Proposal for a COUNCIL RECOMMENDATION On the integration of the long-term unemployed into the labour market
Date: 2015-09-17
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: EU Member State, EU action, EU employment policy, fight against unemployment, integration into employment, labour market, long-term unemployment, social dialogue

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   EUROPEAN COMMISSION  Brussels, 17.9.2015  COM(2015) 462 final 2015/0219 (NLE)   Proposal for a COUNCIL RECOMMENDATION On the integration of the long-term unemployed into the labour market {SWD(2015) 176 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons and objectives 

During  the  2008-09  financial  and  economic  crisis,  most  EU  Member  States  experienced  a 
major economic downturn that led to a sharp deterioration in their labour market. At EU level, 
the  unemployment  rate  increased  to  a  historically  high  level.  It  is  currently  on  a  declining 
path.  

Unemployment  remains  high  in  particular  among  young  people1  and  the  long-term 
unemployed.  Long-term  unemployment  (unemployment  lasting  more  than  a  year)  2  doubled 
since 2007 and accounts for half of total unemployment: 12.1 million people, i.e. 5 % of the 
active EU population, 62 % of whom have been out of work for at least two consecutive years 
in 20143. At EU level, long-term unemployment remained at very high levels during 2013 and 
2014.  

Long-term  unemployment  affects  unevenly  Member  States  depending  on  the  impact  of  the 
crisis,  the  macroeconomic  situation,  the  economic  structure  and  the  functioning  of  national 
labour  markets.  It  affects  a  variety  of  people  generally  characterised  by  low  employability, 
many  of  whom  face  multiple  disadvantages.  Workers  with  low  skills  or  qualifications  and 
third  country  nationals  are  twice  as  likely  to  experience  long-term  unemployment.  Persons 
with  disabilities  and  disadvantaged  minorities  such  as  the  Roma  are  also  disproportionately 
affected. 

Even  when  recruitment  rises  again  in  the  Member  States,  the  risk  is  that  many  long-term 
unemployed  will  be  left  behind  as  they  are  the  furthest  from  the  labour  market.  The  longer 
people are out  of work,  the more difficult it is  for them to  be hired again as their skills  are 
gradually  eroded.  This  would  entail  personal  hardship,  lower  utilisation of  human  capital,  a 
waste  of  economic  potential  and  an  increase  in  social  expenditure,  further  exacerbating  the 
impact of demographic decline. Many of those unemployed for a year or more risk leaving the 
labour  market  altogether.  Each  year,  a  fifth  of  them  stop  trying  to  find  another  job  and  are 
considered as inactive.  

Long-term  unemployment  can  lead  to  poverty  and  social  exclusion.  It  also  contributes  to 
passing on poverty to the children in jobless households, as it has been shown that educational 
achievement is lower among children in unemployed households. Employment would open a 
way out of poverty for both the workers affected and their families, as half of those finding a 
job escape the risk of poverty.  

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EU28 youth unemployment rate stood at 20.4% in July 2015. More information on youth 
unemployment and actions at EU level at: http://ec.europa.eu/social/main.jsp?catId=1036 
The long-term unemployment rate refers to the number of people who are out of work and have been 
actively  seeking  employment  for  at  least  a  year,  see  Eurostat:  http://ec.europa.eu/eurostat/statistics- 
explained/index.php/Glossary:Long-term_unemployment. 
Labour Force Survey data, 2014. 

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Addressing  long-term  unemployment  would  contribute  to  sustainable  growth  and  cohesion 
through higher employment and it could also alleviate the burden on public finances through 
lower social assistance spending and higher tax revenues. 

Long-term unemployment is one of the key challenges of the jobs and growth agenda set out 
in  the  Commission’s  Annual  Growth  Survey  and  Work  Programme  for  20154.  President 
Juncker’s Political Guidelines identify the toll of unemployment as a key political challenge. 
Long-term unemployment has been identified by the European Parliament5, the Council6 and 
the European Central Bank7 as a major impediment to growth.  

Tackling  long-term  unemployment  requires  a  broad  set  of  actions  including  structural 
reforms,  across  policy  areas  (employment,  economic,  fiscal  policies,  investment  in  human 
capital) and combining curative and preventive measures. The EU has a multi-faceted strategy 
in place to ensure a supportive macroeconomic environment, to increase job opportunities, to 
strengthen social cohesion, to support skills development and to contribute to a reduction of 
long-term unemployment. For the long-term unemployed, transitions to employment depend 
not  only  on  the  quality  of  the  services  offered  but  also  on  the  macroeconomic  situation, 
economic structure and labour market functioning in each Member State. 

Member States are already acting to help the long-term unemployed to secure jobs. However, 
in 2014, the proportion of long-term unemployed people who returned to work before the end 
of their second year of unemployment varied among Member States from 11% to more than 
46%. While recognising that many factors can influence this performance, this gap shows that 
there is room for building on successful practices from across the EU.  

Action at EU level to support Member States in securing a return to work of those who are 
long-term  unemployed  would  thus  bring  added  value.  Actions  already  in  place  should  be 
complemented  to  ensure  that  those  who  need  support  can  access  it  and  to  reinforce  the 
effectiveness of such support, notably by accompanying jobseekers back to the labour market. 
These can build on years of mutual learning and experience gained through the coordination 
of  employment  policies,  as  well  as  through  the  financing  of  the  European  Structural  and 
Investment Funds and in particular the European Social Fund. 

In  this  context,  the  objective  of  this  specific  initiative  is  to  provide  Member  States  with 
guidance  on  service  delivery  in  order  to  increase  the  rate  of  transition  from  long-term 
unemployment  to  employment.  The  recommendation  sets  forward  specific  actions  to 
strengthen  the  personalised  support  targeted  at  the  long-term  unemployed,  implemented  by 
employment and social services.  

Specific  challenges  addressed  by  the  initiative  include  a  lack  of  support  for  the  long-term 
unemployed  to  obtain  work,  which  lowers  the  registration  with  the  Public  Employment 
Services in some Member States (low coverage), the difficulty of addressing the complexity 
of unemployment drivers (ensuring that support is relevant to employers' needs and suited to 

4 
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COM (2014) 902 final. 
Report on European Semester for economic policy coordination: Employment and Social Aspects in the 
Annual Growth Survey 2015(A8-0043/2015). 
Council  Conclusions  on  the  2015  Annual  Growth  Survey  and  Joint  Employment  Report  —  Political 
guidance on employment and social policies, 6147/15. 
http://www.ecb.europa.eu/press/key/date/2014/html/sp140822.en.html. 

