Proposal for a COUNCIL DECISION on guidelines for the employment policies of the Member States
Date: 2021-06-02
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: EU Member State, education, employment policy, equal treatment, job access, manpower needs, poverty, professional qualifications, social dialogue, social integration

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   EUROPEAN COMMISSION  Brussels, 2.6.2021  COM(2021) 282 final 2021/0137 (NLE)  Proposal for a COUNCIL DECISION on guidelines for the employment policies of the Member States  
 
 
EXPLANATORY MEMORANDUM 

The  Treaty  on  the  Functioning  of  the  European  Union  provides  that  Member  States  are  to 
regard  their  economic  policies  and  promoting  employment  as  a  matter  of  common  concern 
and shall coordinate their action within the Council. It provides that the Council is to adopt 
employment guidelines (Article 148), specifying that they must be consistent with the broad 
economic policy guidelines (Article 121). 

Whilst  the  broad  economic  policy  guidelines  remain  valid  for  any  duration  of  time,  the 
employment  guidelines  need  to  be  drawn  up  each  year.  The  guidelines  were  first  adopted 
together  (‘integrated  package’)  in  2010,  underpinning  the  Europe  2020  strategy.  The 
integrated  guidelines  remained  stabspecialle  until  2014.  Revised  integrated  guidelines  were 
adopted in 2015. In 2018 the employment guidelines were aligned with the principles of the 
European Pillar of Social Rights proclaimed in November 2017 by the European Parliament, 
the Council and the Commission, with a view to drive reforms at national level and to serve as 
a  compass  for  a  renewed  process  of  convergence  across  Europe.  The  Guidelines  remained 
unchanged  in  2019.  In  2020,  they  were  aligned  to  integrate  elements  related  to  the 
consequences  of  the  COVID-19  crisis,  the  green  and  digital  transitions,  and  the  UN 
Sustainable Development Goals. 

Along with the broad economic policy guidelines, the employment guidelines are presented as 
a Council Decision on guidelines for the employment policies of the Member States (Part II of 
the Integrated Guidelines) and provide the basis for country specific recommendations in the 
respective domains. 

The overall objectives and priorities expressed in the guidelines for the employment policies 
remain valid. By virtue of Article 148(2) TFEU, the validity of the Employment Guidelines 
for 2021 needs to be confirmed by a Council decision, following consultation of the European 
Parliament, the European Economic and Social Committee, the Committee of the Regions and 
the Employment Committee.  

The "Employment Guidelines" are the following: 

Guideline 5: Boosting the demand for labour 

Guideline  6:  Enhancing  labour  supply  and  improving  access  to  employment,  skills  and 
competences 

Guideline  7:  Enhancing  the  functioning  of  labour  markets  and  the  effectiveness  of  social 
dialogue 

Guideline  8:  Promoting  equal  opportunities  for  all,  fostering  social  inclusion  and  fighting 
poverty 

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2021/0137 (NLE) 

Proposal for a 

COUNCIL DECISION 

on guidelines for the employment policies of the Member States 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 148(2) thereof, 

Having regard to the proposal from the European Commission, 
Having regard to the opinion of the European Parliament1, 
Having regard to the opinion of the European Economic and Social Committee2, 
Having regard to the opinion of the Committee of the Regions3, 
Having regard to the opinion of the Employment Committee4 

Whereas: 

(1)  Member States and the Union are to work towards developing a coordinated strategy 
for  employment  and  particularly  for  promoting  a  skilled,  trained  and  adaptable 
workforce,  as  well  as  labour  markets  that  are  future-  oriented  and  responsive  to 
economic  change,  with  a  view  to  achieving  the  objectives  of  full  employment  and 
social  progress,  balanced  growth,  a  high  level  of  protection  and  improvement  of  the 
quality  of the  environment  laid down in  Article  3 of the Treaty  on European Union. 
Member States are to regard promoting employment as a matter of common concern 
and  are  to  coordinate  their  action  in  this  respect  within  the  Council,  taking  into 
account national practices related to the responsibilities of management and labour.  

(2) 

The Union is to combat social exclusion and discrimination and promote social justice 
and  protection,  as  well  as  equality  between  women  and  men,  solidarity  between 
generations and the protection of the rights of the child. In defining and implementing 
its policies and activities, the Union is to take into account requirements linked to the 
promotion of a high level of employment, the guarantee of adequate social protection, 
the fight  against poverty and social  exclusion, a  high level  of education and training 
and  protection  of  human  health  as  laid  down  in  Article  9  of  the  Treaty  on  the 
Functioning of the European Union (TFEU).  

