N. Gregory Mankiw. Unemployment is not a simple problem with a simple solution

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Mavis Hopkins
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2 N. Gregory Mankiw Unemployment is not a simple problem with a simple solution

Total area: 78 866 km² Population: 10,2 mil.

3 Total area: km² Population: 10,2 mil. Currency: Czech crowns The Capital: Prague Úřad práce České republiky EURES Česká republika EURES EU

Labour office of the Czech Republic Directorate General Regional offices (14)

Legal department Department of Employment Department of Non-insurable Social

unit EU projects unit State social support unit Joint payroll unit Economic and

4 Labour office of the Czech Republic Directorate General Regional offices (14) Local offices (276/423) Administration of Regional Branch Inspectional and Legal department Department of Employment Department of Non-insurable Social Benefits Secretariat Inspectional unit Legal unit Mediation and Consultation unit EU projects unit State social support unit Joint payroll unit Economic and internal administrati on unit Labour market unit IT unit Property and investments unit EURES

5 Strategy of PES Czech Republic Strategy Europe 2020 > 75 % of yearolds employed Actual: 70,4 % Critical age < 40 years Projects financed by ESF and national budget Employment, social and family policies needs to affect career decision making in the early stage to equal supply and demand on labour market Involvement of primary and secondary schools Support employment of women

6 Unemployment the end of year 2012 Unemployment rate 9,4 % (7,2 %) Gender ratio 51,1 % Disabled ratio 11,4 % Graduates ratio 6,6 % Receiving benefits 19,8 % Long-term ratio >5 months 55 %; >12 months 37 % Number of job seekers / Number of vacancies = 15,6 job seekers / 1 vacancy

7 Unemployment effects Social isolation Stigmatisation Demotivation for job seeking Loss of work habits, skills, goals Time management Self-deprecation Economic issues

8 Active Labour Market Policy Retraining Investment incentives Publicly beneficial work Socially beneficial jobs Contributions Programme to support creation of new jobs

9 Retraining Goals: 1) to adopt new skills (theoretical knowledge and practical skills) 2) to deepen current qualification 3) to keep knowledge or qualification special acredited institutes licenced by Ministry of Education founded according to the needs of labour market agreement between labour office and jobseekers (conditions)

10 Investments Incentives To materially supports: creation of new jobs retraining or training of new employees Conditions: Unemployment rate in the region is higher than the average

11 Publicly beneficial work (community service) activities for a municipality or for state or other civic institutions Socially beneficial jobs employer establishes or reserves socially beneficial jobs on the basis of an agreement with the labour office and fills them with job seekers who cannot find work by other means

12 Contributions Bridging contribution contribution to a person who is self-employed and who has ceased to be a job seeker Transport contribution for employees (not extended) 50% costs where there is no public transport Contribution towards recruitment costs recruits a job-seeker with special care Contribution upon a switch to a new business programme For employer who cannot guarantee weekly working hours partial compensation for maximum of 6 months

13 A Programme to Support Creation of New Jobs investor creates at least 10 jobs in risk areas within two years projects in manufacturing industry and strategic services Support for training and re-training

14 Job Club Advisory service for job seeker information about labour market Job search database and other possible means preparation for job interview (help with CV s, cover letter, ) Improvement of communication skills Job Club provides: vacancies useful links contacts to private employment agencies retraining programmes financial advisory

15 Project Direction Job Duration: 3 years Target group: unemployed > 5 months Public procurement for private companies Goal: return unemployed to labour market, improve employability, prevention Individual approach, selection suitable trainings and instruments Activities: Selection of the candidates Candidate s possibilities analysis Re-training, financial guidance Final interview and evaluation Placement, granted jobs Direct support travel cost, wage contribution

16 Regional individual projects Projects Start again Actively to work Practice in companies Family is not handicap Work with help Educate yourself Educate yourself for growth Activities: Motivation programs Communication trainings Diagnostic counselling Career counselling Professional re-training

17 Thank you for attention Miroslav Chytil Assistant of Head of PES Czech Republic Manager of EURES Czech Republic

Basic organisation model

Country name: Latvia PES name: State Employment Agency (NVA) Basic organisation model Objectives The objectives of the State Employment Agency include: providing support to the unemployed, job seekers