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the individual) and the discontinuity in the delivery of services when unemployment benefits 
end. 

These measures will have to be considered in a more comprehensive set of policy actions at 
EU and/or national level that facilitate the adjustment of labour markets taking into account 
the  changing  nature  of  work  and  foster  economic  growth  –  including  efforts  to  secure  a 
supportive macroeconomic situation, the design of benefit and social security systems, and the 
design  of  education  and  training  systems,  labour  taxation  and  employment  protection 
legislation.  

Consistency with existing measures 

A number of policies, instruments and initiatives at EU level are already in place to support 
employment, notably the European Semester of economic policy coordination, the European 
Structural and Investment Funds and in particular the European Social Fund (ESF), as well as 
the ‘benchlearning’ initiative in the framework of the public employment services network. 

The  recommendation  will  support  the  reform  process  started  under  the  Europe  2020 
objectives,  notably  by  contributing  to  the  goals  of  increasing  the  employment  rate  and 
reducing  poverty.  It  also  follows  the  call  from  the  Council  ‘to  develop  proposals  to  help 
support  the  long-term  unemployed,  taking  lessons  from  the  introduction  of  the  Youth 
Guarantees  across  the  EU,  while  fully  integrating  them  into  the  European  Employment 
Strategy’.8 

The  overall  objectives  of  the  European  Semester  of  economic  policy  coordination  are 
supported  by  the  integrated  guidelines,  which  include  both  the  Broad  Economic  Policy 
Guidelines  and  the  Employment  Guidelines.  The  former  cover  priorities  such  as  boosting 
investment, enhancing growth by implementing structural reforms, removing key barriers to 
growth  and  jobs  at  EU  level  and  improving  sustainability  and  growth-friendliness  of  public 
finances.  The  latter  cover  priorities  such  as  facilitating  job  creation,  enhancing  labour  and 
skills  supply,  enhancing  the  functioning  of  labour  markets  and  fostering  social  inclusion, 
combatting poverty and promoting equal opportunities.  

The  recommendation  builds  on  the  Employment  Guidelines  foreseen  under  Article  148  (2) 
TFEU  that  call  for  a  significant  reduction  and  prevention  of  long-term  unemployment.  The 
current  Employment  Guidelines  aim  to  address  structural  barriers  linked  to  rigidities  on  the 
labour market and inadequate skills or insufficient investment in human capital. Elements in 
these  areas  which  feature  prominently  in  the  country  specific  recommendations  include 
reducing financial disincentives to work, adjusting wage-setting mechanisms, shifting the tax 
burden  away  from  labour,  strengthening  active  labour  market  measures  and  modernising 
vocational  education  and  training  and  apprenticeships.  The  proposed  new  Employment 
Guidelines call for the number of long-term unemployed to be significantly reduced by means 
of  comprehensive  strategies,  including  the  provision  of  specific  active  support  to  long-term 
unemployed to return to the labour market9. 

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Council  Conclusions  on  the  2015  Annual  Growth  Survey  and  Joint  Employment  Report  —  Political 
guidance on employment and social policies, 6147/15. 
Proposal  for  a  Council  Decision  on  guidelines  for  the  employment  policies  of  the  Member  States, 
COM/2015/098 final. 

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The  2015  country  specific  recommendations10  acknowledge  that  long-term  unemployment 
needs  to  be  tackled  by  combining  effective  social  protection  with  employability.  In  this 
respect,  they  stress  that  efficient,  effective  and  forward  looking  vocational  education  and 
training  programmes,  including  targeted  adult  learning,  play  a  key  role  in  improving 
employability.  They  also  note  that  public  employment  services  need  to  be  strengthened  in 
some  Member  States  and  that  active  labour  market  measures  could  more  efficiently  target 
those furthest from the labour market.  

In  terms  of  sharing  of  good  practices,  actions  supporting  the  Europe  2020  strategy  through 
policy  learning  are  taking  place.  The  Public  Employment  Service  (PES)  Network  is 
developing  a  ‘benchlearning’  process  to  compare  the  performance  of  PES  in  all  Member 
States and learn from each other.  

There is also a significant contribution of the ESF to addressing long-term unemployment. On 
the basis of the current programming for 2014-2020, at least 10 % of the people supported by 
ESF  are  long-term  unemployed.  The  ESF  allocations  allow  room  to  both  increase  the 
financing  of  integration  support  and  to  enhance  its  efficiency.  Additionally,  the  European 
Regional Development Fund  may complement the measures financed by the ESF. Examples 
include  supporting  job  creation,  modernisation  of  vocational  education  and  public 
employment services. 

The  recommendation  could  help  to  reinforce  under  the  current  programming  the  focus  of 
European Structural and Investment Funds interventions, in particular the ESF,  on integrating 
the long-term unemployed and increasing the effectiveness  of measures aimed at them. The 
recommendation  tackles  the  basic  set-up  of  a  personalised  support  scheme  targeted  at  the 
long-term unemployed on which further ESF interventions can be built. 

The  recommendation  will  complement  these  existing  tools  by  putting  in  place  a  framework 
for action targeted at the integration of long-term unemployed into the labour market, which 
will cover all the Member States and will aim to contribute to a general improvement in the 
efficiency  of  the  labour  market  integration  process.  It  will  provide  a  foundation  for 
prioritising  job  finding  for  the  long-term  unemployed  at  national  level,  enabling  necessary 
resources  to  be  allocated,  including  support  from  the  European  Structural  and  Investment 
Funds. It aims at providing an impetus for greater administrative capacity, better cooperation 
between  service  providers,  stronger  partnership  with  the  private  sector  and  efficiency  in 
public spending. 

