The Personalised Action Programme for a New Start Noisy-le-Grand, October 2004

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1 The Personalised Action Programme for a New Start Noisy-le-Grand, October 2004 Summary of the Peer Review 1. Introduction The peer review was held on 18 th and 19 th October 2004 in Noisy-le-Grand, and hosted by the French Public Employment Service (ANPE) and the Ministry of Employment, Labour and Social Cohesion. Also present at the meeting were representatives of the UNEDIC, the Central Unemployment Benefits Office, which plays a central role in the running of the French action programme. In addition to the host country, a further 10 countries participated in the review. These were: Cyprus, the Czech Republic, Denmark, Finland, Hungary, Ireland, Malta, Portugal, Slovenia and the United Kingdom. Site visits were organised to both a local ANPE office and to an Assédic (Regional Benefits Office) in Noisy-le-Grand. A meeting was organised at the Assédic with representatives of the social partners (MEDEF Mouvement des Entreprises de and CFTC Confédération Française des Travailleurs Chrétiens). This summary draws on the contributions from experts and officials during the meeting itself. The papers prepared by independent experts from the host and peer countries in advance of the meeting and a detailed background paper prepared by the French ministry and the ANPE provide further elaboration on the theme and can be found, along with further relevant information, on the Peer Review web site, In her opening statement Catherine Barbaroux (Ministry of Employment, Labour and Social Cohesion) alluded to the challenges faced by all EU member states in the context of the current economic climate and the European Employment Strategy goals. She briefly described the labour market situation in and introduced the Personalised Action Plan for a New Start (PAP-ND). Michel Bernard (General Director of the Public Employment Service (ANPE)) went on to describe the ANPE and the logic behind the introduction of the PAP-ND. Jean-Pierre Revoil (General Director of the UNEDIC) described the origins and tasks of the benefits office and its role in the PAP-ND. A detailed description to the PAP-ND was provided by Jean-Marie Marx (ANPE) and Pierre Nieul (UNEDIC) followed by an input by the French independent expert, Robert Mizrahi, raising important and critical points for discussion. 2. Background and policy considerations: history and purpose of the Personalised Action Programme for a New Start (PAP-ND) The Personalised Action Programme for a New Start (Programme d Action Personalisé pour un Nouveau Départ - PAP-ND) was introduced on 1 st July 2001 replacing the Personalised Service for a New Start toward Employment (Service Personalisé pour un Nouveau Départ vers l Emploi - SPNDE) which had been in place since The PAP-ND corresponds to Guideline 1 of the European Employment Strategy in which member states are required to offer every unemployed person a new start before they reach six months of unemployment in the case of young people and 12 months of unemployment in the case of adults in the form of training, retraining, work practice, a job, or other employability measure, combined where appropriate with ongoing job search assistance. It is also a 1

2 response to the employment situation in which remains characterised by the persistence of high unemployment and low employment rates especially in relation to the goals of the Lisbon Process. The PAP-ND was introduced six months after the reformed Unemployment Benefit Agreement came into effect on January 1 st In the framework of this Agreement a number of changes in the benefits system were introduced, e.g. non-degressive unemployment benefits and the activation of benefit expenditure to fund back-to-work measures. These provided the basis for the conclusion of a back-to-work assistance plan (Plan d Assistence de Retour à l Emploi - PARE) and personalised action plan (PAP-ND) to be agreed and signed by all jobseekers. The main aims of the PARE/PAP-ND were to speed up the job hunting process and to better meet company recruitment requirements. The introduction of the PAP-ND concurred with the downturn of the economy which began mid Therefore, the initial implementation of the scheme took place amidst rising unemployment registration figures, combined with significant changes to the employment demand and on a market with increasingly rare employment opportunities. 3. Policy design and implementation: the PAP-ND in practice Institutional Background The PAP-ND is the result of agreements between the Ministry of Employment, Labour and Social Cohesion, the French Public Employment Service (ANPE) and the Central Unemployment Benefits Office (UNEDIC). The preparation and monitoring of the PAP-ND were entrusted to the ANPE which enlisted the help of co-contractors (650) and subcontractors (3,500) transferring to them responsibility for a significant part of the additional services. The State and the UNEDIC defined the training actions for jobseekers in liaison with regional councils, as well as the employment assistance packages and measures. Budget The programme is financed by the UNEDIC and the ANPE whereby the latter s resources for this programme are allotted partly by the State and partly by the UNEDIC for the implementation of the PARE. For reasons of fairness and consistency, all jobseekers are covered by the PAP whether they receive unemployment benefit or not. The 2004 budget of the ANPE (1,824 million Euros) is allocated as follows: Staff budget: the UNEDIC finances million Euros (and the State 746.5), which means 3,650 jobs, and pays 69 million Euros in associated operating credits. Services subcontracted for the jobseekers receiving allowances: The UNEDIC finances 267, and the State 205 million Euros. 2

