Rapporteur:

Tatjana BABRAUSKIENĖ

Referral	European Commission, 8.3.2023
Legal basis	Article 304 of the Treaty on the Functioning of the European Union
Section responsible	Section for Economic and Monetary Union and Economic and Social Cohesion
Adopted in section	30.5.2023
Adopted at plenary	14.6.2023
Plenary session No	579
Outcome of vote (for/against/abstentions)	181/0/3

1.   Conclusions and recommendations

1.1.

The European Economic and Social Committee (EESC) welcomes the fact that the communication on Harnessing talent in Europe’s regions (1) commits to support the design and implementation of targeted regional and territorial strategies that are based on regions’ specific situation and assets, and by the ambitious implementation of the European Pillar of Social Rights and the long-term vision for the EU’s rural areas, together with targeted use of existing EU funds, aiming to adapt their deployment to the demographic trends experienced in the EU. It should also put a quality labour market at the centre of the identified policy measures, covering inclusive labour market policies, supporting workers, attractive business environments, fair mobility, social cohesion, essential services, and access to quality training and skills development to boost European competitiveness.

1.2.

The EESC points out that the fundamental aspect of European integration — freedom of movement — needs to be ensured for all in the EU, while focusing on a long-term and holistic approach to regional development and labour market integration. Freedom of movement of people in the European labour market also needs to be protected; it needs to remain a choice and an opportunity, rather than a pressure weighing on people facing a lack of prospects or opportunities in their own region, due to socioeconomic reasons.

1.3.

The EESC stresses that in order to better address the labour and skills shortages, long-term solutions are needed to support regional development, such as better infrastructure, sustainable resources, improved job quality, effective support to those not in employment, education, or training (NEETs) and the unemployed, targeted support for the fair integration of third-country nationals into the labour market, access to quality public services, including access to high-quality and inclusive public education and lifelong learning, and access to quality and inclusive up- and re-skilling for all workers, as well as the involvement of trade unions and employers in skills-forecasting, pinpointing skills needs in the regions and providing skills development.

1.4.

The EESC welcomes the deployment of a number of EU funding tools under cohesion policy (the ERDF, ESF+, Cohesion Fund and Just Transition Fund) for the 2021–2027 programming period with a view to reducing regional disparities and implementing the European Pillar of Social Rights (EPSR). The EESC calls for stronger complementarity and coordination among the EU’s recovery, resilience and cohesion funds, including the Just Transition Fund, with a view to ensuring that the funds are used to stimulate job creation, create quality employment opportunities, and ensure progress in material infrastructure, by reducing socioeconomic divides and closing the gap in development between EU regions. Cross-border cooperation, supported by the Interreg programmes, contributes to increasing the attractiveness of border regions and such programmes should be further supported.

1.5.

The EESC calls on the European Commission and the Member States to put in place cohesion policies and EU funds to support the shaping of labour market transitions in a way that no worker or region is left behind. It is essential to ensure attractive conditions for companies, while acknowledging the need for investment by companies in innovation and competitiveness and to adapt to the changing needs. The EESC calls on the European Commission and the Member States to take these points into consideration in the mid-term review of the MFF.

1.6.

To ensure the fair allocation of the Cohesion Fund to effective and quality regional development, the EESC calls on the European Commission and the Member States to start discussions about the next processes supporting the MFF with regard to ensuring the evaluation of the needs and funds at EU level and delivering effective regional development and active job creation.

1.7.

The EESC calls on the European Commission and the Member States to ensure that European labour market and cohesion policies are based on sustainable investment in quality jobs, access to training and essential services, social dialogue, and collective bargaining, in accordance with respecting the autonomy of the social partners and in accordance with national industrial relations systems.

1.8.

The EESC calls on the European Commission and the Member States to respect human rights and fight effectively against corruption, and thus uphold the rule of law — which plays a key role in making regions attractive to labour market players — and to ensure better monitoring of the effective use of EU funds, especially decentralised ones, by means of European Commission audits.

1.9.

