The European Social Fund What is the ESF? How does it function? What does it do?

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1 Shutterstock - olly The European Social Fund What is the ESF? How does it function? What does it do?

2 What is the ESF? The EU s key instrument for investing in people and systems: To improve employment opportunities To promote education and life-long learning To enhance social inclusion To contribute to combating poverty To improve public services ESF financing of EUR 10 billion a year is improving job prospects for millions of Europeans, in particular those who find it difficult to get work

3 The ESF and the EU budget ESF: 86.4 billion YEI: 3.2 billion Cohesion policy

4 ESF- how does it work?

5 ESF allocation per country , bn (current prices)

6 ESF who benefits? 15 million people per year of which Source: Member States Annual Implementation Reports

7 Shutterstock Ints Vikmanis

8 Unemployment rates remain close to historic highs Unemployment rates, EU Member States, October million people are now unemployed in the EU (10% of the working age population) and 18.4 million in the euro area (11.5%). Source: Employment and Social Situation Quarterly Review January 2015

9 Young people are particularly hit Key indicators for labour market for youth, EU28 (under 25 year-olds) Only a third of young people are in employment. Nearly 60% inactive, among which 90% in education. 10% in unemployment or 21.6% of labour force. 13% NEET. Source: Employment and Social Situation Quarterly Review January 2014

10 More and better jobs What the ESF does: foster the adaptability of workers and enterprises: training courses to upgrade worker s skills, career guidance & planning, outplacement and mobility schemes, managing change support for entrepreneurs: training in basic management, human resources and financial skills, guidance on legal and employment issues, mentoring & networking schemes provide access to start-up capital (microfinance) support innovation in SMEs promote exchanges across borders (transnational cooperation)

11 More and better jobs Examples: The project Support in business creation and recovery in the Burgundy region of France provided advice to 1,000 persons to help them getting micro-enterprises off the ground. The EmpleaVerde, or Green Jobs programme in Spain is an initiative to promote employment and preserve the environment. It aims to support more than people and create 1,000 new green SMEs and jobs. The Innovation Assistant project introduces bright, entrepreneurial young graduates into SMEs in Finland to demonstrate the real contribution they can make for example, in implementing new technologies, design, or exporting.

12 Shutterstock - Picsfive

13 Skills content of current & future jobs In 2000, 22% of the jobs required high qualifications while 29% required low qualifications. In 2010, it was the reverse. By 2020, 35% of jobs will require high qualifications and 12 million jobs less will require low qualifications. Source: European Commission

14 Labour mismatches may hinder recovery Evolution of labour shortages and unemployment over time (labour shortage = % of manufacturing firms indicating labour as a factor limiting the production) Unfilled vacancies started to increase as of mid-2009, while unemployment is also reaching very high levels. This points to labour market mismatches, such as inadequate skills or limited mobility, in certain sectors and regions. Source: Employment and Social Situation Quarterly Review January 2014

15 The case of «bottlenecks» in IT Percentage of EU population with IT skills in 2010 (various levels of qualifications) 60% of Europeans have low or no IT skills. The situation is also worrying for IT professionals. The number of IT graduates has not increased since If this persists, the EU may lack IT professionals by Source: European Commission

16 Creating a skilled workforce What the ESF does: create in-work training schemes promote new skills (IT, green jobs, ) improve education systems in terms of quality and availability provide better access to training, in particular for the low skilled and older workers promote lifelong learning help identify future occupational and skills requirements improve the mobility of employees and job seekers through grants for exchanges and apprenticeships...

17 Creating a skilled workforce Examples: In Lithuania, the ESF-funded project Computer Literacy Basics for a Lithuanian e-citizen provided computer literacy courses to over 50,000 persons to stimulate growth and improve Lithuania s competitiveness. The QUALI-FORM-IDE project s ambitious objectives include improving the quality of training, increasing the employment rate, and promoting social cohesion in Belgium s Frenchspeaking region. The 'Spinner 2013' programme promotes the qualification and upgrade of people working in R&D, technology transfer and innovation in the Emilia-Romagna Region of Italy. Many participants are affected by the economic slowdown, either dismissed from their jobs, at risk of layoff or on severance pay.