(3) 

In  accordance  with  the  TFEU,  the  Union  has  developed  and  implemented  policy 
coordination  instruments  for  economic  and  employment  policies.  As  part  of  these 
instruments,  the  Guidelines  for  the  Employment  Policies  of  the  Member  States  (the 
‘Guidelines’) set  out  in  the Annex to  Council Decision (EU) 2020/1512  (5), together 

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OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
Council Decision (EU) 2020/1512 of 13 October 2020 on guidelines for the employment policies of the 
Member  States OJ L 344, 19.10.2020, p. 22–28. 

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with the Broad Guidelines for the Economic Policies of the Member States and of the 
Union  set  out  in  Council  Recommendation  (EU)  2015/1184  (6),  form  the  Integrated 
Guidelines. They are to guide policy implementation in the Member States and in the 
Union, reflecting the interdependence between the Member States. The resulting set of 
coordinated  European  and  national  policies  and  reforms  are  to  constitute  an 
appropriate  overall  sustainable  economic  and  employment  policy  mix,  which  should 
achieve positive spill-over effects.  

The  Guidelines  are  consistent  with  the  Stability  and  Growth  Pact,  existing  Union 
legislation  and  various  Union  initiatives,  including  Council  Recommendation  of  30 
October  2020  (7),  Council  Recommendation  of  15  February  2016  (8),  Council 
Recommendation  of  19  December  2016  (9),  Council  Recommendation  of  15  March 
2018  (10),  Council  Recommendation  of  22  May  2018  on  Key  Competences  and 
Lifelong  Learning  (11),  Council  Recommendation  of  22  May  2019  (12),  Council 
Recommendation  of  8  November  2019  (13),  Council  Recommendation  of  10  March 
2014  (14),  Council  Recommendation  of  24  November  2020  (15),  the  Commission 
Recommendation on an effective active support to employment following the COVID-
19  crisis  (EASE)  of  4  March  2021  (16)  and  the  [Council  Recommendation  on 
establishing a European Child Guarantee (17)]. 

The  European  Semester  combines  the  different  instruments  in  an  overarching 
framework  for  integrated  multilateral  coordination  and  surveillance  of  economic  and 
employment  policies.  While  pursuing  environmental  sustainability,  productivity, 
fairness and stability, the European Semester integrates the principles of the European 
Pillar of Social Rights, and its monitoring tool, the Social Scoreboard, and it foresees 
strong  engagement  with  social  partners,  civil  society  and  other  stakeholders.  It 
supports  the  delivery  of  the  Sustainable  Development  Goals.  The  Union’s  and 
Member  States’  employment  and  economic  policies  should  go  hand  in  hand  with 
Europe’s  transition  to  a  climate  neutral,  environmentally  sustainable  and  digital 
economy, improving competitiveness, ensuring adequate working conditions, fostering 

Council  Recommendation  (EU)  2015/1184  of  14  July  2015  on  broad  guidelines  for  the  economic 
policies of the Member States and of the European Union (OJ L 192, 18.7.2015, p. 27). 
Council Recommendation of 30 October 2020 on A Bridge to Jobs – Reinforcing the Youth Guarantee 
and  replacing  the  Council  Recommendation  of  22  April  2013  on  establishing  a  Youth  Guarantee 
2020/C 372/01 (OJ C 372, 4.11.2020, p. 1–9).  
Council Recommendation of 15 February 2016 on the integration of the long-term unemployed into the 
labour market (OJ C 67, 20.2.2016, p. 1). 
Council Recommendation of 19 December 2016 on Upskilling Pathways (OJ C 484, 24.12.2016, p. 1). 
Council  Recommendation  of  15  March  2018  on  a  European  Framework  for  Quality  and  Effective 
Apprenticeships (OJ C 153, 2.5.2018, p. 1). 
Council  Recommendation  of  22  May  2018  on  Key  Competences  and  Lifelong  Learning  (OJ  C  189, 
4.6.2018, p. 1). 
Council  Recommendation  of  22  May  2019  on  High  Quality  Early  Childhood  Education  and  Care 
System (OJ C 189, 5.6.2019, p. 4). 
Council Recommendation of 8 November 2019 on Access to Social Protection (OJ C 387, 15.11.2019, 
p. 1). 
Council  Recommendation  of  10  March  2014  on  a  Quality  Framework  for  Traineeships  (OJ  C  88, 
27.3.2014, p. 1). 
Council  Recommendation  of  24  November  2020  on  vocational  education  and  training  (VET)  for 
sustainable competitiveness, social fairness and resilience 2020/C 417/01 (OJ C 417, 2.12.2020, p. 1–
16). 
Commission  Recommendation  (EU)  2021/402  of  4 March  2021  on  an  effective  active  support  to 
employment following the COVID-19 crisis (EASE) C/2021/1372 (OJ L 80, 8.3.2021, p. 1–8). 
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innovation,  promoting  social  justice  and  equal  opportunities,  as  well  as  tackling 
inequalities and regional disparities. 

