—

better anticipate and accompany restructuring of enterprises, in particular in the case of collective redundancies,

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further reduce non-wage labour costs, in particular for the low-paid while safeguarding budgetary consolidation,

—

improve cooperation between regional employment services to support mobility between regions.

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review tax and benefit systems to remove subsisting unemployment traps and provide adequate incentives for active job search by reviewing the conditionality of benefits,

—

increase the coverage of unemployed adults, disadvantaged young people and immigrants in the measures run by the employment services,

—

define a comprehensive strategy for active ageing, access to continuing training, the promotion of a flexible working environment and effective job search for older unemployed workers, including determination in reducing early retirement schemes.

—

take action to reduce early school leaving,

—

monitor recent inter-professional agreements to raise worker participation in training, with special attention for the low-skilled.

—

further reduce the overall fiscal pressure on labour safeguarding budgetary consolidation.

—

pursue a comprehensive strategy for active ageing, including the removal of incentives for early retirement where appropriate,

—

review tax and benefit systems to reduce marginal tax rates and raise incentives for low-income groups to work, including the unemployed and the inactive,

—

monitor the impact of recent reforms to integrate immigrants into the labour market, in particular of efforts to build up the necessary basic skills required to match job requirements.

—

monitor trends in vocational training in the light of recent increases in training fees

—

review the financing of the social protection systems to reduce non wage labour costs while safeguarding budgetary consolidation,

—

encourage the social partners to take responsibility for steadily reflecting local, regional and sectoral differences in productivity and labour market conditions in wage setting, and to aim at further progress in working time flexibility and the provision of training facilities, for example through training accounts (see Broad guidelines of the economic policies of the Member States and of the Community (BEPG) guideline 5),

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promote the development of SMEs, notably through simpler regulation and better access to financing; strengthen the entrepreneurial culture, especially in the Eastern part of the country.

—

continue reform of the tax and social benefit system, thereby ensuring sufficient incentives to take up work; closely monitor and evaluate the Hartz and other labour market reforms, to ensure a continuous improvement of the public employment services' efficiency in supporting the unemployed,

—

review possible tax disincentives to female participation in the labour market; increase childcare facilities, especially in the Western Länder, and improve the correspondence between school schedules and working hours; encourage social partners to take their responsibility to considerably reduce the gender pay gap,

—

further develop a comprehensive strategy for active ageing to ensure that people stay in work longer, especially after the age of 60; further encourage part-time work for men and increase access to training for older workers,

—

strengthen efforts to integrate immigrants.

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improve education levels of the workforce and strengthen incentives to increase participation in lifelong learning, especially for the low-skilled, SME employees and older workers,

—

continue the modernisation of the dual system; reduce early school leaving.

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implement fully the agreed labour market reform package; further raise the attractiveness of part-time work and develop temporary work agencies to increase the diversity of work arrangements,

—

reduce non-wage labour cost safeguarding budgetary consolidation; do more to transform undeclared work into regular employment by improving the attractiveness of standard and non-standard contracts to employers and employees and strengthening law enforcement capacity,

—

promote a more employment-friendly business environment.

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take stronger action to increase the level and effectiveness of active labour market policies so as to cover a larger share of the inactive and the unemployed,

—

speed up the development of efficient employment services throughout the country offering preventative and personalised services; upgrade the statistical monitoring systems,

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further raise incentives for women to participate in the labour market, including through part-time employment; increase the availability and affordability of care facilities for children and other dependants,

—

define a comprehensive strategy for active ageing providing flexible working arrangements, incentives to encourage older workers to remain longer in employment and support for skills development.

—

reduce early school leaving and strengthen the labour market relevance of tertiary education,

—

review incentives to promote life-long learning and increase participation in training, in particular for the low-skilled and for immigrants.

