Government launches new employment programme

Download article in original language : PT0105146NPT.DOC

In April 2001, the Portuguese government published a new programme aimed at coordinating measures for stimulating job offers and at facilitating labour market entry for disadvantaged groups. The programme features financial support for the recruitment of young, old and long-term unemployed people and people with disabilities, with extra funding for projects promoting equal opportunities. A number of measures aim to ensure the sustainability of job creation under the programme.

The Portuguese unemployment rate remains low, at around 4% in spring 2001, and has been falling for over four years. Current forecasts are contradictory, inasmuch as while the International Monetary Fund (IMF) predicts that unemployment will stay at around 4% until 2002, the European Commission's spring 2001 forecasts indicate that the joblessness rate in Portugal will rise to 4.6%, with a tendency to increase still further.

It is against this background that the government has issued executive order nº 196-A/2001, dated 10 March 2001, and published on 6 April. The objective behind the initiative is to: systematise the technical and financial regimes for stimulating job offers; and facilitate access to the labour market for those groups that have proved most difficult to integrate - young people looking for their first job, long-term unemployed people, people with disabilities and beneficiaries of the guaranteed minimum income (rendimento mínimo garantido, RMG) (PT9901120F). Statistics reveal that it is women aged over 50 and with sixth-grade schooling or lower who are adding most to the structural component of unemployment at the moment.

The various forms of support provided for in the order are designed to ensure job creation and include:

• the provision of assistance to businesses for new recruitment;

• local job initiatives;

• support for unemployed people who create their own jobs; and

• bonuses for equal opportunities initiatives, especially those involving equality between men and women.

The order puts in place until 2006 an initiative known as the Job Offer Stimulus Programme (Programa de Estímulo à Oferta de Emprego). It defines targets and identifies a number of "hardcore" categories of unemployed people. As far as recruitment is concerned, the programme lays particular emphasis on:

• non-refundable subsidies for hiring young people looking for their first job, long-term unemployed persons aged over 45 and beneficiaries of the RMG national minimum income. Each subsidy is worth 12 months of minimum pay; and

• assistance for the hiring of people with disabilities, via a subsidy of up to 18 months' minimum pay.

The total value of the support for recruitment may be increased by 10% in the form of a "bonus for the provision of equal opportunities". In the case of equality between women and men, this applies where at least five jobs are created and no more than 60% are filled by people of the same sex. In the case of equality for people with disabilities, this applies where at least five jobs are created and at least 40% are filled by disabled persons.

The trade unions and the government continue to be concerned about the high rate of precarious employment. Thus, in order to ensure the sustainability of initiatives under the new programme, project organisers may receive both: technical support in areas such as business training; and consultancy services in relation to the financial, commercial, marketing and production management aspects of their project. One of the main obligations placed on projects under the programme is to maintain the new level of jobs attained as a result of the support granted for a period of at least four years.

The Institute of Employment and Vocational Training (Instituto do Emprego e Formação Profissional, IEFP) will be responsible for supervising the implementation of the projects. It is also expected to promote their co-financing by the European Social Fund and European Regional Development Fund.