Tackling long-term unemployment in the EU

With the onset of the crisis, unemployment rates have increased sharply throughout Europe and the trend seemed set to continue. However in March 2015, the European Commission reported that, for the first time since 2009, the LTU rate fell slightly. Currently, long-term unemployment (LTU) stands at 4,9% for the EU. LTU remains highest in Greece, Spain, Croatia and Slovakia and lowest in Austria, Sweden and Finland.

Anyone who is without a job for more than 12 months is considered to be long-term unemployed. Affected are people in all age groups, but older workers have the most difficulty to return to the labour market. The nature of one’s previous job also seems to impact chances for re-employment. Common obstacles on the employer’s side are high labour costs, rigid employment protection or lack of incentives. For those affected, being away from the labour market for a long time can have devastating effects, such as social isolation and exclusion, stigmatisation, skills obsolescence and negative effects on family life, health and well-being.

Current national strategies to tackle LTU consist of targeted training approaches and wage subsidies, as well as reduced social security contributions for employers. Moreover, some countries have also made changes to their unemployment benefit systems by linking receipt of benefits to participation in active job seeking.

The European Commission launched a public consultation on tackling LTU on 24 February 2015. It seeks views on how to improve services to support long-term unemployed in finding their way back into employment. In recent years, there has already been an exchange of best practice by national public employment services on approaches for sustainable activation of long-term unemployed persons. Commissioner Thyssen announced that the European Commission will present an initiative aimed at the integration and employability of long-term unemployed before summer 2015. Already on-going is the EU Programme for Social Change and Innovation, a financing instrument which runs from 2014 to 2020, with a budget of €9 billion, and which has declared combating LTU as one of the objectives. The European Parliament has repeatedly expressed its concern over the rise of LTU in EU Member States in several resolutions.

This keysource is a collection of research published by the European Commission, international organizations and think tanks as well as a compilation of scientific articles and statistics on LTU.

Written by Verena Kern.