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Document 32004H0741
2004/741/EC: Council Recommendation of 14 October 2004 on the implementation of Member States' employment policies
2004/741/EC: Council Recommendation of 14 October 2004 on the implementation of Member States' employment policies
2004/741/EC: Council Recommendation of 14 October 2004 on the implementation of Member States' employment policies
OJ L 326, 29.10.2004, p. 47–63
(ES, CS, DA, DE, ET, EL, EN, FR, IT, LV, LT, HU, NL, PL, PT, SK, SL, FI, SV)
OJ L 153M, 7.6.2006, p. 49–65
(MT)
In force
Relation | Act | Comment | Subdivision concerned | From | To |
---|---|---|---|---|---|
Replacement | 32003H0579 | 14/10/2004 |
29.10.2004 |
EN |
Official Journal of the European Union |
L 326/47 |
COUNCIL RECOMMENDATION
of 14 October 2004
on the implementation of Member States' employment policies
(2004/741/EC)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 128(4) thereof,
Having regard to the Commission recommendation,
Having regard to the opinion of the Employment Committee,
Whereas:
(1) |
The European Employment Strategy has the leading role in the implementation of the employment and labour market objectives of the Lisbon strategy. The successful implementation of the Lisbon agenda calls for the employment policies of Member States to foster, in a balanced manner, the three complementary and mutually supportive objectives of full employment, quality and productivity at work, and social cohesion and inclusion. The achievement of these objectives requires further structural reforms concentrating on 10 key specific priorities and improved governance. |
(2) |
The reform of the European Employment Strategy in 2003 has placed the emphasis on medium-term orientation and on the importance of implementation of the full range of policies recommended in the Employment Guidelines. The Employment Guidelines should therefore be fully reviewed only every three years, while in the intermediate years their updating should remain strictly limited. |
(3) |
The Council adopted without change the Guidelines for the employment policies of the Member States in 2004 by Decision 2004/740/EC (1). |
(4) |
The Council adopted a recommendation on the implementation of Member States' employment policies on 22 July 2003 (2). The examination of the Member States' National Action Plans for employment contained in the Joint Employment Report 2003-2004 shows that Member States and the social partners have given limited responses to these Council recommendations. |
(5) |
The European Employment Taskforce recommended that the EU should address more forceful recommendations to the Member States. Priority should be given to increasing adaptability of workers and enterprises; attracting more people to enter and remain on the labour market, making work a real option for all; investing more and more effectively in human capital and lifelong learning; and ensuring effective implementation of reforms through better governance. The Council and the Commission share this assessment and have integrated the policy messages of the Employment Taskforce report in the Joint Employment Report. |
(6) |
The analysis of the implementation of the Guidelines and 2003 Council recommendations in the Joint Employment Report and the general and country-specific policy messages in the Employment Taskforce report provide the basis for the formulation of the EU recommendations for national employment policies in 2004. |
(7) |
The Employment Guidelines apply to the new Member States since accession. All of the new Member States have reported over the last few years on the implementation of Joint Assessment Papers (JAP) which refer to the Employment Guidelines. To successfully pursue the on-going restructuring of their economies, most new Member States, together with the social partners, need to further develop their efforts to modernise their employment policies. A new balance between flexibility and security, increased participation in employment and investment in human capital through lifelong learning are essential, as is the need to improve the health of the workforce. Social partnership, and significant improvements in the administrative capacity of public authorities are still crucial in most new Member States to achieve full implementation and efficient use of European Social Fund support, a major tool for investing in human capital and lifelong learning. |
(8) |
The country-specific messages contained in the report of the European Employment Taskforce are fully consistent with the examination of the JAP implementation reports, and may serve as guidance for the implementation of the Employment Guidelines in the new Member States, |
HEREBY RECOMMENDS that the Member States should take the actions specifically referring to them, which are set out in the Annex. This recommendation replaces the Council Recommendation of 22 July 2003.
Done at Luxembourg, 14 October 2004.
For the Council
The President
P. VAN GEEL
(1) See page 45 of this Official Journal.
