benefits   

Bearing  in  mind  all  of  these  caveats,  it  is  nonetheless  clear  that  investment  in  young  people  is 
paramount to avoid immediate and longer-term costs of their inactivity that were described above.  

A cost-benefit study of Swedish measures to help young people (between 18 and 30) onto the labour 
market43 concluded that the average socioeconomic potential (i.e. the potential profitability) over one 
 per participant. This is based on the assumption 
year is over SEK 600,000, or approximately €70,000,
that  participants  forego  their  dependence  on  benefits,  reduce  their  reliance  on  care  and  nursing 
services and become productive and pay taxes instead. 

In reality the full potential is not reached. However, with an average cost of SEK 66,400 (€7,809.97) 
per participant, investments are usually recouped within one year and average profitability within the 
first year stands at SEK 35,800 (approximately €4,2 00) per participant. The study further says: "The 
calculations  for  subsequent  years  do  not  include  projects  costs  and  forecast  average  profitability  of 
SEK  441,000  [€51,870]  per  participant  over  five  y ears.  In  the  longer  term  profitability  naturally 
accumulates over time and, considering that the gains refer to younger people, the total potential gains 
up to retirement age are enormous". 

The  savings  made  through  investment  in  a  Youth  Guarantee  go  beyond  the  pure  social  protection 
expenditure  savings  achieved.  As  described  above,  avoiding  unemployment  and  the  deterioration  of 
skills  would  lead  to  longer-term  benefits  for  young  people  and  for  the  economy  through  lower 
unemployment over the course of the lifecycle, higher incomes (and therefore also higher tax incomes 
and social security contributions) and through fewer social and health problems. 

3. HOW TO MAKE THE YOUTH GUARANTEE A SUCCESS? 

3.1. Partnership based approaches  

Partnerships matter 

Successfully  delivering  the  Youth  Guarantee  requires  the  mobilisation  of  numerous  actors  and 
resources towards a common goal. Evidence44 from Member States, where initiatives similar to Youth 
Guarantee schemes are in place, shows that adopting partnership based approaches is often the most 
suitable way to achieve efficient delivery.  

Establishing partnerships to implement the Youth Guarantee requires in a first instance the designation 
of an organisation to be in charge of establishing and managing the scheme and coordinating partner 
actions. This role could be assigned to the Public Employment Service (PES), which would then be 

43 
44 

Swedish National Board for Youth Affairs (2011) It Pays Off. 
A.  Scharle  and  T.  Weber  for  European  Commission  (2011)  Youth  Guarantees:  PES  approaches  and 
measures for low skilled young people Thematic Synthesis paper (PES to PES Dialogue). 

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in  charge  of  developing  the  necessary  links  with  the  relevant  partners,  namely:  schools,  youth 
organisations, training institutions, private employment services, social partners and employers.  

Solid partnerships are characterised by a number of pre-requisites such as the need to establish a clear 
definition  and  distribution  of  roles  and  tasks;  the  fact  that  all  actors  involved  should  possess 
complementary  skill  sets;  a  high  degree  of  trust  in  one  another;  a  willingness  to  learn  and  regular 
reviews to assess progress against objectives. 

Where service delivery of employment services is commercially subcontracted to private and/or third 
sector providers, it is important that the terms, conditions and expected outcomes are clearly specified 
in any tendering process. Monitoring and evaluation of such initiatives is equally important in order to 
ensure  return  on  investment  and  learn  from  what  works  with  a  view  to  designing  more  tailored  and 
evidence based future policies.  

With its cross-cutting approach to youth issues, the EU Youth Strategy45 is a framework that addresses 
youth  transitions  from  education  into  work  in  a  wider  context  and  advocates  inter-ministerial 
cooperation.  The  EU  Youth  Strategy  comprises  tri-annual  EU  youth  reports46  with  data  and  policy 
practices which could be useful when designing the Youth Guarantee schemes. The Commission and 
Member  States  also  developed  a  multi-disciplinary  dashboard  of  youth  indicators,  illustrating  key 
aspects around youth in transition47. 

One example of a partnership-based approach to develop a coordinated policy strategy is displayed in 
Finland. To establish its Youth Guarantee, Finland developed a comprehensive model where various 
Ministries (employment, education, social and health), municipalities, education institutions and other 
service  providers,  enterprises  and  other  employers,  social  partners,  youth  organisations,  student 
organisations and the third sector are involved in this common endeavour.  

An example of a coordinated approach to develop strategies for implementation and service delivery 
corresponding to the needs of the local labour market can be found in Germany. Germany has set up a 
“Young People and Career Work Alliance” where the Employment Agency, Job Center, municipality, 
and  youth  welfare  bodies  sign  a  cooperation  agreement  through  which  they  increase  transparency, 
undertake joint analysis, optimise the availability of the relevant social data on young people and their 
environment  in  accordance  with  data  protection  legislation,  avoid  duplication  of  questions  and 
profiling, create common processes and synchronise offers. 

Bridging the gap between schools and employment services  

Schools  and  training  bodies  play  a  key  role  in  preventing  drop-out  by  providing  targeted  support  to 
young people at risk of dropping out, but also offering guidance or access to relevant services to all 
students.  They  can  also  signal  early  exit  from  the  education  system  to  municipalities,  PES  or  other 
relevant bodies. Reducing school abandonment can be greatly helped by raising awareness about the 
world of work and familiarising students with services such as those provided by PES. To achieve this, 
programmes  for  vocational  orientation  should  be  complemented  with  quality  individual  career 

45 
46 
47

http://ec.europa.eu/youth/policy/eu-youth-strategy_en.htm 
COM(2012) 495, SWD(2012) 256, SWD(2012) 257 of 10 September 2012. 

http://epp.eurostat.ec.europa.eu/portal/page/portal/employment_social_policy_equality/youth_

policy/dashboard_youth  

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guidance48. Career guidance counsellors from PES can visit schools, providing general advice on their 
services  available  (labour  market  information,  job/apprenticeship  vacancy  matching,  assistance  with 
job search, etc.).  

However, school visits can have a relatively high cost for PES. Other, less resource-intensive options 
include  offering  personal  or  on-line  training  to  teachers  and  trainers  in  schools  to  then  deliver  the 
information themselves. In Italy, for example, teachers are trained to provide vocational guidance as 
well as information about relevant PES services. In Hungary, the PES also provide training for schools 
to  make  relevant  form  teachers  aware  of  PES  services,  to  allow  them  to  pass  this  knowledge  on  to 
pupils before they leave school. In the context of more scarce resources, such activities can achieve an 
important multiplier effect49.  

Evidence50 shows that partnerships between different employment services are slowly becoming more 
wide-spread  across  the  EU  as  PES  seek  to  deliver  more  targeted  and  individualised  services,  whilst 
also pursuing more cost efficient service delivery channels. Equally, a growing number of third sector 
employment services, municipalities and youth organisations are involved in local level cooperation to 
remedy youth unemployment. Such an array of actors presents  many opportunities to ensure greater 
outreach  to  young  people,  but  also  challenges  in  terms  of  ensuring  properly  coordinated  actions  to 
avoid duplication of efforts.  

Civil society organisations (CSOs) can also play an important role in bridging the gap with hard-to-
reach  young  people  and  society.  According  to  the  YOUNEX  research  project  51  CSOs  are  essential 
partners  for  policy  change  in  the  field  of  unemployment  and  precariousness,  as  they  have  extensive 
knowledge about unemployment and precariousness. 

Engaging with social partners 

Equally important to the development of a Youth Guarantee scheme is the establishment of stable and 
trustful relationships with social partners. 

Trade unions can play an important role in ensuring that a Youth Guarantee scheme can be offered in 
Member States. Employers, particularly the SMEs that have been the main job creators over the past 
decade, are key to open job opportunities52 for young people who would not necessarily be the first 
choice in a normal process of recruitment. Developing the cooperation between employment services 
and employers should be seen as a long term investment and as a relationship that grows and matures 
over time.  

The  reinforcement  of  employer  oriented  services  and  staff  trained  to  work  with  young  people,  in 
particular  the  most  disadvantaged  ones,  as  well  as  clear  strategies  of  cooperation  through  company 
specific  agreements,  frameworks  for  cooperation,  sector  level  pacts,  as  well  as  networking, 
recruitment  and  information  events  and  sessions  are  among  the  tools  that  PES  most  commonly  use 

48 

49 
50 

See Council Resolution on Better Integrating lifelong guidance into lifelong learning strategies of 21 
November  2008  and  its  implementation  by  the  European  Lifelong  Guidance  Policy  Network 
(www.elgpn.eu). 
A. Scharle and T. Weber for European Commission (2011), op.cit. 
PES  crisis  adjustment  capacity  2012  Questionnaire  issued  by  the  European  Commission  to  the 
European Network of Public Employment Services. 
YOUNEX: Youth, Unemployment, and Exclusion in Europe (FP7 – SSH, 2009-2011): 

51 
http://www.younex.unige.ch/Products/Reports/WP2_INTEGRATEDREPORT_D7.pdf  
52 

PES  and  effective  services  for  employers,  Peer  Review  January  2012  (PES  to  PES  Dialogue), 
http://ec.europa.eu/social/main.jsp?catId=1004&langId=en 

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when engaging with employers. These  tools and services are  well suited also  to the development of 
Youth Guarantee schemes. Finally, servicing employers' labour needs also requires the strengthening 
of skills policies and labour market intelligence gathering tools with a view to better profile and match 
candidates  to  jobs  and/or  traineeships  and  apprenticeship  places  available.  Successful  matching  is 
ultimately  the  best  guarantee  for  establishing  win-win  situations,  positive  employer  relations  and 
further  fruitful  partnerships,  ultimately  resulting  in  stable  and  durable  employment  offers  for  young 
people. 

Involving youth organisations 

Involving  youth  organisations  and  associations  in  the  design  and  conceptual  phase  of  public 
programmes can ensure that interventions are tailored to the exact needs of young people. 

When reaching out to young people facing more complex challenges (such as no or low qualifications, 
disabilities, addictions, etc.), it is vital to establish well-functioning partnerships between employment 
services  and  other  youth  support  services.  Youth  work  organisations  can  reach  out  to  young  people 
through leisure activities and, due to their often informal  approaches, instil the necessary amount of 
trust  in  young  people  that  will  enable  them  to  get  in  touch  with  authorities  and  to  register  with 
employment  services.  In  March  2011,  the  European  Network  of  Public  Employment  Services 
carried out a Peer Review 53 on how to design and implement Youth Guarantee schemes that revealed 
the importance of reaching out to young people in an environment in which they feel at ease and in 
their own language. Furthermore, the private and public sector may not be able to fully cater for all 
young people, especially those harder to place, in terms of providing them with jobs or traineeships. 
Youth  organisations  and  NGOs  with  a  youth  focus  could  therefore  be  involved  in  providing  places, 
through paid or unpaid traineeship or voluntary work experiences. 

In Finland the voice of young people was conveyed at an early stage by a working group led by the 
Finnish  Youth  Co-operation  Association.  The  working  group  also  organised  an  online  public 
consultation  “Giving  young  people  a  voice”  with  young  active  forces  and  entrepreneurs,  which 
prompted responses from 6,366 young people in autumn 2011. 

The  UK  has  introduced  MYPLACE,  a  £279  million54  programme  aimed  to  create  youth  facilities 
across England, including in some of the most disadvantaged areas across the country. The programme 
provides capital grants of between £1 and 5 million55. 

3.2. Early intervention and activation 

Reaching out to young people 

Evidence  from  Member  States  shows  that  many  young  people,  who  experience  difficulties  to  get  a 
foothold  on  the  labour  market,  only  access  PES  or  other  responsible  public  services  once  they  are 
unemployed, or  indeed  not  at  all,  particularly  if they  are  not  entitled  to  benefits.  While  partnerships 
and  cooperation  between  public  employment  services  and  schools  can  help  to  pave  the  way, 

53 

54 
55 

Youth Guarantees: PES approaches and measures for low skilled young people, Vienna, Austria – 22-
23 March 2011: 
http://ec.europa.eu/social/main.jsp?langId=en&catId=105&newsId=1009&furtherNews=yes 
Equivalent to approx. €350 million. 
Equivalent to approx. between €1.25 and 6.3 million. 

