European Employment Strategy

To respond to the crisis and to speed up its economic growth, Europe needs to focus its efforts in a coordinated manner and with an eye on priorities.

The Annual Growth Survey (AGS) charts a clear direction on where Europe should be heading in the next cycle of the "European Semester", changing the way governments shape their economic and fiscal policies.

In line with the Europe 2020 strategy, the European Employment Strategy seeks to create more and better jobs throughout the EU.

To reach these objectives, the EES encourages measures to meet three headline targets by 2020:

75% of people aged 20-64 in work
school drop-out rates below 10%, and at least 40% of 30-34–year-olds completing third level education
at least 20 million fewer people in or at risk of poverty and social exclusion.

The actions outlined in the flagship initiative "An Agenda for new skills and jobs" are essential to meet these targets.

How does it work?

… it is very much about monitoring progress, coordinating and reporting

The European employment strategy provides a framework (the "open method of coordination") for EU countries to share information, discuss and coordinate their employment policies.

Every year, these national governments (through the Employment Committee) and the European institutions produce the "employment package":

the Employment Guidelines: guidelines for national employment policies proposed by the Commission, agreed by the national governments, and adopted by the Council set out common priorities and targets
the National Reform Programmes (NRPs): reports delivered by the national governments and describing their employment policies, to be analysed by the Commission for compliance with the Europe 2020 targets and flagship initiatives
the Joint Employment Report (JER): a Commission report with a forward looking analysis, expanding on key employment messages contained in the Annual Growth Survey. It is based on the employment situation in Europe, the implementation of the Employment Guidelines, and the results of country examination of the draft National Reform Programmes by the Employment Committee.
Country Specific Recommendations (CSRs): Commission recommendations to national governments, accompanying the Joint Employment Report
The Employment and Social Developments in Europe (ESDE) (replacing the Employment in Europe report): produced on an annual basis it provides the basic analytical and statistical background to underpin the Joint Employment Report as well as other instruments key to the European Employment Strategy. Previous issues of the report can be found in the document database.

In parallel to this procedure, there is an ongoing dialogue between the Commission, national governments, trade unions, employers' bodies and the other European institutions (European Parliament, European Economic and Social Committee, Committee of Regions, etc.).

… and major challenges in different action areas

Strategic objectives to promote the Commission response to unemployment and low levels of labour market participation in the EU with fore-front and innovative policy concepts are:

launching a “new momentum for flexicurity”, engaging all stakeholders in the reinforcement of the flexicurity components and reinforcing the monitoring mechanisms of flexicurity national arrangements
developing, in cooperation with EU countries and social partners, a new concept of quality of work
exploring the impact of employment policies, namely wages, taxation and make work pay, on the macro-economic situation of EU countries and for the EU as a whole
developing guiding principles towards policies supporting job creation
exploring the impact of climate change on labour markets
youth employment
self-employment

…while being assisted by a number of useful sources, all contributing to the development of the EES

European Employment Observatory (EEO): a network of independent Labour Market experts
Mutual Learning Programme (MLP) to encourage mutual learning at all levels and to enhance the transferability of the most effective policies within key areas of the EES