The  recommendation  will  build  on  experiences  gained  and  lessons  learned  from  the  Youth 
Guarantee,  which  was  established  by  the  Council  in  2013  to  address  high  levels  of  youth 
unemployment  and  inactivity  resulting  from  the  crisis  and  to  improve  school  to  work 
transitions.  Youth  Guarantee  showed  that  well  targeted  EU  initiatives  can  mobilise  and 
strengthen national action to tackle a source of labour market inefficiency and social distress. 
The Youth Guarantee created a political momentum for the reform of support delivery, which 
was reinforced and maintained through multilateral surveillance. 

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Council Recommendations on the National Reform Programmes, OJ 215/C 272 of 18.08.2015 

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2. 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The proposal is based on Article 292 of the Treaty on the Functioning of the European Union 
(TFEU), according to which the Council adopts recommendations acting on a proposal from 
the Commission, in conjunction with Article 149 which foresees incentive measures designed 
to support the action of Member States in the field of employment. 

Title IX TFEU defines the EU’s remit regarding employment policies in particular Article 145 
on  developing  a  coordinated  strategy  for  employment  and  Article  147  on  contributing  to  a 
high  level  of  employment  by  supporting  and  complementing  the  action  of  Member  States. 
The  proposal  will  contribute  to  the  objectives  of  the  treaty,  notably  promoting  full 
employment and social cohesion (Article 3 of the Treaty on European Union). 

Subsidiarity 

In  its  work  towards  developing  a  strategy  for  employment,  the  EU  has  the  competence  to 
coordinate,  encourage  cooperation  and  support  the  Member  States'  action.  While  respecting 
the  competence  of  the  Member  States,  the  recommendation  gives  concrete  content  to  this 
ambition in particular by capitalising on the exchange of best practices. 

Low labour market performance at national level in terms of long-term unemployment rates 
and transitions to employment may have negative economic impact and undermine social and 
economic  cohesion  across  the  EU.  While  economic  growth  itself  is  a  crucial  driver,  the 
persistence  of  long-term  unemployment  can  have  a  dampening  effect  on  economic  growth 
and on its sustainability. 

There are many challenges linked to support services provided for the long-term unemployed 
(cf. section 4 Analysis). A new EU initiative will support a move towards higher efficiency 
and  standards  in  delivering  services  to  the  long-term  unemployed.  It  builds  on  successful 
practices of Member States and translates the lessons learned into a framework for action that 
will help the Member States modernise their employment and social services. 

Proportionality 

The recommendation gives an indication of actions to be taken at national level. It complies 
with  the  principle  of  proportionality  since  it  offers  a  flexible  framework  and  guidance  for 
modernisation  and  reform  processes  in  the  Member  States.  It  recognises  that  different 
national, regional or local situations could lead to differences in how the recommendation is 
implemented.  Member  States  will  designate  the  authorities  in  charge,  which  can  be 
employment services or other organisations, depending on national circumstances. 

The  recommendation  provides  a  framework  for  action  in  support  of  the  long-term 
unemployed  and  its  scope  is  limited  to  bringing  guidance  to  employment  services  or  other 
organisations in charge and their partners on the steps to set up a personalised support scheme 
targeted at the long-term unemployed to return to the labour market. Improving the efficiency 
of  the  integration  process  is  an  important  factor  within  the  overall  fight  against  long-term 
unemployment. The recommendation preserves a high degree of flexibility for Member States 
in both the design and substance of implementation measures.  

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The  proposed  action  respects  Member  States’  practices  and  the  diversity  of  systems  in  the 
social field. It accommodates Member States' need for a differentiated approach reflecting the 
different  economic  financial  and  social  situations,  the  diverse  labour  market  conditions  and 
the heterogeneity of situations leading to long-term unemployment. 

3. 

RESULTS OF CONSULTATIONS WITH INTERESTED PARTIES  

An  open  public  consultation  was  carried  out  between  19/02/2015  and  15/05/2015 regarding 
the provision of services to long-term unemployed in the Member States and at EU level. 159 
contributions  were  received.11  The  majority  of  respondents  agreed  with  the  challenges 
identified in the consultation and stressed the importance of integrating service provision and 
of  individualised  services  for  the  long-term  unemployed.  Over  two  thirds  of  respondents 
supported changes in support of the long-term unemployed, namely introducing an individual 
offer  of  active  support,  a  single  point  of  contact,  mutual  responsibilities  and  increasing 
participation in active support measures. The great majority of respondents supported further 
EU action to address long-term unemployment with general principles for an effective active 
labour market framework and guidance. 

In  the  consultation  targeted  at  stakeholders,  the  European  Network  of  Public  Employment 
Services  highlighted  the  relevance  of  individualised  service,  better  coordination  of  support, 
mutual obligations and employer support. The European Social Fund Committee emphasised 
that  under  current  programming,  the  ESF  can  play  a  significant  role  in  implementing  the 
initiative,  and  that  the  initiative  could  increase  the  effectiveness  of  ESF  actions.  The 
Employment Committee stressed that the diversity of the long-term unemployed called for an 
individualised approach to active support and the need to allow Member States the flexibility 
to  tailor  their  policies  accordingly.  The  Social  Protection  Committee  pointed  to  the  need  to 
maintain  resources  for  groups  facing  multiple  barriers  to  employment.  At  a  hearing  of  the 
social partners devoted to the initiative on 24 April 2015, it was pointed out that an approach 
based on integration instruments can be combined with general policy guidance. 

The  outcome  of  the  consultation  pointed  to  the  need  to  act  urgently,  to  better  balance  the 
components  related  to  processes  and  tools  with  general  policy  guidance,  to  respect  the 
diversity  of  situations  among  Member  States  by  keeping  the  approach  flexible  and  to 
acknowledge  the  diversity  of  the  long-term  unemployed  as  a  group  by  promoting  an 
individualised approach. 

4. 

ANALYSIS   

The Commission carried out an analysis of the effectiveness and potential impact of a Council 
recommendation published in the accompanying Staff Working Document. The analysis used 
a  combination  of  internal  and  external  expertise,  in  particular,  a  mapping  of  inclusion 
contracts  and  co-ordination  of  income  support  with  activation,  a  collection  of  ESF  good 
practice  initiatives,  a  review  of  existing  cost-benefit  studies  on  long-term  unemployment 

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http://ec.europa.eu/social/BlobServlet?docId=14186&langId=en. 

