National Yuth Guarantee Schemes
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This document summarizes a seminar on supporting youth entrepreneurship. It identifies key challenges to youth employment like skills mismatches and difficult school-to-work transitions. Member states have implemented Youth Guarantee schemes and reforms to increase traineeships, apprenticeships, and labor mobility. The seminar highlights promising examples of countries integrating entrepreneurship education and start-up support into their Youth Guarantee implementation plans. However, some countries still lack strategic approaches to fostering youth entrepreneurship. The document emphasizes enhancing skills and guidance on entrepreneurship to facilitate youth labor market integration.
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National Yuth Guarantee Schemes
- 1. Social Europe National Youth Guarantee Schemes Capacity Building Seminar – Supporting Youth in Entrepreneurship Brussels, 22-23 September 2014 Ulrike STOROST, Team Leader Unit Sectorial Employment Challenges, Youth Employment & Entrepreneurship European Commission - DG Employment, Social Affairs and Inclusion
- 2. Social Europe Key problems for youth employment • Macro-economic environment • Young people dropping out of education or work; low skilled youth most at risk of unemployment and exclusion in the longer term • Difficult school-to-work transitions • Growing skills and geographical mismatches 2 million vacancies across EU • Transitions more difficult in countries with segmented labour markets Macro-economic instruments Youth Guarantee schemes Increase the supply of high-quality traineeships and apprenticeships Reforms in labour market regulation Labour mobility
- 3. Social Europe A Youth Guarantee Council Recommendation of 22 April 2013: Member States ensure that all young people up to 25 receive a good-quality offer of employment, continued education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education.
- 4. Social Europe Self-employment under the Youth Guarantee • Self-employment is a valid offer under Youth Guarantee, if appropriate and if it is likely to lead to sustainable labour market participation the quality element • The Council Recommendation mentions incentives for self-employment and start-ups among the measures that can make the Youth Guarantee schemes a success.
- 5. Social Europe Examples of measures to support YG on entrepreneurship and self-employment • YG recital 14 on entrepreneurship education • Encourage schools and employment services to promote and provide continued guidance on entrepreneurship and self- employment for young people. • YG recital 19 on start-up support • Ensure greater availability of start-up support services • - Training of employment services’ staff and teachers • - Development & implementation of entrepreneurship courses in secondary education • - Training for unemployed young people • - Cooperation between employment services, business support and finance providers (e.g. employment fairs and networking events) • - SME start-up support • - Self-employment support • - Training in business skills for e.g. for unemployed persons, accompanied by entrepreneurship grants
- 6. Social Europe Youth entrepreneurship in the YGIPs • Youth Guarantee Implementation Plans (YGIPs) from all 28 MS setting out national YG schemes: 14 Member States – entrepreneurship integrated into the YG schemes 7 Member States – no explicit mentioning of entrepreneurship as part of their YG schemes 7 Member States – very limited allusion to entrepreneurship in YGIPs
- 7. Social Europe Some promising examples…
- 8. Social Europe Promising example from Estonia • Entrepreneurship education is already embedded into school system.
- 9. Social Europe Promising example from Lithuania • Entrepreneurship education will be provided as continued education. • YGIP provides a list of initiatives to develop a network of vocational guidance services in a real and virtual environment, to organise entrepreneurship promotion events and to disseminate information about the YG.
- 10. Social Europe Promising example from Portugal • The Youth Investment Initiative is a new measure, which aims at supporting the creation of new businesses by providing "financial support to the investment in the form of a repayable subsidy". • Entrepreneurship education is provided, however only at higher education level.
- 11. Social Europe Promising example from Finland • Measures include supporting and developing new forms of entrepreneurship through training, guidance and start up grants, which have already been piloted by regional authorities.
- 12. Social Europe Promising example from France • Entrepreneurship are envisaged to be a part of school programmes. • PEPITES are partnership programmes between secondary and higher education. Common programmes between PEPITE and "missions locales" aim to increase access to entrepreneurship for low qualified young people.