3 The UNEDIC therefore finances about one quarter of the budget of the ANPE in relation to the PARE and the State the rest. The State contributed to the financing of the PAP-ND in order to balance the contributions, in particular for the jobseekers not receiving allowances (about half). The provisions for employment for the SPNDE specified in the progress contract are used for the PAP-ND (2,570 statutory jobs youth jobs); the budgets for services rose from 69 to 205 million Euros. 1 Aims The main aims of the PAP-ND are to get people back into sustainable jobs more quickly and efficiently and to better meet employers requirements in terms of skills matching. In order to achieve these aims, the ANPE works closely with the UNEDIC to ensure the smooth transfer of people from the unemployment benefits office to the employment service and to provide a sustained and comprehensive service to all jobseekers whether they are entitled to benefits or not (approximately half are not). The ANPE also works with a wide variety of local partners ranging from missions locales which provide specialised services for specific target groups to private consultants and universities for specialised services (e.g. skills evaluation and profiling). It is this rich network of partners particularly at local level which provides such a holistic and thorough follow-up of the unemployed. Unemployment Registration (Signing On) The PAP-ND process starts with registration for benefits at the local Assédic. Here people are given information on their entitlements, on the PARE and on the PAP-ND. They are also told that they must go to their local ANPE office within a month of registering with the Assédic and given information on how to prepare for their interview there. At the ANPE, they are invited for an in-depth interview lasting between twenty and forty minutes during which they identify their skills, appropriate job profile and/or potential difficulties and training needs. On the basis of this initial picture and the tailored services suggested by the adviser, a Personalised Action Plan is drawn up by both jobseeker and adviser and given to the jobseeker as a contractual basis for mutual commitments. This is followed up on a regular basis until the person in question finds a new job and is updated after six months if the person has still not found a job. Between July 2001 and December 2003, no less than 8,800,000 PAPs were drawn up. Of the 2,833,000 new jobseekers in 2003, a total of 51.4% were receiving unemployment benefits (PARE). PAP updates now number 400,000 a month and exceed the number of initial PAP interviews. The total number of monthly interviews (initial PAP interviews and PAP updates) regularly exceeds 600,000 per month. The Services Offered to the Jobseekers On the basis of the initial interview and depending on the skills and training or other needs of the jobseeker, actions and services are agreed with the jobseeker and included in the Action Plan. The main service offered by the ANPE is still placement. However, other services, previously reserved for the longer-term unemployed are now also offered to jobseekers at an earlier stage in their 1 Host Country Discussion Paper, Robert Mizrahi, ROM Consulting 3

4 unemployment in order to prevent them from becoming long-term unemployed. Four types of service are offered: - Self Assistance ( Libre Accès ): This service is essentially for those jobseekers who possess the skills and self-confidence to look for work unassisted. There is a host of career information and job offers posted at the local ANPE office as well as access to job offers online (either at the ANPE or from home) - Individual Support ( Appui Individualisé ): This service is for jobseekers who need the support and advice of skilled advisers to help them in their job search. It can involve workshops and/or personal skills assessments - Additional Support ( Accompagnement Renforcé ): This service is for people who need more intensive personal support and comes in the form of a tailored package lasting a renewable three months. - Social Support ( Accompagnement Social ): This service is for people who need to resolve personal and social problems before being job-ready and usually involves referral to a number of specialised partners. Before the introduction of the PAP-ND, few jobseekers had access to tailored services immediately upon registering but were left to their own devices. Now 55% of jobseekers receive tailored advice or support (individual support: 42%; additional support: 12%; social support: 1%) from the beginning. If the jobseeker has still not found a job after six months of unemployment, a more thorough interview is carried out. At this stage, the difficulties encountered by the jobseeker to find a new job can be more clearly identified on the basis of actions carried out during the previous six-month period. If necessary, the action plan is