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interventions, including a detailed assessment for five Member States and reports from mutual 
learning events on addressing long-term unemployment. 

The  analysis  focused  on  the  integration  services  provided  to  the  jobseekers  and  on  the 
possible impact of the introduction of a personalised support scheme targeted at the long term 
unemployed consisting of a job integration agreement supported by general policy guidance 
on the involvement of employers and preceded by an individual assessment.  

The  analytical  approach not  entailing  an impact  assessment  was  chosen  for  several reasons. 
The  recommendation  offers  general  guidance  on  the  setting  up  of  a  personalised  support 
scheme targeted at the long term unemployed to return to the labour market allowing Member 
States  to  implement  various  optional  and  flexible  elements  according  to  their  national 
practices.  The  impact  of  the  recommendation  will  not  only  depend  on  the  way  in  which 
Member  States  are  likely  to  implement  the  measures  but  also  on  many  important  country 
specific features such as the macroeconomic situation, economic structure and labour market 
functioning, which makes it difficult to disentangle the specific impact of the proposal from 
other factors. A more in-depth assessment of the proposed recommendation would also need 
to  factor  in a  set  of  possible  accompanying  policies  that  might  be taken  at  national level  as 
well  as  country  specific  institutional  features.  A  detailed  quantitative  assessment  would  be 
disproportionate as that information cannot be easily gathered and rapidly collected12. 

The  analytical  approach  is  therefore  based  on  existing  analysis  and  studies  in  the  domain 
which  to  a  large  extent  converge  in  their  findings  and  policy  advice.  It  brings  available 
evidence from reforms in place on effectiveness and cost of a set of similar measures.  

In addition, the recommendation will improve the collection of data at EU level by allowing a 
close monitoring of actions in the Member States. A specific evaluation clause is included in 
the recommendation to provide a full evaluation of the impact of the actions taken in response 
to the recommendation after an initial period of implementation. 

Key findings of the analysis 

While recognising that long-term unemployment has profound structural roots linked to skills, 
educational achievement and attainment, the macroeconomic situation and the functioning of 
the labour market, the analysis focused on the organisation of support services targeted at the 
long term unemployed to return to the labour market. Several factors limiting the integration 
performance of the Member States in accompanying the long term unemployed back to labour 
market were identified:  

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12 

Registration allows for access to support. Low registration rates indicate that support 
is  accessible  only  to  a  part  of  the  long-term  unemployed.  The  EU  registration 
average  is  73 %  and  in  several  Member  States,  the  rate  is  below  50 %.  In  2012, 
available  data  indicate  that  only  13.5 %  of  long-term  unemployed  people  over  25 
were participating in active labour market measures. 

Most  Member  States  condition  benefits  on  job  search  or  minimal  activation 
requirements.  However,  such  conditionality  is  not  always  enforced,  in  most  cases 
due  to  gaps  in  the  offer  of  active  measures.  In  several  Member  States,  the  Public 

Roadmap is available at: http://ec.europa.eu/smart-regulation/roadmaps/index_en.htm 

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Employment  Services  primarily  serve  the  unemployed  eligible  for  unemployment 
benefits,  targeting  their  interventions  early  during  the  unemployment  spell  for 
efficiency reasons. 

Unemployment  benefits  stop  in  many  countries  within  one  year.  When  eligibility 
ends,  the  long-term  unemployed  may  be  eligible  for  non-contributory  minimum 
income  or  other  social  assistance  benefits,  the  responsibility  for  which  varies 
between  Member  States  (most  often  the  social  assistance  agencies  or  the  Public 
Employment  Services).  A  range  of  other  social  services  delivered  through 
municipalities,  social  services  and  NGOs  may  intervene.  Long-  term  unemployed 
may thus experience a change in the agencies assisting them. 

Reintegration  can  be  disrupted  as  individual  support  shifts  from  unemployment 
insurance  provided  by  public  employment  services  to  social  benefits  provided  by 
social  assistance  authorities.  If  the  division  of  responsibilities  between  agencies  is 
not  clear,  case  histories  are  not  transferred  and  coordination  of  services  is  limited. 
Discontinuities  can  consequently  delay  the  process  of  taking  up  work.  While  some 
Member  States  have  already  integrated  services  and  provide  one-stop-shops,  others 
lack  policy  coordination  at  the  national  level,  leading  to  fragmentation  and 
inconsistencies 
the 
implementation of the active inclusion recommendation emphasised the importance 
of  coordinated  and  integrated  approaches  to  service  delivery  and  employment 
policies, including one-stop-shops linking employment with social protection13. 

in  service  provision.  The  Commission’s  assessment  of 

Individualised services such as assessment and profiling are not always accessible to 
the  long-term  unemployed.  Programme-based  interventions  focusing  on  long-term 
unemployed subgroups are not tackling the entire range of specific individual needs. 
Moreover,  only  a  low  share  of  the  expenditure  on  active  measures  for  them  is 
allocated to training or start-up support. Low-skilled unemployed are four times less 
likely to participate in lifelong learning, and basic skills education is seldom included 
in support. 

Programmes  for  the  long-term  unemployed  are  not  geared  to  employers’  needs.  In 
some  countries,  there  is  a  focus  on  public  works  schemes  (an  estimated  31 %  of 
current spending on active labour market measures for the long-term unemployed in 
2012) which do not always open pathways back to the labour market. Employers are 
generally  not  sufficiently  involved  in  activities  run  by  employment  and  social 
services. 

Since entry into long term unemployment is after 12 months of unemployment, and 
there is a large drop in transitions to employment between 12 and 24 months, action 
before 18 months at the latest is appropriate. This is in line with existing practices in 
Member States most successful in reducing long term unemployment.  

The analysis pointed to a number of key delivery success factors in the design, organisation 
and focus of labour market integration policies. 

13 

See  Commission  recommendation  of  3.10.2008  on  the  active  inclusion  of  people  excluded  from  the 
labour  market  (2008/867/EC,  OJ  L  307,  18.11.2008,  p.  11)  and  SWD  (2013)  39  final  in  the  Social 
Investment Package. 

