EMCC European Monitoring Centre on Change

Luxembourg: ERM comparative analytical report on Recent Policy Developments related to those Not in Employment, Education and Training (NEET)

  • Observatory: EMCC
  • Topic:
  • Published on: 06 February 2012



About
Country:
Luxembourg
Author:
Hendrik Olszewski
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

The Luxembourgish government, as well as the social partners pays a lot of attention to the general issue of youth unemployment. A number of measures exist in particular in the areas of preventing early school leaving, supporting the transition from school to the professional world and increasing the employability of young unemployed people (currently including those with university degrees). However, in other areas of employment policy, such as removing logistical barriers, the focus of relevant measures is rarely on NEETs. In general, it appears that while the wider challenges of youth unemployment are on the policy agenda in Luxembourg, the concept of NEETs that is promoted on the European level does not yet appear to play a significant role in this country’s national politics.

1. Introduction

1.1 What is the level of interest among the different stakeholders in your country (policy makers, the media, employers and trade unions) in the issue of NEETs? What are their reasons for having a high/ low level of interest in the topic? (Expected length 100 words)

The predicaments of unemployed young people and the challenges they face in finding employment today are a strong focus of policy makers in Luxembourg. Employers and Labor unions also pay a considerable amount of attention to this issue. All parties appear concerned with the considerably higher youth unemployment rate compared to the overall unemployment rate. Employer associations may also be motivated by the continued need for highly skilled workers. The media does follow this issue at least when there is a noteworthy event in connection with this issue, but it is difficult to determine the precise level of their attention.

1.2 Using the following table, please identify which sub-groups of NEETs are of particular concern to the different stakeholders in your country. Please indicate the relative importance of each group to the different stakeholders; for each group please state whether they are felt to be of ‘significant concern’, ‘some concern’, or ‘no concern’ to the different stakeholders.

Table 1 – NEETs sub-groups
 

Public/media debate

e.g. the extent to which the issue is discussed within the news media

Mainstream Policy

e.g. the range of policy documents tackling the issue, the amount of investment committed to tackling the problem

Employers

e.g. the extent to which this issue is raised as a concern, e.g. through lobbying / pressure on the government, involvement in the design and/or implementation of relevant policies

Trade unions

e.g. the extent to which this issue is raised as a concern, e.g. through lobbying / pressure on the government, involvement in the design and/or implementation of relevant policies

Young people who are unemployed

significant concern

significant concern

significant concern

significant concern

Young people who are in ‘precarious’ or unsuitable employment (e.g. temporary contracts, forced self-employment, part-time work, or jobs which are not commensurate with their level of qualifications)

some concern

some concern

some concern

some concern

Early school leavers – young people who have dropped out of education before obtaining an upper secondary level qualification

some concern

significant concern

significant concern

significant concern

Young people with qualifications which do not meet labour market needs

some concern

significant concern

significant concern

some concern

Teenage/ single parents

no concern

no concern

no concern

no concern

Migrants and minority groups

some concern

some concern

some concern

some concern

Young people with disabilities

some concern

some concern

some concern

some concern

Young people from workless families

no concern

no concern

no concern

no concern

Young people from disadvantaged areas

no concern

no concern

no concern

no concern

Young people with tertiary education who have been unsuccessful in accessing the labour market

some concern

significant concern

some concern

some concern

Other (please specify):

.

       

1.3 Are there any policy measures in your country targeted at those NEETs with tertiary education? If yes please describe these briefly (expected length 100 words).

In response to the detrimental effects of the economic crisis on the employment of young university graduates, the government passed a law in 2009 (Mesures temporaries pour l’emploi des jeunes – loi du 11 novembre 2009) that included an extension of existing measures to also include young jobseekers with university degrees. The government measures in question (as detailed below) aim to increase the employability of jobseekers by inserting them in jobs in the public or private sector with special employment contracts under which the government pays a large part of the wage, while employers ensure that the employability of the worker is increased through formalized training and individual mentoring (for the Contrat d’initiation à l’Emploi).

2. NEET Policies and Measures

2.1 Measures to tackle early school leaving

Preventive Measures to tackle early school leaving

2.1.1 Please provide a short overview of your country’s approach to preventing early school leaving. Where does the focus of policies and measures to prevent early school leaving lie?

The Luxembourgish government has undertaken a number of measures specifically aiming to prevent early school leaving that are thought to have helped to reduce the number of drop-outs since 2003. The focus of the policies is on attending to students who show signs of being at risk of dropping out of school at an early stage and to offer them individualized aid. The approach taken is to not only address the students themselves, but to also involve their parents and teachers in solving their underlying problems.

2.1.2 Please complete the table below with a brief description of up to three policies/ measures to prevent early school leaving in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).

Table 2 - Early School Leaving: Preventive measures

Early School Leaving: Preventive measures

Measure 1:

Prävention der Schulverweigerung

Description of the measure: aims and objectives

This is a measure in the framework of the national action plan for the prevention of early school leaving. It aims at giving schools that successfully apply for the measure additional resources to individually attend to students at risk of dropping out of school early. The measure foresees that the whole school community is addressed when a students shows signs of being at risk of leaving school early (i.e. teachers, the student and parents).