adjusted, proposed services are modified and, generally speaking, reinforced. The focus will be on skills assessment ( bilan de compétences ) in order to consolidate or review the person's professional project. At the six-month stage of the PAP, 37% of jobseekers are in self assistance mode and 63% are receiving more intensive support from ANPE advisers (individual support: 46%; additional support: 15%; social support : 2%). At twelve months the picture is as follows: 34% in self assistance mode; 66% in individual support, additional support or social support. In total, since signing the PAP, about 40% of jobseekers have, in one way or another, received personal assistance from advisers; only 12% of jobseekers are still in self assistance 12 months after signing up. The figures for 24 months are, respectively, 60 and 4.5. Relations with Business In the framework of the PAP-ND, the ANPE has reinforced its relations with businesses to better meet their recruitment needs and to facilitate and accelerate the integration of jobseekers. This involves a marketing approach and specific actions: - targeted visits to companies - action plans to tackle recruitment difficulties - collection of a large number of miscellaneous job vacancies - signing agreements with large companies - searching for targeted vacancies for specific client groups - better matching for job vacancies including training and employability measures 4

5 4. Policy impact and challenges: assessment of PAP-ND to date It is a recognised fact that in the evaluation of labour market policy measures, there is no sure method to isolate the effects of a measure in relation to return to work figures. In addition, it was not possible to set up a control group in since the measure was applied across the board to all jobseekers. However, the UNEDIC calculated that if the average period of unemployment benefit payment was reduced by three weeks, the amount spent on activation would be covered. This quantitative objective was regarded as an incentive to target the scheme on operations with a high level of effectiveness. Any assessment of the scheme must take into account the efficiency with which it was implemented. In the case of the PAP-ND, the ANPE managed to implement the scheme very quickly and efficiently because the project was in a sense an extension of the previous return-to-work programme SPNDE (Service Personalisé pour un Nouveau Départ vers l Emploi). In addition, the ANPE has been involved in a sustained policy of continuous improvement for a number of years which makes the change processes relatively easy to implement. The implementation of the measure also did not require structural changes but only intensified co-operation between the main stakeholders which has been successful overall. Regarding the effectiveness of the changes in practice, there has been a marked improvement in the quality of the interview process between jobseeker and advisor. There was an increase in the volume of services offered (in some local agencies as much as threefold) and in the quality of their delivery. The number of interviews leading to job referrals has risen from less than 30% in 2001 to more than 80% at the end of Regarding output indicators, the economists and statisticians at the ANPE and the Ministry of Employment say that the statistical studies currently available do not allow the conclusion that the PAP has any significant effect on the market and on unemployment. However, they also say that one cannot reach a conclusion in the sense of an absence of effect either, when multiple factors combine to influence the rate of exit: cessation of the reducing nature of unemployment benefit with a consequent increase in the rates of the benefits paid to the jobseekers, easing of the social charges, reduction of working hours, financial incentives for employment, special policies for young people, etc. 2 According to these analysts, the in-depth effects, if these exist, are essentially to be found in relation to the targeted populations. A micro-economic analysis, centred on selective impacts of each type of service by population, would provide more useful information. Robert Mizrahi, the independent expert for, raised a number of questions for debate. He mentioned the lack of continuity in the follow-up of the jobseekers. The latter were offered in-depth interviews on a regular basis and other contacts with advisers but there was no assigned adviser and a poor return on the results of the services provided. However, addressing this problem would require organisational changes and an update of the IT system (which is actually underway). Further, he underlined the fact that although the interviews had improved vastly since the introduction of the PAP- ND, advisers were still hesitant to tackle the issue of the employment market (only 15%) and to engage in an in-depth discussion with the jobseeker regarding their personal situation (especially in the more 2 DARES work note: What assessments are thinkable on the PARE/PAP? March

