Implementing employment promotion programs in Austria

Regional flexibility and tailor made interventions in the context of

centralised regulations and targets

Case study: The Youth training guarantee programPES Austria

Dr. Ernst Haider

Moskau, 17.9.2014

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GrazGrazGrazGrazGraz

KlagenfurtKlagenfurtKlagenfurtKlagenfurtKlagenfurt

InnsbruckInnsbruckInnsbruckInnsbruckInnsbruck

EisenstadtEisenstadtEisenstadtEisenstadtEisenstadt

WienWienWienWienViennaSt. PöltenSt. PöltenSt. PöltenSt. PöltenSt. Pölten

LinzLinzLinzLinzLinz

Salzburg

VorarlbergVorarlbergVorarlbergVorarlbergVorarlberg

Burgenland

TyrolCarinthia

Lower Austria

Upper Austria

Styria

Germany

Italy

Czech Rep

Hungary

Slovakia

Slovenia

Swizzerland

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Austrian labour market 2013(% change compared to 2012 in brackets)

Population 8,3 m Population of working age (15-65 years) 5,7 m Employees 3,480,000 (+0,5%) Unemployed (national registration) 287,000 (+10,2%) Persons affected by unemployment 886,000 (+4,3%) EU Employment rate 72,3% EU unemployment rate 4,9% National UE-rate 7,6% (+0,6%pt) EU long-term unemployed 1,2% EU Youth unemployment rate 9,2%

registered job vacancies 440.000 (-1,7%) “market-share” of PES 36,5%

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The AMS, the Public Employment Service is a service provider company under public law

is divided into one federal, 9 regional and 101 local offices

the local organisations are complemented by 67 career information and counselling centres

representatives of employers’ and labour organisations (unions) are involved at all levels and make a considerable contribute to forming labour market policy

at the end of December 2013, 5.539 staff (corresponding to 4.902 full time equivalents) were at the service of job-seekers and enterprises.

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Characterising LMP in Austria• LMP is a statutory federal governmental policy task, • There is no political decentralisation of LMP to other

governmental bodies or municipalities• The AMS performs its duties within the framework of the general

labour market policy goals as set out in the PES-Act and by the ministry of labour

• Integration of ALMP and UI (passive LMP) within the AMS• Revenue of the UI contributions is used for income support to

job-seekers (benefits) and for active labour market policies• Tripartite representation by workers’, employers’ and

government representatives at all levels of the AMS• AMS could be defined as a managerial decentralised, self-

administration model in coordination and cooperation with other LMP-players on the local level (“Länder”)(Mosley 2011)

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LMP-Planning-Architectur in Austria

Europa 2020 – A strategy for smart, sustainable and inclusive growth , ESF 2014-2020

National Reformprogram Austria (NRP)Youth Guarantee Implementation Plan

Long term business plan 2013-2016

Annual LMP-targetsBalanced Scorecard

(process-targets and customer satisfaction)

Budget(staff /infrastructure)

Budget (ALMP, UI-benefits)

Regional&local working programs

LMP-objectives given by the BMASK

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Targets Regulations(tasks and services)

Rules & directives(active and passivLMP)

Organisational structur and development

HR-training and -development

Ressources

Management by Objectives

Balanced Scorecard

Working programs

Controlling

Management-Information systems

ALMP Budget

Budget

Staff

Infrastructure

IT

System of central-steering the AMS

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Characterising the AMS

• Centralised Tasks Decision of priority labour market policy programs Implementation of annual LMP-goals, MbO-system and BSC Specification of nationwide standard regulations concerning organisation,

personnel, facilities, research and statistics Performance Management Controlling

• Decentralised Tasks Implementation of regional LMP-goals and LMP-programs Coordination with other LMP-institutions, the local government in the TEP

(territorial employment pacts) elaborating labour market policy aims for the respective regions

Distribution of budget and staff to the local offices

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Regional/local Cooperation

PES bodies ensure that activities at regional and local levels are performed in close cooperation with the social partners.

cooperation of PES with the nine Region (Länder) governments has been enhanced over the years, e.g. cofinancing LMP-programms

Balanced financing of regional/local training&employment programms between PES and regional government gives advantage for appropriate measures in the local context

Combining labour market and regional economic policy through Territorial Employment Pacts (TEPs, the management of the TEPs is ESF-funded), which support structural change by supplying business and industry with skilled workers and by training job-seekers to meet skill requirements.

agencies for vocational training and further training, counselling centres for vulnerable target groups and other organisations are involved.

