In the EU, long-term unemployment, which refers to people with continuous periods of unemployment extending for a year or longer, has doubled since 2007. In 2014, 12 million people in the EU were registered as long-term unemployed. As a share of total unemployed, the percentage of long-term unemployed of is also on the increase. 60 % of unemployed within the EU have been part of this category for more than a year.

Last week, the Commissioner for Employment, Social Affairs, Skills and Labour Mobility, Marianne Thyssen, proposed new guidance to better help long-term unemployed return to work.

The measures proposed by the Commission shall assess unemployed people individually: firstly, the registration in jobcentres by people looking for work shall become more comprehensive as many long-term unemployed do not or no longer register with the authorities. Secondly, all long-term unemployed shall be provided with an individual in-depth assessment to identify their needs and potential. Thirdly, after an unemployment period of 18 months at the latest, all people affected shall receive a job integration agreement, hence an individual roadmap back into employment, which may also include certain support measures (e.g. mentoring or social services such as childcare, healthcare, housing benefits and help with transport costs or rehabilitation).

To finance these measures, money shall be made available from the European Social Fund for the Member States. Among other, they shall provide financial incentives for companies, which recruit long-term unemployed people.

All proposed measures take an individual approach, thereby failing to recognise the macroeconomic dimension of long-term unemployment – after all, it is not a coincidence that long-term unemployment has doubled since the beginning of the economic crisis. As long as no jobs are created in the EU, public budgets are reduced and public expenditure is cut, fighting (long-term) unemployment successfully, will not succeed.

Particularly, if services in and around jobcentres are to versify, one has to expect an increase in courses and consulting services, which are normally provided by private companies. However, experience shows that misguided labour market measures (such as the mandatory attendance of unsuitable courses) are by many regarded as harassment, which results in increasing the psychological negative consequences of long-term unemployment.

It remains to be seen how the proposals in respect of the support measures within the scope of job integration agreements will develop: improved access to certain social services would be very welcome, in particular for the long-term unemployed.

This week, Commissioner Thyssen also spoke on the subject of youth unemployment. One possible solution she mentioned for young people was to become self-employed as this would entail the necessary flexibility in the labour market. This proposal must be treated with the greatest caution as self-employment is often used as a smoke screen for atypical employment relationships. This practice is completely unsuited to act as a solution for youth unemployment; on the contrary, it would probably more result in the further increase of precarious working conditions and impoverishment of young people.

Next, the proposed measures to help the long-term unemployed will be discussed by the Council, which will then be able to adopt a recommendation to the Member States.

Further information:

Press release

Proposal