—

promote modernisation of work organisation to strengthen productivity and quality at work,

—

revise the regulatory framework to make permanent contracts more attractive for employers and to discourage the use of fixed-term contracts so as to counter the segmentation of the labour market; increase the attractiveness of temporary agency work for workers; remove obstacles to part-time work,

—

use possibilities of wage differentiation according to productivity developments at local, regional and sectoral levels (see BEPG guideline 5).

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raise incentives for women to participate in the labour market; increase the availability and affordability of care facilities for children and other dependants,

—

ensure greater access to and efficiency of active labour market measures for disadvantaged people, in particular young people, disabled people, immigrants and long-term unemployed; complete the modernisation of the public employment services, including the statistical monitoring system; strengthen the coordination between regional employment services; and address remaining obstacles to geographical mobility,

—

define a comprehensive strategy for active ageing providing flexible working arrangements, incentives to encourage older workers to remain longer in employment and training.

—

reduce early school leaving and ensure quality and labour-market relevance of tertiary education,

—

strengthen incentives for lifelong learning to increase participation, in particular for the low-skilled.

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facilitate the transition of people employed under fixed-term contracts into permanent contracts to avoid segmentation of the labour market and increase opportunities to remain and progress in the labour market,

—

develop a more effective system of anticipation and management of restructuring,

—

promote a business-friendly environment for the development of SMEs and monitor progress in increasing number of business start-ups.

—

monitor the impact of the pension reform on the exit age and develop a comprehensive strategy for active ageing to retain older workers longer in employment by adapting working conditions, greater access to training and determination in reducing early retirement schemes,

—

improve coordination of employment services to strengthen the provision of individualised services; build effective pathways to work and training for unemployed young people and for immigrants, notably women,

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ensure proper evaluation of the recent reform of the unemployment insurance system and ensure that it is accompanied by appropriate requirements and effective job search.

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ensure that the social partners' agreement on vocational training and the law on training throughout the working life result in an increased share of the population participating in training, giving particular attention to the low-skilled and workers in SMEs,

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reduce early school leaving; facilitate and encourage wider and easier access to apprenticeships.

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increase access to active labour market measures for a larger share of the unemployed and inactive population and ensure their effectiveness,

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increase the supply and affordability of childcare facilities and take urgent action to tackle the causes of the gender pay gap.

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implement a coherent lifelong learning strategy to reduce early school leaving and increase participation in training, especially for the low-skilled and for older workers.

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closely monitor the regulatory reforms aimed at reducing the imbalances between permanent and non-permanent contracts and labour market segmentation; improve the level, coverage and effectiveness of unemployment insurance,

—

pursue further reductions of non-wage labour costs, especially for the low-paid, safeguarding budgetary consolidation; do more to transform undeclared work into regular employment by removing tax disincentives and improving law enforcement capacity,

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encourage the Social Partners to review wage bargaining systems to take account of regional labour market differences (see BEPG guideline 5).

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ensure the development, together with regional authorities, of effective employment services throughout the country and implement partnership between public and private operators; increase access to efficient personalised services and participation in active labour market schemes, especially in the South; give particular attention to the situation of the young, the disadvantaged and the low-skilled; implement a nationwide computerised labour market data system without any further delay,

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increase the availability and affordability of care facilities for children, especially under three years of age, and other dependants to promote female participation in the labour market, including through part time work,

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develop the designed active ageing strategy, and ensure that the envisaged reforms provide adequate incentives to keep workers longer in employment and discouraging early retirement.

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monitor recent reforms to ensure that they raise educational attainment of the workforce, reduce early school-leaving and increase the labour market relevance of tertiary education to aid the transition to work,

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ensure effective incentives for lifelong learning and, together with the Social Partners, increase participation in training, in particular for the low skilled, through, inter alia, the effective development of inter-professional funds.

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support the development of start-ups and promote business training with a view to encouraging alternative sources of job creation.

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develop a comprehensive strategy for active ageing, notably in the private sector and strengthen recent initiatives to retain workers longer in employment by determination in reducing early retirement schemes,

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promote work-oriented solutions for people covered by the disability scheme who are able to work,

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improve services to facilitate a better reconciliation of work and private life, and encourage women to return to work after long periods outside the labour market; take action to tackle the causes of the gender pay gap.