Climate  change  and  environmental  related  challenges,  globalisation,  digitalisation, 
artificial  intelligence,  teleworking,  the  platform  economy  and  demographic  change 
will  transform  European  economies  and  societies.  The  Union  and  its  Member  States 
should work together to effectively address these structural factors and adapt existing 
systems  as  needed,  recognising  the  close  interdependence  of  the  Member  States’ 
economies  and  labour  markets,  and  related  policies.  This  requires  a  coordinated, 
ambitious and effective policy action at both Union and national levels, in accordance 
with  the  TFEU  and  the  Union’s  provisions  on  economic  governance.  Such  policy 
action should encompass a boost in sustainable investment, a renewed commitment to 
appropriately sequenced reforms that enhance economic growth, quality job creation, 
productivity,  adequate  working  conditions,  social  and  territorial  cohesion,  upward 
convergence,  resilience  and  the  exercise  of  fiscal  responsibility.  It  should  combine 
supply-  and  demand-side  measures,  while  taking  into  account  their  environmental, 
employment and social impact. 

The European Parliament, the Council and the Commission proclaimed the European 
Pillar of Social Rights (18) (the ‘Pillar’). The Pillar sets out twenty principles and rights 
to  support  well-functioning  and  fair  labour  markets  and  welfare  systems,  structured 
around  three  categories:  equal  opportunities  and  access  to  the  labour  market,  fair 
working conditions, and social protection and inclusion. The principles and rights give 
direction to the Union’s strategy, making sure that the transitions to climate-neutrality 
and  environmental  sustainability,  digitalisation  and  demographic  change  are  socially 
fair  and  just.  The  Pillar,  with  its  accompanying  Social  Scoreboard,  constitute  a 
reference framework to  monitor the employment  and social performance of Member 
States,  to  drive  reforms  at  national,  regional  and  local  level  and  to  reconcile  the 
‘social’  and  the  ‘market’  in  today’s  modern  economy,  including  by  promoting  the 
social  economy.  On  4  March  2021,  the  Commission  put  forward  an  Action  Plan  for 
the  implementation  of  the  European  Pillar  of  Social  Rights  (19),  including  ambitious 
but  realistic  headline  targets  and  complementary  sub-targets,  in  the  employment, 
skills, education and social areas for 2030. 
On 8 May 2021, EU Leaders at the Porto Social Summit (20) recognised the European 
Pillar  of  Social  Rights  as  a  fundamental  element  of  the  recovery  noting  that  its 
implementation  will  strengthen  the  Union's  drive  towards  a  digital,  green  and  fair 
transition  and  contribute  to  achieving  upward  social  and  economic  convergence  and 
addressing the demographic challenges. They stressed that the social dimension, social 
dialogue  and  the  active  involvement  of  social  partners  are  at  the  core  of  a  highly 
competitive social market economy. Member States found that the European Pillar of 
Social Rights Action Plan presented by the Commission provided useful guidance for 
the implementation  of the Pillar, including in  the areas of employment, skills,  health 
and  social  protection.  They  welcomed  the  new  EU  headline  targets  for  2030  on 
employment  (78%  of  the  population  aged  20-64  should  be  in  employment),  skills 
(60% of all adults should participate in training every year) and poverty reduction (of 
at least 15 million, including five million children) and the revised Social Scoreboard 

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Interinstitutional Proclamation on the European Pillar of Social Rights (OJ C 428, 13.12.2017, p. 10). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  The  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions,  The  European  Pillar  of  Social 
Rights Action Plan (COM/2021/102 final).  
European Council, Porto declaration, 8 May 2021. 

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with  a  view  to  monitoring  progress  towards  the  implementation  of  the  Social  Pillar 
principles as part of the policy coordination framework in the context of the European 
Semester. Moreover, they noted that, as Europe gradually recovers from the COVID-
19  pandemic,  the  priority  will  be  to  move  from  protecting  to  creating  jobs  and  to 
improve  job  quality,  and  stressed  that  implementation  of  the  principles  in  the 
European Pillar of Social Rights will be essential to ensure the creation of more and 
better  jobs  for  all  within  the  framework  of  an  inclusive  recovery.  Finally,  Member 
States stressed the importance of closely following, including at the highest level, the 
progress achieved towards the implementation of the European Pillar of Social Rights 
and the EU headline targets for 2030. 