18 Shutterstock SVLuma

19 Access to the labour market Female employment and coverage of childcare services in 2009 Female employment rates vary a lot in the EU. If the share of part-time is factored in to estimate a full-time equivalent employment rate, less than half of the female workforce is employed in several countries. The availability of childcare seems to play an important role. Source: European Commission

20 Boosting our skills and human capital Share of early school leavers (% of the population with at best lower secondary education) Every year, 6 million of young Europeans drop out of school with at best a lower secondary education. This currently represents 14% of year olds. Source: European Commission

21 Promoting active ageing Share of adult population (25-64) participating in lifelong learning (i.e. receiving education or training during the last 4 weeks) About 80 million people in the EU have only low or basic skills. More access to training could help reduce this, but actual participation is stagnating. Participation is highest for the youngest, the most educated and the employed, and is thus lowest amongst groups needing training the most. Source: European Commission

22 Increase labour market participation What the ESF does: increase labour participation of women develop childcare facilities and carers of dependents give a second chance to early school leavers address the particular needs of long-term unemployed integration into employment of migrants and specifically women create pathways to re-entry and reintegration into employment for groups suffering discrimination build acceptance of diversity in the workplace to combat discrimination and raise awareness encourage support for active ageing and the reintegration of older workers support Roma integration counselling and training that is adapted to the specific needs of disadvantaged and disabled people

23 Increase labour market participation Examples: The Young enterprising women for job creation project provided training courses to encourage a more entrepreneurial environment for women in the region of Tamsalu in Estonia. Entrepreneurship in Denmark seeks to help non-ethnic Danes realise their full potential by offering free counselling when they are setting up a business in Denmark. The Second Hand, SECOND HELP project in the Czech Republic helps people with mental disabilities enjoy paid work in a suitable environment.

24 Shutterstock Arman Zhenikeyev

25 Poverty a third world concept? 80 million people in the EU 16% of the population live on less than 60% of their country's average household income 19% of children in the EU are also currently in or at risk of poverty 17% of Europeans suffer from material deprivation, i.e. their living conditions are severely affected by a lack of resources Welfare systems reduce the risk of poverty by 38% on average in the EU, but this impact varies from less than 10% to nearly 60% across the EU.

26 Help for those that need it most What the ESF does: help unemployed or inactive people to train or upgrade their skills and get into work help workers upgrade their skills to keep their job, or improve their pay combat discrimination and enable vulnerable groups to join the labour market and be active in society offer training and education so that disadvantaged people can obtain skills and qualifications

27 Help for those that need it most Examples: In Trebišov, Slovakia, the Roma residents suffer almost 100% unemployment. A social fieldwork project employs special workers and undertakes the renovation and extension of the local school for more than 600 Roma students. The Process project in Luxembourg set out to help some of the estimated problematic drug users, including ex-prisoners, who find themselves excluded from work and society. An ESF-backed project in Malmö, Sweden, uses dedicated personal coaches who work with socially excluded youth between the ages of to get them into employment or study. Since 2009, 50% of the 450 participants have found work or started studying.

28 Shutterstock Santiago Cornejo

29 Quality of public administration Government efficiency indicator of the World Economic Forum ( ) According to international rankings, government efficiency varies a lot across the EU. Only Finland, Sweden and Denmark rank among the world s top 10. Source: European Commission

30 Better public services What the ESF does: modernise and strengthen labour market institutions, such as employment offices and services, through training for civil servants, development of IT systems and services, improve education and training systems, for example by new curricula or qualifications or by upgrading the qualifications of trainers ensure good governance, for example by promoting the involvement of all social partners in the design and implementation of programmes encourage the participation of NGOs in employment initiatives and their programming and projects

31 More info: ec.europa.eu/esf Shutterstock - zentilia

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