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additional  targeted  outreach  activities  are  needed  to  ensure  that  young  people  not  enrolled  in 
education or without a job register with PES or other responsible services do not get lost / end up in 
NEET  status/inactivity  when  leaving  school.  The  range  of  activities  includes  distributing  printed 
material at places frequented by the target group  (e.g. youth centres or youth events) and the use of 
modern  media  which  "speak"  the  language  of  young  people  (e.g.  attractive  web-pages,  media-
campaigns  via  YouTube,  special  websites  for  young  people  offering  tailored  information  and 
vocational orientation). Further developing the use of social media such as Facebook, like in Germany, 
the Netherlands or Sweden, is also a promising way forward given the communication habits of young 
people. 

One  step  to  ensure  that  young  people  receive  an  offer  soon  after  leaving  school  is  to  improve  data 
gathering systems and school records, as well as the transfer of at risk young people and/or recent 
drop-out to PES or other responsible services. A national commitment, such as in Norway where it is 
implemented at county-level, to stay in contact with school leavers and refer them where necessary to 
the PES, greatly facilitates rapid contact with early school leavers. However, many countries have to 
cope with data protection regulations regarding the transfer of individual data between institutions. 

In Finland, the Youth Act lays down provisions on the disclosure of information for the purposes of 
youth  outreach  work.  Primarily,  the  personal  information  of  a  young  person  can  be  disclosed  with 
his/her specific consent. If the young person cannot be reached to obtain the consent, his/her contact 
and personal information is to be disclosed by an education provider if a young person has completed 
basic education, but has not found placement in post basic-education; or if a young person under 25 
drops out of vocational education or general upper secondary school. 

Tracking  or  "catch  up"  services  such  as  in  Denmark,  Finland,  Luxembourg,  the  Netherlands  and 
Norway monitor participation in education and training, contact early school leavers  after they have 
dropped  out  and  seek  to  find  a  pathway  to  education,  training  or  employment.  For  example  the 
Regional Registration and Coordination institutes (RRC) in the Netherlands monitor and keep records 
of  young  people  who  do  not  have  basic  qualifications  and  ensure  that  those  who  are  inactive  are 
contacted  and  supported.  In  Finland,  municipalities  or  groups  of  municipalities  have  been  obliged 
since 2011 to recruit youth outreach workers, who contact and follow up young early school leavers at 
risk of becoming NEET.56 

Hard to reach young people usually require special outreach activities to make sure that they access 
the relevant services. This is especially relevant for those who have already dropped out from school 
and for those facing multiple barriers, often coming from diverse/non mainstream backgrounds that 
put them at risk of discrimination both to access training and enter the labour market. Such measures 
include the cooperation with youth centres and other relevant organisations and NGOs working 
with  youth  or  disadvantaged  groups  (e.g.  migrants,  drug  addicts,  orphans,  disabled  people). 
Campaigns  with  actors  of  ethnic  and  religious  communities  and  welfare  organisations  can  be 
particularly  useful  as  can  an  age  and  culturally  diverse  profile  of  staff  within  the  PES  services 
themselves. In Austria, for example, visits to mosques and to cultural clubs, cooperation agreements 
with Turkish and Serbian newspapers and DVDs in foreign languages have helped to get into contact 
with those hardest to reach.  

As the experience from a number of countries shows establishing special "focal points" for young 
people  can  not  only  contribute  to  lower  the  threshold,  but  also  to  make  interventions  and  activation 

56 

Eurofound  (2012)  Recent  policy  developments  related  to  those  not  in  employment,  education  and 
training (NEETs). 

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more  effective  by  facilitating  a  coordinated  service  delivery.  Structures  vary  from  specialised  youth 
services  as  part  of  the  PES,  independent  local  or  regional  institutions  up  to  contracted  private 
providers. In Austria, Denmark and Germany, Job centres for young people are part of the PES. Other 
institutions help disadvantaged people, such as the "Missions locales" in France which aim to prevent 
young  people  from  becoming  NEET  and  offer  opportunities  for  those  who  have  dropped  out  from 
school.  By  contrast,  the  Local  Employment  Services  in  Ireland  are  an  example  for  outsourcing  to 
private providers: “Youth reach centres” provide intensive mediation and guidance services to young 
school-leavers.  Such  youth  centres  are  particularly  effective  as  a  "focal  point"  when  other  relevant 
services such as career guidance, municipal youth or family services, debt advice services, services for 
disabled, addicted or ex-convicts are either integrated in the form of a one-stop shop or on the basis of 
cooperation agreements for referral between the institutions. 

In order to cope with the problem that many young people in the NEET group are not known to the 
PES, a few countries have created ad hoc agencies. These "youth agencies" are designed to support 
young people specifically in their study and career orientation like the “Youth Employment Centers” 
in Lithuania or the “Navigator Centers” in Sweden. The latter are a national network of one-stop shop 
services for young people seeking (re)integration into education, training and employment, rather than 
being directed to contact several different public agencies. 

Tailoring the support 

Once young people have registered with the PES or with another responsible service (e.g. municipal 
employment  service,  private  provider),  the  key  to  early  intervention  and  activation  are  binding 
regulations  to  entitle young  people  to use  PES  services  and  obliging  PES  to offer  young  registered 
unemployed  an  education,  training  or  a  job  based upon  an  Individual  Action  Plan  (IAP).  Individual 
support  schemes  include  support  for  job  search,  referral  to  education  or  training,  and  active  labour 
market measures for those in need.  

In  times  of  budget  constraints  it  is  more  important  than  ever  to  well  target  resource-intensive 
interventions  such  as  education,  training  or  more  comprehensive  support  to  those  in  need.  Tailor 
made  IAPs  are  the  main  precondition  to  make  activation  work57.  Both  preparation  and  follow-up 
require professionalism and adequately trained staff. Digitalisation means making use of all channels, 
applying  the  right  mix  of  online,  self-help  tools  and  face-to  face  services.  However,  those  young 
people faced with more complex problems need a "whole-person" approach to detect and address 
the  full  range  of  barriers  and  issues  the  young  person  is  facing  and  to  identify  their  skills  and 
competences.  Holistic  guidance  and  case  management,  including  a  deepened  assessment  of  the 
personal situation taking into account the whole life situation, comprising also a detailed follow-up if 
needed. As such services cannot be provided by PES alone, often partners are contracted. According to 
results from evaluation such an approach has proven successful in Austria, Germany and Slovenia.58 

Although  emphasis  in  IAPs  is  on  more  enabling  approaches,  it  is  important  that  IAPs  reflect  the 
principle  of  mutual  obligation  (carrots  and  sticks-approach).  This  is  best  achieved  by  a  document 
signed by both sides. A reasonable balance has to be struck between support and monitoring, while at 

57 

58 

European  Commission  (2012)  Activation  and  Integration:  Working  with  Individual  Action  Plans. 
Toolkit  for  Public  Employment  Services;  OECD  (2007)  Activating  the  Unemployed:  What  Countries 
Do, in: OECD (ed.), OECD Employment Outlook (pp. 207-242) Paris; see also European Commission 
(2012)  Activation  and  Integration:  Working  with  Individual  Action  Plans.  Toolkit  for  Public 
Employment Services.  
Eurofound  (2012)  Recent  policy  developments  related  to  those  not  in  employment,  education  and 
training (NEETs); European Commission (2011) Peer Review PES Young. 

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the  same  time  ensuring  the  compliance  to  rules  for  activation  and  imposing  sanctions  with 
implications  for  the  entitlement  for  benefits  and  services  if  needed.  According  to  qualitative  expert 
judgment sanctions have a higher impact if they are clear, graduated, immediate and fair. There is also 
a  need  to  couple  eligibility  with  social  assistance  for  youth  at  high  risk  of  marginalisation  with  a 
rigorous mutual obligation approach.59 In case of drop-out from activation schemes, mechanisms for 
further supporting young people have to be enhanced, in order to avoid social exclusion.   

3.3. Supportive measures enabling labour market integration 

Early school leaving 

54.2% of early leavers from education and training in the EU are not employed. Reducing early school 
leaving  (ESL)  is  one  important  measure  against  youth  unemployment;  it  is  also  one  of  the  headline 
targets  of  the  Europe  2020  strategy.  Member  States  agreed  to  reduce  the  average  European  rate  of 
early school leaving to less than 10% by 2020. The Council Recommendation “on policies to reduce 
early  school  leaving”60  highlights  the  need  to  implement  comprehensive  and  cross-sectoral  policies 
against  early  school  leaving,  to  address  both  general  education  and  vocational education,  to  provide 
guidance to young people and to increase their employability. 

Such  comprehensive  policies  against  ESL  need  to  include  compensation  measures  to  address  the 
consequences of early school leaving and enable renewed access to education and training in order to 
support young people to acquire relevant qualifications. In this context, second chance programmes, as 
well  as  additional  language  support  for  those  who  do  not  fully  master  the  language  spoken  in  the 
country of residence are of high relevance. More gender sensitive programmes might also be relevant 
in a context where young men are more at risk of early-school leaving (15.3 % of 18-24 years old men 
and 11.6 % of women are early leavers from education and training). 

Furthermore,  work-based  learning,  in  particular  dual  vocational  training  equip  young  people  with 
relevant  skills  needed  on  the  labour  market.  In  addition,  gaining  an  understanding  of  how  theory  is 
applied in practice can motivate them more for further theoretical learning. Finally, such approaches 
create entry points and contacts which can facilitate the transition to a first job. They should provide 
successful  students  with  recognised  accreditation  and  allowing  them  to  continue  education  and 
training within mainstream education and training systems. 

Improving the long-term perspectives on the labour market of early school leavers will contribute to 
the success of the Youth Guarantee. 

Skills mismatches 

The  current  economic  situation,  characterised  by  high  levels  of  unemployment  and  in  parallel 
persistent job vacancies in specific occupations, highlights the major skills challenge Europe is facing.  

Before the crisis, the European Union as a whole and most of the Member States showed increasingly 
efficient  job  matching  processes.  However,  over  the  last  two  years  unemployment  rates  and  job 
vacancy  rates  both  increased.  These  figures  are  well  described  by  the  so-called  Beveridge  curve, 
which  relates  unemployment  rates  to  job  vacancies.  When  the  job  matching  process  is  functioning 

59 
60 

OECD (2010) Off to a good start? Jobs for Youth, Paris. 
OJ C191/01 of 1 July 2011. 

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well  the  Beveridge  curve  shows  a  negative  relationship  between  unemployment  rate  and  job 
vacancies. This has been the case for the EU-27 till the first quarter of 2010. Since then the increase in 
vacancies did not have an effect on unemployment61.  

Figure 1: Beveridge curve, EU-27, 2008Q1-2012Q3 

Source: Eurostat  

Short description: The data used are: (i) the unemployment rate (UR, %), variable "une_rt_q" and (ii) the 
labour shortage indicator (LSI, %), variable "ei_bsin_q_r2", derived from EU business survey results (% of 
manufacturing firms pointing to labour shortage as a factor limiting production). 

The problems in the job matching process – as reflected by the Beveridge curve's movement – may be 
related to mismatches in skills62 and educational qualifications63 required for a certain job. In addition, 
high disparities between regions and between industries may indicate a potential problem of regional 
and  sectoral  mismatch  since  the  new  jobs  might  be  found  in  regions  other  than  those  where  people 
with the proper skills and educational qualifications required by the market are available. 

The  European  Labour  Force  Survey  shows  that  the  average  incidence  of  skills  and  qualification 
mismatch  during  the  period  2001-2011  varied  significantly  across  European  Member  States64.  As 

61 

62 

63 

64 

Only recently the Beveridge curve seems to show again a negative trend, but this is not enough to say 
that the job matching process is improving across Member States. 
The skills mismatch regards the gap between the skills (i.e. generic, technical and soft skills) held by 
workers  and  those  required  by  their  jobs.  Skills  mismatch  involves  both  the  "skill  deficit"  –  where  a 
worker’s skills are not up to the requirements of the job – and the "overskilling" – which arises when 
skills exceed those required by the job. 
The  qualification  mismatch  regards  the  gap  between  educational  qualifications  (i.e.  formal  academic 
skills)  held  by  workers  and  those  required  by  their  jobs.  It  encompasses  both  the  "over-education"  – 
when a worker has more educational qualifications than those required – and the "under-education" – 
when a worker has fewer educational qualifications than those required. 
Estimations  of  Cedefop  (see  Employment  and  Social  Developments  in  Europe  2012  Review, 
forthcoming). 

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regards the qualification mismatch, on average, nearly 15% of European employees are over-educated, 
while 21% are under-educated65. 