Cooperation also involves private placement agencies and temporary work agencies

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Austrian Background TEP - Partners

Provincial GovernmentPublic Employment Service

Federal Office of Social Affairs

Chamber of Labour

Chamber of Commerce

Chamber of Agriculture

NGOs (Local Initiatives)

Municipalities

Federation of Industry

Federation of Trade Unions

Provincial School Board

Educational Institutions

Gender Mainstreaming Experts

Budgets of the

partners:

over EUR 930

Million p.a.

Regional Management Associations

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Interface social welfare to work and school to work

Closing gaps: measures for unemployed

Sustainable measures, co-operation between interfaces

Structural integration at the interface school/labour market

Female youth: manufacturing school Tyrol and Unterland

Special employment facilities for marginalised groups

Assistance to trainees and start-ups

Cross-project co-operation

THEMATIC FOCUS of the TEPs

Tyrol

Burgenland

Vorarlberg Salzburg

Upper Austria

Lower Austria

Styria

Carinthia

Vienna

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Case study

Implementing the Youth training guarantee program

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Youth unemployment rate (15-24) in the EU (2013)

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Favourable framework conditions for the youth labour market in Austria low level of total/youth unemployment

2013 : Austria: 4,9 %/ 9,2%; EU 28: 10,8 %/ 23,4%

the dual (vocational) training system

combination of on-the-job training in an enterprise and school-based education (ratio 80:20)

about 41 % of a birth year cohort start an apprenticeship after compulsory education

About 200 different apprenticeships in crafts, industry and services are defined, the duration ranges from two to four years.

Since the 80 ies one of the Federal Government’s LMP-priorities is to optimise the labour market prospects for young people.

in 2013 about EUR 640 Mio. were spent for labour market and employment policy for young people (40% of active LMP-spending)

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Unemployment rate of young people (20 to 24) by education

Every third young person without education is unemployed

compulsory education apprenticeship secondary technical and vocational schools – medium level

Upper –level secondary technical and vocational collegesSecondary academic schools – upper level

Tertiary level education (e.g. universities; colleges, vocational training academies)

average: 10,6%

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Implementing the Youth training guarantee program – central regulations

To give all young people a chance to complete a vocational education, the Training Guarantee started in 1998 and was expanded in 2008 on a legal basis.

Training guarantee (§ 38e Austria‘s Public Employment Act): Each young person who wants to take up an apprenticeship will get a training slot as promised by the Training Guarantee within 3 months either by entering an apprenticeship in the labour market, entering a supra-company apprenticeship training or taking on a training opportunity provided by the PES

A regulatory framework (guidelines, financing, monitoring) has been set out by the federal PES

Providing the financial ressources according to the regional demand

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Implementing the Youth training guarantee program - decentral organisation

Regional/local PES analyse the structure of the youth target group (gender, minorities, vulnerable groups...) and the preferred type of apprenticeship

Regional/local PES analyse the local demand of enterprises for specific qualifications – according to the local economy (tourism, services, rural/urban areas, etc.)

Based on this information regional PES makes a call for tenders for the delivery of supra-company-training

Equal funding by regional PES and regional governments Assessment of the outcome and further development in the

regional context (new qualifications, quantitative&qualitative adjustments, etc)

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Training Guarantee for young people – supra-company apprenticeship training

• Supra-company apprenticeship training If young apprenticeship-seekers cannot be placed in a formal

apprenticeship, they will be offered („guaranteed“) the opportunity to enter a apprenticeship programme in a supra-company apprenticeship training.

the apprenticeship training is provoded by private or non profit institutions the attendance of public vocational school is mandatory

1. Supra-company apprenticeship training by an educational institution

– theoretical training in a public vocational school

– practical training offered by the educational institution

§ Cooperation between an educational institution and a private company

– theoretical training in a public vocational school

– practical training in a company

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Supra-company apprenticeship training

eductional institution

vocational school

goal: completion of apprenticeship

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Supra-company apprenticeship training

educational institution

company

vocational school

goal: transfer to apprenticeship in a company

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Supra-company apprenticeship training

• Number of participants:

• Expenses: € 12.000/participant/year• Achievements (results of evaluation):

– about 50% changed to an appreticeship in a company

2009 2010 2011 201212.177 12.784 12.000 11.026

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Success factors of the Austrian PES

political agreement concerning the duties and the framework conditions of the AMS

Tripartite self-administrated (semi governmental) organisation

concentration on core activities and main processes since the reform 1994

stable staff structure (low managers and employee turnover)

Performance Management (MbO, BSC)

ongoing organisational development (total quality management)

Good mixture of central & decentralised decisions and providing services (federalism)

time for planning, testing, evaluation and implementing of new activities is taken

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Tank you for your attention