Considerations on COM(2022)241 - Guidelines for the employment policies of the Member States

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dossier COM(2022)241 - Guidelines for the employment policies of the Member States.
document COM(2022)241 EN
date November 21, 2022
 
table>(1)Member States and the Union are to work towards developing a coordinated strategy for employment and particularly for promoting a skilled, trained and adaptable workforce, as well as labour markets that are future-oriented and responsive to economic change, with a view to achieving the objectives of full employment and social progress, balanced growth, a high level of protection and improvement of the quality of the environment laid down in Article 3 of the Treaty on European Union (TEU). Member States are to regard promoting employment as a matter of common concern and are to coordinate their action in that respect within the Council, taking into account national practices related to the responsibilities of management and labour.
(2)The Union is to combat social exclusion and discrimination, and promote social justice and protection, equality between women and men, solidarity between generations and the protection of the rights of the child as laid down in Article 3 TEU. In defining and implementing its policies and activities, the Union is to take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against poverty and social exclusion, a high level of education and training and protection of human health as laid down in Article 9 of the Treaty on the Functioning of the European Union (TFEU).

(3)In accordance with the TFEU, the Union has developed and implemented policy coordination instruments for economic and employment policies. As part of those instruments, the guidelines for the employment policies of the Member States (the ‘Guidelines’) set out in the Annex to this Decision, together with the broad guidelines for the economic policies of the Member States and of the Union set out in Council Recommendation (EU) 2015/1184 (4), form the Integrated Guidelines. They are to guide policy implementation in the Member States and in the Union, reflecting the interdependence between the Member States. The resulting set of coordinated European and national policies and reforms are to constitute an appropriate overall sustainable economic, employment and social policy mix, which should achieve positive spill over effects for labour markets and society at large, and effectively respond to the impact of the COVID-19 pandemic, Russia’s war of aggression against Ukraine and the rising cost of living.

(4)In order to enhance economic and social progress, to facilitate the green and digital transitions and to achieve inclusive, competitive and resilient labour markets in the Union, Member States should promote quality education, training, upskilling and reskilling, as well as lifelong learning, future-oriented vocational education and training and improved career opportunities by strengthening the links between the education system and the labour market and recognising skills, knowledge and competences acquired through non-formal and informal learning.

(5)The Guidelines are consistent with the Stability and Growth Pact, existing Union legislation and various Union initiatives, including Council Directive 2001/55/EC (5), Council Recommendations of 10 March 2014 (6), 15 February 2016 (7), 19 December 2016 (8), 15 March 2018 (9), 22 May 2018 (10), 22 May 2019 (11), 8 November 2019 (12), 30 October 2020 (13),24 November 2020 (14), 29 November 2021 (15) and 16 June 2022 (16), Commission Recommendation (EU) 2021/402 (17), Council Recommendation (EU) 2021/1004 (18), Council Resolution of 26 February 2021 (19), Commission Communication of 9 December 2021 on building an economy that works for people: an action plan for the social economy, Decision (EU) 2021/2316 of the European Parliament and of the Council (20), Directive of the European Parliament and of the Council 2022/2041 of 19 October 2022 on adequate minimum wages in the European Union (21) and Directive of the European Parliament and of the Council on improving the gender balance among directors of listed companies and related measures.

(6)The European Semester combines the different instruments in an overarching framework for integrated multilateral coordination and surveillance of economic and employment policies within the Union. While pursuing environmental sustainability, productivity, fairness and macroeconomic stability, the European Semester integrates the principles of the European Pillar of Social Rights and of its monitoring tool, the Social Scoreboard, and provides for strong engagement with social partners, civil society and other stakeholders. It supports the delivery of the Sustainable Development Goals. The Union’s and Member States’ economic and employment policies should go hand in hand with Europe’s fair transition to a climate neutral, environmentally sustainable and digital economy, improve competitiveness, ensure adequate working conditions, foster innovation, promote social justice and equal opportunities and upward socioeconomic convergence, as well as tackle inequalities and regional disparities.

(7)Climate change and other environment-related challenges, the need to accelerate energy independence, a socially fair and just green transition, ensuring Europe’s open strategic autonomy, globalisation, digitalisation, artificial intelligence, an increase in teleworking, the platform economy and demographic change are deeply transforming European economies and societies. The Union and its Member States are to work together to effectively and proactively address those structural developments and adapt existing systems as needed, recognising the close interdependence of the Member States’ economies and labour markets, and related policies. This requires coordinated, ambitious and effective policy action at both Union and national levels while recognising the role of social partners, in accordance with the TFEU and the Union’s provisions on economic governance, taking into account the European Pillar of Social Rights.Such policy action should encompass a boost in sustainable investment, a renewed commitment to appropriately sequenced reforms that enhance sustainable and inclusive economic growth, the creation of quality jobs, productivity, adequate working conditions, social and territorial cohesion, upward socioeconomic convergence, resilience and the exercise of fiscal responsibility, with support from existing Union funding programmes, and in particular the Recovery and Resilience Facility established by Regulation (EU) 2021/241 of the European Parliament and of the Council (22) and the cohesion policy funds, including the European Social Fund Plus established by Regulation (EU) 2021/1057 of the European Parliament and of the Council (23) and the European Regional Development Fund governed by Regulation (EU) 2021/1058 of the European Parliament and of the Council (24), as well as the Just Transition Fund established by Regulation (EU) 2021/1056 of the European Parliament and of the Council (25). Policy action should combine supply- and demand-side measures, while taking into account their economic, environmental, employment and social impacts.