The mismatch between labour demand and the skills and location of potential employees is extremely 
serious  since  it  may  imply  that  unemployment  will  become  increasingly  of  a  structural  nature.  The 
comparison between pre-crisis and actual data clearly shows a consistent increase of the structural and 
long-lasting unemployment. In particular the structural unemployment for the EU-27 raised by more 
than  one  percentage  point,  shifting  from  8.2%  in  2007  to  9.3%  in  2012  and  the  European 
Commission's projections66 for 2013 show an even higher rate of structural unemployment (9.6%). 

The number of ICT graduates is insufficient in order to fill all the vacancies in the ICT sector, where, 
even in times of recent economic turmoil, the demand for ICT practitioners has been growing at a rate 
of 3% per year. In addition, there will be up to 700,000 unfilled ICT practitioners' vacancies in the EU 
by 201567. 

Non-formal and informal learning experiences 

In the current situation of rising unemployment and lack of economic growth, validation of non-formal 
and informal learning can help the young unemployed that are looking for their first job or those with 
very little professional experience to create a market value for their skills and competences acquired in 
different contexts. Furthermore, from an individual perspective, validation of non-formal and informal 
learning  enhances  the  prospects  of  employability,  higher  wages  and  faster  career  moves,  and  offers 
second chances for those who have dropped out of school prematurely, as well as improved access to 
formal education and training, greater motivation and increased self-confidence. 

Non-formal learning occurs in a formal learning environment but does not generally lead to a 
qualification  or  diploma.  It  typically  involves  courses,  workshops,  conferences  or  seminars. 
Informal learning takes place in a variety of places, such as at home, work, in an association 
and  through  daily  interaction  between  people;  it  includes  language  learning,  cultural  norms 
and manners. 

Four Member States currently have comprehensive systems in place for the validation of non-
formal and informal learning: 

In  France  all  qualifications,  except  regulated  professions  such  as  medical  doctors,  dentists, 
veterinarians  and  architects,  can  be  obtained  through  validation  of  non-formal  and  informal 
learning.  Individuals  submit  details  of  their  learning  experiences  and  the  skills/competences 
gained.  An  expert  jury  appointed  by  the  relevant  ministry  may  then  grant  a  full  or  partial 
qualification. A similar system exists in Luxembourg.  

In  the  Netherlands  people  can  submit  a  description  of  their  experiences  to  a  recognised 
provider of "experience certificates" for the purpose of job applications or formal recognition 

65 

66 

Cedefop's own calculations based on EULF data (see Employment and Social Developments in Europe 
2012 Review, forthcoming). 
Annual macro-economic database of the European Commission's Directorate General for Economic and 
Financial Affairs, available at: 

http://ec.europa.eu/economy_finance/ameco/user/serie/ResultSerie.cfm 
67 

Report for the European Commission Anticipating the Evolution of the Supply and Demand of e-Skills 
in Europe (2010-2015), Empirica and IDC Europe, December 2009. Updated forecast presented at the 
European e-Skills Conference on 13 December 2011 in Brussels. 

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by an examination board. In Finland education laws allow for the validation of experiences in 
many education fields and levels. 

On 26 November 2012, the Council reached a political agreement on the Council recommendation on 
the validation of non-formal and informal learning according to which Member States should have in 
place,  no  later  than  2012  –  in  accordance  with  national  circumstances  and  specificities,  and  as  they 
deem appropriate - arrangements for the validation of non-formal and informal learning. 

Youth entrepreneurship: creating jobs and competences 

Entrepreneurship  is  not  always  seen  as  a  conventional  route  to  promote  employment.  However, 
entrepreneurship  clearly  represents  an  opportunity 
lower  youth 
unemployment68.  But  more  than  that,  having  ideas  and  turning  them  into  actions  is  one  of  the  key 
competencies in lifelong learning in the 2006 Commission’s recommendation on key competences69, 
representing a transversal skill and fostering (self-)employability.  

to  foster  employment  and 

Young  people  need  to  be  familiarised  with  the  meaning  of  entrepreneurship  and  becoming  an 
entrepreneur should be an attractive option for a young person. Successful entrepreneurs, role models, 
are important in fostering entrepreneurial spirit in young people. 

In early 2012, OECD published a Policy brief on youth entrepreneurship70 highlighting that although 
young  people  may  not  seem  like  a  likely  group  for  entrepreneurship  (due  to  their  inexperience  and 
lack  of  finances),  they  do  have  an  interest  in  entrepreneurship  and  many  of  them  believe  that  self-
employment  is  feasible.  The  results  of  the  2009  Eurobarometer71  suggest  that  the  two  youngest  age 
cohorts (ages 15 to 24 and 25 to 39) have the highest level of interest in self-employment with 40% 
and  42%  of  people,  respectively,  responding  that  self-employment  in  the  next  five  years  was  either 
“very  feasible”  or  “quite  feasible”,  much  higher  than  the  figures  for  the  40  to  54  and  more-than-55 
cohorts (29% and 13%, respectively). 

Young  people  can  face  specific  barriers,  preventing  some  from  turning  ideas  into  projects.  These 
barriers include lack of entrepreneurial skills, lack of prior work experience and easy access to finance. 
The European Commission already supports youth entrepreneurship through promoting education for 
entrepreneurship  at  school  and  university,  through the  European  exchange  programme  "Erasmus  for 
Entrepreneurs"72, allowing new entrepreneurs to be hosted by more experienced ones. 

68 

69 

70 

71 
72 

Self-employment is important in terms of job creation. 85% of newly established enterprises are micro-
enterprises with less than 10 employees. In the European Union, newly established enterprises create on 
average 2 jobs. Yet, a Eurobarometer survey from 2009 states that in the EU, 28 % of people indicated 
that self-employment would either be ‘very feasible’ or ‘quite feasible’ within the next five years. This 
figure is nonetheless lower than in the United States of America (US) and China, where 36 % and 49 % 
of people saw self-employment as ‘very’ or ‘quite feasible’ in the next five years. 
The Commission’s recommendations on key competences for lifelong learning (2006/962/EC) 
underlined that a “sense of initiative and entrepreneurship is the ability to turn ideas into action” was 
important (Official Journal L 394 of 30 December 2006): 
http://europa.eu/legislation_summaries/education_training_youth/lifelong_learning/c11090_en.htm 
Published in the framework of a study work for a “Panorama on Entrepreneurial Activities in Europe” 
carried out on behalf of the Commission: 
http://www.oecd.org/regional/leedprogrammelocaleconomicandemploymentdevelopment/Youth%20Po
licy%20Brief.pdf  
European Commission (2009), Eurobarometer, "Entrepreneurship in the European Union and Beyond" 
http://www.erasmus-entrepreneurs.eu 

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Through  the  European  Progress  Microfinance  Facility73,  the  Commission  is  aiming  to  increase  the 
availability of microcredit for those willing to become self-employed or to start a micro-enterprise and 
experiencing  (as  is  the  case  for  young  people)  difficulty  in  getting  conventional  credits,  including 
those entering the labour market. The future European Programme for Social Change and Innovation74 
(2014-2020) will continue to promote access to finance for micro- and social entrepreneurs. 

Wage subsidies and non-wage labour costs75 

Too  high  non-wage  labour  costs  –  such  as  employer  social  security  contribution  –  can  have 
detrimental  effects  on  labour  demand,  especially  for  relatively  lower  productivity  groups  such  as 
young  people  who  are  starting  their  career,  as  they  face  very  elastic  (sensitive)  labour  demand. 
Therefore, reducing the tax wedge (especially non-wage labour costs) on labour in a budgetary neutral 
way  by  shifting  towards  environmental,  consumption  or  property  taxes  can  have  positive  effects  on 
labour  demand  and  therefore  also  be  a  tool  to  ensure  the  success  of  a  Youth  Guarantee  scheme. 
Targeting reduction at those groups who have sensitive labour demand is expected to have positive 
impacts on their employment. Nevertheless, design and implementation needs to be carefully prepared 
so  as  not  to  have  an  adverse  effect  on  the  employment  prospects  of  groups  that  are  (narrowly) 
ineligible.  

Wage  subsidies  (hiring  credits)  offer  payments  to  employers  for  hiring  from  particular  groups  of 
workers by subsidising their wages. They can also be used to secure the success of a Youth Guarantee 
scheme  as  they  have  the  potential  to  boost  employment.  A  hiring  credit  reduces  the  labour  costs 
incurred  by  employers,  raising  their  willingness  to  hire  other  workers  and  ultimately  creating  new 
jobs. 

Employers  should  target  hiring  subsidies  to  new  hiring.  This  way  they  can  motivate  employers  to 
engage  in  net  new  recruitment,  thus  creating  jobs  that  would  otherwise  not  be  created.  Targeting 
vulnerable groups such as young people can have positive effects particularly where hiring subsidies 
are combined with additional efforts to help the target population. Subsidies are more effective when 
there is a good match, thorough preparation of the placement by the employment service and also the 
possibility for young people and employers for follow-up advice where required. 

State aid rules should be taken into account as regards the above mentioned measures. In that respect it 
should  be  noted  that  general  measures  to  facilitate  the  recruitment  of  young  people,  open  to  all 
companies  in  all  sectors  of  the  economy,  would  not  qualify  as  State  aid.  By  contrast,  selective 
measures, e.g. limited to certain types of companies or certain sectors, or involving discretion of the 
authorities, may constitute State aid if the other conditions of Article 107(1) TFEU are met. 

Labour mobility 

Recent  estimates  (1st  quarter  2012)  based  on  the  EU-Labour  force  survey76  point  to  a  share  in  the 
(working-age,  15-64)  EU  citizens  residing  in  another  Member  state  around  3.0%.  This  represents 
around 9.5 million persons. Compared to 2005 it is a strong increase (+50% as it was exactly 2.0% at 
that time or 6.2 million persons). 

73 
74 
75 

76 

http://ec.europa.eu/epmf  
COM (2011) 609 of 6 October 2011 
The  issues  of  wage  subsidies  and  non-wage  labour  costs  have  been  addressed  in  the  “Employment 
Package”  (Towards  a  job-rich  recovery,  COM(2012)  173  of  18  April  2012)  and  by  the  2011  EMCO 
thematic report “Reaching the Employment Target” (Brussels, 22 November 2011, 17239/11) 
Eurostat, EU-Labour force survey, (lfsq_pganws). 

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Whilst  unemployment  in  the  EU  remains  high,  paradoxically,  there  are  also  over  2  million  unfilled 
vacancies  in  the  EU,  according  to  the  European  Vacancy  Monitor.  These  are  mostly  due  to 
mismatches  between  labour  supply  and  demand,  and  to  insufficient  labour  mobility  at  regional, 
national and European level. 

Young people are one of  the groups with the highest propensity for being  mobile. Work experience 
abroad  can  add  value  to  their  life-long  learning  and  career  path77  and  provide  them  with  more  job 
opportunities. 

Labour  mobility  could  therefore  be  promoted  to  address  the  issue  of  youth  unemployment,  to  help 
employers  find  the  skills  they  are  looking  for,  but  cannot  find  in  their  local  labour  market,  and  to 
enable  Member  States  to  offer  every  young  person  a  good  quality  offer  of  employment,  continued 
education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving 
formal education. 

The Employment Package calls for more performing, dynamic and frictionless labour markets and the 
Commission’s  2013  Annual  Growth  Survey78  stressed  that  with  certain  region  and  sectors  lacking 
employees who fit their needs, these skills bottlenecks and mismatches need to be addressed through 
increased  labour  market  participation,  improved  skill  levels  and  facilitated  mobility.  In  order  to 
improve  the  situation,  employment  policies  need  to  facilitate  employment  transitions  that  enhance 
productivity  and  job  quality;  workers  must  possess  the  right  skills,  and  people  have  to  be  mobile 
enough to respond to job vacancies in other Member States and regions. 

Investment  in  skills  and  reskilling  will  play  a  crucial  role  in  supporting  future  mobility  and 
productivity  gains.  Indeed,  much  of  the  loss  of  competitiveness  in  many  Member  States  can  be 
explained  by  poor  productivity  growth  due  to  insufficient  investment  in  skills  policies  and  tools. 
Reinforcing skills policies is also crucial for tackling existing supply-side shortages and mismatches 
on the labour market and subsequently enabling mobility.  

Furthermore, a genuine EU-wide labour market with sufficient fluidity levels will only be created once 
the remaining legal and practical obstacles to mobility for firms and workers are removed.  

