Country name: Luxembourg PES name: Agence pour le Développement de l Emploi (ADEM) Basic organisation model Objectives ADEM aims to promote employment by improving the governance of employment policies in coordination with economic and social policies. The main objectives of ADEM are as follows: implement legislation on employment policies, prevention of employment and unemployment benefits; support, guide and provide counselling and training to jobseekers; monitor the labour market, collect vacancies and provide advice to employers on recruitment; organise placements in apprenticeship training for young people and adults; provide vocational guidance; promote access to employment for young people and women; advice, re(train) and promote or re-train and favour integration in the labour market and job retention of disabled workers; monitor developments in the labour market. Targets As part of the reform of ADEM, three objectives have been pursued since 2012: more individualised support for jobseekers; a greater focus on employers; and internal restructuring and digitalisation. Concerning the third objective, a scoreboard for activity indicators is in place, but no quantified targets have been adopted yet. Tasks ADEM offers specialised services to jobseekers (personalised support, access to vacancies, training, unemployment benefits and other benefits, specialised services, etc.) and employers (pre-selection of candidates, financial support, counselling services). The service in charge of vocational guidance offers its services to young people, adults and employers. The service in charge of studies and research elaborates detailed statistics on the labour market in Luxembourg and in the Great Region. ADEM also liaises with PES in other countries and international bodies. Relation to government ADEM is placed under the authority of the Minister in charge of employment. Management structure ADEM is managed by a Director and is divided into: internal services; services directly attached to the Director (including the service of studies and research department); services in charge of employment and training (including seven local agencies and specific services in charge of payment of unemployment benefits, vocational guidance, Youth Guarantee, support to disabled workers, etc.). Partnerships Partner Objectives of partnership Partnership arrangements Departments of the Ministry of National Education, upper secondary schools and documentation centre of the Ministry of Higher Education Regular activities in upper secondary school offered by ADEM vocational guidance services. Common activities with different actors of the vocational guidance centre, Maison de l Orientation. Informal network Chamber of Commerce, Chamber of Crafts, etc. Joint activities to encourage employers to organise training, report apprenticeship vacancies and job vacancies to ADEM. Promotion of entrepreneurship for Informal network 1
jobseekers. Permanent committee for employment National policies to support employment and tackle unemployment. Legal framework Local administrations Projects with some municipalities as part of the local CIGL (Centres d initiative et de gestion locale). Legal framework University of Luxembourg Cooperation is part of the 2015 report on young people and planned cooperation as part of profiling and monitoring of jobseekers. Collaboration agreement Trade unions Information sessions in case of collective lay-offs and bankruptcies. Informal network National centre for continuous vocational training (CNFPC) and other training providers Development of training activities for jobseekers. Legal framework Role of social partners Social partners are represented in the Advisory Committee in charge of monitoring and evaluating the implementation of the reform of ADEM. Network and information management Partnerships with other stakeholders are managed by a recently created service for employers and service in charge of communication. Agreements with some employers concerning training measures for jobseekers are also in place. To share information internally, the following channels are used: email, intranet, internal meetings, internal messaging system, newsletter, database of jobseekers and employers. External communication uses emails, media, communication services, brochures and events. Financing model Sources of financing The amount of PES finances from government and public funds has slightly increased between 2013 and 2014. Funding from EURES is the same in 2013 and 2014. PES Sources of Finances 2010 2011 2012 2013 2014 Total 16.86 19.53 19.31 21.11 21.88 Government & public funds 16.70 19.36 19.14 20.94 21.71 ESF 0 0 0 0 0 Other EU funds 0 0 0 0 0 EURES 0.16 0.17 0.17 0.17 0.17 Own revenue 0 0 0 0 0 Other 0 0 0 0 0 te: all values stated in Euro, million. 2010-2013 is based on actual spend and 2014 forecast budget Annual expenditure The amount of annual expenditure increased between 2009 and 2011. Expenditure slightly reduced between 2011 and 2012 but an increase is forecast for 2014. Staff costs have increased year on year since 2009. PES annual expenditure 2009 2010 2011 2012 2013 2014 Total PES expenditure 15.01 16.70 19.36 19.14 20.94 21.71 ALMPs 0 0 0 0 0 0 ALMPs for young people / Youth Guarantee 0 0 0 0 0 0 2
