COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Moving Youth into Employment
Date: 2012-12-05
Institutions: European Commission
Subjects: access to a profession, job access, labour mobility, traineeship, young person, youth employment, youth unemployment

EUROPEAN 
COMMISSION 

Brussels, 5.12.2012  
COM(2012) 727 final 

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

Moving Youth into Employment 

{SWD(2012) 406 final} 

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

Moving Youth into Employment 

I. 

INTRODUCTION 

The  crisis  which  Europe  has  been  undergoing  since  2008  is  having  an  exceptionally  severe 
and ever-increasing impact on young people: the youth unemployment rate stood at 22.7 % in 
the third quarter of 2012, twice as high as the adult rate1, and no signs of improvement are in 
sight. Beyond the immediate effects of the crisis, structural problems in the education system 
and  in  the  labour  market  have  been  making  the  transition  from  school  to  work  long  and 
difficult. Young people have been in a more difficult situation than adults for too long a time. 
Being unemployed at a young age can have a long-lasting negative impact, a ‘scarring effect’. 
In addition to higher risks of future unemployment, these young people are  also at a  higher 
risk of exclusion, of poverty and of facing health problems2. Effective remedies are urgently 
needed. 

One year ago, the Commission adopted the Youth Opportunities Initiative3 (YOI), prompting 
EU  and  Member  State  action  to  improve  youth  employment.  EU  Structural  Funds  were 
mobilised  to  increase  support  for  youth  and  financial  resources  for  policy  measures  and 
investment  projects  are  now  being  funded.  Both  the  European  Council4  and  the  European 
Parliament5 have since re-emphasised the crucial importance and urgency of addressing youth 
unemployment, highlighting the potential for initiatives on youth guarantees and on a quality 
framework for traineeships. The Commission also recently adopted the 'Rethinking Education' 
package6. 

This  Communication  and  its  accompanying  Staff  Working  Document7  present  the  action 
taken  at  EU  and  at  national  level  to  implement  the  YOI  (including  through  28  country  fact 
sheets).  The  Communication  then  outlines  further  concrete  initiatives  proposed  by  the 
Commission  and  to  be  taken  forward  by  the  Member  States  and  social  partners,  in  order  to 
address the different short-term and structural problems behind the youth employment crisis.  

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6 

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Eurostat Labour Force main indicators, seasonally adjusted quarterly data, youth is defined as less than 
25 years of age, adults as over 25. 
Status  of  the  situation  of  young people  (accompanying  the  EU  Youth  Report)  SWD(2012)  257  of  10 
September 2012. 
COM(2011) 933 of 20 December 2011. 
European Council Conclusions, EUCO76/12 of 29 June 2012 and EUCO 156/12 of 19 October 2012. 
European  Parliament  resolution  on  the  Youth  Opportunities  Initiative  (2012/2617(RSP))  of  24  May 
2012. 
COM(2012)  669  of  20  November  2012.  The  Council  Conclusions  on  European  cooperation  in 
education  and  training  ('ET  2020')  (2009/C  119/02  of  28  May  2009)  and  the  EU  Strategy  for  Youth 
(COM (2009) 200 of 27 April 2009) also provide relevant frameworks for concerted European efforts in 
education, training and youth employment.  
SWD(2012) 406 of 5 December 2012. 

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Young  people  face  numerous  problems  on  their  way  from  education  to  work.  In  many 
countries, ineffective labour market regulation or poorly functioning institutions make it more 
difficult for young people to find a stable job. Too many are left without help if they drop out 
of  school  or  have  difficulty  finding  a  job.  More  favourable  labour  market  outcomes  can  be 
observed in countries where a higher proportion of students undertake quality traineeships or 
work placements as part of initial education and training or in countries with well-established 
apprenticeship  systems8.  Geographical  mobility  can  also  help  resolve  local  mismatches 
between supply and demand for young workers. Table 1 provides a simplified overview of the 
types of measures that can help address each of these problems. The initiatives presented by 
the Commission are then detailed in subsequent sections. 

Table 1: Problems affecting youth employment addressed in this package and possible EU-level actions 

Problem 
Young people face difficulties in 
finding a strong foothold on the 
labour market 

Young people, particularly from 
vulnerable or disadvantaged 
groups, dropping out of education 
or work; rising long-term 
unemployment and inactivity 

Possible Remedy 
Take measures supporting young 
people's inclusion on the labour 
market, such as facilitating school-
to-work transitions, reforming 
labour market 
regulation/institutions to make 
them more employment-friendly 
and addressing labour market 
segmentation 

Set up Youth Guarantee schemes; 
use ESF funding effectively in 
their implementation  

Difficult school-to-work transitions 

Increase the supply of quality 
traineeships and apprenticeships  

Substantial number of vacancies 
coexists with high unemployment 
rates, growing skills and 
geographical mismatches  

Reduce obstacles to mobility to 
allow companies to recruit 
workers, apprentices and trainees 
from other EU countries 

EU-level Tools/Actions 
Adopt and implement relevant 
Country-Specific 
Recommendations in the context of 
the European Semester. 
(section III and annex II of the 
SWD) 

Support Youth Guarantee schemes 
(incl. through exchange of best 
practice; ESF funding) 
(cid:198) The Commission is proposing 
a Council Recommendation on 
Establishing a Youth Guarantee 
(section IV) 

Take decisive steps in promoting 
quality traineeships and 
apprenticeships: 
(cid:198) The Commission is launching 
a second stage social partner 
consultation on a Quality 
Framework for Traineeships 
(section V.1.) 