- 13. Social Europe Promising example from Malta • There is a specific measure (Youth Entrepreneurship Scheme) to promote entrepreneurship.
- 14. Social Europe Promising example from Poland • The Youth Guarantee includes support for entrepreneurship. • The Academic Career Offices are mentioned in the context of informing about career possibilities; there will be special measures targeted at the graduates of higher education (e.g. stimulation of entrepreneurship, financial support for starting a company, voucher for a further training, counselling, practical training in a company, etc.)
- 15. Social Europe Promising example from Ireland • Entrepreneurship education is a new measure, which was initiated in 2014. • All newly unemployed with low probability of finding another job quickly have group engagement within 2 weeks and individual session with case officer for setting up a Personal Progression Plan - this can include referral to entrepreneurship.
- 16. Social Europe Promising example from Croatia • Entrepreneurial learning is being rolled out nationally at all levels, and there are well- presented plans on support for entrepreneurship as an employment option at all levels. • It is positive that there are tailor made programmes for specific sectors, in the Croatian case for young farmers.
- 17. Social Europe Promising example from Slovenia • Entrepreneurship education is integrated at all levels of education. • YGIP identifies a need for the entrepreneurial training of teachers which will help to ensure that entrepreneurship education is embedded into the curriculum. • There is a one-stop-shop for young entrepreneurs for training, advice and assistance.
- 18. Social Europe Promising example from Slovenia (2) Implementation The Plan explicitly addresses "preventive action" and foresees some measures including in the field of entrepreneurship and innovation. Hiring incentives are planned, as well as start-up support. Financial incentives for recruitment of young people are indicated, also in sectors such as social entrepreneurships, youth and NGOs organisations, in the field of agriculture.
- 19. Social Europe Promising example from the UK • Support to entrepreneurs is provided through the New Enterprise Allowance providing access to business mentoring and offering financial support to unemployed people aged 18 and over who want to start their own business. • Start Up Loans scheme supports entrepreneurship. It provides applicants with a mentor, access to resources (including free accounting software) and a loan.
- 20. Social Europe Promising example from the UK (2) • Entrepreneurship included in schools' careers advice. • Support for entrepreneurship as a career is provided, both financially and through 'enterprise clubs' which encourage the exchange of support and advice. • Entrepreneurship is being supported through start up loans and allowances.
- 21. Social Europe Promising example from Spain • The ES YGIP fits into a comprehensive national strategy, called the Youth Entrepreneurship and Employment Strategy 2013-2016 • Entrepreneurship education is foreseen both in schools and at public employment services with the collaboration of dedicated stakeholders (microcredit providers, employer support entities). • Associations of young entrepreneurs and representative youth organisatiosn participated in the consultation process.
- 22. Social Europe But also, lack of strategic approach to entrepreneurship within the YG schemes…
- 23. Social Europe Country A • There is no indication if entrepreneurship education is, or will be provided in school or as continued education, only reference to an entrepreneurship seminar for beneficiaries under the Integrated Intervention measure.
- 24. Social Europe Country B • There is no information on the provision of entrepreneurship education, although measures to support the young unemployed to become entrepreneurs are included.
- 25. Social Europe Country C • Entrepreneurship initiatives exist but integration into the strategic framework of the YG scheme rather underdeveloped.
- 26. Social Europe Country D • No explicit reference to entrepreneurship education i.e. at secondary level. This could be an integral part of career guidance for secondary school pupils.
- 27. Social Europe Country E • School based entrepreneurship education is not reflected in the formal education system.
- 28. Social Europe Country F • There is no information on the provision of entrepreneurship education, although some measures to support the young unemployment to become entrepreneurs are mentioned.