Scale of measure (i.e. national, regional or local)

national

Is the measure tripartite, bipartite or unilateral?

Unilateral.

How is the measure funded (national state funding, European funding, private funding)?

National state funding.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

The measure principally addresses all students at risk of leaving school early.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

2.1.3 Please provide a more detailed description of the preventive early school leaving measure which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:

Le projet “Prävention der Schulverweigerung” – Classes mosaïque

This is a unilateral measure by the national ministry of education integrated in the regular school system. It aims to give schools additional means to attend to students having trouble in class and being at risk of dropping out of school. Within the framework of this project, schools have the opportunity to temporarily take students at risk of dropping out of school out of their regular classes and enter them into a mosaïque class for six to twelve weeks where they receive individual help. The aim of this measure is to reintegrate students back into their original classes after a limited period in the mosaïque classes. The project was begun in 2005 and positively evaluated in 2009. Afterwards, the mosaïque classes have lost their project status and became institutionalized in the regular school system. Between 2005 and 2009 335 students in 14 schools were in this project. Of these 73.3% were reintegrated in their initial class, a little more than half of them showed a positive development with their problems afterwards and about 70% of these students successfully pursued their education.

  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

Reintegration measures to tackle early school leaving

2.1.4 Please provide a short overview of your country’s approach to the reintegration of early school leavers. Where does the focus of policies and measures lie?

Early school leavers have been a policy focus of the national ministry of education. Over the past few years a number of measures were taken to reintegrate those who left school without a degree back into the education system. Not only were new measures specifically addressing this issue created, but existing measures were reformed to more effectively tackle the problem of early leavers. The actors involved in these efforts are mostly the national ministry of education and its subsidiary agencies such as the Action locale pour Jeunes (ALJ).

2.1.5 Please complete the table below with a brief description of up to three policies/ measures to reintegrate early school leavers in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).

Table 2 - Early School Leaving: reintegration measures

Measure 2:

socles de compétences

Description of the measure: aims and objectives

This measure is rather a change to the functioning of the school system that is considered to indirectly help students stay in school and to reach a level of qualification corresponding to their capacities. It aims to define foundations of competencies that each student needs to achieve before being able to pass to the next stage of education.

Scale of measure (i.e. national, regional or local)

National.

Is the measure tripartite, bipartite or unilateral?

Unilateral.

How is the measure funded (national state funding, European funding, private funding)?

National state funding.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

No, it addresses all students.

Measure 3:

Description of the measure: aims and objectives

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Early School Leaving: Reintegration measures

Measure 1:

Suivi personnalise

Since 2003 the ministry of education tracks every student who has left school and updates their status every month. Furthermore, the ALJ contacts each of these students individually to find out what reasons led them to quit school. In certain cases the ALJ will provide students with support in finding an apprenticeship or a school.

Scale of measure (i.e. national, regional or local):

national

Is the measure tripartite, bipartite or unilateral?

The measure should be considered unilateral, as the partner that is involved next to the national ministry of education, the Action Locale pour Jeunes is also an agency of that ministry.

How is the measure funded (national state funding, European funding, private funding)?

National state funding

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

It is a NEET-specific measure.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No, it is targeted at all students who left a Luxembourgish school without a diploma independent of their background.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

2.1.6 Please provide a more detailed description of the reintegration early school leaving measure which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:

L’École de la deuxième chance (second chance schools)

This is a national measure under the auspices of the national ministry of education. The law establishing this program was passed in May 2009 and the first three pilot classes with 36 students were established in March 2011 at Lycée technique Mathias-Adam in Pétange. The schools are integrated and funded through the regular state school system of Luxembourg. The second chance schools address youth aged 16-24 who have dropped out of school without a 11e EST or 4e ES diploma, who fulfill all conditions to begin an apprenticeship, but have not yet found one (thus it addresses NEET). In the 2011 budget the one 2nd chance school already in existence was allocated a maximum of 36 million Euro in investment funds and 60,000 Euro in general expenses. The aim of this measure is to reintegrate school drop outs into the education system and ultimately ensure their transition into the professional world. This project is very recent and has not yet been evaluated, thus there is no formal evidence of its success as of yet.

  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

2.2 Measures to facilitate access to employment

Facilitating the transition from school to work

2.2.1 Please provide an overview of your country’s approach to facilitating school to work transitions. Where does the focus of policies and measures to facilitate transitions lie?

There is a considerable number of measures undertaken mainly by the national employment agency (ADEM) and ALJ that seek to facilitate the transition of students to work after they leave school. The focus of those policies appears to be to motivate all students to begin planning their professional development some time before they leave school and to introduce them to the possibilities, as well as the practicalities of their future professional lives. This is done by bringing orientation agents of ADEM into the schools and by creating opportunities for students to spent time at companies.

2.2.2 Please complete the table below with a brief description of up to three policies/ measures to facilitate school to work transitions in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).