(cid:198) The Commission will set up a 
European Alliance for 
Apprenticeships (section V.2.) 

Reinforce EU financial instruments 
on intra-EU mobility 
(cid:198) The Commission will launch, 
in the first half of 2013, a 
stakeholder consultation on a 
future EURES jobs for young 

8 

Study  on  a  comprehensive  overview  on  traineeship  arrangements  in  Member  States,  European 
Commission,  2012,  Apprenticeship  supply  in  the  Member  States  of  the  European  Union,  European 
Commission, 2012. 

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II. 

A worsening employment outlook for young people 

people programme (section V.3.) 

The youth unemployment rate9 is more than twice as high as the rate for adults (22.7 % 
as against 9.2 % in the third quarter of 2012) and has dramatically increased over the last four 
years. A similar upward trend can be noted in terms of unemployment ratios10. Young people 
are typically the last to be hired and the first to be dismissed. Long-term unemployment11 is 
much higher for young people and has been rising fast during the crisis: the rate went up by 
3.7 percentage points (to 7.3 % of the young labour force) between 2008 and 2012, compared 
with a 1.8 point increase for adults (to 4.3 %). Overall employment rates12 for young people 
fell by almost five percentage points over the last four years (from 37.3 % to 32.8%) — three 
times as much as for adults. 

The  chances  for  a  young  unemployed  person  of  finding  a  job  are  low.  Only  29.7  %  of 
those aged 15-24 and unemployed in 2010 found a job in 2011, a fall of almost 10 % in three 
years13.  

When young people do find work, their jobs tend to be less stable. They are strongly over-
represented  in  temporary  and  part-time  work14:  in  2012,  42.0  %  of  young  employees  were 
working on a temporary contract (four times as much as adults) and 32.0 % part-time (nearly 
twice  the  adults’  rate)15.  Young  women  are  more  likely  to  experience  fragile  starts  and  in 
particular a doubly fragile position combining temporary work with part-time employment16. 
Temporary  jobs  can  be  a  stepping  stone  to  permanent  employment,  but  their  prevalence  at 
such  elevated  levels  raises  economic  and  social  concerns  and  signals  dysfunctional  labour 
markets.  Moving  from  a  temporary  to  a  permanent  contract  can  be  even  more  difficult  in 
countries  with  strict  employment  protection 
labour  market 
segmentation17.  

legislation  and  high 

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16 

17 

Eurostat Labour Force main indicators, seasonally adjusted quarterly data, youth is defined as less than 
25 years of age, adults as over 25. 
The  unemployment  ratio  (defined  as  the  share  of  young  unemployed  persons  in  the  whole  young 
population) includes a large inactive group mainly in education in that age group and thereby can give a 
more  complete  picture  of  the  size  of  the  unemployment  problem.  This  is  relevant  when  comparing 
countries  with  big  differences  in  youth  inactivity  (for  more  details  see  the  European  Commission’s 
Employment in Europe Report 2007, Chapter 1). 
Eurostat Labour Force Statistics, quarterly non-seasonally adjusted data (lfsq_pganws) and (lfsq_upgal) 
for the second quarter. Youth aged 15-24, adults 25-64. 
Eurostat Labour Force Statistics, quarterly non-seasonally adjusted data (lfsq_eppqa) and (lfsq_etpga) 
for the second quarter. Youth aged 15-24, adults 25-64. 
Data  for  13  European  countries.  European  Commission,  Employment  and  Social  Developments  in 
Europe (ESDE), 2012, forthcoming. 
See footnote 12. 
See footnote 12. 
Calculation from the European Network of Experts on Gender Equality based on the 2009 LFS Ad hoc 
module on school-to-work transitions. 
In dual labour markets a large share of temporary contracts, employing for the most part young workers, 
coexists alongside a stock of open-ended contracts with much greater employment security. Disparities 
in employment protection rights for permanent and fixed-term contracts have been identified as a key 
source of segmentation. 

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Early  school-leavers  are  a  high-risk  group:  54.2  %  of  early  leavers  from  education  and 
training in the EU are not employed and within this group about 70 % want to work. Early 
school-leaving  is  higher  among  those  born  abroad  and  among  men.  Recent  trends  show  for 
both groups that the gap is widening, which will affect their labour market prospects. 