Other benefits 0 0 0 0 0 0 Staff costs 11.30 12.79 14.81 15.60 16.70 17.63 Other 3.71 3.91 4.55 3.54 4.24 4.08 te: All values stated in Euro, millions. The budget presented above does not include the measures financed by the Employment Fund, managed by the Ministry of Labour, Employment and Social and Solidary Economy and implemented by ADEM. The main measures covered by the Employment Fund are unemployment benefits (full-time claimants): (EUR 266.64 million); support for reemployment (EUR 47.99 million); involuntary unemployment due to bad weather conditions (EUR 20.91 million); hiring subsidies for older unemployed and long-term unemployed (EUR 19.67 million); guarantee for payment of salaries in case of bankruptcy of the employer( EUR 13.94 million) and unemployment benefits (part-time claimants) (EUR 13.58 million). Human resources Number of staff and staff directly serving clients Total PES staff and staff directly serving clients 2013 2012 2011 Total PES staff serving clients Total PES staff 2010 2009 0 50 100 150 200 250 300 350 400 Total PES staff at head office 19 Staff servicing clients at head office 0 Total PES staff at local agencies 324 Staff servicing clients at local agencies 208 Integration of employment services and benefit provision ADEM is responsible for the payment of unemployment allowances and /or other relevant social benefits financed by the Employment Fund (such as temporary/involuntary part-time unemployment benefits, allocations for reemployment, etc.). It is also responsible for the provision of employment services for recipients. All recipients of unemployment benefits are obliged to register with the PES. 3
Clients / customers Jobseekers Total number of registred unemployed (annual average) 2013 2012 2011 2010 2009 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 Jobseekers per national category Annual average 2009 2010 2011 2012 2013 Available jobseekers (residents) 12 642 13 535 13 494 14 966 17 213 Of which: available jobseekers (residents) receiving full unemployment benefits 6 261 6 349 6 221 6 555 7 585 Jobseekers (residents) involved in an employment measure 3 097 3 843 4 221 4 592 4 581 te: Available jobseekers (residents) are defined as those unemployed individuals living in the national territory who are registered at ADEM, looking for a job and are not involved in an employment measure (excluding those on sick leave or maternity leave). The national definition of unemployed is people without employment, residents in the national territory, available for the job market, searching for appropriate employment, not involved in an employment measure, compensated or not compensated, having respected the follow-up obligations of the ADEM, and neither on sick leave for more than seven days nor on maternity leave. Employers Currently, ADEM does not have a system to classify employers, although this is being developed at the moment. Other clients Other clients include individuals who are interested in taking part in an apprenticeship and those who wish to receive vocational information and guidance. 4
Types and methods of service provision Services for jobseekers What services do you provide? Personalised support Training Employment club Access to terminals with information on job offers What target group is the service for? How do you deliver the service? All registered jobseekers Face-to-face All registered jobseekers All registered jobseekers All registered jobseekers On-site (two agencies) Self-service, onsite Do you work with partner organisations to deliver this service? Training institute Skills assessment All registered jobseekers Face-to-face External coach Services for employers All services for employers are delivered in house. Number of people reached All the registered jobseekers Figures not available 90 people each day All the registered jobseekers 48 assessed in 2013 (testing phase) What services do you provide? What target group is the service for? How do you deliver the service? Number of employers reached Pre-selection of candidates All employers Visits, seminars Financial support All employers Visits, seminars Personalised counselling for recruitment All employers Job vacancies, market share and performance Visits, seminars Figures not available Figures not available Figures not available Collecting information on job vacancies Employers in Luxembourg are obliged to report vacancies to ADEM. Furthermore, ADEM s employer service proactively collects job vacancies through visits to employers, an awareness raising campaign, and information meetings organised in cooperation with associations of employers. In 2013, the average number of new job vacancies reported to the ADEM each month was 1 939. 30000 25000 20000 15000 10000 5000 New vacancies 0 2009 2010 2011 2012 2013 5
