Indicator Framework for Monitoring the Council Recommendation on the integration of the long-term unemployed into the labour market - Hoofdinhoud

Council of the European Union

Brussels, 30 September 2016 (OR. en)

12493/16 ADD 1

SOC 556 EMPL 367 ECOFIN 829 EDUC 298

NOTE

From: Employment Committee

To: Permanent Representatives Committee/Council

Subject: Indicator Framework for Monitoring the Council Recommendation on the integration of the long-term unemployed into the labour market

Delegations will find attached EMCO's Indicator Framework for Monitoring the Council

Recommendation on the Integration of the long-term unemployed into the labour market.

Indicator Framework for Monitoring the Council Recommendation on the integration of the

long-term unemployed into the labour market

• A. 

  Introduction

In December 2015 1 the Council adopted a Recommendation on the integration of the long-term

unemployed into the labour market.

The Recommendation calls on Member States to:

• Encourage the registration of jobseekers with an employment service, in particular through

improved provision of information on the support available

• Provide personalised guidance to those concerned through Employment services, and other

partners supporting labour-market integration

• Offer a job-integration agreement at the very latest when they have reached 18 months of

unemployment to registered long-term unemployed persons not covered by the Youth

Guarantee

• Encourage and develop partnerships between employers, social partners, employment

services, government authorities, social services and education and training providers to

provide services that better meet the needs of enterprises and registered long-term

unemployed persons.

The Recommendation mandates EMCO to "monitor in close cooperation with the Social Protection

Committee on the social services and income provision, the implementation of this

Recommendation through the multilateral surveillance within the framework of the European

Semester, and through the Joint Assessment Framework of indicators. The monitoring should

follow up on the extent to which the registered long-term unemployed have regained

employment, whether their integration into the labour market is sustainable and the use of job

integration agreements. The European Network of Public Employment Services shall contribute to

this monitoring".

1 2015/0219 (NLE) i

This paper outlines the Indicator Framework for monitoring the implementation and the

Recommendation at EU level.

The objectives of the initiative, as explained by the Explanatory memorandum, are:

The general objective: to increase the transition rates to employment of the long-term unemployed.

The specific objectives:

(1) increase coverage with higher registration and active support for the long-term unemployed,

(2) ensure continuity and coordination between relevant services

(3) increase the effectiveness of interventions aimed at both the long-term unemployed and

employers.

The monitoring arrangements should be drawn in relation to the objectives of the initiative, creating

a basis for the evaluation foreseen in 2019, in line with the requirements of the recommendation.

The Indicator Framework comprises indicators at three levels of monitoring types of indicators:

• 1. 

  Aggregate monitoring: Macroeconomic indicators monitoring the general situation of longterm

  unemployed in the labour market.

• 2. 

  Direct monitoring: Implementation indicators monitoring the delivery of the services to

implement this Recommendation, especially on the use of job integration agreements

• 3. 

  Follow-up monitoring: Follow-up indicators assessing the outcomes – regaining

  employment - and the sustainability of labour market integration of long-term unemployed.

It should be noted that throughout the Indicator Framework, long-term unemployed are defined

unemployed people with duration of unemployment greater than 12 months, unless otherwise

specified. The indicator framework will provide only one part of the monitoring effort. The other

part, as signalled in the text of the Recommendation, will rely on a more qualitative assessment

through multilateral surveillance.

It is proposed to integrate the indicators to monitor the Recommendation in the Joint Assessment

Framework (JAF) through the creation of a new module. The module will be devoted to the

monitoring of the implementation and results of the LTU Recommendation and will feature all the

indicators under the three levels of monitoring.

In addition the current JAF Policy area on Active Labour Market Services (PA3) will be revised to

reflect the agreed indicators at the macroeconomic level of monitoring.

The data collection and reporting will take place on an annual basis for each of the three categories.

The source of data for the aggregated level indicators (category 1 above) will be the EU Labour

Force Survey (LFS) and the LMP database, whereas the indicators for the direct and follow-up

levels (categories 2 and 3 above) will be calculated on the basis of administrative data, data linking

and survey data where relevant.

• B. 

  Indicators framework for monitoring the implementation of the Recommendation on

  the long-term unemployed 2

• 1. 

  Aggregate monitoring: macroeconomic indicators

  Macroeconomic indicators based on the EU LFS are intended to monitor the general situation

of long term unemployed in the EU. They represent an indirect means of monitoring the

effects of implementing the LTU Recommendation

The indicators presented below describe the overall aggregated context as well as the impact

of the implementation of the Recommendation in each MS through their evolution through

time. These general indicators need to be complemented by the indicators monitoring delivery

and follow-up to be able together to allow assessing the impact of policy measures.

