EU to tackle long-term unemployment

The European Commission will unveil a major new proposal next week to tackle the problem of long-term unemployment. The plan aims to reduce the long-term unemployment rate by at least 5 million people.

The move comes as figures show the numbers of people who have been without work for 12 months or more in the EU doubled between 2007 and 2014.

Currently, 12.1 million people – about half of the total number unemployed in the EU – have been without work for at least 12 months. This is equivalent to 5.1 per cent of the active population across the region. Moreover, 61 per cent of the long-term unemployed have been without a job for at least two consecutive years.

The statistics show that the longer people are out of work, the harder it is to get a job. On average, just 34 per cent of those unemployed for a year find employment, a figure that declines to just 15 per cent for those without a job for three years.

Under the new plan, which is due to be presented to the European Council shortly, the steps include registration of all unemployed people in the EU with an employment service, detailed one-on-one assessments that could include psychological support, and a so-called job integration agreement which sets out the obligations of both jobseekers and the employment service.

Financial incentives

Member states will also be urged to adapt policies to encourage employers to take on individuals through financial incentives.

Funding to implement the plan will come through the European Social Fund.

While some, if not all of the recommendations are already commonplace in many countries, approaches to addressing the issue of long-term unemployment differ greatly.

In some member states, almost all unemployed people are registered with state bodies, but in others the opposite is true. It is estimated that at least 30 per cent of the long-term unemployed in the EU are not currently registered anywhere.

Also, while some countries have job integration agreements that cover traditional forms of assistance such as help finding jobs or access to training, future ones might also provide assistance support for housing, transport, child and care services or rehabilitation.