To  this  end,  the  European  Commission  is  currently  in  the  process  of  repositioning  EURES,  the 
European  Network  of  Employment  Services79.  The  reform  will  turn  EURES  into  an  EU-wide 
matching,  placement  and  recruitment  tool  and  include  the  roll  out  of  targeted  mobility  schemes  for 
certain  occupations,  sectors  and  cohorts  (such  as  youth).  This  approach  will  follow  the  logic  of  the 
pilot  action80  “Your  first  EURES  job"  conceived  to help young  Europeans  aged  18-30  find work  in 
other EU countries. The scheme is based on support from national employment services – information, 
job  search,  recruitment  and  funding  –  for  both  young  jobseekers  and  businesses  confronted  with 
bottleneck vacancies and interested in recruiting from outside their home country. 

3.4. THE EUROPEAN PERSPECTIVE 

Use of EU structural funds 

77 

78 
79 
80 

This  means  that  a  lifetime  employment  path  can  include  circular  mobility,  i.e.  included  as  many  in-
country as abroad working periods. 
COM(2012) 750 of 28 November 2012. 
C(2012) 8548 of 26 November 2012. 
http://ec.europa.eu/social/yourfirsteuresjob 

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As evidenced by the Member States' replies received by the Commission to a questionnaire on youth 
policies  and  reporting  results  of  the  Youth  Opportunities  Initiative,  this  initiative  has  played  an 
important  role  as  a  driving  factor  behind  further  reallocation  of  vast  EU  funding  resources,  in 
particular  from  the  ESF  and  European  Regional  Development  Fund  (ERDF),  towards  youth 
unemployment measures. A notable example is Italy, which under its Cohesion Action Plan has so far 
reallocated EUR 6 billion in two phases, of which a significant share is dedicated to employment and 
education actions.  

The European Social Fund in the current 2007-2013 programming period supports a range of actions 
aimed  to  enhance  access  to  employment  and  the  sustainable  inclusion  into  the  labour  market  of  job 
seekers  with  a  particular  focus  on  preventing  long-term  and  youth  unemployment.  Member  States 
have dedicated significant resources towards improving school-to-work transitions for young people, 
and additional labour market integration measures such as targeted activation policies, wage subsidies, 
measures to encourage youth entrepreneurship and business start-up. Temporary recruitment subsidies 
are an instrument already implemented by Member States in the context of the economic crisis and can 
be supported by the ESF. ESF support to temporary recruitment subsidies should also respect certain 
requirements  related  to  state  aid  rules  and  national  co-financing.  For  examples  of  Youth  Guarantee 
activities/interventions that can be supported by the ESF see Annex II. 

The  Proposal  for  ESF  Regulation  for  the  next  programming  period  2014-2020  includes  a  dedicated 
ESF  investment  priority  targeting  the  sustainable  labour  market  integration  of  young  people  not  in 
employment,  education  or  training.  Member  States  facing  high  youth  unemployment  rates  are  thus 
expected to identify young unemployed persons as a specific target group for ESF funding. The latter 
represent  the  results  achieved  though  EU  Funds  support.  EU  Funds  can  also  be  used  to  support  job 
creation for youth through SME start-ups and self-employment measures.  

Relevant  measures  under  the  European  Regional  Development  Fund  (ERDF)  to  support  youth 
employment  and  labour  mobility  include  notably  support  for  SMEs,  development  of  business 
incubators,  investing  in  education  and  social  infrastructure,  as  well  as  infrastructure  for  public 
employment  services.  Moreover,  under  cross-border  cooperation  programmes,  ERDF  promotes 
integrating  cross-border  labour  markets,  including  cross-border  mobility,  joint  local  employment 
initiatives and joint training courses. 

Youth  employment  will  also  be  stimulated  and supported  under  the  European  Agricultural  Fund  for 
Rural  Development  (EAFRD)  in  the  field  of  agriculture  and  rural  business  development.  Young 
people in rural areas will have the opportunity to set up their own farms, start a rural business or take 
part  in  various  co-operation  activities  that  could  be  supported  under  the  EAFRD.  They  can  also 
receive relevant training and professional advice on how to manage and run their businesses. They can 
also be involved in the local development of their area of living through the LEADER initiative81. 

The upcoming Partnership Contracts and Operational Programmes are therefore expected to dedicate 
significant  focus  on  the  issue  of  school-to-work  transitions  and  labour  market  integration  of  young 
people.  Moreover,  in  the  next  programming  period,  Member  States  are  encouraged  to  identify 
possibilities  for  closer  cooperation  and  integrated  approaches  among  the  five  Common  Strategic 
Framework Funds82 (CSF) with a view to providing comprehensive solutions. In this context, youth 

81 
82 

http://enrd.ec.europa.eu/leader/en/leader_en.cfm  
ESF,  ERDF/Cohesion  Fund, European Agricultural Fund for  Rural Development,  European  Maritime 
and Fisheries Fund. 

EN 

25 

   EN 

 
 
                                                 
integration  cuts  across  a  number  of  inter-related  policy  areas  such  as  education,  employment,  social 
inclusion  and  social  entrepreneurship,  housing  and  business  environment,  which  would  involve 
investment support from multiple CSF funds. From the EU Funds perspective, a "Youth Guarantee" 
could  in  particular  provide  an  effective  policy  instrument,  demonstrating  the  added  value  of  EU 
investments in measures with lasting effects. 

During  the  2007-2013  programming  period,  the  Commission  assisted  Member  States  with  regard  to 
mutual  learning  and  preparing  joint  proposals  on  youth  employment  policies  through  the  European 
Network  on  Youth  Employment,  co-financed  from  ESF  technical  assistance83.  In  the  run-up  to  the 
adoption  of  the  EU  CSF  Funds  Regulations  for  the  next  programming  period,  the  Commission  will 
discuss with Member States their preliminary views on the main country-specific challenges. 

In order to speed up Structural Funds absorption in the current programming period, Member States 
should  more  actively  seek  to  fully  implement  the  youth  activity  measures  already  in  place  (in 
particular  following  reallocation  of  funds).  Managing  Authorities,  in  partnership  with  the  social 
partners and when elaborating calls for ESF project proposals, could identify the measures for which 
implementation  can  most  rapidly  and  effectively  provide  a  guarantee  for  youth  employment  or 
training. For example, training vouchers and entrepreneurship grants could be such instruments. The 
Commission  also  encourages  the  application  of  simplified  costs  options,  namely  fixed  flat  rates  for 
certain  costs  items  by  applying  standard  scales  of  unit  costs  and  lump  sums,  to  facilitate  project 
accounting and implementation. Simplification and results-based management are taken further in the 
Commission's regulatory proposals for the 2014-2020 programming period, through the introduction 
of  Joint  Action  Plans.  These  large-scale  sets  of  projects,  driven  by  pre-defined  and  agreed  policy 
outcomes  and  results,  could  provide  a  flexible  and  effective  instrument  to  ensure  that  EU  funds 
support  policy  objectives.  Some  Member  States,  already  implement  similar  measures  during  the 
current period. 

European semester 

The Commission is committing itself to monitoring the implementation of Youth Guarantee schemes 
as  well  as  their  impact  in  the  Member  States.  It  will  in  particular  do  so  in  the  framework  of  the 
European Semester and the country-specific recommendations. 

In order to increase competitiveness and ensure that the targets of the Europe 2020 strategy of smart, 
sustainable and inclusive growth are achieved, the European Commission has set up a yearly cycle of 
economic policy coordination, the European Semester. 

The European semester starts when the Commission adopts the Annual Growth Survey (AGS) at the 
end  of  the  year,  which  sets  out  the  short  and  medium  term  EU  priorities  to  boost  growth  and  job 
creation.  In  April,  Member  States  submit  their  Stability  or  Convergence  Programmes  and  National 
Reform Programmes. During the course of May and June the Commission analyses these documents 
with a view to the priorities set out in the AGS and assesses progress on previous recommendations. 
Finally,  the  Commission  issues  country-specific  recommendations  that  are  formally  adopted  by  the 
Council at the end of June.  

As one of the groups hardest hit by the crisis, youth unemployment has figured prominently during the 
first two European Semesters. The 2011 AGS package pointed to the importance of targeting young 
people with appropriate measures to avoid a 'lost generation' and this message was reinforced in the 

83 

www.youthemploymentnet.eu  

EN 

26 

   EN 

 
                                                 
2012 AGS. A large number of Member States have received country specific recommendations linked 
to the improvement of the situation of the youth in the labour market84. This framework will be used 
to  monitor  the  steps  taken  by  Member  States  (and  their  impacts)  towards  implementing  Youth 
Guarantee schemes. 

In  the  2013  Annual  Growth  Survey85,  the  Commission  stressed  that  Member  States  should  secure 
school-to-work  transitions  for  young  people  and  develop  and  implement  Youth  Guarantee  schemes 
whereby  every  young  person  under  25  receives  an  offer  of  employment,  continued  education,  an 
apprenticeship  or  a  traineeship  within  four  months  of  leaving  formal  education  or  becoming 
unemployed. Such schemes can be co-financed by the European Social Fund. 

Learning from one another  

Mutual  learning  will  be  a  vital  tool  in  order  for  Member  States  to  be  able  to  achieve  a  successful 
Youth Guarantee. 

Mutual learning programmes and initiatives can help to share knowledge and expertise between actors 
confronted  with  similar  problems.  Learning  from  one  another  and  drawing  lessons,  which  can  be 
applied to one's own national/regional/local situation, is a cost effective way of acquiring new skills 
and competences to deal with new labour market challenges.  

The  outcomes  resulting  from  this  kind  of  exercise  can  allow  for  certain  elements  and  aspects  to  be 
transferred from one country to another and applied in a local / national context. Replicating this kind 
of  exercise  at  Member  State  level  can  help  to  disseminate  knowledge  among  relevant  partners  and 
empower  them  to  be  more  efficient  in  their  own  work.  It  is  also  a  means  of  reducing  risk  in  the 
implementation of new schemes and ensuring greater return on investment on the basis of previously 
tried and tested policy options.  

At  European  level,  the  objective  of  the  Mutual  Learning  Programme  (MLP)  in  the  employment 
field is to encourage mutual learning at all levels of governance and to enhance the transferability of 
the most effective policies86. 

In 2013 and the following years, the MLP programme could focus on the transferability of knowledge 
on  Youth  Guarantee  schemes  among  Member  States  having  similar  patterns  of  NEETs  or  meeting 
specific  situations  with  groups  facing  multiple  barriers.  It  would  thus  ensure  that  the  most  effective 
policies and measures are known by all concerned stakeholders across the Member States and would 
help improving the design and the delivery of future Youth Guarantee schemes. 

The  European  Commission  will  also  continue  to  monitor  the  uptake  and  implementation  of  Youth 
Guarantee schemes through the European PES Network and draw lessons from national programmes. 

84 

85 
86 

In this framework, Member States should further focus on skills development (FI, ES), adapt education 
and training systems and young people`s skills to the labour market needs and/or increase availability of 
apprenticeships (DK, EE, FR, ES, LT, LV, LU, MT, PL, SK, SI, UK). They should promote incentives 
for companies to hire young people (IT) and promote self-employment and business start-ups (CY, IT). 
They are invited to reduce drop-out rates and early school leaving (AT, DK, HU, ES, IT, LV, MT, UK) 
and improve access to education and training for vulnerable groups (BG, DE, HU, SK). Furthermore, 
they  are  called  upon  to  address  asymmetries  of  employment  protection  legislation  between  different 
types of contracts and reduce segmentation of the labour market (FR, IT, LT, PL, SE, SI). 
COM(2012) 750 of 28 November 2012. 
In 2011 and 2012 the MLP for example considered ways to provide rapid transitions for young people 
from education/training to the labour market, also for instance for highly qualified young people and for 
young people having completed a dual training scheme. 

EN 

27 

   EN 

 
                                                 
Furthermore, in the future, there will be a closer coordination with the Mutual Learning Programme in 
the social Open Method of Coordination, PES to PES dialogue and, where relevant, other exchanges 
supported by the Commission, in order to avoid overlaps, both in terms of contents and timing.  

The mutual learning process will also take account of experiences from outside the EU which could be 
useful.  Further,  the  process  will  seek  to  enhance  and  extend  the  involvement  of  other  stakeholders, 
especially  social  partners,  but  also  NGOs,  academic  institutions,  international  organisations,  etc.  in 
order to ensure a wider dissemination of the outcomes. 

On 20 August 2012, the Commission launched a call for proposals in the framework of a European 
Parliament preparatory action on Youth Guarantee schemes, funded with € 4 million. The purpose 
of this call is to support partnerships for activation measures targeting young people through projects 
in the context of Youth Guarantee schemes at national, regional or local level.  