2 It should be noted that the definition of long-term unemployment differs between LFS and

EU-SILC. While the LFS definition is the standard definition of LTU, defining LTU on the basis of EU-SILC allows important additional monitoring possibilities on the living conditions of the long-term unemployed. In LFS the LTU are those unemployed persons (i.e., unemployed in the reference week, currently available for work and actively seeking work) who have been unemployed and searching for a job for at least 12 months, in EU-SILC the LTU are those who were unemployed for the 12 months during the income reference period, are unemployed at the time of the survey interview and are actually looking for work. While in general the results of both definitions are quite similar in most Member States, the difference in the LTU populations defined in both surveys is significant in some Member States, with the EU-SILC definition usually resulting in a higher number of LTU.

List of possible indicators at the Aggregate level of Monitoring:

Long term unemployment rate of the Data Source

Overall Indicator adult (25-64) working age population (as LFS

% of active population 25-64) - total 3

Supplementary Share of adult working age population (25-64) LFS

indicators long-term unemployed as a percentage of the total adult working age population (25-64)

unemployment.

Long term unemployment rate of the adult

working age population (as % of active LFS

population 25-64) by educational level (lowmedium-high according to ISCED 2011 classification)

Long term unemployment rate of the adult

working age population (as % of active LFS

population 25-64) by gender

Long term unemployment rate of the adult LFS

working age population (as % of active

population 25-64) by age (25-55 and +55) LMP

Activation rate of adult registered long-term unemployed (LPM cat.2-7)

Transition rate of adult long-term unemployed to LFS

employment by age (25-55 and +55), gender and qualification level (low-medium-high according to ISCED 2011 classification)

LFS Share of LTU over 25 registered with PES by gender

Aim: To monitor to the extent to which Member state respond to the call in the Recommendation to encourage the registration of jobseekers with an employment service, in particular through improved provision of information on the support available.

AROP rate of LTU working age adults (25-64) EU SILC

Material deprivation (MD) rate of LTU working EU SILC

age adults (25-64) Aim: These two indicators describe the overall aggregate social situation of the long-term unemployed in terms of their risk of poverty and exposure to material deprivation as well as the broad impact of the implementation of the Recommendation in each MS through their evolution over time.

3 The long term unemployment rate – total will remain the overall indicator for PA3. The adult

rate is suggested as the overall indicator for the macro part of the module Context Long term unemployment rate of adult working LFS

indicators age population by duration (12-18m, 18+)

Transition rate of adult long-term unemployed to inactivity by age (25-55 and +55), gender and

qualification level (low-medium-high according LFS

to ISCED 2011 classification)

Non-transition rate of adult long-term

unemployed (remaining long-term unemployed) LFS

by age (25-55 and +55), gender and qualification level (low-medium-high according to ISCED 2011 classification)

In work poverty rate for working age adults (25- EU SILC

64)

EU SILC Housing cost overburden rate among LTU working age adults (25-64)

EU SILC Unmet need for medical care of LTU working age adults (25-64)

Aim: The 3 indicators above cover items in the area of incentives to enter employment (in work poverty), and with regard to the general impact of key social services in supporting social inclusion of the LTU population.

Use of formal childcare for children less than 3 4 EU SILC

Aim: This indicator provides information on the use of a key service (childcare) regarded as important to support transitions into work. It gives an indication of the degree of access to childcare, which could have an impact on possibilities to take up employment and hence reduce LTU and social exclusion.

Participation in education and training for LTU

working age adults (aged 25-64)( in %) LFS

4 To investigate if extraction possible for LTU

• 2. 

  Direct monitoring of the implementation of the Recommendation

The indicators outlined in the previous section, whilst useful and important, provide an

indirect mean of monitoring the implementation and effects of the LTU Recommendation,

thus they need to be complemented by indicators that better measure the direct impact of

policy initiatives. These indicators are able to respond directly to the call in the

Recommendation: “The monitoring should follow up on the extent to which the registered

long-term unemployed have regained employment, whether their integration into the

labour market is sustainable and the use of job integration agreements.

The indicators presented below provide information on the actual implementation of the

Recommendation in each country as well as on the labour market transitions of LTU which

result from the implementation.

List of possible indicators at the Direct level of Monitoring:

Data Source

Use of Job integration agreements (JIA) 5

Administrative data

Definition: Number of adult 6 registered long term collection

unemployed with duration of unemployment more than 18 months having a job integration agreement / Number of adult registered long term unemployed with duration

Overall Indicator more than 18 months

Aim: To monitor to what extent Member States are fulfilling the condition in the Council recommendation to provide a Job Integration Agreement to long term unemployed, before they have reached the 18 months of unemployment.

