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Chapter 1: The legacy of the crisis: resilience and challenges
levels (Section 5.3.1). Nonetheless, their Chart 69: Methods used for seeking work and performance
use relative to other ALMP remained at in exits from short-term unemployment, % of people
much the same level as they had been who declared having used a given method
before the recession.
In general, employment incentives in the Contact public employment office 100 5 worst performers (HR, RO, BG, SK, IE)
5 best performers (AT, NL, DK, DE, SI)
form of recruitment subsidies are seen
to be expensive with their effectiveness
depending significantly on their design. Study advertisements Contact private
In a recent review of studies of a range employment office
of ALMPs by the European Employ- 0
ment Observatory (EEO) in 2014, wage
subsidies appeared to be one of the
most successful techniques in terms of Publish or answer Apply to employers directly
advertisements
improving the chances of recipients pro-
gressing into jobs ( 107 ). However, Martin
and Grubb (2001) had earlier reported Ask friends, relatives, trade unions
that, when evaluations take into account
the reaction of firms to the employment Source: EU-LFS, 2013.
subsidies (e.g. deadweight loss, displace - Note: The performance is captured by ranking Member States across transition from short-term
ment, substitution and creaming effects), unemployment to employment out of 25 Member States for which the data is available. The 5 best
most programmes only yield small performers are: Austria, the Netherlands, Denmark, Germany and Slovenia. The five worst performers
employment gains. Nonetheless, these are Croatia, Romania, Bulgaria, Slovakia and Ireland. Results for the transitions from long-term
unemployment to employment are not shown but go in the same direction.
programmes could have other important
functions, such as rotating jobs amongst
jobseekers, and ensuring that hard-to- methods used ( 109 ) In terms of intensity, At least 18 Member States undertook
place jobseekers have occasional access higher coverage of unemployment ben- reforms to their public employment ser-
to jobs, thereby reducing social exclusion. efits, minimum wages and low levels of vices during the period 2011 to 2013
inequality are associated with greater (EMCO 2014) with the main aims being
The EEO (2014) Review and ECORYS IZA intensities of job search ( Bachman and to improve targeting (better local deliv-
(2012) have both highlighted the criti- Baumgarten, 2012). ery, more individualised support, better
cal importance of policy design in deter- matching), to extend the reach of the ser -
mining successful outcomes, while Kluve Even though direct and informal channels vice (e.g. to better reach the long-term
(2010) found in his large-scale analysis can be very important, half of those who unemployed and marginalised youth),
that wage subsidies to private firms were unemployed in 2013 did contact their and to improve performance through
and start-up grants were very likely to public employment services as part of their better monitoring.
result in a significantly positive impact job-search activity, with this share being
on employment rates ( 108 ). somewhat higher among best perform - The evidence shows that in Mem-
ers in terms of making the transition from ber States with very low levels of expendi-
5.3.4. Job search: relying unemployment to employment (Chart 69). ture dedicated to labour market services
on public employment services (and ALMP in general), the proportion of
or coping through personal However, people do not only rely on pub - the unemployed who say that they rely on
networks lic employment services and often use friends and social networks is highest (see
their own social networks to find a job. Chart 70). Similarly, in countries that were
Evidence on the job search techniques Nearly three-quarters of the unemployed more impacted by the crisis, including
used by job seekers tells us that they ask friends or relatives when looking for Spain, Italy, Greece and Ireland, searches
typically combine several methods; that a job, with the share being highest in through informal channels outweigh the
the search intensity increases with the countries such as Greece, Hungary, Ire- use of public employment services.
skill level of the job seekers; and that land — which are countries with rela-
search intensity decreases with age and tively low exit rates out of short-term Comparing the exit rates out of short-
the longer people are unemployed. More unemployment. This evidence is also term unemployment (Chart 69) and the
generally it highlights large national dif- supported and illustrated by the quali- level of investment in and use of PES
ferences in the type of formal or informal tative analysis (see Annex 3, Extract 7). (Chart 70), the pattern that emerges
is similar to that of ALMP in general,
namely that the best performing coun-
tries are those which invest the most
109
( ) In most Mediterranean countries, with the (e.g. Austria, the Netherlands, Denmark
( ) Stimulating job demand: the design of exception of Portugal, direct applications and and Germany) and that a high level of
107
searches conducted via personal networks
effective recruitment incentives in Europe, are clearly more important than enquiries contact with public employment services
European Employment Observatory Review through public employment offices. The
(EEO Review), 2014 same is also true for Central and Eastern is of limited use unless they have the
( ) Kluve, J., ‘The effectiveness of European European countries where, apart from resources to meet their customer’s needs
108
active labor market programs’, Labour Slovakia, the use of direct methods is above (e.g. Croatia, Romania, Bulgaria, Slovakia
Economics 01/2010, Vol. 17, No 6, the EU average, which may reflect the
pp. 904–18. importance of family ties. and Ireland).
