Ministry of Labour, Social Affairs Ministry of Labour, Social Affairs and Familyand Family

Slovak RepublicSlovak Republic

Labour Market and Labour Market and Employment PolicyEmployment Policy

in Slovakiain Slovakia

Anna FrančekováAnna FrančekováEmployment Strategy DepartmentEmployment Strategy Department

October 2005October 2005

MOLSAFMOLSAF System prior to reformSystem prior to reform

Absence of philosophyAbsence of philosophy

Poverty trapPoverty trap

Extensive abuse of the systemExtensive abuse of the system

Huge administartionHuge administartion

MOLSAFMOLSAF Principles of the reformPrinciples of the reform

„„Making work pay“Making work pay“

View into the future instead of critism of the pastView into the future instead of critism of the past

Basic social minimum guaranteedBasic social minimum guaranteed

Efficient support of job-search and increase of Efficient support of job-search and increase of employabillityemployabillity

MOLSAFMOLSAF Targets of the reformTargets of the reform

Activation of the unemployedActivation of the unemployed

Motivation to seek and retain a jobMotivation to seek and retain a job

Reduce the abuse of the systemReduce the abuse of the system

Streamlined administrationStreamlined administration

MOLSAFMOLSAF Active Labour Market Policy Active Labour Market Policy 11

Act on Employment Services – adopted in December 2003, Act on Employment Services – adopted in December 2003, effective as of 1st February 2004effective as of 1st February 2004

Fiscal consolidation: limited resources on Active Labour Fiscal consolidation: limited resources on Active Labour Market Policy (ALMP) from national budget – maximum Market Policy (ALMP) from national budget – maximum use of ESFuse of ESF

Principles:Principles: Individual and targeted work with the unemployedIndividual and targeted work with the unemployed Mandatory character of most of the ALMP instrumentsMandatory character of most of the ALMP instruments Extended and improved allowancesExtended and improved allowances Compliance with principles of state aid and with the rules on the Compliance with principles of state aid and with the rules on the

ESF ESF Fiscal consolidation – limited resources on ALMP from national Fiscal consolidation – limited resources on ALMP from national

budget and maximum use of ESFbudget and maximum use of ESF Targeting at regions lagging behind and disadvantaged job seekersTargeting at regions lagging behind and disadvantaged job seekers

MOLSAFMOLSAF Active Labour Market Policy Active Labour Market Policy 22

Employment services – not only public – based as Employment services – not only public – based as of 2004of 2004

State State the Centre of Labour, Social Affairs and Family and regional the Centre of Labour, Social Affairs and Family and regional

offices of labour, social affairs and the familyoffices of labour, social affairs and the family

Non – StateNon – State Non –state providers of employment services (licence Non –state providers of employment services (licence

obligatory)obligatory) Temporary work agenciesTemporary work agencies Agencies for supported employmentAgencies for supported employment

Outsourcing of emloyment services to non-state providers Outsourcing of emloyment services to non-state providers (contract based)(contract based)

MOLSAFMOLSAF Activation of unemployed- ALMP Activation of unemployed- ALMP 11

= part of active labour market policy = part of active labour market policy Goal: jobseekers maintain or regain working habits and routinesGoal: jobseekers maintain or regain working habits and routines Help to eliminate inactivity trap:Help to eliminate inactivity trap:

entitlement to increased social assistance benefit – incentive for entitlement to increased social assistance benefit – incentive for benefit recipients to engage in a meaningful activity or trainingbenefit recipients to engage in a meaningful activity or training

New or upgraded measures of active labour market policyNew or upgraded measures of active labour market policy1.1. ServicesServices

• Job matchingJob matching• Information ServicesInformation Services• Professional CounsellingProfessional Counselling

2.2. ProgrammesProgrammes• RetrainingRetraining• Projects and Programmes Projects and Programmes

MOLSAFMOLSAF Activation of unemployed- ALMP Activation of unemployed- ALMP 22

Projects and programmesProjects and programmes

Supported employment for long-term unemployedSupported employment for long-term unemployed Sheltered employment for disabled jobseekersSheltered employment for disabled jobseekers Support for setting up a businessesSupport for setting up a businesses First work experience for young peopleFirst work experience for young people Support to labour mobilitySupport to labour mobility Second chance programmesSecond chance programmes Social Development Fund – community work targeting marginalized Social Development Fund – community work targeting marginalized

gorupsgorups

MOLSAFMOLSAF Activation of unemployed- ALMP Activation of unemployed- ALMP 33

Projects and programmesProjects and programmes

National project I – Support for employment of jobseekers with an emphasis on National project I – Support for employment of jobseekers with an emphasis on the gorups disadvantaged on the labour marketthe gorups disadvantaged on the labour market

National project II – Support for thr employment of citizens with disabilitiesNational project II – Support for thr employment of citizens with disabilities National project III- Education and training for the labour marketNational project III- Education and training for the labour market National project V- Activation of the unemployed and low motivation National project V- Activation of the unemployed and low motivation

unemployed dependent on the materila need assistanceunemployed dependent on the materila need assistance National project VII- Increasing quality and the range of employment services National project VII- Increasing quality and the range of employment services

through information and advice and special counselling tools and servicesthrough information and advice and special counselling tools and services National project VIII- Increasing the range and quality of employment service National project VIII- Increasing the range and quality of employment service

deliverydelivery National project IX- School leaverNational project IX- School leaver`̀s job experience scheme (Graduate practice) s job experience scheme (Graduate practice)

MOLSAFMOLSAF What to do next ? What to do next ?

Priorities reflected in the Slovak Priorities reflected in the Slovak national reform programme 2006-2008national reform programme 2006-2008

Further modernisation of employment servicesFurther modernisation of employment services Increased investments in the human capitalIncreased investments in the human capital Incentives for boosting employment Incentives for boosting employment Challenging demographic changesChallenging demographic changes Inclusive labour marketInclusive labour market