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ensure effective implementation of the framework law on continuing training with a view to strengthening incentives for lifelong learning and increasing participation in training, notably for the low-skilled,

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revise the overall lifelong learning system to achieve better coherence between the education and training systems and reduce early school leaving.

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implement and closely monitor wage developments in line with the ‘Autumn Agreement’ between the government and the social partners (see BEPG guideline 5).

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carry out systematic work ability screenings of the people on disability benefits and assist those, who are able to work, to prepare for and find a suitable job; pay special attention to over-represented groups in the disability scheme such as women under the age of 40,

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reinforce the preventative approach for adults; increase effectiveness of and access to active measures for social benefit recipients and those with the greatest risk of inactivity; facilitate the integration of immigrants,

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combine the removal of early retirement schemes with incentives to retain workers longer in work and training, in particular for under-skilled older workers,

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facilitate transition from part-time to full-time jobs; take urgent action to tackle the causes of gender pay gaps; increase the affordability of childcare.

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take action to reduce early school leaving; strengthen incentives to develop lifelong learning and increase participation in training, especially for the low-skilled and the inactive.

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monitor and if necessary complement reforms on severance pay legislation and progress on the planned implementation of entitlement to unemployment benefit for the self-employed to increase levels of occupational mobility.

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develop a comprehensive strategy for active ageing, including the removal of early retirement schemes, broadening the incentives to retain older workers longer in employment, notably older women; monitor the impact of the revision of the pension system on the effective exit age and progress towards the national targets,

—

take action to tackle the causes of the gender pay gap; increase the availability and affordability of childcare facilities and evaluate the impact of the present childcare allowance scheme on the level and quality of female employment.

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review incentives to increase participation in training, especially for the low-skilled and for immigrants.

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promote modernisation of work organisation to strengthen productivity and quality at work,

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building on the new Labour Code, make permanent contracts more attractive to employers as well as employees, and counter the segmentation of the labour market,

—

develop a more effective system of anticipation and management of restructuring.

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strengthen active labour market measures for the unemployed and the inactive and ensure their efficiency; strengthen efforts to integrate immigrants,

—

take action to tackle the causes of the gender pay gap in the private sector and increase the availability and affordability of care facilities for children and other dependants;

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develop a comprehensive active ageing strategy, including removing incentives for early retirement, increasing access to training and providing appropriate working environments.

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ensure that the national strategy for lifelong learning effectively results in raising the educational attainment of the whole workforce, in strengthening the incentives for lifelong learning and in increasing participation in training, in particular for the low-skilled,

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reduce early school leaving and strengthen the labour market relevance of tertiary education.

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reduce non-wage labour costs on the low-paid while maintaining sound public finances.

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monitor the impact of recent reforms of active labour market policies on structural unemployment and regional disparities; take special measures to facilitate the activation and integration of disadvantaged young people, disabled people and immigrants,

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further reform tax and benefit systems to remove unemployment traps,

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follow-up the national strategy for active ageing by improving working conditions, incentives and the provision of training for the low-skilled and older workers.

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take action to reduce early school leaving and increase training for the low-skilled.

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facilitate the development of SMEs in particular by reducing administrative burdens.

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address the rising number of people on long-term sick leave by promoting work-oriented solutions and improving conditions of work,

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eliminate remaining unemployment and inactivity traps,

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closely monitor the results of actions to integrate immigrants into the labour force.

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reduce early school-leaving and increase access to training for the low-skilled and the inactive; address the issue of emerging bottlenecks and skills mismatches in low- and medium-skilled sectors.

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ensure that wage developments do not exceed productivity developments (see BEPG guideline 3).