The EESC calls for the efficient social dialogue and effective participation of civil society organisations (CSO) on all matters related with this strategy to achieve quality regional development that responds to the needs of those living in and wishing to live in the regions concerned and to the needs of companies, especially regarding effective allocation of the ESF+ fund to combat youth unemployment.

1.10.

The EESC stresses the need to ensure democratic governance in regional development policies, and close cooperation among regional authorities, social partner organisations, employment services, and education and training providers in the regions. Social dialogue needs to be used effectively to attract companies to disadvantaged regions and ensure quality jobs; good wages; job security via standard employment and access to social protection; lifelong learning opportunities; good working conditions in safe and healthy workplaces; reasonable working time with a good work-life balance; and trade union representation and bargaining rights.

1.11.

The EESC calls on the European Commission to use the European Semester and the EU Social Scoreboard as tools to provide targeted recommendations to the Member States to combat regional inequalities.

1.12.

The EESC calls on the Member States to ensure that their policies on climate change adaptation and disaster risk reduction, under the European Climate Law, and the EU Civil Protection Mechanism supported by the Green Deal Industrial Plan (2), provide effective support to regions (3), and to involve the social partners and civil society in regular socioeconomic impact assessments to anticipate changes and create alternative job opportunities in those regions and sectors that will be affected by these changes.

1.13.

The EESC calls on the Member States to ensure the effective implementation of the EU Directive on adequate minimum wages and the Council Recommendation on access to social protection for workers and self-employed (2019) (4), and to improve working conditions and wages by increasing bargaining coverage, and ensuring equal access to social protection regardless of employment status, which play a key role in making regions attractive to workers at all skill levels with attractive jobs and salaries.

1.14.

The EESC stresses the need for governments, local and regional authorities, social services, companies and trade unions to work together in the framework of social dialogue to provide effective solutions to workers concerning their parenting and caregiving needs by making quality and inclusive childcare and long-term care services guaranteed (5).

1.15.

The EESC underlines the important role that could be played by the European Platform tackling undeclared work under the European Labour Authority (ELA) in promoting the transformation of undeclared work into declared decent jobs, and thus also contributing to regional development by strengthening the tax base and improving workers’ access to social protection.

1.16.

The EESC points out that effective social protection coverage and social security coordination are key in ensuring the equal treatment of mobile workers. The EESC calls on the European Commission to improve its tools to better support employability in regions.

1.17.

The EESC calls on the Member States to develop skills and lifelong learning policies for regional development coupled with investment and complementary policy measures to improve the quality of and access to education and training for all, preparing people for life and the labour market, and to improve the attractiveness of regions for learners, workers and business. High-quality career and lifelong learning guidance should be available to everyone in Europe, providing trustworthy information about regional job and learning possibilities.

1.18.

The EESC stresses the need to ensure equal access to quality public services (such as long-term care, affordable housing and cultural services, transport, energy supply and access to the internet) and quality education and infrastructure, such as early childhood education and care, and education, training and lifelong learning for regional development, while implementing effective human rights and anti-discrimination policies. The EESC calls on the Member States to ensure sustainable public investment in quality public education.

1.19.

The EESC calls on the Member States to reduce teacher shortages (6) and to make the teaching profession attractive, with fair salaries, decent working conditions, quality initial and continuous teacher education, and career development, in order to improve the quality of education in the regions. Social dialogue is essential in the design and implementation of education reforms regarding the green and digital transition of education institutions and systems and when it comes to improving the skills and competences that teachers and trainers need to acquire within initial and continuous professional development, including for the green and digital transition.

2.   Background

2.1.

On 17 January 2023, the European Commission published a communication on Harnessing Talent in Europe’s Regions (7) putting forward targeted measures to promote and retain talent in underdeveloped regions, and turn those regions into more attractive locations. This is the first key initiative in 2023 stemming from the European Year of Skills (8). The focus of the Commission’s new policy is mainly on regions experiencing an accelerated decrease in their working age population, with a low share of university graduates, as well as on regions experiencing a significant departure of young people.

2.2.