6 difficult cases). He also mentioned that the advisers were not provided with standardised information on job trajectories and jobseeker needs and that the profiling and return to work projects were therefore based on the personal knowledge and decisions of the advisers. 5. Transferability and issues of special interest for Peer Countries The Peer Countries were asked to present their countries impressions and comments concerning transferability under one of two aspects (see below). The following summary is chronological and draws both on the papers prepared before the meeting and on the presentations during the session. 1. How to design a broad programme to combat unemployment which identifies the target groups and takes the segmentation of the different groups into account? (United Kingdom, Portugal, Malta, Ireland, Denmark) United Kingdom The UK independent expert, Steve Johnson, first emphasised how the PAP-ND was an impressive achievement especially in the current economic climate. The situation in the UK is a very different one. There is both a reduction in unemployment and in active labour market policy resources. The UK also has a very different approach to the one described here. This was also emphasised by Keith Walton from the Jobcentre +. The Jobcentre functions on the basis of performance management. Advisers get points for placing people with more points for the harder to place people (e.g. easy to place 1 point; long-term unemployed person 6 pts; single parent 12 pts). The performance system can have negative effects on the job satisfaction of the advisers (placing hard to place people is hard work and often unrewarding) and there is very high staff turnover. Efforts are being made to upgrade the profession through training and image. The advisers are also being given a certain amount of discretion regarding benefits and allowances in the form of a limited budget with which they can provide jobseekers with financial support, e.g. for bus fares. District managers have discretionary funds with which they can use to enhance their flexibility in helping the unemployed. A further major difference in the UK approach is that it is assumed that people who really want to get jobs can get jobs and that motivation rather than skills is the key issue. Employer surveys also show that employers prefer candidates with fewer skills who are motivated rather than candidates with more skills who are not. Given the big differences in philosophy and approach between and the UK, it is difficult to imagine several elements of the French system being transferred to the UK. However, the British representatives concurred that it was nevertheless interesting to reflect ones own policy in the light of a very different one. Portugal Maria da Paz Ventura Campos Lima, independent expert for Portugal, raised the issue of long-term employability in the context of getting people back to work. Getting people back into work is not always the most sustainable option and providing training may be more effective. For this reason she admired the French programme which takes both aspects into account. She also said that the current economic downturn has affected all countries including Portugal. A system is needed that can deal with the economic cycle and both the demand and supply side of the labour market. The French system is 6

7 exemplary in its efforts to involve the employers and other relevant actors in a very holistic, networking approach. The Portuguese PES is not at all proactive regarding the employers and can learn from in this respect. The rate of unemployment in Portugal is not very high (6.3% in 2003) but there are specific problems which are hard to tackle, e.g. above average long-term unemployment, low levels of education of the workforce and an increase in the unemployment of young people with relatively high levels of education. Portugal has introduced a system of personalised follow-up for the unemployed but the services on offer are not very good. Efforts are being made to provide better profiling regarding qualifications and professional experience. Malta Malta joined the European Union in May Current developments in its labour market reflect both the current economic climate and the effects of EU membership. Unemployment stands at around 7.2% and employment at 54% 3 which can be explained by the low (but rising) employment rate of women which is at 34%. Full-time employment is declining reflecting the ageing of the population and early-retirement in the public sector. A further effect of general economic and public sector restructuring is the decrease in employed and an increase in self-employed workers. There has also been a shift from full-time to part-time employment in which women again occupy a significant place. Labour market developments in Malta are significantly conditioned by its smallness. The closure or restructuring of a firm can have disproportionately large effects on the overall market, calling perhaps for radical policy shifts. In turn, policy formulation is complicated by data insufficiencies as smallness of the population increases the margin of error of sample results 4. The Maltese expert, Marisa Xuereb, and official, Albert Ellul, described how the Public Employment Service (the Employment and Training Corporation (ETC)), implemented a pilot scheme in the framework of the ESF which has certain similarities with the French scheme. The scheme had a good success rate and will be implemented as a regular programme under the ESF in future. The main findings were that young people tend to find jobs more easily and with less help. They are left to their own devices for two months and then given support in the form of profiling, guidance, job