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ensure that active labour market policies and benefit systems prevent de-skilling and promote quality in work, by improving incentives to work and supporting the sustainable integration and progress in the labour market of inactive and unemployed people; address the rising number of people claiming sickness or disability benefits, and give particular attention to lone parents and people living in deprived areas,

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improve the access to and affordability of childcare and care for other dependants, increase access to training for low paid women in part-time work, and take urgent action to tackle the causes of the gender pay gap.

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implement national and regional skills strategies to provide better incentives for lifelong learning and thereby increase productivity and quality in work; place particular emphasis on improving literacy and numeracy of the workforce, the participation and achievement of 16-19 year olds, and low-skilled workers, especially those in poorly paid jobs.

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A particular challenge for Cyprus is to raise innovation capacities and to diversify the service sector.

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While female participation stands above the EU average, more can be done to bridge gender gaps. Measures should include improving care facilities, increasing the participation of women in training, and raising the attractiveness of part-time work.

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Foreign workers who come to Cyprus on a temporary basis constitute a large number of the working population. There is therefore a case for a review of policies in relation to the employment of foreign workers, both in terms of their contribution to labour market flexibility and of rights and opportunities for immigrant workers.

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Preventive and active labour market measures should be strengthened to address individual needs and cover a larger share of unemployed and disabled people, ageing job-seekers and women. Strengthening and modernising the public employment services is also a priority.

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Building on the reorganisation of education underway since 2000, Cyprus needs to develop a comprehensive national strategy for lifelong learning. This should contribute to reducing school drop-outs, improving the links between initial education and continuing training and to ensuring greater participation in training.

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In pursuing its strategy for economic and employment growth, the Czech Republic needs to ensure that wage developments remain in line with productivity developments.

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The relatively high tax wedge on labour income and non-wage labour costs hinders job creation and prices low-skilled labour out of the labour market and into welfare benefits and/or into undeclared work. A coherent reform of the tax and benefit system should therefore further discourage welfare dependency and ensure that regular work pays.

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While standing above the EU average, raising the participation of women and older workers should be a priority. In this respect, strengthening incentives to part-time work could make an important contribution.

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More efforts are needed to integrate the most vulnerable groups in the labour market. This is particularly needed in regions other than Prague and for the Roma population. This calls for preventive and active labour market measures, combined with anti-discrimination measures, putting a strong emphasis on education, training, support to entrepreneurship and job creation. Modernising the public employment services should be seen as priority.

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Building on the recent strategy for human resources development, raising participation in tertiary education and in training, both overall and for the low-skilled, seem crucial to sustain job creation and support occupational and geographic mobility.

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Reducing the tax wedge on labour, especially on lower wage earners, and promoting contractual and working time diversity could contribute to creating more job opportunities. This should go hand-in-hand with efforts to improve the tax systems and to transform undeclared work into regular jobs. It is also important that wage developments remain in line with productivity developments.

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In the light of the rapid decline of its working age population, Estonia should seek to reduce levels of inactivity and to maintain and attract more people in the labour market. It remains essential for Estonia to raise further the participation of women, older workers and the low-skilled.

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To complement to the recent Unemployment Insurance Act, it would seem important to strengthen active labour market measure so as to support active job search, provide greater access to training for the unemployed and ensure that the labour market becomes more inclusive. Public employment services should also benefit from increased resources. Disadvantaged people, such as the long-term unemployed, young people, disabled and older jobs-seekers, need special attention. Belonging to an ethnic minority and lack of knowledge of the national language are particular risk factors.

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Bearing in mind the risk of mismatches, Estonia should be encouraged to improve access to training for all employees, especially for the low-skilled. Reducing school-drop outs and ensuring quality of education and training is a particular challenge. Building a system of lifelong learning has to be put clearly on the agenda.

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The tax wedge on labour remains high and represents an obstacle to job creation and a factor likely to contribute to undeclared work. Moreover, given the slowdown in economic growth, further efforts are required to ensure, together with the social partners, more employment-friendly wage developments. These are driven by the more competitive part of the economy and therefore not necessarily conducive to strengthening the job creation capacity of its weaker parts.