- 29. Social Europe Good measures are listed in the YG schemes but need for a more strategic and integrated approach to fostering youth entrepreneurship! •Good practice: Enhancing skills to facilitate labour market integration through integration of entrepreneurship education into schools/higher education/vocational training centres Active role for employment services to promote and provide continued guidance and courses on entrepreneurship and self-employment Ensure greater availability of start-up support services
- 30. Social Europe Youth employment/entrepreneurship – top political priority President Juncker – Political Guidelines for next Commission: Emphasis on climate of entrepreneurship and job creation Importance of fostering entrepreneurial mind- sets, of making start-up support services and microfinance more available Use of EU funding to support young entrepreneurs
- 31. Social Europe What are we doing? 1) Increase knowledge on entrepreneurship and self-employment 2) Raise awareness, facilitate mutual learning and build capacities in Member States and regions 3) Support entrepreneurship financially The ESF Regulation 2014-2020 investment priority "self-employment, entrepreneurship and business creation"
Hinweis der Redaktion
- So what are the key problems of young people on the labour markets? Young people dropping out of education or work; these low skilled youth are most at risk of unemployment and exclusion in the long-term Here, the Youth Guarantee schemes can help, Often young people encounter difficult school-to-work transitions: Here, an increase in the supply of high-quality traineeships and apprenticeships is needed and schools and employers need to adapt better to deliver the right skills sets. Again a problem of skills sets: There is a growing skills mismatch, as well as geographical mismatches. What does that mean? People are acquiring skills that are not adapted to the needs of the labour market and moreover are often not located where the job vacancies are available. This leads to a great paradox; at a time of dramatic unemployment we also have more than 2 million vacancies across the EU with employers desperately looking for people to fill the jobs they have on offer… The Commission is therefore seeking to enhance the labour mobility of young people in particular. And last but not least, transitions are much more difficult in countries with segmented labour markets Here we have a need for Reforms in labour market regulation Our agenda for the past 1.5 years was drawn up by the Youth Employment Package (YEP) of December 2012. The YEP included a COM proposal for a CR on a Youth Guarantee Announced the launch of a EU Alliance for Apprenticeships Launched a social partner consultation on a Quality Framework for Traineeships Announced measures to enhance youth mobility The Youth Guarantee can help to make an economic recovery job-rich and it makes a systemic difference in improving school-to-work transitions. However, in the absence of overall economic growth, it would be impossible for any employment reform to solve the unemployment crisis. In other words, the Youth Guarantee is no substitute for macroeconomic instruments. Youth unemployment is more sensitive to the economic cycle than overall unemployment as young people are less experienced, more easily laid off and they are also more concentrated in economic sectors more exposed to economic downturns, such as manufacturing, construction, retail or the hospitality sector. Evidence from the past 15-20 years shows that the overall unemployment rate in the EU can only be expected to fall if annual GDP grows by more than 1.5 per cent on average. Reduction in the youth unemployment rate normally requires even slightly higher GDP growth rates. On the contrary, if economic growth remains below 1.5% per year, youth unemployment rates tend to rise faster than overall the unemployment rate. According to the International Monetary Fund (IMF), cyclical factors explain about 50 per cent of the changes in youth unemployment rates across Europe and 70 per cent in stressed euro area countries. However, the levels of youth unemployment are also influenced by structural characteristics of labour markets, such as hiring costs or investment in active labour market policies, as well as by the quality of education and training systems. This is where a comprehensive Youth Guarantee can make a big difference, ultimately leading to a decrease in the wide gap between youth unemployment and overall unemployment rates. International Monetary Fund, 'Youth Unemployment in Europe: Okun’s Law and Beyond' in IMF Country Report No. 14/199, 'Euro Area Policies 2014 Article IV Consultation, Selected Issues', July 2014.
