1 Active Labour Market Policies in the UK – What lessons can be learned from the British...
-
Upload
zoe-mchugh -
Category
Documents
-
view
215 -
download
1
Transcript of 1 Active Labour Market Policies in the UK – What lessons can be learned from the British...
1
“Active Labour Market Policies in the UK – What lessons can be learned from
the British Experience?”
Helen Bache
UK Department for Work and Pensions
CICERO FOUNDATION
PARIS, 23 FEBRUARY 2006
2
WHAT HAVE WE DONE?
3
Employment Rate
62
64
66
68
70
72
74
76
78
Perc
enta
ge o
f Wor
king
Age
Pop
ulat
ion
(%)
4
Comparing the UK with the EU:
UK EU
Employment Rate 71.6% 63.3%
Men 77.8% 70.9%
Women 65.6% 55.7%
Older 56.2% 41.0%
Unemployment Rate 4.7% 9%
Women 4.2% 10.2%
Youth 12.1% 18.7%
Long Term 1.0% 4.1%
Source: Employment in Europe 2005, Eurostat
5
Wider International Comparison
Source: OECD
0
10
20
30
40
50
60
70
80
Pe
rce
nta
ge
Em
plo
ye
d
0
2
4
6
8
10
12
Pe
rce
nta
ge
Un
em
plo
ye
d
Employment 2004 Unemployment 2004
6
HOW HAVE WE DONE IT?
7
Success in the labour market is built on solid foundations
• Macroeconomic Stability
• Flexibility and diversity
• Making work pay
• Active Labour Market Policies– Jobcentre Plus – New Deals
8
Macroeconomic stability
• Macroeconomic stability is the platform from which countries can achieve high levels of employment.
• The new macroeconomic framework introduced since 1997 has delivered stability and growth in the UK – creating the right kind of environment for employment to flourish.
• A stable economy is necessary for high levels of employment, but not sufficient.
9
Flexibility and diversity
United Kingdom
0%
10%
20%
30%
40%
50%
60%
0 20-24 36 40 44
Germany
0%
10%
20%
30%
40%
50%
60%
0 20-24 36 40 44
France
0%
10%
20%
30%
40%
50%
60%
0 20-24 36 40 44Italy
0%
10%
20%
30%
40%
50%
60%
0 20-24 36 40 44
11 % work40 hours
29% work40 hours
11% work39 hours
39% work40 hours
10
Part Time Workers
8%
74%
2%
16%
Could Not Find a Full Time Job Did Not Want a Full Time Job
Ill or Disabled Student or at School
11
Making work pay
• Work incentives are important to make it worthwhile for individuals to participate in the labour market, particularly for those on low incomes.
• The Government strategy to make work pay is designed to tackle the unemployment trap and the poverty trap.
• Reforms to income tax and National Insurance Contributions and the introduction of the National Minimum Wage and tax credits improve incentives to work for low income households.
12
Active Labour Market Policies
• Jobseeker’s Allowance– Rights & Responsibility agenda– Assisted job search– Increased help as duration increases
• New Deal– Ends long term unemployment– Gateway to training/retraining– No other option
13
Modern Jobcentre Plus services
Self-service and face to face advice brought together
14
RESULTS
• Around 60% of unemployment benefit claimants leave the register within 3 months
• Around 80% leave within 6 months
• Around 90% leave within 9 months
• Around 95% leave within a year
15
Jobseekers Allowance Caseload Over 1 Year
0
100
200
300
400
500
600
700
1997
1998
1999
2000
2001
2002
2003
2004
2005 De
c
Aged 18-24 on JSA over 1 yr
All Ages on JSA over 1 yr
16
MAIN SUCCESSES
17
Key success factors
• Jobcentre Plus – single point of delivery for benefits and help into work
• Compulsory work focussed interviews and specially trained advisers
• Something for something – rights and responsibilities
18
Future challenges
• Our 5 year strategy, published earlier this year, set out our long-term aspiration to increase our employment rate to 80%.
• If we are to meet our aspiration of an 80% employment rate, we would need to increase the number of people in employment by around 2.5 million.
• 5 year strategy and Green Paper are available on our website at www.dwp.gov.uk
19
ANY QUESTIONS?