TACKLING LONG-TERM UNEMPLOYMENT at LOCAL LEVEL’ 5-6 OCTOBER 2016, MADRID December 2016 2 CONTENTS
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EUROCITIES STUDY VISIT ON INCLUSIVE LABOUR MARKET ‘TACKLING LONG-TERM UNEMPLOYMENT AT LOCAL LEVEL’ 5-6 OCTOBER 2016, MADRID December 2016 2 CONTENTS 1. Introduction.....................................................................................................................................4 1.1. EUROCITIES work on long-term unemployment...................................................4 1.2. Objectives of the study visit................................................................................5 2. The Madrid Neighbourhood Employment Plans in brief.......................................................................6 3. Main results of the peer review session...............................................................................................7 4. A holistic approach to tackling long-term unemployment: exchanging views between city participants and OECD-LEED...............................................................9 5. The lessons learned from the study visit..............................................................................................11 6. Conclusions.....................................................................................................................................12 7. Annexes...........................................................................................................................................13 7.1. Madrid Neighbourhood Employment Plans.........................................................13 7.2. Guidelines for a critical peer review.....................................................................16 3 1 Introduction 1.1. EUROCITIES work on long-term unemployment The EUROCITIES declaration on work, launched on 26 February 2015, highlighted that long-term unemployment, especially amongst vulnerable groups such as young people, low skilled workers, and migrants, has become an increasingly urgent issue for city administrations. Most European cities have noted an increase in unemployment since 2010 mainly due to the economic crisis. Recent statistics also show that long-term unemployment currently affects 4.9% of the active EU population. Long-term unemployment has negative social and economic consequences for individuals and society, and the groups most affected need comprehensive support and investment. Unfortunately, the downsizing of the public sector in some member states has had an impact on the capacity of local authorities to offer such support. Cities, as the level of government closest to citizens have considerable knowledge of the local economy and the labour market. They are also on the frontlines in combatting unemployment, poverty and social exclusion at local level. As explained in the EUROCITIES statement on long-term unemployment, city authorities can play a vital role to prevent and reduce long term unemployment, and make labour markets more inclusive for disadvantaged groups through different measures, in particular by: improving the efficiency of public employment services tailoring them to local labour market needs; increasing the effectiveness of activation measures also through a stronger coordination with social assistance and welfare; and supporting social entrepreneurship as a crucial way to combat social exclusion and provide job opportunities to vulnerable groups. City authorities also have a central role to play in delivering integrated and individualised services targeted at the many different groups of long-term unemployed people. EUROCITIES welcomed the Council Recommendation on the integration of the long-term unemployed into the labour market and in particular the recognition of the role played by local authorities in this field. Some interesting concrete examples of measures promoted by cities to tackle long-term unemployment are included in the publication ‘Promoting an inclusive labour market at local level’. EUROCITIES is providing the European Commission with evidence and good practice examples of the role played by cities in addressing long-term unemployment with the view to having stronger involvement by local actors in the implementation of the Council Recommendation. This study visit is part of the wider work carried out by EUROCITIES to promote mutual learning and policy transfer among cities in the field of employment policies, which aim to promote a more inclusive labour market. On 5 and 6 October 2016, EUROCITIES gathered 15 of its members¹ in Madrid to analyse how the city copes with high levels of long-term unemployment and how cities can address this deep rooted issue in their communities. The study visit focused on the Madrid Neighbourhood Plans initiative (more information on following page). 4 1.2. Objectives of the study visit A. To give in-depth details on how a member of EUROCITIES is implementing measures aimed at tackling long-term unemployment, with particular attention paid to the collaboration between the local authorities and other stakeholders such as the public employment services. B. To provide an opportunity for exchange between cities on the specific policy challenges of tackling long-term unemployment at local level. It should also allow city practitioners to discuss various solutions to specific issues and explore different approaches. C. To analyse the lessons learned and promote city to city policy transfer also through the involvement of external experts and contributors from the European Commission’s DG Employment, and the OECD-LEED. This dynamic and interactive one day and a half e-study visit gave the participants: An in-depth knowledge about practices carried on at local level to fight long -term unemployment. Mutual learning opportunities on how to implement solutions at city level to integrate people facing long-term unemployment into the labour market. The possibility to participate in a critical peer review of the strengths and weaknesses of the host city’s practices vis-a-vis the experiences of the other participants. The opportunity for city officers to present their city’s main initiatives in the field of tackling long-term unemployment. 1. City members participating at the study visit were: Barcelona, Berlin, Bristol, Ghent, Gijon, Lisbon, Lyon, Madrid almo, Milan, Munich, Newcastle, Stockholm, Tbilisi, Timisoara. A very good level of cooperation was established with the EUROCITIES Working Group Employment. 5 2 The Madrid Neighbourhood Employment Plans in brief Since the economic crisis there has been an increase in the unemployment rate in Europe, especially among young people and the over 45s, with many from these groups being unemployed for more than one year. Spain remains the country with the second highest rate of unemployment in Europe, with 50% of all unemployed people experiencing long-term unemployment. The city of Madrid has not been spared by this rise in the unemployment rate and is now looking for innovative solutions to reverse this trend. The city has used the precise figures in its possession to observe that some neighbourhoods are more prone to unemployment than others. As an example, the Vallecas neighbourhood, located in the southern part of the city represents 10.42% of Madrid’s population, and is home to 14.73% of the 201,605 unemployed people in the city. Madrid City Council considers combating this concentration of unemployment a priority. To find a solution to this problem it decided to focus its measures at neighbourhood level. The initiative strives to promote a more socially and territorially balanced development of the city; developing solutions adapted to the local particularities and needs of the neighbourhood. The most important initiative to address long-term unemployment at local level is the Madrid Neighbourhood Employment Plans. This is an innovative programme, which aims to bring local institutions closer to the citizens, provide a personalised employment service and improve the territorial and social balance throughout the city. The programme was set up in 2009 by the Madrid Employment Agency, in cooperation with the Madrid Federation of Regional Neighbourhood Associations (FRAVM) to tackle employment and social issues in some of the most disadvantaged neighbourhoods in the city. The key actors involved: City of Madrid The city launched the programme in partnership with the FRAVM, to promote employment among the most disadvantaged groups, including: the long-term unemployed, women, young people, those not in education, employment or training (NEETs), older and low skilled workers, and people with disabilities. Madrid Federation of Regional Neighbourhood Associations (FRAVM) An organisation that brings together more than 260 neighbourhood associations representing thousands of citizens from all over Madrid. Madrid Employment Agency The agency working with unemployed people and employers, matching people’s profiles with employers' needs. The agency ensures back up and coordination of the employment services provided by the facilitators in the neighbourhood associations. Facilitators ‘Dinamizador de empleo de Barrio’ or the neighbourhood facilitator, identifies the groups eligible for the programme, assesses the obstacles that prevent them from participating in existing employment programmes (training, career advice, job placement and entrepreneurship) and comes up with possible solutions. The facilitator is also responsible for improving and reinforcing the communication channels between the beneficiaries and the public services as well as with NGOs, cultural associations, and other partners. For more information please