EMPLOYMENT POLICIES IN HUNGARY AND IN THE

EUROPEAN UNION

Borbély-Pecze Tibor Bors, Ph.D. 2013-14-1 Semester 3/3 (topics 7-10)

Main topics

Politics and policy, national and European policies: development of Employment Policy

Employment Policy and the relation of other human policies such as education, social &health policies

Who makes policy? Development of the European Labour Market and development of national

and international employment policies Case study: The Hungarian Labour Market Hungarian Labour Market Policy under the European Employment

Strategy: How does OMC model work in practice? Changing role of the Public Employment Services in the changing

labour market (views of the ILO, OECD and EC: PES 2020 strategy) Development of the European Employment Strategy and previous

development at the European policy field –Commission White Paper on Employment….(1993)

New concepts of the international organisations and the European Union on labour market policy: flexicurity, employability, adaptability, partnership approach, multilevel governance, etc.

Role of the structural funds at delivering European and national employment policy goals

Three key issues for the essays

Topic 1. Development of the European Employment Policy as a policy, milestones between 1993-2013

Topic 2. Designing & developing policy loops in the field of employment policy: concrete case study with a chosen ALMP

Topic 3. Europe 2020 – European Semester: Country-specific recommendations and applications in national employment policies

3/3

European Employment Strategy & Europe 2020, PES 2020

Origins & rational of the European Employment Strategy EC: White Book on Growth, Competitiveness and

Employment (1993) Burning issues (still unsolved)

Maastricht Treaty (1992) Amsterdam Treaty (1997) (for detailed description)

OMC Model (Open Method of Coordination) European Employment Strategy (EES)

•the European economy s potential rate of growth has shrunk (fromaround 4% to around 2.5% a year);• unemployment has been steadily rising from cycle to cycle;•the investment ratio has fallen by five percentage points;•our competitive position in relation to the USA and Japan has worsened as regards: employment our shares of export markets R&D and innovation and its incorporation into goods brought to themarket the development of new products. (White Book 1993 p.9)

European Employment Strategy (1997-2010)

Employment guidelines National Action Plans of the Member States / National Reform Programmes „soft law”; peer-review, recommendations Joint Emplomynet Report Trialogue

Europe 2020 & EES

Integrated Guidelines Guideline 7: Increasing labour market

participation and reducing structural unemployment: employment rate target 20-64 75% for 2020

Guideline 8: Developing a skilled workforce responding to labour market needs, promoting job quality and lifelong learning

Guideline 9: Improving the performance of education and training systems at all levels and increasing participation in tertiary education .

Guideline 10: Promoting social inclusion and combating poverty

European Semester

Employment guidelines – common priorities and targets for employment policies. Proposed by Commission, agreed by national governments, adopted by the EU Council.

Joint employment report (JER) – based on (a) assessment of employment situation in Europe (b) implementation of the Employment Guidelines (c) examination of draft National Reform Programmes by the Employment Committee. Part of the AGS. Published by Commission, adopted by the EU Council.

National Reform Programmes (NRPs) – submitted by national governments, analysed by Commission for compliance with Europe 2020. (database – NRPs prior to 2011)

Country-specific recommendations – issued by Commission, based on assessment of the NRPs.

http://ec.europa.eu/social/main.jsp?catId=101

Country Fiches, national targets

Latvia: CSR 2013

No 2.

„Tackle long-term and youth unemployment by increasing coverage and effectiveness of active labour market policies and targeted social services. Improve the employability of young people, for example through a Youth Guarantee, establish comprehensive career guidance, implement reforms in the field of vocational education and training, and improve the quality and accessibility of apprenticeships.”

Eurostat Europe 2020 indicators

PES as a key actor for delivering Europe 2020 employment targets

Origins of PES

„an adequate and specialized department, capable of performing successfully, widely and fully the task of preparing, amending and securing the application of all the acts and regulations relating to labour, and specially as regards inspection services, relations with the International Labour Office, advisory bodies and the supply of information, the peaceful settlement of industrialdisputes, and the compilation and publication of statistics, reports and all other documents dealing with labour.”

(ILO, 1928: 710)

History of PES: story of the 20th Century

ILO Convention No. 2 on Unemployment Benefits (1919) – recommendation on PES

ILO No. 88 Employment Service Convention, (1948) Fee-Charging Employment Agencies Convention,

1933 (No. 34) and the Fee-Charging Employment Agencies

Convention (revised), 1949 (No. 96) The Private Employment Agencies

Convention (No. 181) adopted in June 1997,

ILO, Thuy et al. (2001)

Roles of PES

job-broking, development of labour market

information systems (Labour Market Intelligence)

administration of labour market adjustment programmes

administration of unemployment benefits (ILO 2001 p. 49)

Social Policy milestones of PES development

the period of debate relating to the ‘social question’ in the late nineteenth century;

the First World War and subsequent social unrest;

the Great Depression of the 1930s; the Second World War; the economic difficulties of industrialized

countries in the 1970s and 1980s; and the Asian financial crisis of the late 1990s. current crisis since 2008

ILO 2013, Heyes & Rychly p.3

New EU PES 2020 model

IMPROVED OUTREACHCAPACITY

TRANSITIONS BROKER

PARTNERSHIPS

On going modernisation of PES Business Models

PES actions for enhancing youth employment prospects

Thank you for your attention!