Resignation  among  young  people  is  an  increasing  concern:  12.4  %  of  inactive  youth 
wanted  to  work  but  were  not  searching  for  employment  in  the  second  quarter  of  201218. 
Furthermore, the percentage of young people who are neither in employment nor in education 
or training (so-called NEETs) is rising. In 2011, 12.9 % of youth were NEETs, 2 percentage 
points more than four years earlier19.  

There are significant skills mismatches on Europe's labour market. Many young workers 
hold  formal  qualifications  above  those  required  by  the  job  they  are  able  to  get  (under-
employment), but at the same time their skills are less likely to be the right ones (matching 
rate) compared to older workers20. Although the low-skilled overall still face the highest risk 
of unemployment21, the  young highly skilled have suffered the biggest drop in employment 
(9.5  percentage  points,  almost  twice  as  much  as  the  low  skilled).  Even  high-skilled  young 
people  are  now  increasingly  affected  by  long-term  unemployment.  These  skills  mismatches 
are  a  growing  concern  for  European  industry's  competitiveness  and  for  the  EU's  ability  to 
meet societal challenges22. 

Despite the crisis, there are over two million unfilled vacancies in the EU, often because 
there are no workers with the required skills in the local job market. Furthermore, sectors with 
important  job  creation  potential,  such  as  the  green  economy,  health  care  and  ICT,  would 
require an increased number of qualified workers in the next years. Preliminary flow analysis 
for  2011  confirms  the  increase  in  mobility  from  Southern  European  countries  to  the  North, 
although flows still remain limited. A lack of affordable housing or of experience in working 
abroad,  weak  knowledge  of  foreign  languages,  low  awareness  of  local  legislation  and  of 
workers’  rights,  and  difficulties  in  the  recognition  of  qualifications  are  all  factors  hindering 
mobility. 

Although  young  people’s  job  prospects  are,  overall,  unsatisfactory  in  the  EU  there  are 
important differences in the gravity of the problem among EU countries. Unemployment 

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to 

the 

Eurostat  Labour  Force,  quarterly  non-seasonally  adjusted  data  [lfsq_igaww]  for  the  second  quarter. 
Youth aged 15-24, excluding "no answer" responses. 
Eurostat, Labour Force Statistics, [edat_lfse_20].  
ESDE, 2012, forthcoming. 
The  low-skilled  still  face  the  highest  risk  of  unemployment,  and  their  prospects  are  likely  to  worsen. 
latest  skills  forecast  by  Cedefop  (http://www.cedefop.europa.eu/EN/about-
According 
cedefop/projects/forecasting-skill-demand-and-supply/skills-forecasts.aspx), 
jobs 
available across the EU for individuals with lower secondary education at most — which has already 
decreased by 20.4 % between 2000 and 2010 — will decrease by a further 18.9 % between 2010 and 
2020. 
Industrial Policy Communication Update — COM (2012) 582 of 10 October 2012. For example, there 
will be up to 700 000 unfilled ICT practitioners' vacancies in the EU by the year 2015 (see Report for 
the European Commission Anticipating the Evolution of the Supply and Demand of e-Skills in Europe 
(2010-2015),  Empirica  and  IDC  Europe,  2009.  Updated  forecast  presented  at  the  European  e-Skills 
Conference,  Brussels,  13  December  2011).  Addressing  skills  mismatches  is  also  highly  relevant  in 
health and social care, as well as for the green economy. 

the  number  of 

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rates23 in the worst-performing countries are more than five times higher than the rates in the 
best-performing. Over the last year, the youth unemployment rate has swollen to over 30 % in 
many  countries  and  to  over  50  %  in  Greece  and  Spain.  Youth  unemployment  rates  were 
below 15 % in only four countries. 

III. 

THE YOUTH OPPORTUNITIES INITIATIVE ONE YEAR ON 

While the EU-level is implementing its actions … 

Implementation of the 18 EU-level actions planned under the Youth Opportunities Initiative 
(YOI)  is  well  advanced24.  The  Commission  is  making  European  Social  Fund  technical 
assistance  available  to  help  set  up  of  apprenticeship-type  schemes,  cross-border  learning 
mobility  and  social  innovation  projects  targeting  youth.  It  is  also  increasing  volunteering 
opportunities  and  financing  cross-border  traineeships  and  entrepreneur  exchanges.  It  is 
supporting  labour  market  mobility,  notably  through  initiatives  such  as  ‘Your  first  EURES 
Job’  and  is  analysing  measures  taken  across  Europe  to  fight  youth  unemployment  and  to 
improve education and training. 

23 

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Eurostat Labour Force main indicators, seasonally adjusted data, second quarter, youth is defined as less 
than 25 years of age. 
Details of action already taken and the next steps can be found in the accompanying Commission Staff 
Working Document, SWD(2012) 406 of 5 December 2012. 

