By Ger Gibbons

Almost 110,000 men and women were registered as long-term unemployed (i.e. unemployed for at least a year) in the third quarter of 2015. While this is down from the early 2012 peak of over 200,000, it is still almost three times pre-crisis levels of 40,000. Moreover, the ongoing fall in long-term unemployment is forecast to slow over the coming years.  NERI and others have highlighted the need for new labour market policies to tackle this challenge. 

The question arises, are there lessons we can learn from other European countries that do have a better record in keeping long-term unemployment at low levels?

Last September, the European Commission issued a proposal, a (non-binding) recommendation, dealing with one aspect of this challenge – how employment services interact with the long-term unemployed. Based on its assessment of best practice and the experience with the Youth Guarantee recommendation, agreed in 2013, the Commission suggested a three-staged approach: first, registration of each long-term unemployed person with a ‘single point of contact’; second, an individual assessment with each person; and third, a personalised ‘job integration’ agreement with each person.

There are positive aspects to the proposal. It states, for example, that the job integration agreements should spell out service providers’ obligations to the long-term unemployed, adding that these could cover job search assistance, work experience, education and training, the validation of non-formal and informal learning, guidance and counselling, and social support services such as early childhood education and care, health and long-term care services, debt counselling, housing and transport support. This could promote the better co-ordination of services aimed at helping the long-term unemployed (and others), something that traditionally hasn’t been done well in Ireland.

But there are weaknesses and concerns. For example, the individual assessment and job integration agreement would take place “within” 18 months of becoming unemployed, which is too long. Furthermore, the proposal refers to an obligation on the long-term unemployed to accept offers of “suitable” work.

In early December, EU ministers reached provisional agreement on the proposal. They improved some parts. They inserted for example a reference to facilitating integration “into sustainable, quality employment”, which wasn’t explicitly stated in the Commission’s draft. But other concerns remain to be addressed.

Work is now continuing on this initiative and it is unlikely that it will be definitely adopted for a number of months. This period should be used to agree a measure that makes a genuine contribution towards tackling long-term unemployment and to promoting decent - not precarious - jobs.