PES market share and performance Estimates of the number of people leaving ADEM unemployment records as a share of the registered unemployed, or of the market share of ADEM are not available. Matching supply and demand ADEM does not routinely monitor how the characteristics of current vacancies compare to the qualifications and capacity of current jobseekers, but it carries out an annual exercise of prospective analysis of needs in terms of qualifications. Regular meetings are held with the Ministry of Economy with a view to identify skill needs. Active Labour Market Policies LMP services (category 1) Ref. Name of measure Brief description Delivered in house/by external providers Does this service, or some of its components, specifically target youth? 1 Personalised courses for jobseekers When an individual registers with ADEM, they are profiled and an individual action plan is produced. The test phase of this launched in September 2013., but also open to other jobseekers LMP measures (categories 2 7) Ref. 1 Name of measure Aid for hiring older jobseekers and long-term jobseekers Cat. Brief description 4.1 In the event of termination of employment, the unemployed person is entitled to an allowance provided that s/he meets the necessary criteria. Is this delivered in house or by external providers? Does this service, or some of its components, specifically target youth? 2 Aid for reemployment 4 The employment fund may grant financial aid for re-employment if an unemployed person is reassigned to a position where s/he receives a lower level of compensation compared to what s/he used to earn. 3 Aid for creating a business 7 An aid for supporting the creation, or resumption of a company established in Luxembourg and exercising its activities, may be granted to unemployed jobseekers. 4 Subsidised contract for first job /induction 4.1 This contract enables a young unemployed person to receive practical training during his/her working hours in order to facilitate his/her inclusion into the labour market. 5 Subsidised contract to support employment 2.2 This contract gives the possibility to the young unemployed to receive practical and theoretical training in order to increase skills and more easily enter the labour market. 6 Aids and bonuses for apprenticeship 2 The employment fund may grant financial aid for the promotion of apprenticeships. It may also grant bonuses for vocational guidance to young unemployed who start working under an employment contract or a 6
training contract. 7 Training measures 4 Measures to assist and help the registered unemployed person in the job search. and external providers 8 Apprenticeship for adults 2.3 This training measure funded by the employment fund enables people registered to ADEM to go to classes dedicated to the apprenticeship of adults and prepare for some certificates. 9 Traineeship for reintegration into work 2.3 This gives workers above 30 years of age the possibility to receive theoretical and practical training as part of a traineeship placement with an employer. Target time for different phases of intervention In 76 % of cases, the first payment of the unemployment benefit is made within six weeks after the claim has been submitted. The target time for first interviews is currently being analysed and no target times for agreeing individual action plans have been set as this is in a testing phase. Supporting young people - Youth Guarantee The Youth Guarantee will be officially launched on 26 June 2014. Policy context In January 2014, there were 2 627 young people (aged less than 25) registered as unemployed at ADEM, accounting for 13 % of all registered unemployed. The number of young unemployed has increased over the last eight years, shifting from an average of around 1 500 people at the end of each month before the crisis of 2008 to an average of around 2 000 people after 2009. Over the last three years, around 460 young people have signed up on average every month at ADEM. The youth unemployment rate was 15.5 % in 2013, beyond the EU-average but more than twice the overall Luxembourgish unemployment rate of 7 %. The youth unemployment rate has been relatively stable over the last ten years (2003-2013), fluctuating around 16 %. Responsibility for Youth Guarantee The Ministry of Labour, Employment and the Social and Solidarity Economy is the main coordinator of the Youth Guarantee. Other actors include the ADEM; Ministry of Education, Children and Youth; Department of Vocational education and training (SFP)/Local Youth Action (ALJ); National Youth Service and the Department of Children and Youth. A working group has been created to coordinate the implementation, follow-up and evaluation of the implementation plan. This working group is composed of representatives of the actors mentioned above. The group meets once a month. The group will also organise regular meetings with youth organisations, trade