2021 guidelines on employment policies

SUMMARY OF:

Decisions (EU) 2020/1512 and 2021/1868 on guidelines for the employment policies of the Member States

WHAT IS THE AIM OF THE GUIDELINES?

They provide guidance for European Union (EU) Member States when drafting their employment policies and setting national targets, to ensure coordinated EU policies. In 2021 the European Commission proposed to carry over the 2020 employment guidelines, as set out in Decision (EU) 2020/1512, while adjusting the recitals to reflect the outcomes of the Porto Social Summit and the European Pillar of Social Rights action plan. The 2021 employment guidelines were adopted by the Council of the European Union on 15 October 2021.

KEY POINTS

• The four employment guidelines (prescribed in Article 148 of the Treaty on the Functioning of the EU) form part of the 10 integrated guidelines, which also feature six broad economic policy guidelines (Article 121 of the same treaty).
• While the broad economic policy guidelines remain valid for any duration of time, the employment guidelines need to be drawn up each year. The latter were first adopted together (as an ‘integrated package’) in 2010, underpinning the Europe 2020 strategy.
• The employment guidelines are aligned with the European Pillar of Social Rights, include the four dimensions of the annual sustainable growth strategy and, in particular, for the first time, incorporate the environmental sustainability dimension, reflecting the ‘strong social Europe for just transitions’ narrative. They also take into account the UN sustainable development goals and address the consequences of the COVID-19 pandemic.

The 2021 employment guidelines, as set out in 2020, continue to focus on the following.

Boosting the demand for labour

Member States should take a number of steps, including:

• actively promoting a sustainable social market economy and facilitating and supporting investment in the creation of quality jobs;
• shifting taxation away from labour to other sources that are more supportive of employment and inclusive growth and are in line with climate and environmental objectives;
• ensuring that all workers have adequate and fair wages by benefiting, directly or indirectly, from collective agreements or adequate statutory minimum wages.

Enhancing labour supply and improving access to employment, skills and competences

Member States should:

• promote sustainability, productivity, employability and human capital, fostering relevant knowledge, skills and competences throughout people’s lives and responding to current and future labour-market needs;
• foster equal opportunities for all by addressing inequalities in education and training systems;
• provide unemployed and inactive people with effective, timely, coordinated and tailor-made assistance;
• support an adapted work environment for people with disabilities;
• tackle the gender employment and pay gaps.

Enhancing the functioning of labour markets and the effectiveness of social dialogue

Member States should:

• work with the social partners on fair, transparent and predictable working conditions, balancing rights and obligations;
• effectively activate and enable those who can participate in the labour market;
• provide adequate unemployment benefits of a reasonable duration, in line with their contributions and national eligibility rules;
• adequately support the mobility of learners and workers with the aim of enhancing skills and employability and exploiting the full potential of the EU labour market;
• ensure the timely and meaningful involvement of social partners in the design and implementation of employment, social and, where relevant, economic reforms and policies.

Promoting equal opportunities for all, fostering social inclusion and fighting poverty

Member States should:

• promote inclusive labour markets, open to all, by putting in place effective measures to fight all forms of discrimination, and encouraging equal opportunities for all;
• ensure equal treatment for under-represented groups regarding:
  • employment,
  • social protection,
  • health and long-term care,
  • education, and
  • access to goods and services;
• modernise social protection systems;
• develop and integrate the three strands of active inclusion, which are:
  • adequate income support,
  • inclusive labour markets and access to quality enabling services, and
  • meeting individual needs;
• ensure that everyone, including children, has access to essential services;
• secure the adequacy and sustainability of pension systems for workers and the self-employed.

FROM WHEN DOES THE DECISION APPLY?

Decision (EU) 2020/1512 has applied since 20 October 2020 and Decision (EU) 2021/1868 has applied since 20 October 2021.

BACKGROUND

The guidelines are consistent with the Stability and Growth Pact and other EU laws and initiatives, including those on:

• the youth guarantee scheme;
• reintegration of the long-term unemployed into the labour market;
• upskilling pathways.

These initiatives are combined in the European semester, which implements the European employment strategy and supports the delivery of the sustainable development goals.

MAIN DOCUMENTS

Council Decision (EU) 2020/1512 of 13 October 2020 on guidelines for the employment policies of the Member States (OJ L 344, 19.10.2020, pp. 22–28).

Council Decision (EU) 2021/1868 of 15 October 2021 on guidelines for the employment policies of the Member States (OJ L 379, 26.10.2021, pp. 1–5).

RELATED DOCUMENTS

Interinstitutional Proclamation on the European Pillar of Social Rights (OJ C 428, 13.12.2017, pp. 10–15).

Consolidated version of the Treaty on the Functioning of the European Union – Part Three – Union policies and internal actions – Title VIII – Economic and monetary policy – Chapter 1 – Economic policy – Article 121 (ex Article 99 TEC) (OJ C 202, 7.6.2016, pp. 97–98).

Consolidated version of the Treaty on the Functioning of the European Union – Part Three – Union policies and internal actions – Title IX – Employment – Article 148 (ex Article 128 TEC) (OJ C 202, 7.6.2016, pp. 112–113).

Council Recommendation (EU) 2015/1184 of 14 July 2015 on broad guidelines for the economic policies of the Member States and of the European Union (OJ L 192, 18.7.2015, pp. 27–31).

Council Decision 2010/707/EU of 21 October 2010 on guidelines for the employment policies of the Member States (OJ L 308, 24.11.2010, pp. 46–51).

last update 12.05.2022