(8)The European Parliament, the Council and the Commission proclaimed the European Pillar of Social Rights (26). It sets out twenty principles and rights to support well-functioning and fair labour markets and welfare systems, structured around three categories: equal opportunities and access to the labour market, fair working conditions, and social protection and inclusion. The principles and rights give strategic direction to the Union, making sure that the transitions to climate-neutrality and environmental sustainability, digitalisation and demographic change are socially fair and just and preserve territorial cohesion. The European Pillar of Social Rights, with its accompanying Social Scoreboard, constitutes a reference framework to monitor the employment and social performance of Member States, to drive reforms at national, regional and local level and to reconcile the ‘social’ and the ‘market’ in today’s modern economy, including by promoting the social economy. On 4 March 2021, the Commission put forward an Action Plan for the implementation of the European Pillar of Social Rights (the ‘Action Plan’), including ambitious yet realistic headline targets and complementary sub-targets for 2030, in the areas of employment, skills, education and poverty reduction, as well as the revised Social Scoreboard.

(9)On 8 May 2021, at the Porto Social Summit, Heads of State or Government recognised the European Pillar of Social Rights as a fundamental element of the recovery, noting that its implementation will strengthen the Union’s drive towards a digital, green and fair transition and contribute to achieving upward social and economic convergence and addressing demographic challenges. They stressed that the social dimension, social dialogue and the active involvement of social partners are at the core of a highly competitive social market economy. They found that the Action Plan provides useful guidance for the implementation of the European Pillar of Social Rights, including in the areas of employment, skills, health and social protection. They welcomed the new Union headline targets for 2030 on employment (at least 78 % of the population aged 20-64 should be in employment), skills (at least 60 % of all adults should participate in training every year) and poverty reduction (by at least 15 million people, including five million children), as well as the revised Social Scoreboard with a view to monitoring progress towards the implementation of the principles of the European Pillar of Social Rights as part of the policy coordination framework in the context of the European Semester. In addition, the Porto Social Commitment called on Member States to set ambitious national targets which, taking due account of the starting position of each country, should constitute an adequate contribution to the achievement of the Union headline targets for 2030. In Porto, Heads of State or Government noted that, as Europe gradually recovers from the COVID-19 pandemic, the priority will be to move from protecting to creating jobs and improving job quality, and stressed that implementation of the principles of the European Pillar of Social Rights will be essential to ensure the creation of more and better jobs for all within the framework of an inclusive recovery.

They emphasised their commitment to unity and solidarity, which also means ensuring equal opportunities for all and that no one is left behind. They affirmed their determination, as established by the European Council’s Strategic Agenda 2019-2024, to continue deepening the implementation of the European Pillar of Social Rights at Union and national levels, with due regard for respective competences and the principles of subsidiarity and proportionality. Lastly, they stressed the importance of closely following, including at the highest level, the progress achieved towards the implementation of the European Pillar of Social Rights and the Union headline targets for 2030.

(10)Following the Russian invasion of Ukraine, the European Council, in its conclusions of 24 February 2022, condemned Russia’s actions, which seek to undermine European and global security and stability, and expressed solidarity with the Ukrainian people, underlining the violation of international law and the principles of the United Nations Charter. In the current context, temporary protection, as granted by Council Implementing Decision (EU) 2022/382 (27) activating Directive 2001/55/EC, is necessary in light of the scale of the influx of refugees and displaced persons. This allows persons displaced from Ukraine to enjoy harmonised rights across the Union that offer an adequate level of protection. By participating in Europe’s labour markets, persons displaced from Ukraine can contribute to strengthening the Union’s economy and help support their country and people at home. In the future, the acquired experience and skills can contribute to rebuilding Ukraine. For unaccompanied children and teenagers, temporary protection confers the right to legal guardianship and access to childhood education and care. Member States should involve social partners in the design, implementation and evaluation of policy measures aimed at addressing the employment and skills challenges, including the recognition of qualifications, stemming from the Russia’s war of aggression against Ukraine. Social partners play a key role in mitigating the impact of the war in terms of preserving employment and production.