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An  individualised  services  approach,  combining  intensive  support,  monitoring  of  outcomes 
and an employer focus, is expected to help increase transition to employment and improve the 
matching of long-term unemployed to employment opportunities. Some Member States with 
high  transition  rates  to  employment  already  have  in  place  the  elements  proposed  in  the 
recommendation. The impact of an initiative would therefore be higher in Member States with 
weaker  support  structures  and  higher  rates  of  long-term  unemployment.  Job  integration 
agreements are expected to prompt a change towards stronger support structures. Should this 
change lead to closing the gap with better performing Member States, more people could be 
expected to find a job every year through full implementation of the proposal14. 

However,  these  effects  depend  on  a  variety  of  other  factors.  When  combined  with  other 
structural reforms to boost job creation, this recommendation can support an overall increase 
in  employment  rates  through  a  higher  growth  potential  and  decrease  in  structural 
unemployment,  decrease  in  mismatch  between  labour  demand  and  supply  through  the 
personalised services to long term unemployed or decrease in the risk of poverty and social 
exclusion. 

Re-focusing  existing  financial  allocations  on  schemes  supporting  direct  integration  into  the 
labour  market,  such  as  recruitment  subsidies  could  contribute  to  an  increase  in  employer 
involvement. In a setting of low labour demand and limited fiscal space, such incentives can 
be  an  attractive 
the 
employability of long-term unemployed. However, they need to be well designed, otherwise 
they  may  result  in  wasteful  spending  of  public  money,  particularly  if  the  subsidised  jobs 
would  have  been  created  anyway  (deadweight  loss),  or  if  the  incentives  simply  induce 
employers  to  hire  certain  workers  instead  of  others  (displacement  effects)  or  may  create 
unnecessary fragmentation of the tax system. 

instrument  for  supporting  employment  while  also 

improving 

Cooperation  between  the  different  agencies  such  as  public  employment  services,  social 
services and municipalities via a single point of contact would improve continuity of services 
and increase the relevance and effectiveness of the services offered, with positive effects on 
social  protection  and  on  the  groups  furthest  away  from  the  labour  market.  The  long-term 
unemployed  would  benefit  from  simplified  access  to  service,  while  the  employment  and 
social  authorities  and  service  providers  would  need  to  adjust  processes  and  cooperate  to 
deliver job integration agreements. 

No  compliance  costs  are  foreseen  for  small  and  medium-sized  companies  (SMEs)  and 
employers.  Online  channels  can  be  used  to  conduct  assessments,  to  monitor  and  update  job 
integration agreements and to access services and incentives for employers. 

The  initiative  reinforces  protection  of  fundamental  rights.  Improving  the  access  to  support 
services  and  establishing  an  individualised  services  approach  for  long-term  unemployed 
guarantees  and  further  enhances  the  right  to  access  to  free  placement  services  laid  down  in 
Article  29  of  the  Charter  of  Fundamental  Rights  of  the  EU.  Furthermore,  providing  better 
protection  of  long-term  unemployed  duly  observes  the  principles  enshrined  in  Article  34  of 
the  Charter  of  Fundamental  Rights  of  the  EU,  since  it  improves  the  entitlement  to  social 
security  benefits  and  social  services  protection  in  case  of  loss  of  employment  of  long-term 
unemployed, helps combating poverty and social exclusion and ultimately reinforces human 
dignity. 

14 

Staff Working Document accompanying the proposal, section 7.1. 

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5. 

BUDGETARY IMPLICATIONS 

The proposed Council recommendation will have implications on the allocations of resources 
at national level, particularly through re-allocation of ESF programmes towards direct client 
services  and  through  initial 
investment  in  service  and  coordination  capacity.  The 
recommendation provides a flexible frame of intervention, whereby Member States are able to 
adapt existing resource allocations for support to the unemployed and other social services in 
line with their budgetary situation. 

Although implementation entails an initial administrative cost to set up coordinated delivery 
and  individualised  support,  the  overall  budgetary  impact  is  expected  to  be  limited  or  even 
positive in the medium term if this translates into more transitions to employment, especially 
if accompanied by other relevant labour market reforms.  

The  budget  allocations  for  the  multiannual  financial  framework  for  the  European  Structural 
and  Investment  Funds  can  be  used  to  support  implementation  including  the  additional 
investment in administrative capacity for labour market and social institutions. 

Social  innovation  projects  on  getting  the  long-term  unemployed  back  into  work  can  be  co-
financed within the agreed budget of the Progress section of the European Union Programme 
for Employment and Social Innovation (EaSI) for 2014-2020, through calls for proposals. 

The  proposed  Council  recommendation  does  not  require  additional  EU  budget  and  staff 
resources for the Commission. 

6.  

OUTLINE OF THE PROPOSAL 

The  general  objective  of  the  proposed  Council  recommendation  is  to  increase  the  transition 
rates  to  employment  of  the  long-term  unemployed.  The  specific  objectives,  to  which  this 
initiative  will  contribute  are  to:  (1)  increase  coverage  with  higher  registration  and  active 
support  for  the  long-term  unemployed,  (2)  ensure  continuity  and  coordination  between 
relevant  services  and  (3)  increase  the  effectiveness  of  interventions  aimed  at  both  the  long-
term unemployed and employers. 

It  essentially  proposes  three  concrete  steps  which  open  a  pathway  to  labour  market 
integration: 

(1) encourage registration with an employment service; 
(2)  assess  individual  needs  and  potential  of  the  long-term  unemployed  before  reaching  18 
months of unemployment; 
(3) offer a job integration agreement to the long-term unemployed at the latest when they have 
reached 18 months of unemployment. 

This recommendation aims at the integration of the target group into the labour market. The 
quality  of  the  offers  and  measures  proposed  within  the job  integration agreements  therefore 
needs to correspond to this objective and will be measured against it.  

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Several elements of the recommendation in particular the measures to encourage registration, 
the  individualised  approach  and  the  services  to  employers  can  be  implemented  with  a  high 
degree  of  flexibility  allowing  Member  States  to  use  or  combine  existing  practices  and 
measures.   

Encourage registration with an employment service 

Encouraging  registration  of  the  long-term  unemployed  with  public  employment  services  or 
other social assistance services through information provision supported by partnerships, that 
clarify  the  support  offer  available  for  a  labour  market  integration  pathway  tailored  to 
individual needs. 

