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Employment and Social Developments in Europe 2014
and has also increased more than other Chart 49: Contributions to the annual change
family expenditures. This has been notably in real unemployment expenditure (2006–11)
the case in Malta and, to a lesser extent in
Austria, Hungary, Germany, France, Luxem- Average unemployment expenditure per unemployed
bourg and the Netherlands. However, child Number of LT unemployed
Number of ST unemployed
day care expenditure actually decreased Annual change in real expenditure on unemployment
in real terms between 2007 and 2011 in 35 EU-27 EA-17
Greece, Cyprus, Portugal and Romania. 30
25
Since the recession 20
investments in education 15
decreased in around half % 10
of the EU-27 Member States 5
0
While investments in education had been -5
increasing in all Member States before -10
the recession, they began to decrease in -15
around half of the countries as the crisis 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011
developed. Chart 48a shows the evolution
of real expenditure in education between Source: ESSPROS from European Commission, 2013a.
2007 and 2012, compared to the evolu-
tion of total real government expenditure. Chart 50: Real growth of unemployment expenditure per unemployed
by type (primarily active, primarily passive) (2007–11)
The reduction in investment in education
was particularly strong in Romania (almost 125 High active Medium active Low active
40 %), Hungary (more than 30 %), United 100
Kingdom, Latvia, Greece, Italy and Portugal 75 Mostly active
Mostly passive
(around 20 %), especially in most recent 50
years with anticipations of further cuts in
Cyprus, Portugal and the United Kingdom 25
(European Commission, 2013f). Cuts in % 0
education have resulted in teachers’ salary -25
cuts and freezes, a reduction in the number -50
of teachers, restrictions to financial support -75
for students, and an increased targeting of -100
adult education in some Member States, DK HU UK SE DE EL IE IT AT FR FI ES SK LV BE LT PL LU CZ EE SI PT RO MT CY BG
although budgets for ITC resources were
generally preserved (European Commis - Source: ESSPROS.
sion, 2013f). Cuts in education spending Notes: Member States are grouped according to the level of unemployment expenditure per unemployed
are further aggravated by the fact that in mostly active measures in 2007 (in % GDP). NL is missing as data breakdown is not reliable.
they occurred in Member States with a
poor educational performance, as shown in between measures that can be catego - activation part through, for instance, the
Chart 48b. Although there is a certain cor- rised as primarily active (vocational train- use of conditionality with respect to job-
relation between expenditure in education ing allowance, vocational training in-kind, search requirements.
and educational performance, more spend - placement services and job-search assis-
ing does not necessarily guarantee a bet- tance) and those than can be categorised as The activation component depends very
77
ter performance, but cuts are not a sign of mainly passive (full and partial ( ) unem- much on the design of unemployment
progress either (Vandenbroucke, 2014). In ployment benefits, early retirement ben - benefits, which varies considerably across
Member States where education expendi- efits for labour market reasons, redundancy Member States in terms of the strictness
ture did increase, however, a split can be compensation, mobility and resettlements of the eligibility criteria for their receipt.
seen between those where it increased and other benefits) ( ). Measures defined For instance, job-search monitoring is
78
proportionally less than total government as mostly passive (such as unemployment more demanding in Slovakia, United King -
expenditure, and those where it increased benefits) may nevertheless include an dom, Portugal and the Netherlands than it
more, as in Sweden, Austria, France, Luxem - is in Italy, Greece and Sweden, while job-
77
bourg and, especially, in Malta and Germany. ( ) In this framework we define partial search and availability requirements are
unemployment benefits as a mostly passive
measure. However, given their importance more demanding in Germany, Denmark
Investment in the working-age to keep people in the labour market they are and Slovakia than they are in Belgium,
analysed more in detail in Section 5.4, together
population through mostly with short-time working arrangements. Greece and Bulgaria. Likewise sanc-
active unemployment measures ( ) These correspond to the types of benefits tions are stricter in Greece, Slovenia and
78
has reduced available in the ESSPROS framework. Romania than they are in the Netherlands,
Some active measures, in particular those
79
helping both business and the unemployed Germany and Austria (Venn, 2012 ( )).
With regard to unemployment-related (wage subsidies, exemptions from paying
employers’ SSC, etc.) are not included in the
expenditure, it is useful to distinguish ESSPROS Core system (ESSPROS Manual). ( ) Data refer to 2010.
