Long-term unemployment can have severe consequences, both for unemployed people and for growth and public finances, but, according to a report published by the European Court of Auditors, the action taken against it is not targeted enough. Through the European Social Fund (ESF), the EU funded several measures to promote access to employment since 2014. However, these ESF measures were not always adapted to address the specific needs of long-term unemployed people. The auditors recommend that the European Commission should insist that Member States use an individualised approach to help long-term unemployed people through the new ESF+ which will cover the 2021-2027 period. They also recommend that the Commission should evaluate the effectiveness of “access to employment” measures which target the long- term unemployed.
“Long-term unemployment affects our social fabric. Jobless people are at a higher risk of poverty, social exclusion, and even health problems.” said Lazaros S. Lazarou, the member of the European Court of Auditors responsible for the report. “We have found that EU-funded measures so far have reached many long-term jobseekers, but were not specifically designed with them in mind. The COVID-19 pandemic may exacerbate the problem of long-term unemployment. In our view it would be better to apply an individualised approach to all long-term unemployed as part of national active labour-market policies”.
People who remain unemployed for longer periods face more problems finding work because they lose motivation, confidence, and skills. According to the latest annual data available, in 2020 35 % of the EU’s 15 million jobseekers (5.3 million people) had been unemployed for at least 12 months. The economic consequences of the COVID-19 pandemic could exacerbate the issue.
In the EU, Member States are responsible for labour-market policies. The ESF is the EU’s main financial instrument for supporting Member States’ active labour-market measures. During the 2014-2020 period, around €11.4 billion was allocated to addressing “access to employment”. The auditors found that these ESF “access to employment” measures financed different interventions during the 2014-2020 period that benefited many long-term jobseekers. However, they were not specifically targeted. Instead, they were treated as part of a larger group containing all unemployed
The purpose of this press release is to convey the main messages of the European Court of Auditors’ special report. The full report is available at eca.europa.eu.