ANNEX
COUNTRY SPECIFIC RECOMMENDATIONS AND PRIORITIES
Delivering more and better jobs is the most urgent issue to be addressed. In the context of an overall employment strategy, the Spring European Council stressed that Member States should give urgent attention to four particular challenges: adaptability, attracting more people into the labour market, improving the quality of employment and investing in human capital. The European Council also emphasised that support and advocacy for change must reach beyond governments. In order to generate this support, the European Council called on Member States to build Reform Partnerships involving the social partners, civil society and the public authorities, in accordance with national arrangements and traditions.
The Employment, Social Policy, Health and Consumer Affairs Council's Key Messages, endorsing the assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the Guidelines and 2003 Council recommendations, show that all Member States and the social partners should give immediate priority to:
— |
increasing adaptability of workers and enterprises, inter alia, by promoting flexibility combined with security in the labour market; by modernising and broadening the concept of job security; by maximising job creation and raising productivity, |
— |
attracting more people to enter and remain on the labour market: making work a real option for all, inter alia, by building comprehensive active ageing strategies; by further developing policies to increase labour market participation; by strengthening active labour market policies, with personalised services to all those seeking employment; by pursuing ‘make work pay’ policies through both financial and non-financial incentives, |
— |
Investing more and more effectively in human capital and lifelong learning, inter alia, by sharing costs and responsibilities between public authorities, companies and individuals; by broadening the supply of training, in particular for those most in need such as the low-skilled and older workers, and |
— |
Ensuring effective implementation of reforms through better governance, inter alia, by building reform partnerships to mobilise the support and participation of the social partners and various stakeholders; where appropriate, by defining targets to reflect those set at a European level, and ensuring effective use of public funds; by promoting the role of National Action Plans and increasing their visibility; by strengthening the role of the country-specific recommendations and developing more effective mutual learning. |
Within this framework, the country specific recommendations and priorities are set out as follows:
COUNTRY SPECIFIC RECOMMENDATIONS
BELGIUM
Despite positive trends since 1997, the employment rate in Belgium remains markedly below the EU average and far below the Lisbon targets. The employment rate for older workers is amongst the lowest in EU25. The employment rate of non-nationals is strikingly low. After several years of steady decline, unemployment has started to rise. Participation of adults in education and training is stagnating.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations show that Belgium should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
|
Investing more and more effectively in human capital and lifelong learning
|
DENMARK
Denmark has employment rates well above the Lisbon employment targets, including for women and older workers. Despite recent increases, particularly hitting graduates and worsening the long-term unemployment, unemployment remains relatively low. Given the high employment rates, a key priority for Denmark is to ensure adequate labour supply in the longer term.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations show that Denmark should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
|
GERMANY
The German employment rate is above the EU average but still far below the Lisbon targets. The employment rate for older workers is lagging behind. The employment rate for women exceeds the EU average but is stagnating. While performance varies across regions, overall, the German labour market has benefited from the years of economic growth in the EU between 1997 and 2000. In subsequent years, employment has been on the decline and unemployment has increased. Unemployment and especially long-term unemployment remain among the highest in the EU. Substantial regional disparities between the eastern and western parts of the country persist.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations show that Germany should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
|
Attracting more people to the labour market and making work a real option for all
|
|
Investing more and more effectively in human capital and lifelong learning
|
GREECE
Although job creation has increased recently, Greece still has one of the lowest employment rates in the EU, particularly for women, and declining but high unemployment. Undeclared work is substantial. Labour productivity has risen significantly but remains at low levels. Adult participation in training also remains particularly low, especially given the low educational attainment of the working-age population. In recent years, increased immigration has contributed to labour supply.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations show that Greece should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
|
Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
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SPAIN
Between 1997 and 2002, Spain had the highest increase in employment rates and the highest reduction in unemployment rates among the Member States. However, unemployment remains well above the EU average, while the employment rate remains well below. With wide differences in performances across regions, addressing regional disparities remains a priority. Female participation and the employment rate of older workers remain particularly low. Moreover, a particularly high share of people (about a third of all workers) is still employed under fixed-term contracts. Labour productivity remains at low levels. Overall levels of educational attainment and participation of adults in training remain particularly low. In recent years, increased immigration has contributed to labour supply.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations show that Spain should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
|
Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
|
FRANCE
In France, the overall employment rate is below the EU average. The employment rate for older workers (55-64) is one of the lowest in the EU. Unemployment fell significantly between 1997 and 2000 but has risen again with the economic slowdown. Unemployment remains among the highest in the EU and it is particularly high for young people (15-24). The employment rate of non-nationals is strikingly low, notably for women. The share of fixed-term contracts continues to exceed the EU-15 average, whereas participation of adults in education and training remains just below average.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations shows that France should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