81
levels (Section 5.3.1). Nonetheless, their Chart 69: Methods used for seeking work and performance
use relative to other ALMP remained at in exits from short-term unemployment, % of people
much the same level as they had been who declared having used a given method
before the recession.
In general, employment incentives in the Contact public employment office 100 5 worst performers (HR, RO, BG, SK, IE)
5 best performers (AT, NL, DK, DE, SI)
form of recruitment subsidies are seen
to be expensive with their effectiveness
depending significantly on their design. Study advertisements Contact private
In a recent review of studies of a range employment office
of ALMPs by the European Employ- 0
ment Observatory (EEO) in 2014, wage
subsidies appeared to be one of the
most successful techniques in terms of Publish or answer Apply to employers directly
advertisements
improving the chances of recipients pro-
gressing into jobs ( 107 ). However, Martin
and Grubb (2001) had earlier reported Ask friends, relatives, trade unions
that, when evaluations take into account
the reaction of firms to the employment Source: EU-LFS, 2013.
subsidies (e.g. deadweight loss, displace - Note: The performance is captured by ranking Member States across transition from short-term
ment, substitution and creaming effects), unemployment to employment out of 25 Member States for which the data is available. The 5 best
most programmes only yield small performers are: Austria, the Netherlands, Denmark, Germany and Slovenia. The five worst performers
employment gains. Nonetheless, these are Croatia, Romania, Bulgaria, Slovakia and Ireland. Results for the transitions from long-term
unemployment to employment are not shown but go in the same direction.
programmes could have other important
functions, such as rotating jobs amongst
jobseekers, and ensuring that hard-to- methods used ( 109 ) In terms of intensity, At least 18 Member States undertook
place jobseekers have occasional access higher coverage of unemployment ben- reforms to their public employment ser-
to jobs, thereby reducing social exclusion. efits, minimum wages and low levels of vices during the period 2011 to 2013
inequality are associated with greater (EMCO 2014) with the main aims being
The EEO (2014) Review and ECORYS IZA intensities of job search ( Bachman and to improve targeting (better local deliv-
(2012) have both highlighted the criti- Baumgarten, 2012). ery, more individualised support, better
cal importance of policy design in deter- matching), to extend the reach of the ser -
mining successful outcomes, while Kluve Even though direct and informal channels vice (e.g. to better reach the long-term
(2010) found in his large-scale analysis can be very important, half of those who unemployed and marginalised youth),
that wage subsidies to private firms were unemployed in 2013 did contact their and to improve performance through
and start-up grants were very likely to public employment services as part of their better monitoring.
result in a significantly positive impact job-search activity, with this share being
on employment rates ( 108 ). somewhat higher among best perform - The evidence shows that in Mem-
ers in terms of making the transition from ber States with very low levels of expendi-
5.3.4. Job search: relying unemployment to employment (Chart 69). ture dedicated to labour market services
on public employment services (and ALMP in general), the proportion of
or coping through personal However, people do not only rely on pub - the unemployed who say that they rely on
networks lic employment services and often use friends and social networks is highest (see
their own social networks to find a job. Chart 70). Similarly, in countries that were
Evidence on the job search techniques Nearly three-quarters of the unemployed more impacted by the crisis, including
used by job seekers tells us that they ask friends or relatives when looking for Spain, Italy, Greece and Ireland, searches
typically combine several methods; that a job, with the share being highest in through informal channels outweigh the
the search intensity increases with the countries such as Greece, Hungary, Ire- use of public employment services.
skill level of the job seekers; and that land — which are countries with rela-
search intensity decreases with age and tively low exit rates out of short-term Comparing the exit rates out of short-
the longer people are unemployed. More unemployment. This evidence is also term unemployment (Chart 69) and the
generally it highlights large national dif- supported and illustrated by the quali- level of investment in and use of PES
ferences in the type of formal or informal tative analysis (see Annex 3, Extract 7). (Chart 70), the pattern that emerges
is similar to that of ALMP in general,
namely that the best performing coun-
tries are those which invest the most
109
( ) In most Mediterranean countries, with the (e.g. Austria, the Netherlands, Denmark
( ) Stimulating job demand: the design of exception of Portugal, direct applications and and Germany) and that a high level of
107
searches conducted via personal networks
effective recruitment incentives in Europe, are clearly more important than enquiries contact with public employment services
European Employment Observatory Review through public employment offices. The
(EEO Review), 2014 same is also true for Central and Eastern is of limited use unless they have the
( ) Kluve, J., ‘The effectiveness of European European countries where, apart from resources to meet their customer’s needs
108
active labor market programs’, Labour Slovakia, the use of direct methods is above (e.g. Croatia, Romania, Bulgaria, Slovakia
Economics 01/2010, Vol. 17, No 6, the EU average, which may reflect the
pp. 904–18. importance of family ties. and Ireland).
81