Reforms to the labour market, including the national wage-setting mechanisms, should 
follow national practices of social dialogue, with a view to providing fair wages that 
enable a decent standard of living and sustainable growth. They should also allow the 
necessary  opportunity  for  a  broad  consideration  of  socioeconomic  issues,  including 
improvements  in  sustainability,  competitiveness,  innovation,  quality  job  creation, 
working conditions, in-work poverty, education and skills, public health and inclusion 
and  real  incomes.  Member  States  and  the  Union  should  ensure  that  the  social, 
employment  and  economic  impact  of  the  COVID-19  crisis  is  mitigated  and  that 
transitions are socially fair and just. Strengthening the recovery and the drive towards 
an  inclusive  and  resilient  society  in  which  people  are  protected  and  empowered  to 
anticipate  and  manage  change,  and  in  which  they  can  actively  participate  in  society 
and the economy, should be pursued. A coherent set of active labour market policies 
consisting of temporary hiring and transition incentives, skills policies and improved 
employment services is needed to support labour market transitions as highlighted in 
the Commission Recommendation (EU) on an effective active support to employment 
following the COVID-19 crisis (EASE).  

(10)  Discrimination  in  all its forms  should  be  tackled,  gender  equality  ensured  and  youth 
employment  supported.  Access  and  opportunities  for  all  should  be  ensured  and 
poverty  and  social  exclusion,  including  that  of  children,  should  be  reduced,  in 
particular  by  ensuring  an  effective  functioning  of  labour  markets  and  adequate  and 
inclusive  social  protection  systems,  and  by  removing  barriers  to  education,  training 
and  labour-market  participation,  including  through  investments  in  early  childhood 
education  and  care  and  in  digital  skills.  Timely  and  equal  access  to  affordable  long-
term care and healthcare services, including prevention and healthcare promotion, are 
particularly  relevant,  in  light  of  the  COVID-19  crisis  and  in  a  context  of  ageing 
societies.  The  potential  of  people  with  disabilities  to  contribute  to  economic  growth 
and  social  development  should  be  further  realised.  As  new  economic  and  business 
models  take  hold  in  Union  workplaces,  employment  relationships  are  also  changing. 
Member  States  should  ensure  that  employment  relationships  stemming  from  new 
forms of work maintain and strengthen Europe’s social model. 

(11)  The Integrated Guidelines should form the basis for country-specific recommendations 
that  the  Council  may  address  to  the  Member  States.  Given  the  comprehensive  and 
forward-looking  policy  nature  of  the  Recovery  and  Resilience  Plans  and  since  all 
Member States submitted such plans, there was no need in 2021 for the Commission 
to propose country-specific recommendations. The Commission nevertheless proposed 
recommendations  on  the  budgetary  situation  of  the  Member  States  in  2021  as 
envisaged under the Stability and Growth Pact.  

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(12)  Member  States  should make  full  use  of  REACT-EU  (21)  reinforcing  cohesion  policy 
funds  until  2023,  the  European  Social  Fund  Plus,  the  new  Recovery  and  Resilience 
Facility (22) and other Union funds, including the Just Transition Fund and InvestEU, 
to  foster  employment,  social  investments,  social  inclusion,  accessibility,  promote 
upskilling  and  reskilling  opportunities  of  the  workforce,  lifelong  learning  and  high 
quality  education  and  training  for  all,  including  digital  literacy  and  skills.  While  the 
Integrated Guidelines are addressed to Member States and the Union, they should be 
implemented  in  partnership  with  all  national,  regional  and  local  authorities,  closely 
involving  parliaments,  as  well  as  the  social  partners  and  representatives  of  civil 
society. 

(13)  The  Employment  Committee  and  the  Social  Protection  Committee  should  monitor 
how the relevant  policies are implemented in  light  of the guidelines  for  employment 
policies,  in  line  with  their  respective  Treaty-based  mandates.  Those  committees  and 
other Council preparatory bodies involved in the coordination of economic and social 
policies  should  work  closely  together.  Policy  dialogue  between  the  European 
Parliament,  the  Council  and  the  Commission  should  be  maintained,  in  particular  as 
regards the guidelines for the employment policies of the Member States. 

(14)  The Social Protection Committee was consulted. 

HAS ADOPTED THIS DECISION:  

Article 1 

The guidelines for the employment policies of the Member States, as set out in the Annex to 
Council Decision (EU) 2020/1512, are maintained for 2021 and shall be taken into account by 
the Member States in their employment policies and reform programmes. 

This Decision is addressed to the Member States. 

Done at Brussels, 

Article 2 

For the Council 
The President 

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Regulation  (EU)  2020/2221  of  the  European  Parliament  and  of  the  Council  of  23  December  2020 
amending  Regulation  (EU)  No  1303/2013  as  regards  additional  resources  and  implementing 
arrangements to provide assistance for fostering crisis repair in the context of the COVID-19 pandemic 
and  its  social  consequences  and  for  preparing  a  green,  digital  and  resilient  recovery  of  the  economy 
(REACT-EU) (OJ L 437, 28.12.2020, p. 30–42). 
Regulation  (EU)  2021/241  of  the  European  Parliament  and  of  the  Council  of  12  February  2021 
establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17–75). 

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