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The health situation of workers is an issue of concern, which may partially explain low activity. To this end, there is a need for a policy to promote better working conditions, and improving preventive and curative healthcare. Reforms of the social benefit systems, including sickness benefits, should be pursued with the view to make work pay and to reduce undeclared work.

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This should be accompanied by the development of more flexible and family-friendly working arrangements, including more attractive part-time work, in particular for women and older workers. Strengthening preventive and active labour market measures for the unemployed and the inactive is also necessary, especially in the most disadvantaged regions. This calls for modern public employment services, so as to support occupational and geographic mobility. Building on the Integration Strategy, efforts are needed to improve the labour market prospects of the Roma population.

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Efforts to develop lifelong learning strategies should be pursued and should encompass measures to reduce school drop-outs, to promote equal access to university education and to broaden access to training, in particular for the low-skilled and disadvantaged. It is important to improve the efficiency of the education system, and increase its flexibility in order to better adapt to the skills needs of the labour market.

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The still comparatively low share of employment in services is a challenge. Although efforts have been made to alleviate the tax burden, there is still a high tax wedge on the low-paid, which hampers job creation. Social partners have a particular role to play in anticipating and accompanying restructuring.

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Building on the reform of social assistance and further efforts to make work pay, it seems important to strengthen active labour market policies to help unemployed or inactive people move back into employment. Greater access to training, support for job search, occupational mobility, and the modernisation of the public employment services are key priorities.

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Although the participation of women and older workers is comparatively high compared to the EU average, removing obstacles to part-time work could contribute to raising levels further.

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Serious efforts are needed to develop lifelong learning, and in particular to further modernise the education system, reduce school drop-outs and increase participation in training, in particular for the low-skilled. The participation of employers in training, including their contribution to the continuing vocational training of employees is low.

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To achieve higher job creation, it is important to support the development of the services, especially in disadvantaged regions and to address the issue of undeclared work. The size of undeclared work reduces social security contributions and leads to a high tax burden on labour.

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The combination of the minimum wage and of the tax and benefit systems should be made sufficiently attractive for people to take up a job in the formal economy. Particular attention needs to be paid to ensuring that women are encouraged to stay in the labour market.

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This also requires greater efforts to develop active and preventive policies for the unemployed, in particular measures supporting job search, entrepreneurship, geographic mobility and greater access to training. The modernisation of public employment services should be seen as a priority. Particular attention is needed to ensure a more equitable and inclusive labour market for the young and the low-skilled. Belonging to an ethnic minority and lack of knowledge of the national language are particular risk factors.

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Overcoming skills gaps and skills mismatches is a particular challenge. More efforts are needed to increase access to education, reduce school drop-outs and increase access to training, in particular for the low-skilled. This should be part of an overall strategy to develop lifelong learning.

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Key challenges facing Malta are to roll out its privatisation program while redeploying employees as necessary and progressively to reduce administrative costs and tax burden on labour. In this respect, it will be important to build on the provisions of the revised Business Promotion Act and to monitor its impact.

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Malta's over-riding challenge is to expand its labour supply by raising the employment rate for women. Building on the revised Conditions of Employment Regulations Act, further action is needed to raise female participation in the formal economy. Increasing childcare facilities would significantly contribute.

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A reform of the tax-and-benefit systems is also deemed a top priority, as the gap between minimum wage and benefit level is recognised as too small to provide sufficient incentives to take up a job. This reform would also help to transform undeclared work into regular employment.

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Low levels of education among the workforce and skills' mismatches are a matter of concern. The high rates of early school-leavers, of illiteracy and of the low-skilled people are particularly worrying. Raising general educational levels, reducing school drop-outs and raising participation in training, in particular for the low-skilled, are key priorities. Efforts to include the social partners in the development of a more systematic approach to education and training should be pursued.

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Actions to enhance the creation of a more employment-friendly environment and measures to support entrepreneurship are of particular importance, especially in the context of restructuring.