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Figure  1:  Youth  (15-24  years)  unemployment  rates  and  year-on-year  changes, 
September 2012 

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…Member States are also taking measures … 

Many  Member  States  have  taken  action  to  boost  youth  employment,  developed  youth 
employment  plans,  and  stepped  up  education  and  training  programmes,  also  in  response  to 
Action  Team25  visits  and  bilateral  meetings  organised  after  the  launch  of  the  YOI. 
Unemployed young people are usually one of the main target groups covered by large-scale 
employment  measures.  The  accompanying  Staff  Working  Document26  contains  country  fact 
sheets  outlining  the  measures  taken  by  all  27  Member  States  and  Croatia.  The  support 
measures  typically  include  wage  subsidies,  job  search  assistance,  traineeships  and  further 
learning, sometimes accompanied by reforms to reduce labour market segmentation. Trends 
in  apprenticeships  are  less  uniform:  while  some  Member  States  have  well-functioning  dual 
apprenticeship  systems,  others  are  only  starting  their  progressive  introduction.  Measures  for 
promoting  youth  entrepreneurship  and  business  start-ups  are  gaining  momentum  in  most 
Member States27. 

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26 
27 

At  the  informal  European  Council  meeting  of  30  January  2012,  President  Barroso  proposed  a  pilot 
action  to  help  the  eight  Member  States  with  the  highest  levels  of  youth  unemployment  to  re-allocate 
some of their EU structural funds allocations to tackling youth unemployment. 
SWD(2012) 406 of 5 December 2012. 
Self-employment  is  increasingly  recognised  as  a  possible  career  option  for  young  people,  see  also 
Entrepreneurship Education at School in Europe, European Commission, 2012. 

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Examples of the use of reallocated ESF funds in the Action Team Member States28: 

• 

• 

• 

• 

• 

• 

• 

• 

ES:  €  294.2  m  redirected  towards  actions   to  support  the  employability  of  young 
people,  support  public  employment  services  (PES)  with  developing  active  labour 
market policies for young people too and reinforce measures to combat early school 
leaving and promote vocational training. 

IT:  €  1  bn  redirected  towa rds  boosting  education  and  employment  in  Southern 
regions, including tackling early school leaving. 

IE: € 25 m redirected to maintain 3 700  training places for early school leavers until 
the end of 2013. 

LT: € 18.3 m redirected for doubling the number of young unemployed benefiting 
from direct EU support over the next two years to 21 000. 

PT:  Decision  taken  to  reallocate  €  143.3  m  to  support  89  510  young  people  for 
measures contained in the programme "Impulso Jovem", such as traineeships. 

SK:  €  70  m  reallocated   to  create  13  000  jobs  in  Slovak  regions  most  affected  by 
unemployment,  the  majority  of  which  are  reserved  for  young  people,  using  partial 
reimbursement of labour costs. 

EL:  €  250  m  reallocated;  an  action  plan  is   under  preparation  to  provide  training, 
work  experience,  employment  and  entrepreneurship  opportunities  for  333  000 
young people.  

LV:  €  26.3  m  from  state  budget  allocated 
competitiveness and employment. 

to  implement  ESF  activities  on  youth 

… making use of mobilised funds… 

The  European  Social  Fund  (ESF)  is  the  main  instrument  supporting  large-scale  youth 
employment  measures  at  EU  level,  while  a  number  of  youth-targeted  programmes  are 
supported by other EU funds, such as the European Regional Development Fund (ERDF) and 
the  European  Agricultural  Fund  for  Rural  Development  (EAFRD).  Overall,  at  least  €  10 
billion  has  been  targeted  for  re-allocation  or  accelerated  delivery  in  the  eight  Action  Team 
countries in the past 12 months under the YOI, covering for example job subsidies, vocational 
training, and early school leaving prevention. At least 56 000 SMEs and 658 000 additional 
young people are likely to benefit from these recent adjustments to funding programmes. 

21 Member States have already redirected significant resources, within and among their ESF, 
ERDF  and/or  EAFRD  operational  programmes,  towards  measures  to  boost  workers' 
employability, and to combat and prevent youth unemployment. The priority is now to fully 
implement the modified funding programmes at Member State level. 

28 

The figures in this table are provisional and reflect information as of November 2012. 

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…and seeing their structural challenges addressed through the European Semester  

European  Semesters,  and  the  country-specific  recommendations  (CSRs),  are  a  policy 
coordination tool to strengthen governance and reinforce coordination of economic policies at 
EU level. They provide a framework for multilateral surveillance of employment policy and 
structural reforms and assess the EU’s progress towards the targets it set itself in the Europe 
2020 Strategy. 

In 2012, CSRs specifically aimed at improving the situation of the youth in the labour market 
were  made  for  nearly  all  Member  States.  The  accompanying  Staff  Working  Document29 
contains a detailed overview of youth-specific recommendations30.  

The  2013  Annual  Growth  Survey  (AGS)31,  launching  the  European  Semester  for  2013, 
stresses  that  Member  States  should  do  more  to  fight  unemployment,  improve  employability 
and support access to jobs or a return to the world of work for young people 

IV. 