Supplementary Use of Job integration agreements within 18

indicators months: Administrative data collection

Definition: Number of registered adult long term unemployed with duration 12-18 months having a job integration agreement / Number of registered adult long term unemployed with duration of 12-18 months

Aim: To measure the share of adult long term unemployed who received a Job Integration Agreement before they have reached the 18 months of unemployment.

Regained employment for LTU

Definition : Number of adult (aged 25-64) registered long term unemployed who entered employment in the reference year after a job integration agreement/ total number of adult

(aged 25-64) registered long term unemployed having a Administrative data

job integration agreements in the reference year collection

Aim: To monitor the share of positive labour market transitions of long term unemployed following a Job Integration Agreement.

5 According to the Recommendation a ‘job-integration agreement’ is understood to be a written

agreement between a registered long-term unemployed person and a single point of contact, having the objective of facilitating that person's transition into employment on the labour market. This point of contact could be based on a framework of inter-institutional coordination and/or be identified within existing structures

6 For the implementation of the Recommendation, adult population refers to working age

population not covered by the Youth Guarantee schemes, i.e., 25-64 years old, or 30-64 years old in the case of Member States applying the extended definition for youth in the Youth Guarantee

Breakdown of above by gender, age (25-55, +55) and education (low, medium, high according to ISCED 2011 classification)

Number of adult (aged 25-64) registered long term Administrative data

Context unemployed with duration of unemployment more than collection

indicators 12 months having a job integration agreement / Number of adult (aged 25-64) registered long term unemployed

with duration more than 12 months

Number of registered adult (aged 25-64) long-term unemployed with a duration of unemployment up to 18 months / total number of registered adult (aged 25-64)

long term unemployed LFS

Activation rate of adult registered long term unemployed (LMP category 1 - services)

Transition into employment within 6 and 12 months of

unemployment per age group, gender and qualification LMP

level (low-medium-high according to ISCED 2011 classification), as a share of all PES registered transitions into employment

Net replacement rates for the LTU (in %) PES Benchlearning

Share of LTU working age adults (25-64) receiving any

benefits European Commission

Share of social benefits in total disposable income of Tax and Benefits database

LTU working age adults (25-64)

Aim: Concerning the three indicators above: The first

indicators are well established to measure income EU-SILC

support to the unemployed. The second is complementary and provides information on the

coverage/take up of benefits in the target population. EU-SILC

The last one looks at the relative importance of benefits in total disposable income of LTU adults.

• 3. 

  Follow-up of individuals having signed an integration agreement

  Follow up indicators are needed to show whether sustainable labour market outcomes were

  achieved for individuals through the implementation to the Recommendation. These

indicators are able to respond directly to the call in the Recommendation "The monitoring

should follow up on the extent to which the registered long-term unemployed have regained

employment, whether their integration into the labour market is sustainable and the use

of job integration agreements".

The proposed indicators aim to identify the labour market status of individuals sometime after

signing a job integration agreement. Special focus is placed on registered long-term

unemployed that have regained employment, in accordance with the text of the

Recommendation.

List of possible indicators at the follow-up level of Monitoring:

Data Source

Previously LTU still in employment 12 months Administrative data collection from obtaining a job after having a job integration agreement

Definition: Number of previously adult (aged 25-

• 64) 

  registered long-term unemployed who are in

Overall Indicator employment 12 months after obtaining a job after having a job integration agreement / total number

of adult (aged 25-64) registered long-term unemployed obtaining a job after having a job integration agreement.

Aim: To measure the effectiveness and sustainability of the Job Integration Agreement (JIA) by establishing the share of LTU with a JIA and in employment afterwards who maintain an employment 12 months after.

Supplementary LTU still in unemployment 12 months after a indicators job integration agreement Administrative data collection

Definition: Number of adult (aged 25-64) registered long-term unemployed who are in unemployment 12 months after having a job integration agreement / total number of adult (aged 25-64) registered long term unemployed having a job integration agreement.

Aim: To measure the sustainability and long term effects of the Job Integration Agreement (JIA) by establishing the share of LTU with a JIA who are unemployed 12 months after.

Previously LTU still in employment 6 months

Context from obtaining a job after having a job Administrative data collection indicators integration agreement

Definition: Number of previously adult (aged 25-

• 64) 

  registered long-term unemployed who are in employment 6 months after obtaining a job after having a job integration agreement / total number of adult (aged 25-64) registered long-term unemployed obtaining a job after having a job integration agreement.

Hiring rates by gender for long-term unemployed LFS by duration of unemployment (LFS data)

Vacancy rate LFS

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