Toolkit to fight youth unemployment

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1 Toolkit to fight youth unemployment How Europe implements the Youth Guarantee. The best instruments and measures for which Member States may receive EU funding. Member States devise concepts tailored to their specific domestic situation. Framework EU Impact Short-term Long-term Measures Beneficial loans SMEs Wage subsidy SMEs EURES, first job; ERASMUS plus Transition school - work/ early school leavers programmes Europ. alliance for training/dual training Developing nationwide vocational counselling structures Promoting entrepreneurship Benchlearning within the PES Structural reforms of employment services European funding options Potential Implementation Loans/microcredits EIB/ESF EU grants from YEI and ESF EIB loans/ Companies EIB loans/ Member States develop common concepts with/for Education and training establishments Employment services Guidance and support: Social partners where applicable EIB loans/ Young people in Europe 5.6 million out of work EU programmes for social change and innovation where applicable / EIB support

2 Brief description: Toolkit to fight youth unemployment Member States develop tailor-made concepts; they may have recourse to European sources of funding. EU funds can be deployed complementary to the funds of Member States. Beneficial loans SMEs Low-interest loans shall benefit above all small and medium enterprises: The European Investment Bank makes an additional six billion euro available as from Wage cost subsidy In regions where unemployment is above 25% time-limited wage subsidies can be paid from the funds of the EU s Youth Employment Initiative (YEI). In other regions the wage subsidies could also be financed from ESF funds. Promoting entrepreneurship Beneficial loans from the EIB will provide even stronger support for business start-ups, with a focus on sunrise sectors. EURES; ERASMUS + Erasmus+ programmes and the EURES network are strengthened. This will help to enhance occupational mobility and crossborder mobility of trainees and trainers in Europe even more effectively. From 2014 EURES activities qualify for ESF support. The Erasmus+ programme shall be operable by January. Transition school - work/ early school leavers programmes In close cooperation among regional players (schools, employment services, youth facilities, street workers, parents and parent associations) ESF-funded measures are to be implemented aimed at giving young people who are tired of school better qualifications or a second chance. Europ. Training Alliance/ dual training With the support of the social partners the employment services will support the business community in the development of training opportunities with a judicious combination of hands-on activities and school-based elements. Funding is provided by the Member States with financial support from the Youth Employment Initiative, the ESF and the EIB. Developing nationwide vocational counselling structures The employment services will develop nationwide vocational counselling structures and closely coordinate them with school-based career guidance measures. Benchlearning within the PES The Network of Public Employment Services of the Member States (PES Network) will be institutionalised and a systematic common benchlearning programme will be established. Financing via the Programme for Social Change and Innovation. Structural reform of the employment services Four key functions make up the structural basis of Europe s national employment services: transparency of demand and supply, nationwide career counselling services, effective placement into employment or training, the allocation of labour market policy measures. If necessary, the employment services will be restructured accordingly.

3 Joint efforts Partners in the fight against youth unemployment. Laying the structural/ legal foundations. EU and the 28 Member States Coordination and implementation EU Commission National governments Labour and Education Ministries Public employment services and training and education establishments Currently 5.6 million young people between 15 and 24 are out of work. (EU 28) Ensuring funding. Member States Youth Employment Initiative European Investment Bank (EIB) European Structural Fund (ESF) Shaping and implementing on the ground Enterprises European and national social partners Training and education providers Chambers

4 Investment in Europe s youth European funding possibilities for the implementation of national reforms and measures Loans 6 bn Beginning with 2012 loans with beneficial terms under the" Investing in Youth Programme in support of the Youth Employment Initiative and its main focus: the Youth Guarantee. Three bn. of which for each of the following areas: SMEs "Jobs for Youth and vocational training "Investing in Skills. Fight against youth unemployment 6 bn Fight against youth unemployment ("Youth Employment Initiative ); the Initiative comprises three areas: 1. Youth Guarantee, 2. "European Training Alliance, 3. Mobility Planning in the EU; budget for the next 7-year period. Release of funds in the first two years, if possible (2014/2015). 16 bn Grants European Council European Structural Funds Until 2015 the reprogrammed funds from the current programming period, amounting to a total of EUR 16 billion, can be used for youth employment purposes. + Member States can deploy further funds from the EIB's total lending volume (EUR 60 bn) for this purpose. + European Social Fund With the adoption of the new EU budget a total of EUR 72 billion are available for the new ESF programming period. Depending on their respective situation the 28 Member States can use part of it to fight youth unemployment. EU FUNDS CAN BE DEPLOYED COMPLEMENTARY TO THE FUNDS OF MEMBER STATES.

5 Financing pathways for the fight against unemployment Provision of loans Provision of grants Creditor: European Commission ESF/YEI application approval support direct lending indirect lending Operational ESF-programmes Borrower: national governments commercial/ promotional bank design Member States and their regions Promoter: labour and education ministries implementation implementation Beneficiary: public and private bodies SME public bodies private bodies

6 Infographics relating to the fight against unemployment EUROPE S TOOLKIT TO FIGHT YOUTH UNEMPLOYMENT JOINT EFFORTS The best instruments and measures for which EU funding is available The partners in the fight against youth unemployment SHORT-TERM IMPACT EU-INSTITUTIONS AND THE 28 MEMBER STATES MEDIUM TO LONG-TERM IMPACT Laying the structural/ legal foundations Europ. Training Alliance/ dual training Developing strategies, coordinating and implementing wage subsidies companies Promoting Entrepreneurship Developing nation wide vocational counselling structures Benchlearning within the PES EURES, First Job; ERASMUS plus Transition school work / early school leavers programmes Structural reforms of the employment services MEMBER STATES DEVISE CONCEPTS TAILORED TO THEIR SPECIFIC DOMESTIC SITUATION EU-COMMISSION NATIONAL GOVERNMENTS Quelle: Bundesministerium für Arbeit und Soziales beneficial loans companies LABOUR AND EDUCATION MINISTRIES PUBLIC EMPLOYMENT SERVICES AND EDUCATION MEMBER STATES YOUTH EMPLOYMENT INITATIVE EUROPEAN INVESTMENT BANK (EIB) Currently 5.6 m young people between 15 and 24 are out of work (EU 28) EUROPEAN STRUCTURAL FUNDS (ESF) Ensuring funding Shaping and implementing on the ground ENTERPRISES EUROPEAN AND NATIONAL SOCIAL PARTNERS TRAINING AND EDUCATION CHAMBERS Quelle: Bundesministerium für Arbeit und Soziales Infografiken_englisch_Europa_RZ_01.indd 1 Infografiken_englisch_Europa_RZ_01.indd 2 Infografiken_englisch_Europa_RZ_01.indd 3 Infografiken_englisch_Europa_RZ_01.indd 4 All charts can be downloaded (free print out) at:

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