Having decreased by 3,5 million people between 2015 and 2020, the EU working age population is expected to lose an additional 35 million people by 2050. The EU’s rural areas are home to 137 million people: approximately 30 % of the EU population. Yet 22 % of respondents to the recent Eurobarometer survey said that their job opportunities in rural areas had worsened in the last 10 years (9). The proportion of young people neither in employment nor in education or training (NEETs) is significantly higher in the regions concerned (at 19 %, compared to the EU average of 13 %). Too many young people do not complete upper secondary education and are left with poor employment prospects. In other regions, a lack of career prospects may be discouraging young people from attaining higher education and leading some to seek job opportunities elsewhere, resulting in an unemployment rate (15–34) of 14,6 %, significantly higher than that of the EU as a whole (11,1 %).

2.3.

According to the Eighth Cohesion Report (2022) (10) the major reason for migration and brain-drain from some EU regions is a lack of public and social services, especially in care, healthcare and education, a lack of job opportunities and territorial deficiency in connections and material infrastructure such as transport. The Commission’s policy aim is to promote development in these regions through the provision of quality jobs and by improving public services, and, in particular, education systems. Moreover, it focuses on developing better digital connectivity of underdeveloped regions, especially rural and remote areas. For these purposes, the Communication identifies specific areas in the EU Rural Action Plan and sets out an eight pillar-mechanism to boost talent in underdeveloped regions, called the ‘Talent Booster Mechanism’.

3.   General comments

3.1.

The EESC welcomes the fact that the communication commits to the effective implementation of the European Pillar of Social Rights (EPSR). However, the communication does not sufficiently put a quality labour market, and in particular support to workers, at the centre of the identified policy measures. Ensuring quality jobs for all workers and regions requires a more holistic response covering fair labour market policies, fair mobility, social cohesion, essential services, and access to quality training and skills. While regional development should indeed be a priority, freedom of movement of people in the European labour market also needs to be protected. Regional development should be achieved with due regard to the demographic, economic, and social perspectives and the reasons for the depopulation of certain regions. Social, economic, and ecological aspects and sustainability should be pivotal when shaping effective regional strategies to reverse trends of demographic loss and make regions attractive to people.

3.2.

The EESC points out that the fundamental aspect of European integration — freedom of movement — needs to be ensured for all in the EU. However, labour mobility cannot be a quick fix to remedy labour shortages, without considering underlying issues such as the need for improved job quality and access to training. In fact, most Member States experience the same skills gaps. Reducing labour mobility to a simple issue of supply and demand runs the risk of exacerbating inequalities and labour market divergences across the EU and its regions. Thus, it is necessary to ensure that EU and national policies focus on a more long-term and holistic approach to regional development and labour market integration. Likewise, filling labour shortages in labour-intensive industries by passing on precarious jobs to foreign workers and marginalised groups without improving the attractiveness of such sectors only risks cementing social inequalities, depriving societies and economies of inclusive progress.

3.3.

Climate policies will have a strong impact on workers and industries and will require massive training, reskilling and upskilling. This transition should be used as an opportunity to create quality jobs with good working conditions in all sectors and regions. Climate strategies need to take into account regional and local differences and not only the global data, and to support the most impacted regions. It should also be ensured that workers can find alternative quality jobs in the same region they are working in today, in order not to jeopardise communities’ support for the necessary transition.

3.4.

Regions should exchange experiences on how to develop rural areas as places to learn, work and live in with a good quality of life and services by supporting the economic diversification of rural and lagging areas. Smart specialisation strategies as a tool for creating diverse and skilled jobs continue to remain too often focused on traditional sectors. There are, however, good examples of industrial transitions that are the outcome of social dialogue, which are worth considering.

3.5.

The EESC calls on the European Commission and the Member States to set up cohesion policies and EU funds to support the shaping of labour market transitions in a way that no worker or region is left behind. It is essential to ensure attractive conditions for companies while acknowledging the need for investment by companies in innovation and competitiveness and to adapt to the changing needs. Workers must be able to live in all regions of Europe, and all regions must be able to prosper from work and be attractive for companies and workers.