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Building on recent measures to reduce labour costs for the low-skilled and the young, it seems important to review the tax-benefit system to address the high tax wedge on labour in a comprehensive manner, particularly at the lower end of the wage scale. This would also contribute to reducing undeclared work.

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Social partners have a key role not only for sustaining employment-friendly wage developments but also for actively promoting change at enterprise level and facilitating job mobility.

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As part of the endeavour to build up effective partnerships for employment at local level and to develop active labour market policies, Poland should accelerate the establishment of the new public employment services, with sufficient resources in terms of funding, staff numbers, training and equipment.

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It is also important that the reform of the different benefit systems including disability benefits and social assistance continues with a focus on promoting active job search and reintegration. Disadvantaged young people deserve particular attention. Efforts to remove obstacles to part-time work would also contribute to sustaining job opportunities for women and older workers.

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Building on efforts to develop a coherent lifelong learning strategy, it will be important to ensure that the education and training system provides new labour market entrants with the skills needed in a labour market characterised by structural change. Particular attention will be needed to ensure equal access to education and to improve the efficiency and quality of education. Greater incentives to invest in training and to facilitate access to training as well as the commitment of the social partners are key requirements for the development of the lifelong learning strategy.

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The interaction between the minimum wage and the different components of tax burden on labour should be assessed to increase activity and reduce undeclared work. It is important to pursue the efforts in order to promote flexible forms of work while maintaining the appropriate balance between flexibility and security.

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Increasing the employment of people over 55 is a clear priority for Slovenia. Further efforts should include reducing the use of early retirement schemes, ensuring consistency between tax and benefit reforms (e.g. measures aimed at reducing undeclared work and at reforming pensions), to promote flexible forms of work and access to training for older workers.

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In order to make work pay, it is important to review the interactions between unemployment, social benefits and the minimum wage, to increase the incentive to take up a job in the formal economy. The public employment service has developed a comprehensive model of management in its implementation of the preventive approach, yet it would be necessary to improve staff training in the public employment service in order to deal efficiently with the most difficult to employ. The relations between private and public employment services could be intensified.

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Building on recent progress and initiatives to develop lifelong learning systems, it would seem important to increase the share of the adult population participating in further education and training. Adequate resources and incentives for workers and employers to invest in training as well as a clear definition of all stakeholders' roles are needed. Reducing drop-out rates appear to be an important problem.

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It is necessary to further reduce the high tax wedge on labour, mostly composed of social contributions. Social partners should be encouraged to promote more contractual and working time diversity (e.g. remove obstacles to part-time work) so as to create more job opportunities and facilitate job mobility.

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It is important to effectively continue implementing the removal of unemployment and inactivity traps and to transform undeclared work into employment by building on the ongoing reforms of the tax and benefit systems. The implementation and impact of the reforms should be properly monitored.

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In addition to efforts aimed at making work pay, special attention continues to be needed to be paid to increase the participation of older workers in employment, especially through the implementation of employment legislation and pensions reform, more flexible forms of work and greater use of part-time work. This could also contribute to raising female participation.

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The financing of active labour market policy and the share of people taking part in active measures are set to increase, from low levels. It is important to make the labour market more inclusive and to implement reforms to enforce active job search. This calls for modern active labour market policies, greater access to training for the unemployed and the inactive and modern public employment services to ensure a wider coverage of the population. Further attention is needed for groups at risk (e.g. the long-term unemployed, young people, people with disabilities, older workers) and disadvantaged regions. The new priority given to integrating the Roma population needs to be rapidly translated into action.

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The alarmingly high unemployment rate of young people points to the need to bridge the gap between skills acquired in the initial education and the skills needed to succeed on the labour market. Economic restructuring, regional and skills mismatches also call for greater support for occupational and geographic mobility throughout the life-cycle.

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Greater incentives to invest in training and to facilitate access to training are key requirements for the development of a lifelong learning strategy. There is a need to encourage investment in human capital and foster lifelong learning by further reforming the education system and to review the contributions to be made by individuals, enterprises and society as a whole.