Individual assessment and approach 

Assisting the long-term unemployed requires a mix of measures which recognise and seek to 
address all the challenges faced. The proposed recommendation contains an invitation to put 
in place in-depth individual assessments for the long-term unemployed in the period between 
12 and 18 months of unemployment. This does not preclude individual assessments at earlier 
stages  of  the  unemployment  spell  –  in  fact,  an  early  assessment  and  targeted  measures  can 
reduce  the  risk  of  falling  into  long-term  unemployment.  Enhanced  individual  assessments 
should  include  a  skills  audit  and  lead  to  counselling  and  guidance  based  on  the  person’s 
experience,  job  search  history,  gender  related  employment  barriers  and  taking  into  account 
labour market needs. 

Job integration agreements 

The  job  integration  agreement  consists  of  a  tailor-made  offer  of  intervention  combining 
measures  provided  by  different  organisations  (employment  services,  education  and  training, 
social services) and spelling out mutual rights and obligations. It will be offered to all long-
term  unemployed  outside  the  remit  of  the  Youth  Guarantee  unemployed  at  the  latest  when 
they have reached 18 months of unemployment.  

The  individual  assessment  results  in  a  plan  aimed  at  opening  up  a  path  back  to  work.  The 
recommendation proposes to follow a job integration agreement approach. 

It should involve: 

 

 

An  individual  service  offer  reflecting  the  needs  and  abilities  of  the  long-term 
unemployed  and  building  on  measures  available  at  national  level  (job  search 
assistance,  education,  training  including  language,  work  experience,  validation  of 
non-formal  and  informal  learning,  mentoring,  debt  counselling,  rehabilitation,  child 
and  care  services,  housing  and  transport  support),  indicating  an  individual  path  to 
return to employment. 

A written agreement between the long-term unemployed person and a single point of 
contact  detailing  the  offer,  in  the  form  of  respective  rights  and  responsibilities,  in 
order  to  ensure  joint  commitment  (e.g.  participation  in  training,  interviews,  and 
counselling) both from the beneficiary and from the organisation involved. 

EN 

12 

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 

The  establishment  of  a  single  point  of  personal  contact  to  ensure  continuity  and 
consistency of the support offered by different agencies such as public employment 
services, social services and municipalities. Member States will put in place the legal 
and institutional arrangements to deliver a coordinated range of services to the long-
term unemployed. The single point of contact should cover organisations in charge of 
job  search,  management  of  benefits  and  sanctions,  social  assistance  and  supporting 
services, etc. This includes mechanisms to pool information and where possible share 
data to allow all appropriate agents access to client case history records. 

Employer involvement 

To  help  the  long-term  unemployed  back  into  the  primary  labour  market,  employers’  needs 
must  also  be  better  served  by  employment  and  support  services.  The  effectiveness  of 
integration measures can be improved by stronger employers’ involvement. 

An  enhanced  range  of  services  and  more  focused  incentives  to  employers  can  increase  the 
engagement of employers while minimising the administrative burden particularly for SMEs 
to access such support. 

The recommendation calls on Member States to review and adapt their policies with a view to 
further  engaging  employers  in  bringing  the  long-term  unemployed  back  into  the  labour 
market.  Cooperation  with  the  social  partners  may  provide  impetus  to  do  this.  Re-allocating 
existing resources towards well targeted financial incentives, when accompanied by services 
provided  to  employers  such  as  pre-screening  of  potential  candidates,  placement  and  post-
placement support and work-based training, make such schemes more attractive to employers. 
The  Commission  is  hereby  putting  forward  a  proposal  for  a  Council  recommendation  to 
support the labour market integration of the long-term unemployed. 

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2015/0219 (NLE) 

Proposal for a 

COUNCIL RECOMMENDATION 

On the integration of the long-term unemployed into the labour market 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 292, in conjunction with Article 149 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

At EU level, the unemployment rate increased to a historically high level following 
the  2008-09  financial  and  economic  crisis.  It  is  currently  on  a  declining  path  but 
long-term  unemployment  remains  very  high.  Long-term  unemployment  affects 
Member  States  to  a  different  extent,  notably  as  the  impact  of  the  crisis  has  been 
uneven and countries differ in term of macroeconomic situation as well as economic 
structure and labour market functioning. 

After  years  of  subdued  growth  and  low  job  creation,  long-term  unemployment, 
defined as unemployment lasting more than 12 months, affected in 2014 more than 
12  million  workers,  or  5%  of  the  active  EU  population,  62%  of  whom  have  been 
jobless for at least two consecutive years. 

Long-term unemployment is affecting the persons concerned, lowering the potential 
growth  of  EU  economies,  increasing  the  risk  of  social  exclusion,  poverty  and 
inequalities and adding to the costs of social services and public finances. Long-term 
unemployment  leads  to  loss  of  income,  skills  erosion,  higher  incidence  of  health 
problems and increased household poverty. 

Among the most vulnerable to long-term unemployment are people with low skills or 
qualifications,  third-country  nationals,  persons  with  disabilities  and  disadvantaged 
minorities such as the Roma. The previous occupation also plays an important role, 
as  in  some  countries  the  sectoral  and  cyclical  aspects  are  key  in  explaining  the 
persistence of long-term unemployment.  

Every  year,  close  to  a  fifth  of  the  long-term  unemployed  become  discouraged  and 
fall to inactivity as a result of unsuccessful job search efforts. As barriers to labour 
market integration are diverse and often cumulate, labour market integration requires 
a tailor-made, individualised approach. 

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(6) 

(7) 

(8) 

(9) 

The  long-term  unemployed  make  up  half  of  the  total  unemployed  in  the  EU  but 
account  for  less  than  a  fifth  of  participants  in  active  labour  market  measures. 
Correspondingly, a low proportion of the long-term unemployed (on average 24 %) 
are covered by unemployment benefits. 

Investment in human capital needs to be improved and made more efficient with the 
aim of equipping more people with good and relevant competences, addressing skill 
shortages,  laying  the  foundation  for  a  smooth  transition  from  learning  to  work  and 
for continued employability. Improving the performance and relevance of education 
and training systems will help curb the influx of new unemployed. To this end, the 
modernisation of education and training systems needs to be pursued in line with the 
European  Semester,  with  the  Strategic  Framework  for  European  Cooperation  in 
Education  and  Training  (ET  2020)15,  the  recommendation  of  the  European 
Parliament  and  of  the  Council  on  key  competences  for  lifelong  learning16  and  the 
Commission  recommendation  on  the  active  inclusion  of  people  excluded  from  the 
labour market17.  