3.6.

In order to successfully manage the transitions for a fair and inclusive recovery, it is essential that the European labour market and cohesion policies are based on long-term and stable investment in quality jobs, access to training and essential services, social dialogue, and collective bargaining. The European Semester and the EU Social Scoreboard are important tools to provide targeted recommendations to the Member States so as to combat regional inequalities and to ensure that quality jobs and services are available in every region.

3.6.1.

The EESC calls on the European Commission and the Member States to ensure that European labour market and cohesion policies are based on sustainable investment in quality jobs, access to training and essential services, social dialogue, and collective bargaining, in accordance with respecting the autonomy of the social partners and national industrial relations systems.

3.7.

In addition to quality job opportunities offering attractive salaries, working conditions, quality training and career development, regional attractiveness depends on decent living standards, including, for example, access to affordable housing, high-quality education and public services, as well as good infrastructure. While acknowledging the role of national legislation and industrial relations systems, different social and labour standards, low collective bargaining coverage, a lack of investment and low trust in institutions can easily become drivers for structural divides between regions, hampering the positive development of a well-balanced European labour market.

3.8.

The EESC welcomes the fact that the Communication aims to develop close cooperation between regional authorities, social partner organisations, employment services, and education and training providers. Social dialogue needs to be used effectively in order to attract companies to the disadvantaged regions and ensure quality jobs; good wages; job security via standard employment and access to social protection; lifelong learning opportunities; good working conditions in safe and healthy workplaces; reasonable working time with a good work-life balance; and trade union representation and bargaining rights.

3.9.

The EESC believes that the objective of the communication should be broader than only attracting highly skilled workers (‘talent’) to disadvantaged regions for economic development. Workers in general are in short supply in the labour market in many regions of the EU, while 26,4 % of the inactive European workforce resides in disadvantaged regions, due to a lack of opportunities for quality employment or distrust in state institutions, for family reasons, or due to being employed in the grey economy, etc. Companies need good conditions, workers and infrastructure to innovate and be competitive, and must reskill and upskill their workers and seek to attract skilled workers to good jobs. The focus of the communication and the actions flowing from it should be shifted to how the just transition to a green and digital economy can support the upskilling of all workers.

3.10.

We welcome the deployment of several EU funding tools under cohesion policy funding (ERDF, ESF+, Cohesion Fund and Just Transition Fund) for the 2021–2027 programming period with a view to reducing regional disparities and implementing the European Pillar of Social Rights. Employability and economic development in rural and non-urbanised areas can be boosted with targeted interventions. To that end, stronger complementarity and coordination between EU recovery, resilience and cohesion funds, including the Just Transition Fund need to be ensured to stimulate job creation, quality employment opportunities, and progress in material infrastructure. Cohesion funds should be enhanced in their effectiveness to reduce the socioeconomic divides and close the gap in development between EU regions. To promote decent jobs, State aid and the use of funds under the EU budget should be subject to strong social conditionalities, requiring recipients to comply with applicable labour laws and collective agreements.

3.11.

Efforts to combat corruption and uphold the rule of law play a key role in making regions attractive to labour market players. It is essential to ensure better monitoring of the effective use of EU funds, especially the decentralised ones, by the European Commission and by the EU’s audit institutions (e.g. the European Court of Auditors and OLAF). In order to ensure the fair allocation of the Cohesion Fund to effective and quality regional development, the EESC considers it important that the European Commission and Member States start a discussion about the next processes supporting the MFF to ensure the evaluation of the needs and funds at EU level.

3.12.

Democratic governance in managing and properly allocating EU funds can be achieved by the effective involvement of the social partners and relevant stakeholders in decisions on the use of EU funds for regional development. Social dialogue and civic dialogue need to be effectively used in order to achieve quality regional development that responds to the needs of those living and wishing to live in the regions concerned and of the companies.

3.13.