motivation, job tasters, soft skills and job search help. They are also informed about health and safety. For older unemployed people, the activation starts within two weeks with a job search seminar. This is followed by a similar range of offers as mentioned above and includes a personal action plan. Regarding the transferability of the French Action Programme to Malta, although it makes sense to use the unemployment benefit as an instrument for the return to work, in the case of Malta, this is difficult because the unemployment benefit and unemployment measures are operated by different Ministries with potentially different objectives. Linking the receipt of the unemployment benefit to back-to-work measures would be useful not least because it would occupy claimants time productively, thereby reducing the scope for abuse, and give a truer picture of the state of unemployment without the distortions of undeclared work. Ireland The independent expert for Ireland, Tom Ronayne, began his statement by reflecting that we cannot expect the PES to create employment. What it can do is: - shorten the time it takes to get a job - reduce the time it takes employers to fill vacancies 3 Labour Force Survey, March Maltese Statements and Comments Paper, Gordon Cordina, University of Malta 7

8 - improve the matching process - redistribute jobs among the unemployed - contribute to social inclusion objectives - police the operation of the welfare system He noted that what becomes clear from the discussions is that the means used to reach these targets varies considerably throughout the EU. The strategic objectives of the PES tend to reflect the economic situation. This is true of Ireland where the unemployment rate has sunk significantly. The system is now shifting to an equity-based rather than quality-based service. Ireland has a programme which is very similar to the PAP-ND: the National Action Plan Process. It also involves the insurance body and the PES (FÅS). As Sharon McCarthy, the Irish official delegate explained, FÅS has introduced the High Support initiative which is aimed at clients referred under the National Employment Action Plan programme who have a range of barriers preventing them from progressing into employment e.g. health issues, literacy difficulties. Under the High Support Initiative multi-agency teams have been put in place, comprising representatives of FÁS (PES), Department of Family and Social Affairs, Health Boards, Department of Education, Probation and Welfare and N.D.T.I. This approach has proved to be a useful intervention. Denmark The independent expert for Denmark, Anders Holm, remarked that the reforms underway in are very similar to those which took place in Denmark in the 1990s. Like in, Denmark has shifted the emphasis of its labour market policies from passive to active measures which resulted in a huge increase in the number of active measures on offer. He also described the reforms currently underway in Denmark. The PES and the social benefits office are being merged. Within the rights and requirements system in Denmark where the unemployed have rights but also the duty to take a job after a certain duration of unemployment the threat of, for example, being obliged to take part in LMP measures has been shown to be a surprisingly effective tool to get people back into work. Kim Svendsen-Tune, official delegate from Denmark, corroborated this point by remarking that activation measures tended to be an effective method of getting people back into work even if they were not actually very good. The motivating effect is the same: people prefer to be in jobs than in measures. However, there is a clear correlation in Denmark between levels of qualification and the likelihood of moving into measures: the higher the qualifications the higher the enrolment rate. Regarding transfer and future developments, the trend in Scandinavian countries including Denmark is to reduce the volume of active measures. The aim is to better target measures at specific groups of unemployed and thus increase the efficiency of the programmes. 2. Which organisational model for the PES would be the best? Which relations between the PES and the service providers are desirable for the unemployed on national and regional level? (Cyprus, the Czech Republic, Finland, Hungary, Slovenia) Cyprus Louis Christofides, independent expert for Cyprus, described the labour market in Cyprus as slightly overheated. There are traditionally low unemployment rates but nevertheless pockets of unemployment and vulnerable groups. 25% of all unemployed remain so for over a year. Particularly affected by unemployment are young people, women and older workers (over 54). The National Action Plans for Employment (NAPs) for 2003 and 2004 include measures for older workers and the reduction 8