|
Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
|
IRELAND
Ireland has made impressive progress in terms of employment and productivity performances since 1997. The total employment rate has increased from 56,1 % to 65,3 % while unemployment has fallen by nearly two-thirds and long-term unemployment from 5,6 % to 1,3 %. Female participation in the labour force has improved, but there is still a significant gap between employment rates for women and men, as well as a high gender pay gap. Labour shortages remain a problem although they are eased by increased immigration. A significant element in Ireland's success is its capacity to attract foreign direct investment. Social partnership, its tax system, a good regulatory environment and investment in human capital are also major factors.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council Recommendations shows that Ireland should give immediate priority to:
|
Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
|
ITALY
Despite weak economic conditions employment growth still continues to be positive and confirms the improvements since 1997. However, the employment rate continues to be one of the lowest in the EU. Female participation and the employment rate of older workers also remain among the lowest in EU25. Unemployment decreased over the recent period, but still stands above the EU15 average. With unemployment at about 5 % in the centre-north, compared to 18 % in the south, addressing regional disparities is a priority. Undeclared work still remains particularly significant, even if the employment situation of 700 000 immigrants has been regularised. Overall levels of educational attainment and participation in training remain particularly low.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations show that Italy should give immediate priority to:
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Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
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LUXEMBOURG
In Luxembourg, the employment rate is close to the EU average but still below the EU target. Unemployment remains low and the long-term unemployment rate is one of the lowest in the EU.
However, the economic boom of the late 1990s has not led to increased employment rates across the board. New jobs were notably taken up by cross-border workers and women, while employment of older workers remained at a very low level. Participation in education and training remains below the EU15 average.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations shows that Luxembourg should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
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THE NETHERLANDS
While the employment rates for women and men well exceed the Lisbon targets, the employment rate of immigrants remains low. The labour market is characterised by an exceptionally high level of part-time work (about 44 % of the workforce), and a high number of people on disability benefits. The employment rate of older workers exceeds the EU average but is still far below the EU target.
Unemployment has risen significantly since 2001, although it remains among the lowest in the EU. In the autumn of 2003 the government and the social partners have signed an agreement which, among other things, includes a freeze in the development of wages in 2004 and 2005.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations shows that the Netherlands should give immediate priority to:
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Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
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AUSTRIA
Austria has achieved a high employment rate overall, and a relatively high employment rate for women, in line with the Lisbon targets. Unemployment is amongst the lowest in the EU. Social partnership plays an important role for modernising work organisation, improving labour legislation and ensuring satisfactory wage developments. The employment rate of older workers, however, is particularly low. Employment growth has slowed down and unemployment has started to rise. Participation of adults in education and training is below the EU average. The gender pay gap remains one of the highest in the EU.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council Recommendations show that Austria should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
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PORTUGAL
Portugal is close to achieving the Lisbon target on overall employment and slightly exceeds the employment targets for women and older workers. The recent economic slowdown has led unemployment to rise, although it remains at a relatively low level in comparison to the EU. Levels of productivity, overall levels of educational attainment and access to training remain particularly low. Moreover, a significant share of people (more than 20 %) is employed under fixed-term contracts. In recent years, increased immigration has contributed to labour supply.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council recommendations show that Portugal should give immediate priority to:
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Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
|
FINLAND
Finland is close to the overall employment rate target and it exceeds the employment rate target for women. It has achieved a high increase in the participation of older workers over the last decade, coming close to the EU target for older workers. The unemployment rate is above the EU average, and is particularly high for young people.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council Recommendations shows that Finland should give immediate priority to:
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Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
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SWEDEN
Sweden exceeds all EU employment targets including those for women and for older workers. The total unemployment rate stands at about 5 %. Efforts should be maintained to avoid labour supply constraints. In view of the ageing population, there will be a need to sustain labour supply by exploiting potential sources of labour among immigrants, the young and the long-term sick, and by improving incentives to work.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council Recommendations show that Sweden should give immediate priority to:
|
Increasing adaptability of workers and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
|
UNITED KINGDOM
The UK exceeds all the employment rate targets, including those for women and for older workers. Despite the slowdown in the global economy, employment rates have remained fairly stable and unemployment levels are well below the EU average. However, concentrations of economic inactivity, and to a lesser extent unemployment, persist in certain communities and amongst particular groups. Productivity levels, especially as expressed per hour worked, remain comparatively low. This is in part due to the prevalence of low skills amongst the workforce, including insufficient basic skills. The gender pay gap remains one of the largest in the EU.