The green and digital transitions are having major impacts on industries in the regions. A competitive environment for businesses geared towards sustainable growth can help to attract people to the regions and to make the EU competitive and attractive globally. Regions urgently need to establish effective strategies, together with the social partners and stakeholders, considering the needs and possibilities of economic development, to make regions attractive to people and companies. A balance between EU and regional policies needs to be ensured, respecting the subsidiarity of the regions.

3.13.1.

The recently announced Green Deal Industrial Plan (GDIP) and Net-Zero Industry Act (NZIA) initiatives — with the development of skills being one of the four pillars of the GDIP — should be implemented with a strong regional dimension in mind, especially when it comes to the establishment of the planned Net-Zero Industry Academies.

3.14.

The ESF+ — with its obligation to spend a minimum of 12 % of the funds in Member States where the number of NEETs is above the EU average — is the main policy tool to combat youth unemployment and ensure the implementation of the European Youth Guarantee. However, the Member States need to make more efforts to make all regions, including the disadvantaged ones, attractive to young students and workers. Social partners and other stakeholders should be meaningfully involved in its design and implementation, and in assessing the use of the ESF+ funds in order to ensure that these funds provide effective support for the creation of quality jobs, paid quality apprenticeships and traineeships for young unemployed people. Shortage occupations should be taken into account to make jobs and education attractive and the social partners need to be empowered and supported to implement certain policies and specific measures to make shortage occupations attractive.

3.15.

Regions can be attractive for workers at all skills levels with attractive jobs and salaries. In this regard the effective implementation of the EU Directive on adequate minimum wages, and improving working conditions and wages by bargaining coverage play a key role. Governments, local and regional authorities, social services, companies and trade unions should work together in the framework of social dialogue to provide effective solutions to workers concerning their parenting and caregiving needs by making quality and inclusive childcare and long-term care services guaranteed.

3.16.

The European Platform tackling undeclared work under the European Labour Authority (ELA) could promote the transformation of undeclared work into declared decent jobs and thus also contribute to regional development by strengthening the tax base and improving workers’ access to social protection. Equal access to social protection must be ensured regardless of employment status, building on the Council Recommendation on access to social protection for workers and self-employed (2019) (11).

3.17.

Effective social protection coverage and social security coordination is key to ensuring equal treatment of mobile workers. Digital tools such as the European Social Security Pass can improve cross-border identification and verification, helping workers to trace, export, and claim their aggregated social security entitlements. In order to attract workers to work in disadvantaged regions, unfair treatment such as double taxation or social security exemptions for mobile workers need to be abolished, to ensure that workers who have exercised their freedom of movement are not being punished by the host Member State or upon return to their country of origin.

3.18.

Skills policies play an important part in regional development, but this also needs to be coupled with investment and complementary policy measures to improve the attractiveness of regions for workers and business. The labour market needs workers at all skill levels and regional development should attract all workers, including low- and mid-qualified workers, not only ‘talents’ and high-skilled workers.

3.19.

The EESC welcomes the fact that the communication aims to grant equal access to quality public services (such as long-term care, affordable housing and cultural services, transport, energy supply and access to the internet) and quality education services and infrastructure such as early childhood education and care, education and training. Education services should benefit and be attractive to not only highly skilled workers but workers at any skill level.

3.20.

The Europass Portal needs to be improved to provide clear information to individuals on job and learning possibilities, access to guidance services and recognition processes. Within this, EURES could further contribute to fair labour mobility, including by promoting fair recruitment practices, direct and quality jobs as well as tackling abusive mobility practices across borders. Private employment services should be able to demonstrate a serious track record before participating in EURES. As part of its mandate to ensure fair and effective labour mobility, the European Labour Authority must not only support workers wishing to exercise their freedom of movement, but also returners who intend to return to their home Member State.

3.21.

The EESC welcomes the fact that the Commission is calling for the promotion of quality education, training and lifelong learning in relation to regional development. It is vital to provide equal access to adult learning for all workers in both the public and private sectors, but also for adults not active in the labour market, by considering the implementation of the Council Resolution on a new European agenda for adult learning 2021–2030 (12), the Council Recommendation on Individual Learning Accounts (13) and the Council Recommendation on Micro-credentials (14) to meet the 60 % target of participation in adult learning (15). It is also important to provide effective support to workers to access employee training and paid training leave by ensuring that the different funding systems are co-governed with the involvement of the social partners. People should have access to entrepreneurship skills and receive financial support to establish their own businesses.

