Council Decision on guidelines for the employment policies of the Member States

In July 28th it was published in the Official Journal of the European Union (OJEU), the Council Decision of July 15th on the guidelines for the employment policies of the Member States. The guidelines shall be taken into account in the employment policies of the Member States, which shall be reported upon i the National Reform Programmes.

The Employment Guidelines form part of the Integrated Guidelines for 2008-2010, which are based on three pillars: macroeconomic policies, microeconomic reforms and employment policies. Those pillars, together, contribute towards achieving the objectives of sustainable growth and employment and strengthening social cohesion.

Reflecting the Lisbon strategy and taking into account the common social objectives, the Member States’ policies will foster in a balanced manner:

  • Full employment: Achieving full employment, and reducing unemployment and inactivity, by increasing the demand for and supply of labour, is vital to sustain economic growth and reinforce social cohesion. An integrated flexicurity approach is essential to achieve these goals. Flexicurity policies address simultaneously the flexibility of labour markets, work organisation and labour relations, reconciliation of work and private life, and employment security and social protection. In this sense, the European Commission launched in May an initiative to help put the EU's flexicurity approach into practice at national level.
  • Improving quality and productivity at work: Efforts to raise employment rates go hand in hand with improving the attractiveness of jobs, quality at work, labour productivity growth; substantially reducing segmentation, gender inequality and in-work poverty. Synergies between quality at work, productivity and employment should be fully exploited,
  • Strengthening economic, social and territorial cohesion: Determined action is needed to strengthen and reinforce social inclusion, fight poverty – especially child poverty–, prevent exclusion from the labour market, support integration in employment of people at a disadvantage, and to reduce regional disparities in terms of employment, unemployment and labour productivity, especially in regions lagging behind. Strengthened interaction is needed with the Open Method of Coordination in Social Protection and Social Inclusion.

Member States should ensure good governance of employment and social policies and ensure that the positive developments in the fields of economics, labour and social affairs are mutually reinforcing. They should establish a broad partnership for change by fully involving parliamentary bodies and stakeholders, including those at regional and local levels and civil society organizations. European and national social partners should play a central role. The targets and benchmarks which have been set at EU level in the framework of the European Employment Strategy in the context of the 2003 guidelines should continue to be followed up with indicators and scoreboards. Member States are also encouraged to define their own commitments and targets, which should be taken into account, along with the country specific recommendations agreed at EU level.

The Guidelines that should be taken into account:

  • Guideline 17. Implement employment policies aiming at achieving full employment, improving quality and productivity at work, and strengthening social and territorial cohesion.
  • Guideline 18. Promote a lifecycle approach to work.
  • Guideline 19. Ensure inclusive labour markets, enhance work attractiveness, and make work pay for job-seekers, including disadvantaged people, and the inactive.
  • Guideline 20. Improve matching of labour market needs
  • Guideline 21. Promote flexibility combined with employment security and reduce labourmarket segmentation, having due regard to the role of the social partners.
  • Guideline 22. Ensure employment-friendly labour cost developments and wage-setting mechanisms.
  • Guideline 23. Expand and improve investment in human capital.
  • Guideline 24. Adapt education and training systems in response to new competence requirements.

Member States should take the Employment Guidelines into account when implementing programmed Community funding, in particular of the European Social Fund. The Employment Guidelines are valid for three years, while in the intermediate years until the end of 2010 their updating should remain strictly limited.