(11)Reforms to the labour market, including national wage-setting mechanisms, should respect national practices of social dialogue and the autonomy of the social partners, with a view to providing fair wages that enable a decent standard of living and sustainable growth and upward socioeconomic convergence. They should allow for the necessary opportunity for a broad consideration of socioeconomic factors, including improvements in sustainability, competitiveness, innovation, the creation of quality jobs, working conditions, in-work poverty, education, training and skills, public health and social inclusion, as well as real incomes. In that regard, the Recovery and Resilience Facility and other Union funds are supporting Member States in implementing reforms and investments that are in line with the Union’s priorities, making European economies and societies more sustainable, resilient and better prepared for the green and digital transitions in the post-COVID-19 pandemic context. Russia’s war of aggression against Ukraine has further aggravated pre-existing socioeconomic challenges from the COVID-19 pandemic. Member States and the Union should continue to ensure that the social, employment and economic impacts are mitigated and that transitions are socially fair and just, also in light of the fact that increased open strategic autonomy and an accelerated green transition will help reduce the dependence on imports of energy and other strategic products and technologies, in particular from Russia. Strengthening resilience and pursuing an inclusive and resilient society in which people are protected and empowered to anticipate and manage change, and in which they can actively participate in society and the economy, are essential.

A coherent set of active labour market policies, consisting of temporary hiring and transition incentives, skills policies and improved employment services, is needed to support labour market transitions, also in light of the green and digital transformations, as highlighted in Commission Recommendation (EU) 2021/402 and in Council Recommendation of 16 June 2022 on ensuring a fair transition towards climate neutrality. Decent working conditions, including occupational health and safety, and both the physical and mental health of workers should be promoted.

(12)Discrimination in all its forms should be tackled, gender equality ensured and employment of young people supported. Equal access and opportunities for all should be ensured and poverty and social exclusion, in particular that of children, persons with disabilities and the Roma people, should be reduced, in particular by ensuring an effective functioning of labour markets and adequate and inclusive social protection systems, as set out in Council Recommendation of 8 November 2019, and by removing barriers to inclusive and future-oriented education, training, lifelong learning and labour-market participation, including through investments in early childhood education and care, in line with the European Child Guarantee, and in digital and green skills. Timely and equal access to affordable long-term care and healthcare services, including prevention and healthcare promotion, are particularly relevant, also in light of the COVID-19 pandemic that started in 2020 and in a context of ageing societies. The potential of persons with disabilities to contribute to economic growth and social development should be further realised. As new economic and business models take hold in workplaces throughout the Union, employment relationships are also changing. Member States should ensure that employment relationships stemming from new forms of work maintain and strengthen Europe’s social model.

(13)The Integrated Guidelines should serve as a basis for country-specific recommendations that the Council may address to Member States. Member States are to make full use of their REACT-EU resources established by Regulation (EU) 2020/2221 of the European Parliament and of the Council (28), which reinforces the 2014-2020 cohesion policy funds and the Fund for European Aid to the Most Deprived (FEAD) until 2023. Due to the current Ukrainian crisis, Regulation (EU) 2020/2221 has been further complemented by Regulation (EU) 2022/562 of the European Parliament and of the Council (29), as well as by a further amendment to Regulation (EU) 2021/1060 of the European Parliament and of the Council (30) concerning increased pre-financing for REACT-EU, and by a new unit cost in order to help accelerate the integration of people leaving Ukraine and entering the Union as provided for in Regulation (EU) 2022/613 of the European Parliament and of the Council (31).

In addition, for the 2021-2027 programming period, Member States should make full use of the European Social Fund Plus, the European Regional Development Fund, the Recovery and Resilience Facility and other Union funds, including the Just Transition Fund as well as the InvestEU established by Regulation (EU) 2021/523 of the European Parliament and of the Council (32), to foster quality employment and social investments, to fight poverty and social exclusion, to combat discrimination, to ensure accessibility, and to promote upskilling and reskilling opportunities of the workforce, lifelong learning and high-quality education and training for all, including digital literacy and skills in order to empower them with the knowledge and qualifications required for a digital and green economy. Member States are also to make full use of the European Globalisation Adjustment Fund for Displaced Workers established by Regulation (EU) 2021/691 of the European Parliament and of the Council (33) to support workers made redundant as a result of major restructuring events, such as the COVID-19 pandemic, socioeconomic transformations that are the result of more global trends, and technological and environmental changes. While the Integrated Guidelines are addressed to Member States and the Union, they should be implemented in partnership with all national, regional and local authorities, closely involving parliaments, as well as the social partners and representatives of civil society.

(14)The Employment Committee and the Social Protection Committee are to monitor how the relevant policies are implemented in light of the guidelines for employment policies, in line with their respective Treaty-based mandates. Those committees and other Council preparatory bodies involved in the coordination of economic and social policies are to work closely together. Policy dialogue between the European Parliament, the Council and the Commission should be maintained, in particular as regards the guidelines for the employment policies of the Member States.

(15)The Social Protection Committee was consulted,