3.22.

Education and training and lifelong learning from a holistic perspective need to be improved in these regions and be attractive for learners and parents where key competences, in particular democratic citizenship, and basic and transversal skills, in particular science, technology, engineering, arts and mathematics (STEAM), play a crucial role alongside labour-market-relevant skills. In order to motivate young people in disadvantaged regions to attain higher education qualifications, quality jobs should also be available. Regions also need to improve the quality of education to build democratic citizenship and common European values. The importance to Europe of skilled and knowledgeable citizens extends beyond formal education to learning acquired in non-formal or informal ways. Citizens must be able to demonstrate what they have learned, to use this learning in their career and for further education and training. Validation of non-formal and informal learning should be improved.

3.23.

The European Commission suggests deploying EU funds to improve digital connectivity in rural and remote areas to facilitate remote education and training and reduce skills gaps. The EESC reiterates (16) that it is imperative that high-speed internet connectivity be ensured in disadvantaged regions by utilising at least 10 % of NextGenerationEU funds specifically for rural digital development. It is important to provide education and training institutions, students, teachers and trainers with digital equipment, as tools for virtual cooperation would contribute to facilitating access to learning in remote areas, and for family carers and people with disabilities. However, quality education and combating early school leaving can be achieved only by in-person relationships between students, teachers and parents, to better support the individual needs of students. To this end, jobs in schools need to be attractive to highly qualified teachers and trainers.

3.24.

In order to improve the quality of education in these regions the role of teachers is essential. Effective support should be granted to teachers in every education sector, and to trainers, to improve the quality of education for ensuring skills development within the green and digital transformations of education. Social dialogue is essential in the design and implementation of reforms on the green and digital transition of schools and on defining the necessary skills and competences for teachers and trainers to be acquired within initial and continuous professional development.

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(1)  COM(2023) 32 final.

(2)  The Green Deal Industrial Plan (europa.eu), COM(2023) 62 final.

(3)  Europe’s changing climate hazards — an index-based interactive EEA report — European Environment Agency (europa.eu).

(4)  Council Recommendation of 8 November 2019 on access to social protection for workers and the self-employed, 2019/C 387/01 (OJ C 387, 15.11.2019, p. 1).

(5)  Council Recommendation of 8 December 2022 on access to affordable high-quality long-term care, 2022/C 476/01 (OJ C 476, 15.12.2022, p. 1) and Council Recommendation of 22 May 2019 on High-Quality Early Childhood Education and Care Systems (OJ C 189, 5.6.2019, p. 4).

(6)  Education and Training Monitor 2022 (europa.eu)

(7)  COM(2023) 32 final.

(8)  Commission kick-starts work on the European Year of Skills — Employment, Social Affairs & Inclusion — European Commission.

(9)  Rural vision.

(10)  Inforegio — Eighth Report on Economic, Social and Territorial Cohesion.

(11)  Council Recommendation of 8 November 2019 on access to social protection for workers and the self-employed, 2019/C 387/01 (OJ C 387, 15.11.2019, p. 1).

(12)  Council Resolution on a new European agenda for adult learning 2021–2030, 2021/C 504/02 (OJ C 504, 14.12.2021, p. 9).

(13)  Council Recommendation on individual learning accounts to boost training of working-age adults.

(14)  Council Recommendation of 16 June 2022 on a European approach to micro-credentials for lifelong learning and employability, 2022/C 243/02 (OJ C 243, 27.6.2022, p. 10).

(15)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: The European Pillar of Social Rights Action Plan, COM(2021) 102 final.

(16)  Opinion of the European Economic and Social Committee on The energy and digital transition of rural areas (own-initiative opinion) (OJ C 486, 21.12.2022, p. 59).