- The Youth Guarantee is the major element of the YEP (kind of an umbrella that covers all other initiatives too). The Council agreed upon the Recommendation on Establishing a Youth Guarantee on 28 February last year (2013) (and it was officially adopted in April 2013 – BTW a record time for such a political process). The Recommendation on the Youth Guarantee calls on Member States to ensure that all young people up to 25 receive a good quality offer of a job, continued education, apprenticeship or a traineeship within four months of leaving formal education or becoming unemployed. To be clear: it is NOT a job guarantee (that would be impossible), but the objective is to ensure that no young person is left alone, and MS are to provide support to avoid becoming a NEET. We kept the four months for an offer under the Youth Guarantee. This is because every month counts: Young unemployed face higher risks of future unemployment, lower earnings, and health problems. We also insisted that a Youth Guarantee applies to ALL young people, not only those that register at the employment services. The most vulnerable young persons will only be reached by proactive work from social workers and youth organisations. The Recommendations thus calls for strong partnerships with all concerned, in particular employment services, education and training institutions, career guidance services and other specialised youth services (non-governmental organisations, youth centres and associations). Member States can decide with the Commission on the exact set up of the schemes and partnerships, so that they make sense to the needs of different regions and respect the diversity of young people. Measures could include direct support for high quality internships and apprenticeships, providing first job experience and reducing nonwage labour costs, plus mobility help to bring skills and jobs together. What matters is to implement a "Youth Guarantee scheme", including new partnerships, early intervention and active labour market integration. The Youth Guarantees have a cost, but they have to be considered as an investment. The costs of having 14 million NEETs (taking into account social transfers + foregone earnings), as estimated by Eurofound in 2012, make up 1.21% of the EU GDP = That is a collective annual loss of €153 billion to the Member States! And this estimation does not take into account further long term costs like increased crime or social unrest. In comparison the Costs of a Youth Guarantee are relatively small. The International Labour Organization made an estimation of Youth Guarantee costs – these are much less (figures for the Eurozone were once estimated to be around 21 billion euros) (that said, of course these costs vary from one Member State to the other).
- The Council Recommendation on establishing a Youth Guarantee rightly attaches much weight to the promotion of entrepreneurship among the young.
- 14 Member States – entrepreneurship integrated into the YG schemes CY, EE, EL, ES, FI, FR, HR, IE, LT, MT, PL, PT, SE, SI 7 Member States – no explicit mentioning of youth entrepreneurship as part of their YG schemes AT, BE, BG, DK, LU, NL, SK 7 Member States – very limited mentioning of entrepreneurship in their YGIPs CZ, DE, HU, IT, LV, RO, UK
- Greece
- Italy
- Germany
- Cyprus
- Hungary
- Latvia
- Background (Job creation): President-elect Juncker emphasised this in his Political Guidelines for the next European Commission presented to the European Parliament in mid-July 2014 that: “Jobs, growth and investment will only return to Europe if we create the right regulatory environment and promote a climate of entrepreneurship and job creation”. The Euro 300 billion jobs, growth and investment package and the MFF review, will aim at promoting a climate of entrepreneurship - essential in terms of job creation in particular in SMEs, creating more than 85% of new jobs in Europe.
- What are we doing? 1) Increase knowledge on entrepreneurship and self-employment Statistics and indicators about entrepreneurial activities in the Member States are often incomplete and not always comparable. To overcome data and evidence limitations, DG EMPL has signed a Convention with the OECD on supporting inclusive entrepreneurship. This will deliver Policy Briefs and annual reports for national and regional governments to develop their knowledge and capacity in the field. This will help support actions and enable learning and policy improvements through monitoring and evaluation. 2) Raise awareness, facilitate mutual learning and build capacities in Member States and regions DG EMPL relies a lot on partnerships with national or regional governments to advance this agenda. The ESF Regulation 2014-2020 includes an investment priority dedicated to "self-employment, entrepreneurship and business creation". The Commission encourages MS and regions to make use of this investment priority in order to increase the efficiency and effectiveness of such policies and their implementation. Seminars for policy makers from Member States are organised yearly by the OECD LEED Programme (Local Economic and Employment Development) and the Commission. A compendium on good practices is under preparation. 3) Support entrepreneurship financially If need be we can refer to the financial instruments Chapter (EaSI) for more information.