The  experience  gained  from  the  projects  selected  under  this  call  will  provide  Member  States  with 
various schemes, patterns and practical recommendations for establishing the Youth Guarantee with a 
view  to  the  future  Union  funding  schemes  relevant  to  young  people  and  labour  market  integration, 
paving  the  way  for  future  ESF  action.  The  Commission  will  organise  a  valorisation  conference 
involving all Member States (in particular ESF managing authorities) to present the various schemes, 
patterns and practical recommendations resulting from this call to all Member States and expects them 
to make full use of the results of the funded projects. 

European socio-economic research has already focused for a long time on youth unemployment and 
on aspects of their social exclusion (and potential for inclusion). Findings from this range of projects 
have  recently  been  summarised  in  policy  reviews87,  which  include  research  findings  and  policy 
recommendations on employment, education & training, youth and social policies. 

For the final year of FP7 the Social Sciences and Humanities programme has called for a large scale 
integrated  research  project  “Overcoming  youth  unemployment  in  Europe”88.  The  objective  is  to 
develop  a  comprehensive  understanding  of  the  causes  of  the  very  high  unemployment  rates  among 
young  people  and  to  assess  the  effectiveness  of  labour  market  policies  designed  to  mitigate  this 
phenomenon. 

Assessment and continuous improvement of the Youth Guarantee schemes  

Assessing  and  evaluating  all  actions  and  programmes  contributing  towards  the  setting  up  of  Youth 
Guarantee  schemes  are  necessary  both  at  national  and  EU-level.  They  will  indeed  allow  continuous 
improvement of the existing schemes and further feed the policies to be implemented to reduce youth 
unemployment in Europe. 

So  far,  few  exercises  of  the  kind  have  been  carried  out.  The  PES  of  the  12  participating  Member 
States89  stated  that  a  number  of  country  cases  (such  as  Austria  or  France)  demonstrated  the 
possibilities  of  monitoring  beneficiaries  before  and  after  entry  into  a  measure,  allowing  not  only  an 
assessment of the outcomes of measures, but also helping to identify the most cost effective initiatives. 

87 

88 

89 

EN 

on 

the 

youth 

margins 

Policy Reviews New skills and jobs in Europe: Pathways towards full employment and Social inclusion 
of 
2012) 
http://ec.europa.eu/research/social-sciences/pdf/new-skils-and-jobs-in-europe_en.pdf 
http://ec.europa.eu/research/social-sciences/pdf/social-inclusion-of-youth_en.pdf 
SSH.2013.1.2-1.  “Overcoming  youth  unemployment  in  Europe”  (EU  funding:  Min.:  4.000.000  €  - 
Max.: 5.000.000 €) 
AT, BE, DE, DK, EL, FR, HU, IT, LT, LU, NL, PL and Norway (see footnote 46) 

Commission, 

(European 

society 

of 

28 

   EN 

 
                                                 
However,  the  collection  of  data  on  this  scale  was  considered  to  be  impossible  in  many  countries  in 
light of data protection requirements, thus highlighting the need for more targeted evaluation studies 
or controlled trials.  

In  addition,  even  in  countries  with  existing  evaluation  systems,  a  stronger  link  is  still  to  be  made 
between the evidence base and how to use the findings for organisational learning and (future) policy 
design. 

In  the  UK,  the  Centre  for  the  Analysis  of  Youth  Transitions  (CAYT)  has  been  set  up  to  provide 
evidence on transitions made by young people and help inform key government policies such as the 
raising of the education and training participation age to age 18. The CAYT is a mechanism by which 
the UK seeks to improve understanding of the bridging period between childhood and adulthood and 
how it is changing over time, with a particular focus on what this can tell about the likely effectiveness 
of a range of policy interventions. 

Eurofound  recently  published  a  short  report90  assessing  the  Swedish  and  Finnish  experiences  as 
regards Youth Guarantee schemes which highlights how strengths and weaknesses of schemes can be 
assessed. 

The Commission will also work together use with relevant partner organisations such as Eurofound, 
ILO  and  OECD  to  provide  further  evaluation  of  actions  and  programmes  contributing  towards  the 
setting  up  of  the  Youth  Guarantee  so  that  more  evidence  based  policies  and  interventions  can  be 
developed on the basis of what works, where, why, and for whom, paying special attention to gender 
and  the  diversity  of  young  people,  thus  ensuring  efficient  use  of  resources  and  positive  returns  on 
investment. 

Awareness raising 

To  ensure  the  rapid  take-up  of  the  Youth  Guarantee  by  all young  people  across  Member  States,  the 
visibility of the schemes must be ensured. Raising awareness activities will be needed to promote the 
existence  of  the  schemes,  the  ways  they  function  and  the  ways  young  people  can  access  these 
schemes. 

Youth  organisations,  youth  information  services,  PES,  trade  unions  and  other  relevant  stakeholders, 
both at EU and national level, will be the natural multipliers of Youth Guarantee-related information. 

Using  social  media  (e.g.  Facebook)  is  obviously  a  natural  avenue  to  reach  out  to  young  people. 
However, information campaigns using more traditional media (TV and for instance youth specialised 
channels, radio, written press, youth press, etc.) can be envisaged as they can also target parents who 
can support their children when it comes for example to registering with an employment service. 

In  order  to  make  people  aware  of  its  renewed  Guarantee  and  to  commit  the  relevant  actors  (public 
officials, entrepreneurs, labour market unions, young people, parents, etc.) to its implementation, the 
Finnish  Ministry  of  Employment  and  Economy  launched  a  road  show  visiting  15  cities  during 
September and October. This tour was also meant to be a platform from which local authorities could 
build  a  network  in  order  to  coordinate  the  implementation  of  the  Youth  Guarantee  at  local  level. 
Around €100,000 had been earmarked for this activit y, which included a handbook of best practices, a 
website91 (in Finnish, Swedish and soon in English) and a short video. 

90 
91 

Eurofound (2012), Youth Guarantees: Experiences from Finland and Sweden. 
www.youthguarantee.fi  

EN 

29 

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The  Commission  on  its  side  will  use  the  European  Youth  Portal  and  will  liaise  with  its  existing 
information campaigns such as “Youth on the Move92”, “For Diversity. Against Discrimination93” and 
“We Mean Business94” to promote the Youth Guarantee across the EU. 

92 
93 
94 

http://europa.eu/youthonthemove 
www.stop-discrimination  
http://we-mean-business.europa.eu/ 

EN 

30 

   EN 

 
                                                 
Youth-related measures currently in place in Member States and Croatia 

ANNEX 1  

C/try 

Vocational training, 

Apprenticeship 

Traineeship measures 

Early intervention and 

activation measures 

Labour market integration measures, including 
subsidies  

to employers 

 “Youth  Coaching”:  early  intervention  against  school 
drop-out  and  supporting  young  people  (in  their  last  year 
of compulsory education, NEETs until 19 and those with 
special educational needs or disabilities) in their transition 
from  school  to  work  -  2012  pilot  project  in  Vienna  and 
Styria, to be extended to the rest of Austria in 2013. 

“Youth Placement Foundations” Companies having 
trouble  to  find  adequate  staff  for  certain  posts 
cooperate  with  PES  in  finding  the  best  suitable 
participants among unemployed (19-24) in order to 
subsequently provide them with closely job-related 
qualification  measures  (enrolment  has  only  just 
started). 

Alongside  basic  subsidies,  quality-related  and 
labour  market-related  incentives  are  offered  to 
encourage  employers 
to  establish  additional 
apprenticeship  places  and  improve  the  quality  of 
training for the about 130,000 apprentices per year. 

AT 

“Training  Guarantee”  for  apprentices:  young  people  until 
the  age  of  18,  who  cannot  find  a  company-based 
apprenticeship,  are  given  the  opportunity  to  learn  an 
training 
a 
apprenticeship 
institution. 

supra-company 

trade 

in 

“Production  Schools”:  reintegrating  young  people  having 
dropped out from school or from an apprenticeship into the 
education and training system and the world of work. 

"Apprentice  Coaching",  pilot  project  starting  in  Upper 
Austria,  Styria,  Tyrol  and  Vienna:  additional  support  to 
apprentices  and  to  companies  offering  apprenticeship 
places  incl.  legal  advice  services,  mediation  and  crisis 
intervention;  training  manuals  for  some  important  sectors 
with  best  practice  examples  about  ways  of  designing 
training within a company; central clearing office for final 
apprenticeship  exams  and  a  certificate  for  examiners  are 
being developed.  

PES  supports  the  integration  of  disadvantaged  groups  and 
young  women  who  take  up  apprenticeships  in  male-
dominated professions. 

BE 

End  of  July  2012,  the  Federal  government  budgeted  the 
means  to  create  10,000  subsidised  traineeships  as  of  2013 
for  youngsters  exiting  the  education  system  without  a 
secondary  education  degree,  to  be  implemented  in  close 
cooperation with the regions. 

Brussels-Capital  region:  funded  actions  targeting  young 
people.  

Flanders:  ESF  funded  “Work@telier”  targeted  at  long-
for  work 
term  unemployed  youth,  and  measures 

The  Federal  government  has  also  committed  the 
resources  necessary 
the  existing 
to 
reductions of social security contributions for low-
qualified  young  job  seekers  as  of  2013.  A  new 
social  security  contribution  reduction  will  be 

increase 

EN 

31 

EN 

 
  
 
 
placement and traineeships to early school leavers. 

introduced for medium qualified youngsters. 

German-speaking  Community:  ESF  programme  includes 
15 different initiatives focused on young job seekers. 

Walloon Region: ESF funded support to young people, in 
particular  through  individualised  guidance  (former  Job 
Tonic initiative). 

Regional  governments  subsidise  the  apprentice's 
wages  and  social  contributions  provided  certain 
conditions  with  regard  to  training  and  ulterior 
employment  are  met  (concrete  modalities  and 
support vary by region and target group). 

An  Agreement  on  exchange  of  information  between  the 
Ministry  of  Education,  Youth  and  Science  (MEYS)  and 
the  Ministry  of  Labour  and  Social  Policy  (MLSP)  was 
signed in July 2012 to facilitate the implementation of the 
“European  Youth  Guarantee”.  Within  four  months  of 
leaving school, young people will be offered employment 
mediation services, training and subsequent employment. 

A  recently  signed  (June  2012)  national  agreement 
“First job” has united the efforts of the government 
and  the  social  partners  towards  increasing  youth 
employment  by promoting  opportunities  for  a  first 
professional experience. 

HRDA  subsidises  wages  paid  by  employers  to 
apprentices who attend classes in technical schools; 
also  funds  the  practical  training  of  final  year 
students  who  follow  the  practical  direction  of 
technical  schools;  and  subsidises  enterprise-based 
practical  training  of  students  of  the  Higher  Hotel 
Institute of Cyprus. 

BG 

CY 

Support for apprenticeships in all regions and communities, 
notably through various schemes of subsidised “Individual 
Vocational Traineeships”.  

renewed  “Career  Agreement” 

Flanders: 
(2012-2014) 
provides  for  closer  follow-up  of  low-skilled  youth.  As  of 
January 1, 2013, young people with no degree, who did not 
manage to build up any significant work experience, will be 
guided  towards  existing  vocational  training,  in-company 
training and/or apprenticeship schemes. The ambition is to 
have  the  entire  target  group  participate  in  an  intensive 
activation 
trajectory  (work  experience  or  vocational 
training) by June 2013. 

Under  the  ESF-supported  Human  Resources  Development 
Operational Programme (HRD OP) there are four on-going 
operations  promoting  youth 
(targeting 
secondary  school  and  university  students),  including  for 
disadvantaged groups. 

traineeships 

Under  the  ESF  co-financed  Operational  Programme,  post-
secondary  Institutes  of  Vocational  Education  and  Training 
are to be established (Ministry of Education and Culture). 

A  subsidy  scheme  co-financed  by 
the  ESF  and 
implemented  by  the  Cyprus  Productivity  Centre  (CPC)  to 
promote  the  employment  and  in-company  training  of 
apprenticeship students. 

“Scheme  for  the  Job  Placement  and  Training  of  Tertiary 
Education  Graduates”:  consolidated  programme  operated 
by  Human  Resource  Development  Authority  (HRDA)  for 
the  integration  of  highly  qualified  young  people  into  the 
labour  market  by  providing  on-the-job  experience  in  a 
company for a period of 12 months. 