SECURING TRANSITIONS FOR ALL YOUTH: THE YOUTH GUARANTEE 

A Youth Guarantee … 

It  is  necessary  to  invest  in  the  human  capital  of  young  Europeans  in  order  to  address  the 
profound youth employment crisis of today and benefit from sustainable and inclusive growth 
over the medium-to-long term. Given the difficult school-to-work transitions experienced by 
young people, the Commission is calling on all Member States to swiftly implement a Youth 
Guarantee and is presenting a proposal for a Council Recommendation supported by several 
calls from the European Council32.  

The  Youth  Guarantee  is  to  be  implemented  by  a  comprehensive  and  holistic  scheme  that 
ensures that young people receive a good quality offer of employment, continued education, 
an  apprenticeship  or  a  traineeship  within  four  months  after  having  left  school  or  become 
unemployed. Details on what constitutes a Youth Guarantee, its costs and benefits and how to 
make  the  Youth  Guarantee  a  success  can  be  found  in  the  Staff  Working  Document 
accompanying  the  Proposal  for  a  Council  Recommendation33.  The  annexes  to  this  Staff 
Working  Document  outline  measures  supporting  youth  employment  already  underway  in 
Member States as well as examples of actions and interventions that can be supported by the 
ESF.  

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31 
32 

33 

SWD(2012) 406 of 5 December 2012. 
Furthermore, the Joint Employment Report (Annex to COM(2012) 750 of 28 November 2012) is part of 
the  Commission  package  to  launch  the  2013  European  Semester,  underpinning  and  expanding  on  the 
Annual  Growth  Survey.  It  is  based  on  the  employment  and  social  situation  in  Europe,  on  the 
implementation of the Employment Guidelines, as well as on the results of country examination of the 
National Reform Programmes that led to the 2012 CSRs and on the assessment of their implementation 
so far. 
COM(2012) 750 of 28 November 2012. 
Proposal  for  a  Council  Recommendation  on  Establishing  a  Youth  Guarantee,  COM(2012)  729  of  5 
December 2012. 
SWD(2012) 409 of 5 December 2012. 

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The Youth Guarantee scheme must be based on supporting measures, according to six axes: 
building up partnership-based approach, early intervention and activation measures, measures 
enabling  labour  market  integration,  use  of  EU  Structural  Funds,  assessment  and  continuous 
improvement  of  the  scheme  and  swift  implementation.  The  Commission  leaves  it  up  to 
Member States to define the institutional framework within which such a Guarantee should be 
provided. 

… has long-term gains… 

A Youth Guarantee has a fiscal cost. The cost depends on national circumstances and on the 
way in which the scheme is set up and implemented. It will be greater in countries with high 
rates  of  NEETs  or  of  youth  unemployment.  The  duration  of  young  people's  unemployment 
will also have an  impact, as  well as different  starting  points  in  terms  of  existing  supporting 
measures (e.g. well-trained PES staff to address young people’s needs). 

These  costs  however  will  be  outweighed  through  avoiding  the  long-term  costs  of 
unemployment,  inactivity  and  lost  productivity34.  This  means  that  there  will  be  positive 
returns on the investment into a Youth Guarantee35. Being unemployed at a young age has a 
long-lasting negative impact (‘scarring effect’) on both future income levels and future risk of 
unemployment.  A  Youth  Guarantee  scheme  providing  young  people  with  real,  tangible 
opportunities will enable them to avoid a long and harmful absence from the labour market, 
preserve  and  enhance  their  human  capital,  maintain  their  employment  and  career  prospects 
further  down  the  line  and  increase  their  wage  potential,  which  is  relevant  for  aggregate 
demand and overall economic performance in the years to come. 

In  the  2013  AGS  the  Commission  considers  that  investments  in  education  should  be 
prioritized  and  strengthened  where  possible,  while  ensuring  the  efficiency  of  such 
expenditure.  Particular  attention  should  also  be  paid  to  maintaining  or  reinforcing  the 
coverage and effectiveness of employment services and active labour market policies, such as 
training for the unemployed and Youth Guarantee schemes. 

 Investing  now  in  the  right  skill-set  will  enable  young  people  to  be  employable  to  fill  job 
vacancies and create economic value. In light of the risk of marginalisation and resignation, 
giving  young  people  a  perspective  is  also  necessary  so  that  their  confidence  in  public 
institutions, government structures and society can be maintained. 

… which the EU will financially support 

Member  States  suffering  from  the  highest  levels  of  unemployment  are  also  typically  those 
facing the greatest challenges concerning the sustainability of their public finances. The EU 
can already financially support Member States in implementing the Youth Guarantee through 
the  Cohesion  Policy  funding  instruments,  in  particular  the  ESF.  The  Commission  will 
encourage Member States to make best use of them and of any future instruments. 

