Transcript 1. Economic Situation and Key labour market developments

How to sustainably increase
employment in Slovakia?
Kristine Van Herck
Director-General for Employment, Social Affairs and Inclusion
22 September 2016
Agenda
1. Economic situation and key labour market
developments
2. Country Specific Recommendations
2
1. Economic Situation and Key labour market
developments
3
GDP per capita
(% of Eurozone average)
Economic situation
100
90
80
70
60
50
40
30
20
10
0
• Economic growth:
71
50
• Catching
up
Eurozone
average in the last decade
• Recovery
after
the
economic crisis: SK GDP
growth was 2.4% in 2014 (vs.
Eurozone 0.9%) and forecast
SK GDP growth 3.0% in 2015
(vs. Eurozone 1.5%)
Euro Area
Slovakia
• Labour markets are slowly improving
• SK unemployment down to 13.2% in 2014 (vs. Eurozone 11.6%)
• Forecast SK unemployment 2015 12.1% in 2015 (vs. Eurozone
11.0%)
Employment rate for males converging to EU
average, but not for females
High unemployment for LTU
45
Unemployment (%)
40
35
30
25
20
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total - Slovakia
Youth - Slovakia
Long-term - Slovakia
Total - EU28
Youth - EU28
Long-term - EU28
6
2. Policy Challenges & labour market
recommendations
7
Policy challenges
• Labour markets:
• High structural and long term unemployment
• Low labour market participation of fast-growing
vulnerable groups (Roma)
• Education:
• Poor educational outcomes
• High inequality of opportunity
8
CSR2. Long term unemployment
•
•
Issue: long-term unemployment
among the highest in EU for many
years
Potential causes:
•
•
•
•
•
•
Legacy from transition
Vulnerable groups (Roma, low-skilled)
Regional disparities and low internal
mobility
Taxation
Low expenditure on PES and ALMP:
extreme low share of ALMP expenditures
devoted to training in the EU
Policy action:
•
•
PES reform is ongoing (end 2020)
In-work benefits for LTU + lower social
contributions for employees and employers
9
CSR2. Female particpation
Employment gap, adults 20-49 (2013)
•
•
Issue: High employment gap for
females high in particular for
females with children under 6 years
Potential causes:
•
•
•
•
Lack of affordable child care facilities
Lengthy parental leave
Taxation
Policy action:
•
•
Capacity of kindergarten and child
care facilities for children age under
3 years expanded
"Family and Work project« :
subsidies for newly-created jobs for
females with children under age of
10 years
10
CSR 3. Attractiveness of teaching
•
Government expenditures on
education in 2012 (% of GDP)
•
•
•
Issue: Low level of educational
outcomes
Potential causes: Low level of
expenditures and quality of
teaching
Policy action:
•
•
Increases in wages of teachers,
but wages still among the lowest in
the EU
Investment in textbooks and
equipment
11
CSR 3. High inequality in educational
outcomes
•
•
•
Issue: Low level of educational
outcomes in particular for Roma
which is problematic as 13% of
the new labour market entrants
are low-educated Roma
Potential causes: Low level of
children participating in pre-school
education (77% compared to the
EU average of 93%) in particular
for vulnerable social groups
including Roma
Policy action:
•
•
Free pre-primairy education for children
aged over three years and from socially
vulnerable groups
Investment in texbook in Roma language
12
13