Training programmes for the unemployed: 

EN 

32 

EN 

 
  
 
 
CZ 

DE 

training  programmes  for 
-  Under  accelerated 
newcomers  and  other  unemployed  people  in  occupations 
currently in demand, priority is given to those up to age 25; 

initial 

-  Under  scheme  for  improving  the  employability  of  the 
training  and  work  experience 
unemployed 
programmes 
least  30%  of 
participants should be under 30. 

through 
(with  ESF  support),  at 

 “Traineeships in Companies - education through practice”, 
a  new  ESF-funded  project  (09/2012-10/  2014)  providing 
internships  in  companies  for  several  months,  in  sectors  of 
the  future,  involving  mainly  graduates,  but  also  other 
groups  who  lack  work  experience  to  complete  their  skills 
profiles.  If  successful,  the  internships  might  become  a 
'standard' offer of assistance to the unemployed. 

The  “National  Training  Pact”  aims  at  increasing  the 
educational attainment of young people. It aims at offering 
a  training  or  apprenticeship  option  to  every  young  person 
who  is  interested  in  vocational  training  and  who  fulfils 
necessary requirements.  

“Entry-level  qualifications”  offer  6  to  12  months  of 
company-based  pre-training  courses  in  order  to  qualify 
individuals  for  apprenticeships  and 
the 
to 
matching between applicants and companies. 

improve 

The  “Individual  Action  Plan”  defines  the  procedure  and 
timetable for implementation of measures to increase job 
opportunities. It is elaborated and signed if a job applicant 
is registered as unemployed continuously for more than 5 
months. 

Some 2,000 schools can now profit from the assistance of 
career  start  coaches  under  the  “Career  Entry  Support” 
programme  to  help  their  students  successfully  complete 
the transition to career training. 

Companies  participating 
the  “Entry-level 
qualifications” receive up to EUR 216 per month to 
cover the social security contributions for trainees. 

in 

Public Employment Services (PES) support young people 
in  preparing  and  obtaining  qualifications  needed  on  the 
labour market, including those with disabilities. 

“Initiative to Support Structural Change”: low-skilled to 
acquire  vocational  qualifications  or  learn  employable 
skills via modular courses, if full vocational programme is 
not completed in one go. 

The  "Abschluss  und  Anschluss  –  Bildungsketten  bis  zum 
Ausbildungsabschluss"  initiative  aims  to  support  young 
people  entering  the  workforce  and  to  prevent  long 
transition periods from school to work. 

DK 

Since  2009,  the  Danish  Parliament  has  agreed  upon  five 
agreements  focusing  on  increasing  training  places  in 
companies.  The  latest  agreement  from  November  2011 
('Increased  efforts  for  more  company  training  places  in 

Young people under 30 are entitled to a first interview at a 
jobcentre  within  one  month  of  unemployment.  Everyone 
has  a  right  –  and  duty  –  to  receive  active  labour  market 
measures  within  three  months  of  unemployment.  Young 

Bonus  of  up  to  EUR  9,333  to  private  and  public 
employers who enter into a training agreement with 
a trainee. 

EN 

33 

EN 

 
  
 
 
 
 
2012’)  entails  the  creation  of  7,400  internships  and  3,000 
school-based  training  positions  in  2012  (a  25%  increase 
compared to 2009). 

people under 25 receive lower benefits in order to create 
an incentive to take up education or find a job. 

The 2013 draft budget agreement, proposed by the Danish 
and 
that 
Government, 
apprenticeship  guarantee”  should  be  offered  within  the 
vocational youth education system. 

“education 

provides 

an 

The  August  2012  proposal  for  a  “Youth  Package”,  to  be 
implemented  in  2013,  includes  help  for  more  young 
people  (18-30)  to  be  in  education,  internship  or  work, 
including inter alia: 

-  bridging  education  programmes  for  uneducated  young 
people; 

-  placing  internship  consultants  in  schools  to  help  young 
people find an internship; 

-  allocating  funds  for  long-term  unemployed  skilled  and 
un-skilled young people; 

- developing graduate job partnerships. 

the  drop-out  rates, 

In order to increase the employability of young people and 
lower 
the  Danish  Government 
proposed  to  better  target  vocational  youth  education 
towards the needs on the labour market. 

EE 

An  apprenticeship  training  scheme  offers  unemployed 
people  practical  work  experience  and 
their 
professional  skills  and  knowledge.  Nine  pilot  projects  are 
running  for  youth  (16-29)  without  any  professional 
education.  

improve 

Under  the  EuroPlus  Pact  2012,  programmes  will  be 
developed to offer formal education to young people aged 
16-29  who  lack  specialised  education,  as  well  as  for 
outreach  to  at-risk  youth  and  their  inclusion  in  active 
labour market measures and education. 

Wage  subsidy  is  the  main  incentive  measure  for 
employers to recruit long-term unemployed people; 
more favourable conditions for young unemployed 
(16-24). 

Career  counselling  services  and  work  practice  schemes 
provided by the PES for young job-seekers. 

ESF-funded  KUTSE  programme  invites  students  who 
have  dropped  out  from  vocational  education  back  to 
school to finish their studies. 

EL 

Various schemes largely co-financed by ESF:  

-  career  guidance  services  offered  by  vocational  training 

ESF-funded  TULE  programme  allows  university  drop-
outs to finish their higher education studies free of charge. 

Job  search  assistance  to  unemployed  youth  through  the 
Greek Manpower Organisation (OAED). 

Preparation of an action plan consisting of targeted 
and 
employment 
boost 
interventions 
entrepreneurship  among  young  people, 
to  be 
mainly  supported  with  funds  under  the  Greek 

to 

EN 

34 

EN 

 
  
 
National  Strategic  Reference  Framework  2007  – 
2013. 

Employment subsidy schemes: 

OAED  provides  incentives  to  employers  to  accept 
students  for  internships  (where  the  employer  pays 
80%  of  the  wage  of  an  unskilled  worker  to  the 
trainee  and  OAED  reimburses  the  employer  up  to 
50% of the total amount/wage paid). 

ESF  co-finances  specific  measures  for  disadvantaged 
young  people,  mainly  through  the  national  OP  Fight 
against Discrimination. 

Envisaged: reallocation of ESF financing towards actions 
to  support  the  employability of  young  people;  to  support 
public  employment  services  to  reinforce  the  measures  to 
combat  early  school  leaving  and  promote  vocational 
training;  to  explore  the  possibility  of  pilot  projects  for 
dual vocational training. 

The  labour  market  reform  of  February  2012 
established  a  new  individual  right  to  professional 
training (20 hours per year). 

and tertiary education institutions; 

-  acquisition  of  first  work  experience  for  vocational 
education and training graduates. 

On-going  ESF  co-funded  operation  offering  work-based 
training opportunities for students in upper secondary, post-
secondary and tertiary education. 

The  Ministry  of  Education,  Religious  Affairs,  Sport  and 
Culture  operates  work-based  training  schemes  for  tertiary 
education, as well as for vocational training students.  

An  ESF  co-financed  scheme  for  post-secondary  maritime 
education students is also running.  

ES 

The  Spanish  system  provides  for  concrete  measures 
regarding  apprenticeship  and  training,  such  as  the  "on  the 
job training contract" and a new "training account" for each 
young unemployed. 

Since  2011,  law  introduced  traineeships  in  enterprises 
without  the  obligation  of  subsequent  job  offer,  for  3-9 
months,  aimed  at  young  unemployed  (18-25)  with  a 
specific  academic  degree  or  a  professional  accreditation 
certificate.  Participants  receive  a  grant  for  at  least  80%  of 
the current minimum wage (EUR 641/ month). 

The  labour  market  reform  of  February  2012  introduced  a 
“training and learning contract” (1-3 years) which foresees 
a  system  of  alternating  remunerated  work  and  vocational 
training  activity, 
lacking 
professional qualification and seeking for an internship.  

for  young  workers  6-25) 

Royal  Decree  implementing  a  contract  for  training  and 
learning and providing the basis of dual vocational training. 

FI 

More  study  places  in  vocational  education,  regional  re-
distribution of the study places according to changes in age 
groups,  changes  of  the  acceptance  criteria  for  vocational 
education & training. The “Education Guarantee” includes 

A  revamped  “Youth  Guarantee”  in  2013:  each  person 
younger than 25 and each recent graduate under 30 will be 
offered  work,  a  traineeship,  or  a  study,  workshop  or 
labour  market  rehabilitation  place,  within  3  months  of 

The  apprenticeship  training  pilot  project  supports 
both  the  training  organiser  and  the  employer 
additional 
(EUR 800/month) 

providing 

by 

EN 

35 

EN 

 
  
 
 
an apprenticeship training pilot project's aiming to develop 
apprenticeship  training  into  a  suitable  form  of  training  for 
young basic education graduates. 

becoming unemployed.  

resources. 

The  Guarantee  also  includes  an  “Education  Guarantee”: 
each comprehensive school graduate will be guaranteed a 
place 
activity, 
rehabilitation or similar. 

education,  workshop 

further 

in 

A temporary “Skills programme for young adults” (2013-
2016): additional places will be targeted to those (20-29) 
who have only attended comprehensive school. 

Youth  outreach  work  as  early  as  possible  towards  those 
under  29  at  risk  of  exclusion  directing  them  to  low-
threshold  services 
their  growth  and 
that  promote 
independence as well as access to education and work. 

tailored  pathway 

“Youth  workshops”  provide  young  people  with  the 
opportunity  to  work  under  guidance  and  support  as  well 
as  a 
towards 
completing one’s education by working together with the 
education  provider,  or  support  finding  employment 
through the open labour market. 

to  education,  help 

More  training,  language  courses  and  counselling  will  be 
the  NEET  risk  among  young 
provided 
immigrants. 

to  reduce 

Additional  resources  and  more  career  counselling  for 
young  job  seekers  in  the  employment  offices,  increased 
municipal  responsibility  in  counselling  comprehensive 
school graduates.  

FR 

“Contrat  d'apprentissage”  (apprenticeship  contract)  for 
young people from ages 16 to 25. 

“Contrat  de  professionnalisation”  for  young  people  of  26 
or more.  

The  “Ecoles  de  la  deuxième  chance”  ("second-chance 
schools")  target  young  people  under  26  who  left  the 
education system without a diploma or professional skills. 

20  Centres  “Défense  deuxième  chance”  offer  guidance 
and  training  to  young  people  with  no  skills  or  diploma, 
managed  by  the  “Etablissement  public  d’insertion  de  la 
Défense” and placed under the authority of the Ministry of 
Defence.  Since  February  2012,  extended  to  young, 

New  measures  in  2011  to  foster  apprenticeships 
and  work-training  combinations  ("alternance")  for 
young  people,  mostly  consisting  of  financial 
incentives to enterprises and more flexibility.  

Apprenticeships  in  enterprises  are  based  on  a 
system of quotas: in case of an insufficient number 
of apprentices, the company has to pay a fee. Since 

EN 

36 

EN 

 
  
underage offenders. 

March 2011, this quota has been raised.  

Existing schemes targeting low-skilled young people with 
personalised support: 

Two  major  reforms  of  the  new  government  target 
unemployed and disadvantaged young people: 

-  "Contrat  d'insertion  dans  la  vie  sociale"  (CIVIS)  is  a 
contract  between  a  young  person  and  a  local  authority 
(“mission  locale”),  responsible  for  integrating  young 
people both professionally and socially. 

-  "Contrat  d'autonomie",  consisting  in  guidance  towards 
employment,  a  training  leading  to  qualifications  or 
entrepreneurship,  within  six  months,  is  present  in  11 
French  “départements”  where  young  people  face  major 
difficulties in accessing employment. 

-  150,000  full-time  “Emplois  d'avenir”  (in  2013-
2014)  for  young  people  (16-25)  with  no  or  low 
qualification, living in urban or rural deprived areas 
with  highest  youth  unemployment  rates.  The  State 
will  pay  for  75%  of  the  young  person's  gross 
remuneration for three years 

-  “Contrat  de  génération”,  to  promote  both  young 
and  older  workers’  employment,  by  providing 
training  for  young  people  (under  30)  delivered  by 
senior colleagues.  

HU 

The “Traineeship programme” gives opportunities to young 
career starters to gain work experience as trainees in SMEs. 

Advisory  system  and  career  services  will  be  provided  to 
students  and  pupils  in  order  for  them  to  better  plan  their 
education path and prevent early drop-outs. 

Job-seekers  receive  a  tailor  made  support  including 
training, employment subsidies and job-search assistance. 
According  to  recent  plans,  housing  subsidy  will  be 
introduced  in  order  to  promote mobility  among others  of 
young  people.  Young  job-seekers  will  represent  23%  of 
the participants. 

IE 

A number of apprenticeships are up running. 