With a view to developing a coordinated strategy for employment, the Guidelines for 
the  employment  policies  of  the  Member  States18  call  for  long-term  and  structural 
unemployment to be significantly reduced by means of comprehensive and mutually 
reinforcing  strategies  that  include  individualised  active  support  for  a  return  to  the 
labour market. 

The  guidelines  call  on  Member  States  to  promote  employability  by  investing  in 
human  capital,  through  appropriate  education  and  training  systems,  that  they  are 
effective and efficient to raise the skill level of the workforce. The guidelines further 
specifically call on Member States to encourage work-based learning systems such as 
dual  learning  and  upgrade  professional  training.  The  guidelines  more  generally 
request  Member  States  to  take  into  account  flexicurity  principles  and  strengthen 
active labour market measures by increasing their effectiveness, targeting, outreach, 
coverage and interplay with income support and social service provision.  

(10) 

The actions proposed under this recommendation should be fully compatible with the 
country  specific  recommendations  issued  in  the  context  of  the  European  Semester 
and their implementation should take place  in full compliance with the rules of the 
Stability and Growth Pact. 

(11) 

The  European  Social  Fund  is  the  European  Union’s  main  financial  instrument  for 
tackling  long-term  unemployment.  For  the  period  2014-2020,  Member  States  have 

15 

16 

17  
18  

Council Conclusions of 12 May 2009 on a Strategic Framework for European Cooperation in Education 
and Training (ET 2020). 
Recommendation  of  the  European  Parliament  and  of  the  Council  of  18  December  2006  on  key 
competences for lifelong learning. 
C(2008) 5737 
COM(2015) 098 

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15 

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allocated substantial funding to support the integration of the long-term unemployed 
into the labour market. Other funds, like the European Regional Development Fund  
and the European Agricultural  Fund for Rural  Development,  may also  complement 
the  measures  financed  by  the  European  Social  Fund  in  accordance  with  the 
allocations  for  the  relevant  investment  priorities  for  2014-2020,  namely  by 
supporting  job  creation,  and  modernisation  of  public  employment  services  and 
vocational education. 

The  2012  Council  recommendation  on  the  validation  of  non-formal  and  informal 
learning calls for action to offer individuals the opportunity to demonstrate what they 
have learned outside formal education and training. 

The European Council of March 201319  emphasised  that addressing unemployment 
is  the  most  important  social  challenge  and  that  reducing  long-term  unemployment 
and ensuring full participation of older workers is crucial. 

The Employment, Social Policy, Health and Consumer Affairs Council20 concluded 
that  long-term  unemployment  has  become  a  critical  issue  which  requires  urgent 
attention  and  action.  Long-term  unemployment  has  also  been  identified  by  the 
European Parliament21 and by the Council22 as a major impediment to growth. 

Intensified  labour  market  integration  efforts  for  those  most  hard  hit  by  long-term 
unemployment should  be  developed. This  needs to  go hand in  hand  with improved 
registration  with  employment  services  and  other  competent  agencies  in  order  to 
tackle the lack of coverage of support measures.  

the 
Prevention  and  activation  measures  mainly  focusing  on 
unemployment  period  need  to  be  complemented.  Specific  action  for  the  long-term 
unemployed  has  to  be  taken  at  the  latest  in  the  period  around  18  months  of 
unemployment  as  this  is  when  support  mechanisms  and  services  for  this  particular 
group change in most Member States. 

the  start  of 

Individualised approaches to support the long-term unemployed need to address the 
barriers leading to persistent unemployment, updating and complementing the initial 
assessment  made  upon  registration.  This  will  guide  jobseekers  towards  support 
services such as debt counselling, rehabilitation, social work, care services, migrant 

EUCO 23/13. 
6974/15  3374th Council meeting Employment, Social Policy, Health and Consumer Affairs Brussels, 9 
March 2015. 
Report on European Semester for economic policy coordination: Employment and Social Aspects in the 
Annual Growth Survey 2015(A8-0043/2015). 
Council  Conclusions  ‘The  2015  Annual  Growth  Survey  and  Joint  Employment  Report:  political 
guidance on employment and social policies’ 6147/15. 

(12) 

(13) 

(14) 

(15) 

(16) 

(17) 

19 
20 

21 

22 

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16 

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integration,  housing  and  transport  support  which  address  barriers  to  work  and 
empower jobseekers to reach clear goals leading to employment. 

(18) 

(19) 

(20) 

Employer  involvement  in  the  integration  of  the  long-term  unemployed  is  essential 
and  needs  to  be  supported  through  the  provision  of  dedicated  services  by 
employment  services  accompanied  by  well-targeted  financial  incentives  and  the 
involvement of the social partners. 

Recent policy initiatives such as the Youth Guarantee23 call for partnership working 
as  a  new  method  for  delivery  of  social  and  employment  policy.  Integrated  service 
provision  is  crucial,  particularly  in  Member  States  where  responsibilities  for 
supporting  the  long-term  unemployed  are  divided  between  the  public  employment 
services, social welfare agencies and local government. 

For the purposes of this recommendation, a job integration agreement is understood 
to be a written agreement between the jobseeker and single point of contact with the 
objective of facilitating the transition into employment on the labour market. Drafted 
to  reflect  the  individual  jobseeker’s  situation,  these  agreements  detail  a  package  of 
individualised  measures  available  at  national  level  (labour  market,  education, 
training, social services) designed to support and empower jobseekers in overcoming 
their  specific  obstacles  to  employment.  They  define  goals,  timelines,  mutual 
responsibilities and review clauses, and indicate both the active and income support 
measures  and  social  support  services  available.  Job  integration  agreements  link  the 
receipt of benefits  to  participation in active labour  market  measures  and  job  search 
activities, in line with existing national legislation. 