79
68
and has also increased more than other Chart 49: Contributions to the annual change
family expenditures. This has been notably in real unemployment expenditure (2006–11)
the case in Malta and, to a lesser extent in
Austria, Hungary, Germany, France, Luxem- Average unemployment expenditure per unemployed
bourg and the Netherlands. However, child Number of LT unemployed
Number of ST unemployed
day care expenditure actually decreased Annual change in real expenditure on unemployment
in real terms between 2007 and 2011 in 35 EU-27 EA-17
Greece, Cyprus, Portugal and Romania. 30
25
Since the recession 20
investments in education 15
decreased in around half % 10
of the EU-27 Member States 5
0
While investments in education had been -5
increasing in all Member States before -10
the recession, they began to decrease in -15
around half of the countries as the crisis 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011
developed. Chart 48a shows the evolution
of real expenditure in education between Source: ESSPROS from European Commission, 2013a.
2007 and 2012, compared to the evolu-
tion of total real government expenditure. Chart 50: Real growth of unemployment expenditure per unemployed
by type (primarily active, primarily passive) (2007–11)
The reduction in investment in education
was particularly strong in Romania (almost 125 High active Medium active Low active
40 %), Hungary (more than 30 %), United 100
Kingdom, Latvia, Greece, Italy and Portugal 75 Mostly active
Mostly passive
(around 20 %), especially in most recent 50
years with anticipations of further cuts in
Cyprus, Portugal and the United Kingdom 25
(European Commission, 2013f). Cuts in % 0
education have resulted in teachers’ salary -25
cuts and freezes, a reduction in the number -50
of teachers, restrictions to financial support -75
for students, and an increased targeting of -100
adult education in some Member States, DK HU UK SE DE EL IE IT AT FR FI ES SK LV BE LT PL LU CZ EE SI PT RO MT CY BG
although budgets for ITC resources were
generally preserved (European Commis - Source: ESSPROS.
sion, 2013f). Cuts in education spending Notes: Member States are grouped according to the level of unemployment expenditure per unemployed
are further aggravated by the fact that in mostly active measures in 2007 (in % GDP). NL is missing as data breakdown is not reliable.
they occurred in Member States with a
poor educational performance, as shown in between measures that can be catego - activation part through, for instance, the
Chart 48b. Although there is a certain cor- rised as primarily active (vocational train- use of conditionality with respect to job-
relation between expenditure in education ing allowance, vocational training in-kind, search requirements.
and educational performance, more spend - placement services and job-search assis-
ing does not necessarily guarantee a bet- tance) and those than can be categorised as The activation component depends very
77
ter performance, but cuts are not a sign of mainly passive (full and partial ( ) unem- much on the design of unemployment
progress either (Vandenbroucke, 2014). In ployment benefits, early retirement ben - benefits, which varies considerably across
Member States where education expendi- efits for labour market reasons, redundancy Member States in terms of the strictness
ture did increase, however, a split can be compensation, mobility and resettlements of the eligibility criteria for their receipt.
seen between those where it increased and other benefits) ( ). Measures defined For instance, job-search monitoring is
78
proportionally less than total government as mostly passive (such as unemployment more demanding in Slovakia, United King -
expenditure, and those where it increased benefits) may nevertheless include an dom, Portugal and the Netherlands than it
more, as in Sweden, Austria, France, Luxem - is in Italy, Greece and Sweden, while job-
77
bourg and, especially, in Malta and Germany. ( ) In this framework we define partial search and availability requirements are
unemployment benefits as a mostly passive
measure. However, given their importance more demanding in Germany, Denmark
Investment in the working-age to keep people in the labour market they are and Slovakia than they are in Belgium,
analysed more in detail in Section 5.4, together
population through mostly with short-time working arrangements. Greece and Bulgaria. Likewise sanc-
active unemployment measures ( ) These correspond to the types of benefits tions are stricter in Greece, Slovenia and
78
has reduced available in the ESSPROS framework. Romania than they are in the Netherlands,
Some active measures, in particular those
79
helping both business and the unemployed Germany and Austria (Venn, 2012 ( )).
With regard to unemployment-related (wage subsidies, exemptions from paying
employers’ SSC, etc.) are not included in the
expenditure, it is useful to distinguish ESSPROS Core system (ESSPROS Manual). ( ) Data refer to 2010.
79
68