Traineeship  programmes  provide  entry-level  occupation-
specific training and integrate formal training from the Irish 
National  Training  and  Employment  Authority  (FÁS)  and 
workplace coaching with a host employer. All programmes 
are fully certified. Traineeships are open to all unemployed 
people, including young job seekers. 

The  national  “JobBridge”  programme  provides  work 

Young people, who are unemployed, once they have been 
on the Live Register for three months, are referred to the 
interview  and 
employment  service  for  a  guidance 
additional support in order to identify and address specific 
difficulties they face in securing employment. The aim is 
to  profile  newly  unemployed  people  when  they enter  the 
Live  Register,  as  a  basis  for  immediate  referral  of  those 
most needing assistance. 

“Pathways  to  Work”  is  to  provide  those  who  are 
unemployed with the appropriate training and skills 
to avail of the job opportunities, which will arise as 
the economy recovers. 

"Action Plan for Jobs” will support the creation of 
100,000 net new jobs by 2016) 

EN 

37 

EN 

 
  
 
 
 
experience placements for 6-9 months 

Young people leaving education with Leaving Certificate 
or  higher  qualifications  who  face  difficulty  in  finding 
work  can  register  with  the  employment  service  for 
assistance with job search.  

For  early  school  leavers  (under  18  years  and  with  no 
Leaving  Certificate)  who  seek  to  register  with  the 
employment service, the emphasis is on encouraging them 
to stay on at school and complete it. If this is not possible, 
they can register and may be referred to specific training 
programmes,  such  as  Community  Training  Centres  or 
“Youthreach”.  

More education and training places will be provided in the 
higher  education,  further  education  and  training  sectors. 
These places will include provision for school leavers. 

After  June  2012  Labour  Market  Reform,  public 
employment services must provide people, within 3 three 
months after losing their job, with a set of basic services 
(including vocational training). 

Incentives  to  hire  young  people  in  almost  all 
regions. 

Labour  Market  Reform  includes  new  provisions  to 
combat early-school leaving and improve the situation of 
NEETs. 

Incentives  for  apprenticeship  places  to  companies 
under AMVA. 

Almost  all  regions  address  the  situation  of  NEETs: 
providing  orientation  and  guidance 
to  promoting 
transition  to  work  (e.g.  by  increasing  participation  to 
apprenticeship-like  vocational  training),  and  fostering 
self-employment. 

Companies  can  receive  support  to  hire  apprentices 
in higher education or research. 

IT 

Education  and  apprenticeship  guarantee  to  young  people 
within the vocational education system.  

2011 national reform on apprenticeships: 

-  ESF  funded  AMVA  programme  (“Apprendistato  e 
Mestieri a Vocazione Artigianale”): support to employment 
services, identification of skills requirements, promotion of 
apprenticeships; 

-  FIXO  programme  (“Formazione  e  Innovazione  per 
l'Occupazione”)  to  facilitate  school-to-work  transition  by 
providing guidance services and other active labour market 
policies. 

Labour  Market  Reform 
of 
apprenticeships as the main route to employment and better 
regulation of traineeships. 

promotion 

includes 

Several  regions  have  also  taken  measures  to  promote 
apprenticeships. 

EN 

38 

EN 

 
  
 
 
 
 
 
 
 
Additional  budget  for  work  placements  of  up  to  6  months 
for  young  people  (24-35)  in  the  four  convergence  regions 
(Campania, Puglia, Calabria and Sicily). 

LV 

Three ESF co-funded projects to facilitate traineeships and 
apprenticeships:  

-  “Training  and  practice  for  State  Employment  Agency 
assistants”: within which young unemployed participate in 
5-day  theoretical  training  and  then  are  have  an  18  month 
internship at the SEA.  

-  “Support  to  volunteer  work”:  young  people  participating 
in  voluntary  work  activities 
their 
competences and competitiveness. 

improving 

thus 

- “Workplace for young people”: young unemployed people 
get employed for a trial period of up to 9 months in order to 
acquire  work  experience  and  to  continue  in  permanent 
employment  after  the  trial;  priority  to  young  people  who 
have  been  unemployed  for  more  than  6  months,  who  are 
trying  to  return  to  the  labour  market  after  a  break  for 
childcare  reasons  or  who  are  disabled.  Employment  is 
based  on  a  work  contract  remunerated  at  no  less  than  the 
national  minimum  wage,  while  the  employer  should  pay 
social contributions. 

Under  “Workplace  for  young  people”  employers 
receive  a  subsidy  to  cover  payment  of  the  young 
person and a contribution to the costs of a trainer. 

improvement  and 

ESF  supports 
implementation  of 
vocational  education  programme;  promotion  of  primary 
vocational  education;  support  measures  for  reducing 
social  exclusion  of  youth  and  integration  of  disabled 
youth into education. 

National  measures  to  improve  education  programmes  for 
primary schools (introduction of new education content is 
planned  starting  with  2013/2014  academic  year); 
development  of  general  education  programmes  for 
distance  learning;  promotion  of  career  consulting  in  11 
vocational  schools  to  reduce  number  of  early  school 
leavers;  informative  measures  on  creative  and  innovative 
youth 
training 
initiatives  and  youth  work;  general 
measures for youth. 

Swiss Financing Instrument cooperation project “Support 
for  Development  of  Youth  Initiatives  in  Peripheral  or 
Disadvantaged  Regions”:  10  seminars  organised  in  2012 
for  young  people  (incl.  unemployed)  on  stimulation  of 
youth initiative and activity. 

“Youth  workshops”:  allowing 
three  different 
vocational  fields  (for  maximum  3  weeks  each),  will  be 
introduced at the end of 2012. 

try 

to 

Latvian  students  in  Valga  Vocational  education  centre  (to 
obtain  professional  qualification  beginning  from  2012-
2013)  supported  via  cooperation  agreement  between 
Latvian  Ministry  of  Education  and  Science  and  Estonian 
Ministry of Education.  

LT 

In  April  2012,  ESF  project  “Integration  into  Labour 
refocused  on  young  people,  offering 
Market”  was 
vocational  training  programmes  to  about  6,000  young 

EN 

39 

EN 

 
  
 
 
people.  

Reallocation  of  ERDF  towards  actions  dedicated  to  young 
entrepreneurs  and  various  business  services  for  young 
people.  

Several  ESF  projects, 
implemented  by  Ministry  of 
Education  and  Science,  to  create  modern  traineeship 
organisation  models  (systems)  for  undergraduate  students 
and  students  of  integrated  studies  in  companies  and  (or) 
non-profit  organisations;  also  including  preparation  of 
students’ supervisors (tutors). 

Several  ESF  projects  to  improve  study  programmes  and 
traineeships: e.g. for postgraduate students to go through a 
complementary  traineeship  in  educational  institutions,  in 
Lithuanian or European companies or foreign universities.  

Several  ESF  projects  to  improve  the  qualification  of 
scientists  and  other 
researchers,  offering  additional 
research  projects  and 
scientific  practices,  scientific 
traineeships  for  doctoral  students  in  foreign  scientific 
centres. 

LU 

Specific  contracts  to  help  young  people  acquire  practical 
experience (i.e. “Initial Employment Contract-Practice”). 

In the frame of future action plan for youth employment, a 
Youth  Guarantee 
job,  an 
apprenticeship or a tailor-made training scheme in the first 
four months after unemployment registration. 

(“Garantie  Jeune”):  a 

New  temporary  financial  incentives  for  employers 
in  order  to  increase  the  number  of  apprenticeships 
(from  27%  to  40%),  applying  only  to  apprentices 
studying for a "Certificate of professional capacity" 
(“Certificat de capacité professionnelle”). 

les 

locale  pour 

jeunes”  (Ministry  of 
The  “Action 
Education) is in charge of "Second Chance School" which 
opened  in  2011  for  school  leavers  (16-24)  who  face 
difficulties  to  return  to  the  education  system;  education 
individualised  and  support  reinforced  between  1  and  4 
semesters according to individual needs. 

Envisaged measures: 

- “Social” training of two months followed for the (very) 
unqualified young job seekers (18-25): by either returning 
to  education,  doing  practical  experiences  in  employment 

EN 

40 

EN 

 
  
 
(like  an  apprenticeship),  or  other  outcomes  according  to 
individual needs;  

-  Orientation  and  professional  initiation  courses  for  the 
under  18  years  old  who  cannot  access  directly  the 
professional  education  system,  as  well  as  promotion  of 
language 
and 
communes; 

courses  organised  by  associations 

-  Creation  of  a  “Maison  de  l'Orientation”  (Counselling 
House):  regrouping  key  public  orientation  services  in  a 
same  place  and  thus  allowing  better  coordination  and 
creating synergies. 

MT 

The  Employment  and  Training  Corporation 
(ETC) 
manages  the  “Extended  Skills  Training  Scheme”  (ESTS) 
and 
the  “Technician  Apprenticeship  Scheme”(TAS): 
apprenticeship  format  is  a  combination  of  on-the-job  and 
off-the-job training.  

ETC manages: 

- “Youth Employment Advisors” who offer individualised 
career  guidance  and  personalised  action  plans  for 
employment; 

Traineeships  are  also  organised  under  the  ESF  funded 
“Employability Programme”.  

- Work Trial Scheme: targeting young jobseekers (16-24); 

NL 

Apprenticeships or traineeships are mandatory in secondary 
vocational  education;  not  mandatory,  but  recommended  in 
higher education.  

Education  and  business  are  brought  together  in  the 
Foundation  for  cooperation  on  vocational  education, 
training  and  the  labour  market  (SBB),  aiming  to  optimise 
connection  between  the  education  system  and  the  labour 
market.  

-  Bridging  the  Gap  Scheme  offering  registered  disabled 
people, including young ones, a period of work exposure 
with an employer to enable them to demonstrate the skills 
needed for a particular job. 

ESF  funded  Youth  Employment  Programme  to  increase 
the  employability  of  young  people  and  facilitate  their 
labour market integration. 

The  Dutch  government  has  implemented  a  range  of 
general  measures  with  a  special  focus  on  improving  the 
transition  from  education  to  work  and  to  prevent  early 
school leaving.  

Recently  adopted:  an  integrated  regional  approach  in 
which  municipalities,  educational  institutions,  companies 
(the  labour  market)  and  youth  care  institutions  work 
together  in  order  to  help  vulnerable  youth  in  their 
transition from school to work and to prevent early school 

EN 

41 

EN 

 
  
 
 
In  order  to  ensure  quality,  it  is  required  by  law  that  the 
institutions  providing  apprenticeships/traineeships  are 
accredited  for  offering  a  good  and  safe  working  and 
learning environment. 

leaving.  

Municipalities  are  made  increasingly  responsible  in  the 
process  of  combating  youth  unemployment  given  their 
ability  to  adapt  to  local  labour  markets  and  regional 
conditions.  

Youth  care  and  outreaching  programmes  are  available 
especially for vulnerable youth, for example from families 
facing multiple risks. 

PL 

Traineeships  and  apprenticeships  are 
from 
national resources for unemployed people up to the age of 
25 or for unemployed graduates up to age 27.  

financed 

Public  Employment  Services  (PES)  offered  various 
vocational  activation  instruments  to  unemployed  young 
people. 

Apprenticeship voucher (through programme “Youth on the 
labour  market”)  for  young  unemployed,  who  will  find  an 
apprenticeship  place.  The  employer,  who  accepts  an 
apprentice, has to employ this person for the next 6 months. 

“Youth  on  the  labour  market”  to  prevent  and  combat 
youth  unemployment  (05/  2012  -  11/2014):  includes  a 
number of activation measures for young people up to age 
30 and registered in the PES.  

ESF also supports traineeship and apprenticeship schemes. 

PT 

“Impulso Jovem” includes under ESF: 

-  “Employment  Passports”:  professional  traineeships  for 
young  people  (18-30;  up  to  40  if  in  agriculture  sector), 
registered at PES for at least 4 months; in key areas of the 
economy and which can promote territorial cohesion (ESF) 
and in the areas of industrialisation and innovation (ERDF); 
duration  of  6  months  with  compulsory  provision  of 
vocational  training  and  the  attribution  of  an  integration 
bonus in case a subsequent employment contract is signed.  

Support  to  young  people  at  risk  of  social  exclusion  is 
delivered  by  the  “Voluntary  Labour  Corps”  operating 
within the structure of the PES.  

ESF Operational Programme includes the improvement of 
young  people’s  situation  on  the  labour  market,  but  no 
specific  measures  for  NEETs;  however  priority  given  to 
inactive  young  people  (15-24)  or  those  at  risk  of  social 
exclusion. 