(21) 

The  actions  proposed  under  this  recommendation  take  into  account  the diversity  of 
the Member States and their different starting points, as regards the macro-economic 
situation, the level of long-term unemployment, institutional set-up, and capacity of 
the  various  labour  market  players.  They  complement  and  reinforce  the  policy 
approach  currently  implemented  by  many  Member  States,  in  particular  by 
introducing flexible components such as the individualised approach, the employers’ 
involvement and integrated services. 

(22) 

The actions under the proposed recommendation duly observe, reinforce and enhance 
fundamental  rights,  in  particular  as  established  by  Article  29  and  Article  34  of  the 
Charter of Fundamental Rights of the European Union. 

23 

Council recommendation of 22 April 2013 on establishing a Youth Guarantee (2013/C 120/01). 

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HEREBY RECOMMENDS THAT MEMBER STATES: 

Support  registration  of  jobseekers  and  a  closer  labour  market  orientation  of  integration 
measures. Provide the registered long-term unemployed with an individual assessment. Make 
a specific job integration agreement offer at the latest when they have reached 18 months of 
unemployment. To that effect: 

Registration 

(1) 

Encourage  the  registration  of  the  long-term  unemployed  with  an  employment 
service,  in  particular  through  improved  information  provision  on  the  support 
available. 

Individual assessment and approach 

Employment  services,  together  with  other  partners  supporting  labour  market  integration, 
provide personalised guidance to those concerned. 

(2) 

(3) 

Ensure  that  all  long-term  unemployed  are  offered  in-depth  individual  assessments 
and  guidance  at  the  latest  when  they  reach  18  months  of  unemployment.  The 
assessment  should  cover  their  employability  prospects,  barriers  to  employment  and 
previous job search efforts. 

Inform the long-term unemployed about job offers and available support in different 
sectors of the economy, regions and other Member States, in particular through the 
European Employment Services (EURES). 

Job integration agreements 

The registered long-term unemployed not covered by the Youth Guarantee are offered a job 
integration agreement at the latest when they have reached 18 months of unemployment. This 
should  comprise,  as  a  minimum,  an  individual  service  offer  aimed  at  finding  a  job  and  the 
identification of a single point of contact. 

(4) 

(a) 

Make  an  offer  that  targets  the  specific  needs  of  the  long-term  unemployed  and 
combines services and measures provided by different organisations in the form of a 
job integration agreement. 

The  offer  should  detail  explicit  goals  and  the  obligations  which  the  long-term 
unemployed  person  must  meet,  such  as  taking  active  steps  to  find  a  job,  accepting 
offers  of  suitable  work  and  attending  and  participating  in  education  or  training, 
qualification or work measures. 

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(b) 

(5) 

The  offer  should  also  spell  out  the  service  providers’  obligations  to  the  long-term 
unemployed  person.  Depending  on  individual  circumstances,  such  support  could 
include  job  search  assistance,  validation  of  non-formal  and  informal  learning, 
rehabilitation,  counselling  and  guidance,  education  and  training,  work  experience 
and  social  support  services  such  as  early  childhood  education  and  care,  health  and 
long term care services, debt counselling, housing and transport support. 

Put in place the legal and institutional arrangements to ensure continuity and deliver 
a  coordinated  service  offer  through  a  single  point  of  contact  which  should  provide 
counselling to beneficiaries and simplified access to benefits, employment and social 
support services. 

Facilitate  the  smooth  and  secure  transmission  of  relevant  information  concerning 
jobseekers’ support history and individual assessments between service providers, in 
compliance with data protection legislation, thereby ensuring service continuity. 

Equip  all  services  involved  with  the  relevant  information  on  job  vacancies  and 
training  opportunities.  Ensure 
long-term  unemployed, 
irrespective of the service provider. 

this  reaches 

that 

the 

(6) 

Regularly monitor the job integration agreement in the light of changes in individual 
situations and if necessary adapt the agreement to ensure a tailor-made pathway back 
to employment. 

Closer links with employers 

(7) 

(8) 

(9) 

Establish  partnerships  between  employers,  social  partners,  employment  services, 
government authorities and social services to ensure that the offers are targeted to the 
real needs of enterprises and employees. 

Develop  services  for  employers  such  as  the  screening  of  job  vacancies,  placement 
support,  workplace  mentoring  and  training  and  post-placement  support  to  facilitate 
the professional reintegration of the long-term unemployed.   

Focus  financial  incentives  on  schemes  supporting  direct  integration  into  the  labour 
market,  such  as  recruitment  subsidies  and  exemptions  from  payment  of  social 
insurance contributions, in order to increase job opportunities. 

Assessment and monitoring 

(10)  Within  the  Employment  Committee,  by  …  [within  6  months  after  adoption  of  the 
recommendation], draw up a set of monitoring indicators and guidelines for national 
evaluations, including a reporting mechanism. The indicators  should allow analysis 
of  the  extent  to  which  the  long-term  unemployed  have  regained  employment, 

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whether  their  integration  into  the  labour  market  is  sustainable,  and  the  use  and 
impact of job integration agreements. 

HEREBY RECOMMENDS THAT THE COMMISSION: 

(11) 

(12) 

Encourage the assessment of Public Employment Services' performance in relation to 
labour  market  integration  of  the  long-term  unemployed,  sharing  of  experience  and 
exchange of good practice under the benchlearning process of the European Network 
of Public Employment Services, established under Decision No 573/2014/EU. 

Cooperate  with  Member  States  to  make  best  use  of  the  European  Structural  and 
Investment  Funds,  in  particular  the  European  Social  Fund,  the  European  Regional 
Development  Fund  and  the  European  Agricultural  Fund  for  Rural  Development,  in 
accordance with its relevant investment priorities for the 2014-2020 programmes. 

(13) 

Support and coordinate voluntary  initiatives  and alliances of companies engaged in 
the integration of long-term unemployed into the labour market. 

(14) 

(15) 

Support  social  innovation  projects  to  integrate  the  long-term  unemployed  into  the 
labour  market,  in  particular  through  the  Progress  section  of  the  European  Union 
Programme for Employment and Social Innovation (EaSI). 

Evaluate,  in  cooperation  with  the  Member  States  and  after  consulting  the 
stakeholders  concerned,  the  action  taken  in  response  to  this  recommendation,  and 
report to the Council by … [3 years following the adoption of the recommendation] 
on the lessons learned. 

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