Division Guidelines for the employment policies of the Memb (Integrated Guidelines Nos 17 to 24)

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.

Member States, in cooperation with the social partners and where appropriate other stakeholders, shall conduct their policies with a view to implementing the objectives and priorities for action specified below so that more and better jobs and a better educated and skilled labour force support an inclusive labour market. Reflecting the Lisbon strategy and taking into account the common social objectives, the Member States’ policies shall 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,

• 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.

Equal opportunities and combating discrimination are essential for progress. Gender mainstreaming and the promotion of gender equality should be ensured in all action taken. Particular attention must also be paid to significantly reducing all gender-related gaps in the labour market in line with the European Pact for Gender Equality. As part of a new intergenerational approach, particular attention should be paid to the situation of young people, implementing the European Youth Pact, and to promoting access to employment throughout working life, including for older workers. Particular attention must also be paid to significantly reducing employment gaps for people at a disadvantage, including disabled people, as well as between third-country nationals and EU citizens, in line with any national targets. This will assist Member States in addressing the demographic challenge.

Member States should aim towards active inclusion of all through promotion of labour force participation and fight poverty and exclusion of marginalised groups.

In taking action, 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. In addition, Member States are encouraged to monitor the social impact of reforms.

Good governance also requires greater efficiency in the allocation of administrative and financial resources. In agreement with the Commission, Member States should target the resources of the Structural Funds, in particular the European Social Fund, on the implementation of the European Employment Strategy and report on the action taken. Particular attention should be paid to strengthening institutional and administrative capacity in the Member States.

Guideline 17. Implement employment policies aiming at achieving full employment, improving quality and productivity at work, and strengthening social and territorial cohesion.

Policies should contribute to achieving an average employment rate for the European Union (EU) of 70 % overall, of at least 60 % for women and of 50 % for older workers (55 to 64) by 2010, and to reduce unemployment and inactivity. Member States should consider setting national employment rate targets.

In addressing these objectives, action should concentrate on the following priorities:

• attract and retain more people in employment, increase labour supply and modernise social protection systems,

• improve adaptability of workers and enterprises,

• increase investment in human capital through better education and skills.