The creation of an EU Job Guarantee could counteract long-term unemployment, tackle poverty and at the same time contribute to a green and just transition. In February 2024, AK EUROPA organised an event in Brussels to advance the debate on this at EU level. Existing Job Guarantee models and the challenges and opportunities of their implementation were discussed.

Between 2005 and 2022, the share of people in long-term unemployment in respect of the total unemployment figures in the EU was between 35 and around 50 percent. The current estimate of those affected by unemployment is 13.1 million people. Hence, it must be assumed that several million people in the EU are long-term unemployed. This is often linked to poverty and social inequality.  During the event, the question was raised as to how a Job Guarantee could help to alleviate this problem.

Dirk Ehnts, economist at the Samuel Pufendorf Society for Political Economy, put forward an economic perspective. Unemployment is an economic problem, because a low demand for goods goes hand in hand with a lower demand for labour. While unemployment can generally be tackled by increasing public spending or strengthening demand, this has its limits when it comes to long-term unemployment. A Job Guarantee could provide a remedy here, especially in good economic times.

There are several stories of success
Simon Theurl, researcher and labour-market expert at the Chamber of Labour, presented a number of regional Job Guarantee projects. From 2020 to 2023, the Austrian model project Gramatneusiedl Marienthal (MAGMA) provided around 80 people with a municipal job or a placement in socio-economic enterprises. This reduced long-term unemployment, while no displacement of jobs occurred in the private sector. People's health and well-being improved as a result. Unfortunately, MAGMA was not extended. The French project "Territoires Zéro Chômeur de Long Durée" (TZCLD) created around 3,900 jobs in 60 municipalities. TZCLD is supported by civil society and the jobs are organised by social partners, municipalities, and unemployed people. A project launched in Wallonia, Belgium in 2022, aims to create at least 750 jobs by 2026. 50 percent of it is funded by the EU.

Yonnec Polet, Deputy Mayor of Berchem-Sainte-Agathe in Brussels and member of the Committee of the Regions (CoR), described his municipality's pilot project. A bottom-up approach, similar to France, is being pursued. The principle of voluntary participation is also fundamental. According to Polet, a paradigm shift needs to be initiated, whereby unemployment is no longer seen as an individual responsibility, but solutions are offered at a societal level. He referred to a CoR own-initiative report calling on the Commission and Council to actively tackle long-term unemployment. However, this requires political will and financial resources. Dirk Ehnts reported on a Job Guarantee project in Argentina, which was introduced at a time of extremely high unemployment. People were given financial relief and their self-esteem was strengthened. In India, 120 million people were employed through a Job Guarantee, particularly in the field of climate change adaptation. Equality for women was also supported.

A well-designed Job Guarantee
Tea Jarc, Confederal Secretary of the European Trade Union Confederation, emphasised the principles on which a Job Guarantee must be based: Employment must be offered to all people who want to work. It must also be ensured that permanent, high-quality jobs are created and that social standards are met. Remuneration must also be in line with collective agreements. She also emphasised the need to involve the social partners and in particular the trade unions and working people. AK also emphasised that the quality of the jobs created as part of the Job Guarantee must be high. Furthermore, these jobs should primarily be created in areas that benefit society and/or contribute to a just transition. These include activities in the care and social sectors, green jobs, food safety and educational work.

A European Job Guarantee
The issue of funding was also discussed in relation to the EU Job Guarantee. Financial support from the EU is proposed so that Member States can introduce Job Guarantee programmes. Social bonds along the lines of SURE or the ESF+ programme as part of the EU budget were mentioned as possibilities. Publicly financed employment programmes enjoy broad support in the population. The implementation of a Job Guarantee at EU level is particularly welcomed, although it is considered more realistic at national and regional level. An EU Job Guarantee could send an important signal to the people of Europe, especially i[AN1] n times of crisis and a shift to the right. It could bring us one step closer to the paradigm of leaving no one behind.

Further information:
AK EUROPA: EU Job Guarantee – a commitment to full employment and decent work
A&W-Blog: Warum Österreich eine gemeinwohlorientierte Jobgarantie braucht
A&W-Blog: Europa braucht eine Arbeitsplatzgarantie
A&W-Blog: Eine Jobgarantie schafft sinnvolle Beschäftigung
European Job Guarantee Coalition - Für eine Jobgarantie!
FEPS: A Job Guarantee For Europe
Social Europe: Insecure Europe – a job guarantee needed