unions and employer organisations in order to adapt the current plan to new requirements over the months to come. Three strands of intervention, or support pathways are distinguished within the Youth Guarantee, each of them under the responsibility of a different structure: the job-oriented pathway (ADEM), the schooloriented pathway (SFP, ALJ) and the activation-oriented pathway (SNJ). PES and the implementation of the Youth Guarantee Within the Youth Guarantee, ADEM will focus on job-related interventions. This will include dealing with job offers; work placements; apprenticeship placements; active labour market policies; training offers and contact with employers. The Youth Guarantee is fully integrated in the service offer provided by the ADEM. Young people under 25 are registered by a dedicated team and benefit from a closer follow-up. ADEM has a specific department for young people with 14 employees. Since January 2014, ADEM has recruited a member of staff to coordinate the implementation of the Youth Guarantee. Reaching out to young people not in education, employment or training (NEETs) ADEM does not make direct contact with those young people who have left school not yet registered. However, ADEM does cooperate with the National Youth Service (SNJ) in charge of the activation 7
pathway (its tasks include reaching out to NEETs, voluntary services, workshops, mobility projects and coaching offers). ADEM also cooperates with the Department of Vocational Education and Training (SPF) and the Local Youth Action team (ALJ) responsible for the school-oriented pathway. This looks at a systematic follow-up of early school leavers and coaching early school leavers to prepare them to return to education or apprenticeships. Coordination between these key actors will be encouraged by regular meetings and exchange of information. Furthermore, the setting-up of a common database to share information is currently under reflection. Quality of guarantee According to internal criteria a quality offer is defined as providing a job, special youth contracts (CIE, CAE), training in relation with the young person s career aims, a traineeship (always in connection with a school) or a detailed individual action plan. To ensure a good quality offer, close follow-up of all jobseekers under 25 is undertaken by a dedicated team. There is also an enhanced coordination between different departments of ADEM (vocational training, special youth contracts, and the employer service). Partnerships Type of partnership Partnerships to ensure that young people have full information and support available Partnerships aimed at increasing employment, apprenticeship and traineeship opportunities Partnerships aimed at supporting transitions from unemployment, inactivity or education into work In place? Details ADEM is a member of the Centre of Vocational Guidance (Maison de l Orientation). ADEM also has partnerships in place with the Centre for Psychology and School-Orientation, the service for the integration of new pupils at school and the documentation and information centre for Higher Education. ADEM has dialogue with social partners, including employers organisations. ADEM works with the National Employment Observatory so that an evaluation can take place of the impact of various policies of the Youth Guarantee implementation strategy. ADEM works with SNJ regarding a voluntary service. Conventions with partners /local governments are part of subsided contracts. ADEM has exchanges with youth organisations and the youth parliament so that feedback is centralised and ADEM can meet specific requests and hold events with youth organisations. ADEM also works with temporary work agencies. ADEM would like to further its partnerships with the Centre for Guidance so that they can improve the coordination between existing partners. In addition, they would like to improve collaboration between employers and public services through regular meetings and passing on information about active labour market policies and other activities that they can participate in. Funds allocated to the Youth Guarantee This is financed by the employment fund, via the Ministry. Activation measures for young people, within the context of the Youth Guarantee Additional measures planned for 2014 are individual action planning and closer cooperation to ensure school-based integration. Types of intervention Personalised guidance services Brief description Regular meetings with a professional advisor. Is it new? Outreach strategies Flyers, website and public debates. 8
Work-based integration Subsidies paid to employers The department of vocational guidance is responsible for apprenticeship placements. Youth Project programme, including two month training, one month internship in a company and subsidised contract CAE. Subsidised contracts CIE/CAE: reimbursement of 50 % (CIE) or 75 % (CAE) of the salary (salary depends on the age and qualification) and social security costs to employers. 9