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35  

The  annual  cost  in  Europe  of  having  young  people  neither  in  employment,  education  or  training  are 
currently put at 1.2 % of GDP, or € 153  billion, see: Eurofound (2012), NEETs – Young people not in 
employment, education, or training: Characteristics, costs and policy responses in Europe, Publications 
Office of the European Union, Luxembourg. 
The  investment  into  a  Youth  Guarantee  does  not  fall  within  the  category  of  gross  fixed  capital 
formation in national accounts.  

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The Commission’s proposals for the 2014-2020 Multiannual Financial Framework highlight 
the role of the ESF as the EU’s key instrument for investing in human capital. It has proposed 
that at least 25% of future cohesion funding is allocated to the ESF and that at least 20% of it 
is  earmarked  for  social  inclusion  policies.  Youth  employment  can  be  addressed  under  a 
number  of  ESF  investment  priorities,  and  specific  attention  has  been  proposed  to  the 
sustainable integration of NEETs in the labour market. 

V. 

TARGETED EU INITIATIVES  

Further  to  the  initiative  on  a  Youth  Guarantee,  this  chapter  presents  three  targeted 
Commission initiatives on quality traineeships, on promoting apprenticeships across the EU, 
and on facilitating the mobility of young people. 

1. 

Quality Framework for Traineeships 

Traineeships can help to improve young people's employability … 

Traineeships,  intended  as  a  limited  period  of  hands-on  practice  spent  at  a  workplace  either 
during or after studies, are becoming more and more part of a career path for young people. 
They often allow them to increase their employability while offering various benefits to the 
host  organisations  too,  in  terms  of  addressing  skill  mismatches,  tapping  into  up-to-date 
knowledge and facilitating future recruitment. 

The  Commission  will  continue  to  provide  financial  support  through  the  ESF  to  Member 
States  wishing  to  improve  the  employment  situation  for  young  people  through  traineeship 
schemes. 

… provided they are of good quality … 

It is crucial to ensure that transitory periods such as those spent in traineeships serve young 
people’s  development  and  allow  them  to  gain  a  strong  foothold  on  the  labour  market  as 
quickly as possible. Nevertheless, traineeships need to be of sufficient quality, in terms both 
of learning content and of adequate working conditions. There is a risk of traineeships being 
abused as a source of cheap or free labour and that — given their increasingly important role 
in a depressed labour market — they may lead to a vicious circle of precarious employment or 
discourage young people from taking up traineeships in the first place. A large proportion of 
traineeships  lacks  high  quality  learning  content  and/or  adequate  social  protection  coverage 
and compensation/remuneration, especially among open market traineeships36. A gender pay 
gap is also apparent in traineeships: a larger proportion of women are in unpaid or in low-paid 
positions.  

Concerns about the quality of traineeships have been echoed several times at political level: in 
2010  the  European  Parliament  called  upon  the  Commission  to  propose  a  European  quality 

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Study on a comprehensive overview of traineeship arrangements in the EU Member States, European 
Commission (2012). 

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charter  for  internships37,  while  the  Council  invited  the  Commission  to  provide  guidance  on 
conditions for high quality traineeships38.  

... which will also support transnational traineeships 

Transnational traineeships offer many advantages, but are still not widespread. The lack of a 
structured  quality  framework  and  guidance  is  likely  to  hold  back  the  development  of 
transnational  traineeships.  Barriers  to  transnational  traineeships  include  the  lack  of 
transparency and of easily accessible information on the legal and administrative conditions 
and  the  difficulty  of  finding  and  selecting  host  organisations.  Furthermore,  given  the 
investment  of  moving  abroad,  the  cost  of  an  unsuccessful  traineeship  is  higher  for  foreign 
trainees and it is harder for them to switch hosts. 

The  Commission's  proposal  on  modernising  the  Professional  Qualifications  Directive39 
extends the scope of the Directive to cover traineeships undertaken in other Member States. 
However,  the  Directive  applies  only  to  traineeships  that  are  a  condition  for  access  to  a 
regulated profession and not to open-market traineeships where problems are most frequent. 

Social partners are key in ensuring quality traineeships 

In April 2012 the Commission launched a public consultation40 on a Quality Framework for 
Traineeships. This consultation was followed in September 2012 by a first-stage consultation 
of social partners. Both consultations revealed a consensus on the useful role of traineeships 
but pointed to a lack of quality and widespread misuse in relation to trainees across Europe, 
making  it  clear  that  action  needs  to  be  taken  against  these  issues.  However,  there  were 
diverging  views  about  the  scope  and  possible  form  of  the  action.  The  Commission  is  now 
seeking the views of social partners under Article 154 TFEU on the content of the envisaged 
action at EU level to adopt a Quality Framework41. The Commission will present its proposal 
in 2013, if the social partners do not wish to enter into negotiations. 

2. 