“Impulso  Jovem”,  strategic  programme  to  foster  the 
employability of young people, launched in August 2012 
and  co-financed  by  ESF  and  ERDF  that  includes  in 
particular  measures  to  foster  entrepreneurship  and  to 
support  a  national  microcredit  programme  for  young 
people. 

EN 

42 

EN 

 
  
 
 
 
 
-  Professional 
administration; 

traineeship 

programme 

in 

public 

-  Support  to  contracting  via  reimbursement  of  employer's 
social security contributions. 

RO 

Young  people  can  get  a  job  opportunity  for  1  to  3  years 
through  an  apprenticeship  contract  and  the  employer  has 
the  obligation  to  provide  theoretical  and/or  practical 
training.  

ESF  projects  finance  smoother  transition  from  school  to 
work  through  developing  work  skills  of  apprentices, 
students and young graduates in their first job. 

SK 

Training  can  also  be  offered  to  young  unemployed,  with 
costs for accommodation and travel covered. 

“Graduate's practice”: offering young graduates (up to 26) 
a  possibility  of  getting  a  first  job  experience  for  up  to  6 
months for 20 hours per week. 

National  Employment  Agency  provides  personalised 
services through solidarity contracts for young people (16-
25) at risk of social exclusion. 

ESF  HRD  OP  includes  measures  to  prevent  and  reduce 
early school leaving of young people (15-24). 

Employers,  who  agree  to  hire  youth  at  risk,  can 
receive  grants  of  maximum  amount  of  75%  of  the 
average  wage  for  a  period  of  up  to  2  years.  They 
can  also  receive  a  monthly  grant  equal  to  50%  of 
the  unemployment  benefit  if  they  hire  young 
employees under an open-ended contract. 

The  Act  on  Employment  Services  covers  active  labour 
market  measures  for  vulnerable  groups,  including  young 
people  (school  leavers  up  to  25  who  have  completed 
education within the last two years).  

PES  offer  individual  consultation  services  and  prepare 
action plans for young people.  

Vocational  Education  and  Training  (VET)  in  Slovakia 
formally  does  not  foresee  apprenticeships.  The  vocational 
part  of  VET  is  provided  through  schools  and  practical 
training  centres.  Apprenticeships 
in  companies  are 
exceptional  since  the  legislative  framework  provides  few 
incentives to employers to accept apprentices. 

For  most  vulnerable  people  living  under  the  minimum 
income level, an activation allowance (63 EUR/month) is 
available:  social  assistance  tool  to  help  them  to  continue 
education  or  to  maintain  their  employability  by  offering 
participation in small communal public works. 

SI 

“First  challenge”  launched  in  August  2012:  to  encourage 
employment  of  the  unemployed  and  of  first  job  seekers 
under 30.  

“On-the-job  training”  is  to  obtain  and  strengthen  the 
competences,  knowledge,  skills  and  aptitude  of  young 
unemployed (up to 30) who cannot find a job on the basis 

“Learning 
for  young 
for  young  adults”  project: 
unemployed up to 26, who left school, includes a number 
of activities to improve participants’ general and practical 
knowledge  necessary  for  successful  reintegration  in 
school environment and everyday life. 

EN 

43 

EN 

 
  
 
 
 
 
 
SE 

of their existing work experience.  

Another project assists first-time job seekers with degree in 
social  assistance  in  traineeships  for  a  maximum  period  of 
12  months 
(humanitarian 
in  social  welfare  entities 
organisations,  geriatric  care  centres  and  working  with  the 
disabled). 

In  autumn  2011,  following  adoption  of  the  new  Education 
Act, in vocational upper secondary education more time is 
devoted  to  vocational  subjects  in  the  curriculum.  A 
‘Vocational  Diploma’  can  be  attained  either  through 
school-based vocational programmes, where at least 15 per 
cent  is  work-based  training,  or  alternatively  through 
apprenticeship  programmes,  where  at  least  50  per  cent  is 
work-based training.  

‘Extra’ budget in 2013 to combat youth unemployment, of 
which  80%  should  be  used  for  funding  additional  student 
places  in  various  regular  education  institutions  to  balance 
the weak economy and demand for labour. To be continued 
in 2014-16. 

A “Job guarantee” aiming to provide young people up to 
25  (registered  at  PES)  with  a  job  or  training  within  100 
days of unemployment.  

State  grants  of  up  to  EUR  2,750  per  pupil/year, 
have  been  introduced  to  stimulate  the  provision of 
apprenticeship positions in more work places. 

Since the scheme has not achieved the activity and quality 
levels intended, the Swedish government has provided the 
PES,  in  2012,  with  additional  resources  in  order  to 
increase the staff in charge of implementing the guarantee 
and  already  each  staff  member  of  PES  has  received  less 
youth cases to handle in 2012 than in 2011. 

UK 

Access  to  apprenticeships  started  in  2011  providing  extra 
support and skills development open to NEETs. 

The “Youth Contract” provides: 

- additional work experience or sector-based work academy 
places; 

- additional apprenticeship grants; 

- voluntary work experience places. 

In  Northern  Ireland,  Programme-led  apprenticeships  give 
school  leavers  of  16  and  17  (and  up  to  24  for  those 
requiring  additional  support)  the  opportunity  to  gain  a  full 
apprenticeship qualification in a chosen skill area. 

The  “Youth  Contract”,  launched  in  April  2012,  to  help 
long-term 
young  people 
sustainable employment. It provides: 

to  prepare  for  and  find 

-  additional  support  for  Jobcentre  Plus  and  for  advisor 
time;  

- national Careers Services providing advice, guidance on 
careers, skills and labour market prospects. 

Employers  benefit  from  the  lower  minimum  wage 
rate for apprentices, which, at GBP 2,50 (+/- EUR 
3,11)  per  hour,  is  much  lower  than  that  for  other 
UK workers. 

The “Youth Contract” includes wage incentives to 
employers to recruit young people of 18-24. It also 
offers  funding  for  private  providers  (paid  by 
results) to target disengaged young people aged 16-
17. 

In  Northern  Ireland,  strategy  towards  NEETs  of  16-18 
and  then  of  18-24.  “Training  for  Success”  addresses 
personal  and  development  needs  and  helps young  people 
to  gain  skills  and  a  vocationally  related  qualification  at 
Level  1  in  order  to  be  able  to  gain  employment  or  to 
progress to pre-apprenticeship or apprenticeship. 

Northern 

In 
“employer-led” 
Ireland, 
apprenticeships programme is partially financed by 
the European Social Fund. 

EN 

44 

EN 

 
  
 
HR 

Occupational  training  for  people  with  no  work-experience 
is conducted, in which the participant receives financial aid 
from the CES. 

The  Croatian  Employment  Service  (CES)  pays  special 
attention  to  career  guidance  for  people  with  disabilities 
and  other  hard-to-reach  groups  as  well  as  to  vocational 
guidance of students with disabilities. 

In  the  occupational  training  scheme,  the  employer 
provides  a  mentor  for  the  participant  and  is 
reimbursed  on  the  obligatory  monthly  pension 
insurance contributions. 

Planned:  raising  awareness  of  employment  possibilities 
after  secondary  school  education  and  improving  the  link 
between  the  labour  market  and  the  education  system 
through apprenticeships and probationary employment. 

As a measure to prevent long-term unemployment, CES is 
taking “early intervention” activities among which a set of 
vocational  guidance  services,  such  as  information  and 
counselling,  aimed  at  students  in  their  final  years  of 
school, VET or tertiary education. 

Planned: development of incentives, tax reliefs and 
other  incentives  for  recruiting  young  people  (by 
introducing  special  credit  lines  and  incentives  for 
young entrepreneurs). 

EN 

45 

EN 

 
  
 
ANNEX II:  

Examples of Youth Guarantee activities/interventions that can be supported by the ESF 

Measures 

Specific  examples  of  activities/interventions  that  can 
be supported by the ESF 

Outreach strategies and focal points 

[YG rec 8-9] 

(cid:190)  School visits by PES 
(cid:190)  Training sessions for teachers by PES 
(cid:190)  Development of specialised youth services as part of PES or 

contracted private providers  

(cid:190)  Distribution of printed material at youth centres or youth events 
(cid:190)  Use of internet and social media 
(cid:190)  Data gathering systems 
(cid:190)  Road-shows  

Provide individual action planning 

[YG rec 10] 

(cid:190)  PES staff training 
(cid:190)  Contract with specialised partners 

Offer early school leavers and low-
skilled  young  people  routes  to  re-
enter  education  and  training  or 
education 
second-chance 
programmes, 
skills 
mismatches  and  improve  digital 
skills 

address 

[YG rec 11-13] 

(cid:190)  Training and second chance programmes  
(cid:190)  Language training provision 
(cid:190)  Counselling and extra teaching support to keep or bring youth 

back into education or training 

(cid:190)  Support to at-risk youth in acquisition of relevant qualifications 

and the completion of upper secondary qualification 

(cid:190)  Work-based learning and apprenticeships 
(cid:190)  Provide digital skills training 
(cid:190)  Training vouchers 

schools 

and 
Encourage 
employment  services  to  promote 
and provide continued guidance on 
entrepreneurship 
self-
employment for young people. 

and 

[YG rec 14] 

targeted  and  well-designed 
Use 
wage  and  recruitment  subsidies  to 
encourage  employers  to  provide 
young 
an 
apprenticeship  or  a  job  placement, 
and  particularly  for  those  furthest 
from the labour market. 

people 

with 

(cid:190)  Training sessions of employment services’ staff and teachers 
(cid:190)  Development and implementation of entrepreneurship courses in 

secondary education 

(cid:190)  Training sessions for unemployed young people 

(cid:190)  Hiring credits targeted at net new hiring of young people via 
jobs as well as apprenticeships (ESF support for the subsidies 
credits should be accompanied by activation measures – such as 
practical training, etc.) 

[YG rec 17] 

Promote 
employment/labour 
mobility  by  making  young  people 
aware  of  job  offers,  traineeships 
and  apprenticeships  and  available 
support 
in  different  areas  and 
provide  adequate  support  for  those 
who have moved  

(cid:190)  Operation of EURES points (ESF support to EURES focuses on 
recruitment and related information, advice and guidance 
services at national and cross border level) 

(cid:190)  Awareness-raising campaigns  
(cid:190)  Support to voluntary organisations providing mentors 
(cid:190)  Support to youth organisations reaching out to migrant young 

workers 

[YG rec 18] 

EN 

46 

   EN 

 
 
Ensure  greater  availability  of  start-
up support services 

[YG rec 19] 

(cid:190)  Cooperation between employment services, business support and 

finance providers (e.g. regional employment fairs and 
networking events) 
(cid:190)  SME start-up support 
(cid:190)  Self-employment support 
(cid:190)  Training in business skills for e.g. for unemployed persons, 

accompanied by entrepreneurship grants 

mechanisms 

Enhance 
for 
supporting young people who drop 
out from activation schemes and no 
longer access benefits 

(cid:190)  Support to youth organisations and youth services 
(cid:190)  Cooperate with other organisations that are in contact with the 

young persons 

(cid:190)  Establish tracking systems 
(cid:190)  Support to employment and school career support services 

Identify cost-effective initiatives 

(cid:190) 
(cid:190)  Use controlled trials 
(cid:190)  Set up centres for analysis 
(cid:190)  Developing policy models, pilot actions, testing and 
mainstreaming of policies (social innovation and 
experimentation) 

(cid:190)  Use of the European Network on Youth Employment (ESF 
supports transnational cooperation activities on exchange of 
good practice among organisations at EU level through ESF 
Technical Assistance funding at Commission level) 

(cid:190)  Provide training and workshops 
(cid:190)  Establish exchange programmes and secondments between 
organisations through transnational cooperation activities. 

[YG rec 20] 

programmes 

Monitor  and  evaluate  all  actions 
contributing 
and 
towards a Youth Guarantee, so that 
more  evidence-based  policies  and 
interventions  can  be  developed  on 
the basis of what works, where and 
why 

[YG rec 23] 

Promote  mutual  learning  activities 
at national, regional and local level 
between  all  parties  fighting  youth 
unemployment in order to improve 
design and delivery of future Youth 
Guarantee schemes. 

[YG rec 24] 

Strengthen  the  capacities  of  all 
stakeholders, including the relevant 
employment  services,  involved  in 
implementing 
and 
designing, 
evaluating 
Guarantee 
Youth 
schemes,  in  order  to  eliminate  any 
internal  and  external  obstacles 
related  to  policy  and  to  the  way 
these schemes are developed. 

[YG rec 25] 

EN 

47 

   EN