The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council Recommendations shows that the United Kingdom should give immediate priority to:
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Increasing adaptability of worker and enterprises
|
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Attracting more people to the labour market and making work a real option for all
|
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Investing more and more effectively in human capital and lifelong learning
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PRIORITIES FOR NEW MEMBER STATES
CYPRUS
The employment rate in Cyprus is well above the EU15 average and unemployment rate is low. The share of foreign workers, who are often employed on a temporary basis, has increased significantly over the years in response to labour market needs.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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CZECH REPUBLIC
The employment rate in the Czech Republic is slightly above the EU15 average. Unemployment is around the EU15 average but has been slowly increasing since the mid-1990s. The employment rate of older workers is close to the EU average but low, particularly for women, given the early statutory retirement age. Regional imbalances are important.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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ESTONIA
The employment rate in Estonia is a little below the EU15 average. The unemployment rate has decreased over the years but remains higher than the EU average. Moreover, the share of long-term unemployed is high. Estonia is expected to be most affected by the decline in the working-age population resulting from demographic change.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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HUNGARY
The employment rate in Hungary is low, particularly for the low-skilled, the disadvantaged, women and for older workers. At the same time, unemployment remains well below the EU15 average. This is explained by a low participation rate, i.e. a large inactive population of working age. There are major labour market imbalances between the central and western regions, where the ‘modern economy’ is concentrated, and the rest of the country. Regional and sectoral mobility is low, while skills bottlenecks reflect both a lack of skilled labour and the insufficient responsiveness of education and training systems to labour market needs.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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LITHUANIA
The employment rate in Lithuania has risen slightly recently but remains well below the EU15 average. The unemployment rate has decreased significantly but is still well above the EU average.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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LATVIA
Supported by strong economic growth, employment in Latvia has increased quite strongly over the last two years. However, the overall employment rate stands below the EU15 average. Unemployment remains above the EU15 average with wide regional variations. At the same time, labour and skill shortages exist in Riga.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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MALTA
The employment rate in Malta is particularly low compared to EU15 average. The employment rate of older workers is particularly low. The employment rate of women is the lowest in the EU25: only a third of women of working age are in work. Unemployment has increased slightly over the last two years but remains below the EU15 average.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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POLAND
The employment rate in Poland is among the lowest in the EU25. The situation on the labour market has deteriorated during the last four years. The employment rates of women, of older workers, of young people and of the low-skilled are particularly low. At about 20 %, the unemployment rate is at its highest level since the start of the economic transformation, and the highest in EU25.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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SLOVENIA
The employment rate in Slovenia is slightly below the EU15 average, but is particularly low for older workers. The unemployment rate is well below the EU average.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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SLOVAKIA
The overall employment rate in Slovakia remains low compared to the EU15 average. Although it is declining, unemployment is still very high, with a large share of long-term unemployed. The employment rate of women is low and the employment rate of young people, of the low-skilled and of older workers (especially women) is particularly low. Regional imbalances are important.
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Increasing adaptability of workers and enterprises
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Attracting more people to the labour market and making work a real option for all
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Investing more and more effectively in human capital and lifelong learning
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