9 of dependency of specific groups on social insurance. These plans to provide specialised services for vulnerable groups will, however, be restricted by the lack of resources (human and financial) available to the Public Employment Services. The upgrading of the latter is a priority and plans have been made to expand the infrastructure and scope of the local offices. The internet will be used more on the one hand and personal counselling on the other. The skills, abilities and interests of the jobseekers will be recorded more systematically in the form of a personalised development plan not dissimilar to the PAP- ND. This was further elaborated on by Georgia Antoniou, official representative for Cyprus, during the Peer Review Meeting when she explained the tasks of the PES in Cyprus. The Public Employment Services (PES) operate as employment offices with the ordinary responsibilities (except unemployment benefit). Thus, their tasks, among others, include registration and placement of unemployed persons, registration and filling of vacancies and provision of vocational guidance and counselling on employment and training opportunities. The current targets of the PES are: the introduction of information technology systems which provide among others the potential of self-service in searching/securing a job, the enhancement of PES and upgrading of their services with particular emphasis on the individualized approach. Czech Republic In her contribution to the debate, Vĕra Czesaná, independent expert for the Czech Republic, stated that although the Czech Republic has already gained initial experience concerning the introduction of Individualised Action Plans (IAPs), the scope and implementation methods differ from those of the PAP scheme in. The implementation of IAPs in the Czech Republic is far less extensive and only focused on young people up to the age of 25 (programmes for other age groups are mostly at a pilot stage). The IAP is voluntary and its main objective is to mobilise the client. The range of services offered is also narrower than in in the framework of the PAP-ND. The main reason for this narrower scope is the lack of human and financial resources to provide IAP services for all client groups. Another problem is a lack of job vacancies which could be filled with the clients who successfully complete their IAPs. The workload of the staff who deal directly with clients is enormous ( job seekers per adviser in the Czech Republic compared to 212 in the EU15). This ratio is many times higher in regions with top levels of unemployment reaching clients per adviser. Experience shows that the principal condition for effective implementation of IAPs is a decrease in the number of clients per adviser to at most. Recruiting more advisers is problematic due to budgetary restraints and outsourcing due to the lack of competent providers. In the Czech Republic, the scale of measures implemented by labour offices is quite large and includes instruments aimed at enhancing the client s employability (counselling, motivation, retraining, work experience training, etc.) and at supporting the creation of jobs (subsidised jobs, support for self-employment, sheltered workshops, support for job creation by employers, etc.). These tools can be used and combined under the IAP scheme. However, unlike in, there are no social and other special services that complement/accompany the mainstream IAP services for the most socially disadvantaged clients. This would require better co-operation between the employment services and the institutions providing social services (public and private), including local administrative bodies, and more resources. Although the problems faced by the Czech PES could be addressed using the French good practice example, the following minimum requirements would have to be met prior to transfer: - Changes in the structure and operation of the PES offices; - Upgrading of staff qualifications; - Specialisation of the advisers; - Linking self-service, individual and group activities. 9

10 Another important aim is to create generally favourable pro-active labour market conditions, i.e. to improve the mix of employment, social and tax policies, to avoid the unemployment trap and support job inclusion. Finland Finland successfully introduced a system of personalised action plans in the 1990s and according to Robert Arnkil, the Finnish expert, PES advisers were experiencing a sort of PAP-fatigue because they were not achieving the desired results with certain customer groups. Finland was inspired by the Dutch and UK experiences and models and now there is a three strand approach. The three strands are based on three institutions: workplace development, PES and LAFOS (Labour Force Service Centres). The workplace development strand is characterised by social and organisational innovations in organisations in the generation change ; the PES deals with the functioning of the open labour market, placements, recruitment, brokerage; and the LAFOS deal with structural unemployment and shifting people from a situation of multiple life-problems to job readiness. The critical success factors of the Finnish system are: - the assessment of customer needs/profiling/referral - the management of customer process ( case management ) and co-operation in service networks ( network coordinator ) - the development of a service market for building job readiness, contracting, smart buyer - the connection to regional/local/municipal strategies - the development of management (re-inventing management by results, network management ). Kimmo Ruth, official representative for Finland, emphasised that the main problem in Finland is the structural unemployment. This means activating benefits and involving the partners at local level. The latter has the advantage that the local and municipal levels also participate in the costs. Finland is in a similar position to in the sense that it has reached