Co-operation would increase employment

Public- and private-sector employment agencies should work together.

The past week has seen a set of figures suggesting that a number of economies are bouncing off the bottom of the recession. But, as the EU’s Eurofound agency reported in early November, unemployment in the EU is set to rise well into 2010. 

Already, the crisis has increased the number of people without work to 22 million. Well after economies become livelier, the challenge of finding work for the jobless will remain urgent. However, the current crisis is symptomatic of a more fundamental issue, namely the enormous changes that are taking place in labour markets in Europe.

Ironically, as various contributions in European Voice have pointed out, while unemployment levels are worryingly high, seven million jobs remain unfilled across the EU. A shortage of skills, a lack of mobility, an ageing population and the desire for greater flexibility and work/life balance have meant that the demand and supply of labour do not match as well as they should.

To address unemployment effectively, there needs to be greater co-operation between all labour-market institutions: public employment services, private employment agencies, local public authorities and non-governmental organisations. They need to share tools, expertise and know-how and to provide complementary services to both unemployed people and companies.

The European Commission endorsed co-operation between public and private employment services in its June communication “A shared commitment for employment” and Vladimír Špidla, the European commissioner for employment and social affairs, has acknowledged the role of private employment agencies in implementing active labour-market policies. The International Labour Organisation has also looked to promote such co-operation over the past decade.

In some countries, private employment agencies have officially been recognised as playing a key role in implementing public employment policies (eg, in France with the 2005 Loi de modernisation sociale). However, the level and form of co-operation varies considerably across the EU and is underdeveloped or non-existent in several member states. And, between EU states, there should be a significantly greater exchange of best practice.

The private employment-agency industry is ideally positioned to support active labour-market policies. It efficiently and effectively matches supply and demand, using its skills-assessment tools, and has precise knowledge of labour-market needs in real time, enabling it to take rapid action. The industry acts as an economic indicator and carries out regular research into trends on the market.

In practice, collaboration between public and private sectors would help, for example, through the exchange of information on vacancies, on candidates’ profiles and on market developments. It would also ensure co-operation in the delivery of training and support services.

Governments need to foster greater co-operation between public and private employment services and co-ordinate their complementary strengths and expertise so as to maximise their combined potential. That would help Europeans find those jobs that are available.

 

From:

Denis Pennel

Managing director

Eurociett

Brussels