European Alliance for Apprenticeships 

Well-designed apprenticeship schemes smooth the transition from school to work … 

Company-based apprenticeship schemes (also known as 'dual' or 'twin-track' apprenticeships) 
enable  a  young  person  to  both  gain  work  experience  and  practical  skills  through  a  work-
contract in a company as well as acquire theoretical knowledge, often through an educational 
institution.  There  are  good  examples  in  some  Member  States  of  how  to  use  apprenticeship 
schemes optimally to smooth the transition from education to work. 

The  need  to  improve  the  supply  and  quality  of  apprenticeships  is  widespread:  in  2012,  the 
Council  addressed  CSRs  to  seven  Member  States  on  apprenticeships  and  to  three  on 

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'Promoting  youth  access  to  the  labour  market,  strengthening  trainee,  internship  and  apprenticeship 
status', EP 2009/2221(INI), 14.6.2010 
Council Conclusions 17.6.2011 
Proposal  for  a  Directive  amending  Directive  2005/36/EC  on  the  recognition  of  professional 
qualifications  and  Regulation  on  administrative  cooperation  through  the  Internal  Market  Information 
System, COM (2011)883 final from 19 December 2011. 
SWD(2012) 99, 18.4.2012. 

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vocational  training.  Even  in  the  other  Member  States,  much  could  be  done  to  improve  the 
functioning of the apprenticeship system, and to make better use of ESF funding to this end.  

The  success  factors  for  apprenticeship  schemes  can  be  categorised  into  three  main  groups. 
Firstly,  effective  partnerships  between  vocational  education  and  training  (VET)  schools  / 
institutions and companies are a determinant of successful apprenticeships. VET schools need 
to operate in networks with local businesses. More broadly, closely involving social partners 
is necessary to ensure that apprenticeships remain attuned to the times so that the skills learnt 
keep  pace  with  needs.  Training/occupational  standards  need  to  be  reviewed  and  updated 
regularly,  and  social  partners  are  well  positioned  to  provide  input.  Secondly,  both  the 
qualification  gained  and  the  learning  process  should  be  of  high  quality  to  exploit  the  full 
potential  of  apprenticeships  and  ensure  that  this  model  is  recognised  as  a  valuable  learning 
pathway, transferable across borders, and opening up the route to high-skilled jobs. Thirdly, 
apprenticeships  should  be  well  integrated  within  the  national  or  regional  education  and 
training  system  and  based  on  a  clear  regulatory  framework.  The  latter  should  clarify  the 
responsibilities, rights and obligations of each party involved and promote collaboration and 
commitment by a wide range of stakeholders. Finally, it should also be underlined that young 
people  who  have  dropped  out  of  education,  or  are  at  risk  of  doing  so,  particularly  need 
support to undertake apprenticeships. 

… require the engagement of employers... 

Good governance of work-based learning implies having a cost-benefit ratio that encourages 
employers to get involved. Work-based learning can only exist in a country if companies buy 
into  this  concept  and  offer  apprenticeship  places,  student  placements  or  cooperate  with 
schools. 

The  regulatory  framework  should  ensure  appropriate  incentives  for  employers  to  provide 
sufficient  apprenticeship  places.  It  should  address  the  specific  needs  of  SMEs,  which  face 
particular  challenges  and  have  limited  resources.  Incentives  can  be  financial,  such  as  tax 
benefits, subsidies or other, but also non-financial, such as access to certain support services, 
for example to help companies to host apprentices. In this context, ERDF support for SMEs 
can have a positive effect. 

Support for apprenticeships, besides being a privileged way of screening potential candidates 
for new hires, generates wider economic benefits over the longer term and at the same time is 
an expression of social responsibility. 

… and can be supported by EU leverage 

Given the need to improve the quality and supply of apprenticeships quickly and to support 
Member  States'  cooperation  in  the  field  of  VET,  the  Commission  will  set  up  a  European 
Alliance for Apprenticeships. The Commission has already recognised that good cooperation 
between all stakeholders is essential for the success of such initiatives42. This alliance would 

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COM(2012) 728 of 5.12.2012. 
COM(2012) 669 of 20 November 2012. 

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bring  together  stakeholders  from  authorities,  business  and  social  partners,  VET  researchers 
and  practitioners,  and  youth  representatives.  It  would  pool  the  various  streams  of  existing 
actions  under  a  common  umbrella  and  would  promote  the  benefits  and  ways  of  successful 
apprenticeship  schemes  and  ways  to  build  them  up.  The  alliance  would  also  help  develop 
training  curricula  for  various  professions,  facilitate  recognition  of 
common  dual 
apprenticeships undertaken abroad and promote an appropriate regularly framework. 

In  the  context  of  this  alliance,  the  Commission  will  also  promote  national  partnerships  for 
developing  dual  learning.  These  should  bring  together  business  representatives,  authorities 
responsible for education and employment, ESF  managing authorities and social partners in 
order  to  work  out  how  the  role  of  apprenticeships  in  the  Member  State's  labour  market  and 
education system can be strengthened and how national ESF allocations can be drawn upon in 
the design and implementation of dual learning systems. 