the second stage of labour market reforms and is therefore confronted by similar next step problems. Both countries could therefore benefit from an exchange of good practice in the future. For example, the French independent expert identified a number of problems and challenges for the PAP. These include the fact that jobseekers were not seen or monitored by the same assigned adviser during their period of unemployment. In the future it would make more sense to have a portfolio of jobseekers over time. Further issues were targeting the services (in terms of segmentation), securing better feedback from results, setting up professional teams to develop know-how on the labour market and occupational domains, increasing networking with local agencies, and making the fixed-term interviews more flexible. All these are also relevant for Finland in future. Hungary The Hungarian independent expert, Peter Galasi, described how despite the relative buoyancy of the Hungarian economy (almost 14 per cent growth in GDP between 2000 and 2003), net job creation is slow and the labour participation rate is lower than the EU average (59.6 per cent in 2002). Unemployment is relatively low at 5.5 per cent in 2003 but so is employment at 51 per cent in the same year. The Hungarian government has recently introduced a number of measures which may have affected both the supply of and demand for labour. Retirement age was increased thus increasing the 10

11 supply of labour. The minimum wage was doubled twice, increasing labour costs and reducing unemployment in the small firms sector, particularly for low-wage workers. Unemployment insurance entitlement periods and the net amount of benefits were cut leading to a fall in the benefit received by Unemployment Insurance exhausters without any effect on exit-to-job rates. At the same time, the Hungarian PES started introducing active labour market policy measures. However, the PES only reaches a fraction of the unemployed. Benefit recipients disappear when they are no longer eligible for benefits. A reorganisation of the PES is necessary but there are no clear plans yet for how this should be done. In response to the question posed regarding organisational models and co-operation, Tibor Bors Borbély, the official representative for Hungary, stated that clarifying the targets of the Hungarian PES was an important first step before discussing structure. The new member states of the European Union have different problems and tasks than the older member states. In Hungary, the labour market is characterised by a low level of employment, a high level of inactivity, a rigid labour law, a high wage burden rate, and the constant change processes being undertaken by the Hungarian institutions including the PES. One of the main problems is that of labour mismatching and the fact that there are no vacancies available. The huge number of economically inactive people is also a social problem. Regarding networking and partnerships, there is the problem that it is sometimes not clear who is responsible for what and for whom. Regarding transferability, has provided an interesting example which given the huge expense and administrative complexity of the programme is not really transferable as such but which has a number of aspects which can be considered in the Hungarian context. A new service model is being piloted in 20 employment offices in Hungary. Most of the resources are being spent on creating an adequate infrastructure including updated equipment. A further emphasis is on staff training. Where the experience of the PAP-ND could be useful for Hungary is in the development of analytical tools such as forecasts, economic and labour market research, employer needs surveys etc. Slovenia As in Hungary, the main problems being faced on the labour market in Slovenia are a skills mismatch (between demand and supply) and the relatively low levels of labour market flexibility. Anja Kopač, independent expert for Slovenia, said that a sort of personal employment plan was introduced in Slovenia in This provides the main document for the identification of the jobseekers needs, planning their further activities, and proposing job search assistance, advice and guidance. It also forms the basis for the jobseekers participation in active employment policy programmes and acts as an agreement between the jobseeker and the adviser. It is prepared for each unemployed person within two months of their becoming unemployed. The unemployed are divided into different categories (easy to place through to difficult to place) and offered services according to their needs. The active employment policy programmes are the main tool to overcome the problems of structural and longterm unemployment. However, the employment plan needs to be reformed since it did not succeed in helping the long-term unemployed and the most vulnerable. Regarding the question of which organisational model would be the best, the PES in Slovenia is being modernised. The goal is to transform it from the traditional bureaucratic PES to a modern organisation operating on the basis of the new public management strategies. Many improvements have already been made in the area of working conditions and methods (e.g. personnel development, specialisation, 11