Activities similar to the alliance for apprenticeships are already ongoing at sectoral level. An 
EU-level alliance is being formed in the ICT sector'43. 

3. 

Mobility for young people   

Increased mobility would offer more employment opportunities … 

The substantial differences existing between youth unemployment levels, coupled with a rise 
in  vacancy  rates  in  some  Member  States,  highlight  that  intra-EU  mobility  can  give  young 
people  access 
traineeships  and 
to  more  employment  opportunities.  Transnational 
apprenticeships  offer  many  advantages  in  this  regard,  together  with  the  possibility  of  trying 
out  working  in  another  country  without  immediately  committing  to  long-term  employment. 
However,  they  are  not  yet  widespread.  This  is  in  direct  contrast  to  the  openness  towards 
mobility generally shown by young people and to the success enjoyed by programmes aimed 
at studying abroad, such as Erasmus and Leonardo. 

… which EU instruments are supporting… 

The recent EURES decision44 transforming the European jobs network into a result-oriented 
matching  and  placement  instrument  has  direct  relevance  for  young  people,  since  it  will 
notably be expanded to also cover work-related apprenticeships and traineeships. Moreover, 
the  Commission  intends  to  develop  further  its  'Your  first  EURES  Job'  initiative  to  help  EU 
nationals  aged  18  to  30  to  find  work  in  another  Member  State.  The  scheme  combines 
customised  job-matching  and  job  placement  services  with  EU  financial  incentives 
(contributions  to  travel  expenses  for  job  interviews,  pre-job  training  and  work  integration 
activities).  The  Commission  will  build  on  these  steps  by  launching  an  initiative  on  public 
employment services in 2013 to improve the functioning of the European labour market. Such 
services will be called upon to play a greater role in exploiting all the job opportunities which 
can  be  created  by  intra-EU  labour  mobility  and  securing  the  employment  prospects  of  EU 

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44 

A  'Grand  Coalition  for  ICT  Jobs'  aims  to  federate  stakeholders  to  address  the  shortage  and  the  skills 
mismatches which characterise the labour market for ICT professionals. 
C(2012) 8548 of 26 November 2012. 

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citizens, especially the youth. This will make the European labour market more efficient, by 
reducing  the  risk  of  greater  mismatches,  and  will  help  address  future  labour  and  skills 
shortages.  

… but requires further efforts 

However,  given  the  urgent  challenge  of  youth  unemployment,  further  efforts  are  essential. 
The Commission calls upon the EU Budgetary Authority to ensure that adequate resources are 
available in 2013 and beyond to continue support for targeted mobility schemes such as ‘Your 
first  EURES  Job’  and  upon  Member  States’  PES  to  further  develop  EURES-based 
programmes and mainstream them in their normal business. 

Developing more targeted and individualised actions for all jobseekers, including youth, must 
be a priority for the foreseeable future. In 2013 the Commission will consider, as part of the 
future  EURES  axis  of  the  Programme  for  Social  Change  and  Innovation,  the  viability  of  a 
broader EURES jobs for young people programme to this end, building on the lessons learnt 
with  the  ‘Your  first  EURES  Job’  initiative  and in  education  (Erasmus,  Leonardo  da  Vinci). 
This  could  support  young  people  in  finding  and  taking  up  jobs,  work  experience, 
apprenticeships and traineeships in another Member State45. 

VI. 

THE WAY FORWARD  

Despite a number of efforts at EU and national level, job prospects for European youth have 
further  worsened  in  the  past  year.  A  stronger  response  is  urgently  needed.  This 
communication outlines the Commission’s analysis of the situation and gives an overview of 
what  can  be  done  through  employment  policy  instruments,  both  at  EU  and  Member  State 
level, to remedy the situation. Action has to be taken together, building strong partnerships of 
trust with all stakeholders, be they employment services, education providers, social partners, 
employers or youth organisations. The issue at stake is Europe’s economic and social future.

The Commission: 

• 

• 

• 

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urges Member States to quickly adopt the proposal for a Council Recommendation 
on  establishing  a  Youth  Guarantee,  which  is  part  of  this  package,  and  to  introduce 
their Youth Guarantee scheme in the course of 2013; 

calls  on  social  partners  to  work  towards  a  Quality  Framework  for  Traineeships  to 
ensure  that  traineeships  provide  young  people  with  high-quality  work  experience 
under safe conditions; 

will  set  up  a  European  Alliance  for  Apprenticeships  to  improve  the  quality  and 
supply  of  apprenticeships  and  to  promote  national  partnerships  for  dual  vocational 
training systems; and 

The Commission also intends to present a Youth on the Move Card initiative to support the mobility of 
young people. 

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• 

will  launch,  in  the  first  half  of  2013,  a  stakeholder  consultation  on  developing  a 
EURES jobs for young people programme, and will present an initiative to put EU 
mobility  instruments,  funding  and  governance  on  a  more  structural  footing, 
commensurate to their importance. 

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