12 team building, case management, the implementation of information systems, quality control etc.). There have also been efforts to network with public and private stakeholders and regional and local actors although this needs to be strengthened and the social partners involved more. Further modernisation is needed in relation to the process of individual treatment and in the differentiation of policy instruments. Summary of the transferability discussions During the discussions over the two days, the issue of evaluation was frequently addressed. No member state has carried out an in-depth evaluation of any personal action plan type scheme (with the exception of Finland where the pilot was evaluated with positive results). The difficulties involved in evaluating measures were discussed as was the difficulty of discussing transferability without concrete evaluation results! The high cost of the programme was a further issue which was frequently raised. For the majority of countries in particular the new member states such costs were utopic. Linked to this, the broad reach of the programme was also considered an ideal which could only be achieved in the richer countries. In many countries only those jobseekers receiving benefits are eligible for PES programmes. Structural issues were also repeatedly discussed. In some countries, the benefits office and the employment service were separate, in others merged. Denmark and the UK have recently merged the two and were able to present the structural changes involved in such a process. In the new member states in particular, structural changes were ongoing thus making the implementation of a new scheme difficult to envisage in the shifting labour market policy landscape. Also discussed during the meeting was the issue of motivation: not only that of jobseekers but also that of the PES staff. In some countries (e.g. Malta), the difference between minimum and low wages and the replacement rates are small thus not providing a real motivator to get people back into work. In other countries cuts in benefits should have this effect but fail to do so. However, it seems that personalised programmes do have a motivating effect on the jobseekers. In Denmark, the motivating effect of measures has been observed whatever the measure and regardless of its quality. In Denmark, it appears that people would rather be in work than in measures! In, the PAP-ND also had a motivating effect on the ANPE staff members involved in the programme. In other countries (e.g. the UK), staff motivation is low and the turnover among advisers very high. It is a general problem that advisers often lack a profound knowledge of the job market and are therefore unable to provide sound careers or training advice. Efforts to counteract this include training and certification, e.g. in Ireland where advisers can pass a certificate and a diploma of adult vocational guidance (lasting 1 and 2 years respectively). The problem of people returning to unemployment after short spells of employment was also discussed. This can be in the form of temporary workers (working for temping agencies) or fixed-term employment. In, 40% of those signing on at the Assédic have worked within the same month. It is difficult to find the balance between encouraging people to take up work (even if it is short-term and insecure) and to plan their careers with more sustainable jobs in mind. There are no sanctions for people who are repeatedly made unemployed in. A further factor much admired in the French programme was the multi-agency approach. A number of 12

13 countries have such an approach (Finland, Ireland, UK) and it seems to be beneficial particularly in the more difficult cases and geographical areas. Community-based organisations are more able to reach those furthest from the labour market or to respond to their special related needs (e.g. housing or debt). All in all, the French approach won the admiration of the participating countries in particular for its scope, the consistency in its implementation and the involvement of a wide range of co-operating organisations. All were very interested in the results of any future evaluation. 6. Concluding remarks The European Commission drew three main conclusions from the presentations and discussions. The first was that the PAP-ND is no doubt very much in line with the thinking behind the European Employment Strategy and the European Union s social agenda. The second was that the best form of social inclusion is through a job and the third was regarding evaluation. It is difficult to establish a control group among people who have such different characteristics. The unemployed are not a homogenous group and this is also what makes such a programme like the PAP so valuable. Stéphan Clément from the Ministry of Employment, Labour and Social Cohesion closed the meeting by reminding the participants of a few important points concerning the work of the PES in all countries: the PES does not create jobs and its performance outcomes depend on the overall economic context in particular regarding placement into jobs. It is also confronted with a number of double binds, such as the conflicting missions to serve the most difficult customers but also be efficient. However, programmes such as the PAP-ND have proved successful in raising the efficiency of the PES within the scope of their possibilities and the French example is doubtlessly a tour de force in the current economic climate. 13