Table 4 - Access to employment: Measures to facilitate school to work transitions

Measure 2:

Cours d’orientation et d’initiation professionnelles

These are courses addressed at students between the ages of 16 and 18. The aim of these courses is to inform students about the possibilities of different apprenticeships that lead to the Certificat de capacité professionnelle (CCP).

Scale of measure (i.e. national, regional or local)

national

Is the measure tripartite, bipartite or unilateral?

unilateral

How is the measure funded (national state funding, European funding, private funding)?

National state funding.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

It is aimed at school drop-outs who do not have the necessary competences to enter the labour market (i.e. no diploma).

Measure 3:

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Access to employment: Measures to facilitate school to work transitions

Measure 1:

Internet website: www.beruffer.anelo.lu

Scale of measure (i.e. national, regional or local)

National.

Is the measure tripartite, bipartite or unilateral?

Unilateral.

How is the measure funded (national state funding, European funding, private funding)?

National state.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

No, it targets all young people looking to learn more about the wide variety of professions that exist.

Is the measure specifically targeted at NEETs who already have a tertiary education?

No.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Measure 2:

Girls’ Day Boys’ Day

Scale of measure (i.e. national, regional or local)

National.

Is the measure tripartite, bipartite or unilateral?

It was originally started by a women’s association and a regional government body for equality in Esch-sur-Alzette, but has since come under the auspices of the professional orientation service of the national employment agency (ADEM) and is supported national ministries of equal opportunities and of education.

How is the measure funded (national state funding, European funding, private funding)?

National state funding.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

It is a general measure.

Is the measure specifically targeted at NEETs who already have a tertiary education?

No.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Measure 3:

Projet “orientation”

Scale of measure (i.e. national, regional or local)

National (currently in 5 high schools)

Is the measure tripartite, bipartite or unilateral?

Unilateral.

How is the measure funded (national state funding, European funding, private funding)?

National state funding.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

No, it addresses all students, but implicitly helps prevent or reduce youth unemployment.

Is the measure specifically targeted at NEETs who already have a tertiary education?

No, it targets high school students.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

2.2.3 Please provide a more detailed description of the school-to-work transition measure which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:

Op der Sich no enger Ausbildungsplaz (Looking for an apprenticeship)

This is a long-running program (first launched in the academic year 1988/89 by the orientation service of the national employment agency (ADEM) and the action locale pour jeunes (ALJ). It is national in scope, unilateral as it is organized by government agencies, funded by the national government and addresses all students and should be considered a mainstream project, since it has been running for more than two decades. In this program 9th graders are offered a one day class with practical and theoretical exercises teaching them about the transition from school to their professional lives (i.e. how to find an apprenticeship). No formal evaluation of the success of the program was found, but in the academic year 2009/10 roughly 1,500 students participated in the program.

  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

Measures to foster employability

2.2.4 Please provide an overview of your country’s approach to fostering employability among NEETs. Where does the focus of policies and measures lie?

The main tools used by the state to foster the employability of young people are through special contracts that give a financial incentive to employers to hire young people, since part of their wage is paid by the state. Thus, the state seeks to integrate young people into the professional world, so that they can obtain on the job training. Under some contracts employers will even have to ensure that workers follow a formalized training plan and are assigned a tutor. As the recent economic crisis has considerably worsened the employment situation for university graduates, these measures have recently been extended to also address university graduates.

2.2.5 Please complete the table below with a brief description of up to three policies/ measures to foster employability of NEETs in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).

Table 5 - Access to employment: Measures to foster employability (to include apprenticeships)

Access to employment: Measures to foster employability (to include apprenticeships).

Measure 1:

Contrat d’appui emploi (CAE)

Scale of measure (i.e. national, regional or local)

National.

Is the measure tripartite, bipartite or unilateral?

The measure is administered by the national government, but can involve non-state educational organizations, so long as they are not for profit.

How is the measure funded (national state funding, European funding, private funding)?

It is mainly funded by the national state (fonds pour l’emploi), but if a private organization is involved they will have to pay part of the wage of the apprentice.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

NEET-specific.

Is the measure specifically targeted at NEETs who already have a tertiary education?

No, but in 2009 the measure was extended explicitly to allow for those holding university degrees to be able to qualify for this measure.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Measure 2:

Contrat d’initiation à l’emploi – Expérience Pratique (CIE-EP)

Scale of measure (i.e. national, regional or local)

National.

Is the measure tripartite, bipartite or unilateral?

Bipartite (government and employers).

How is the measure funded (national state funding, European funding, private funding)?

National and private funding (part of the wage is paid by the state).

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

NEET-specific.

Is the measure specifically targeted at NEETs who already have a tertiary education?

No, but the original CIE did not include NEETs with a tertiary education and this measure was created as part of a broadening of the CIE and the CAE programs that saw an extension of the target groups to include NEETs with a tertiary education.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Measure 3:

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at NEETs who already have a tertiary education?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

2.2.6 Please provide a more detailed description of the measure which you think is the most effective measure in your country to foster the employability of NEETs (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:

Contrat d’initiation a l’emploi

This measure specifically aims to increase the employability of NEETs by placing them in jobs where they obtain training that increases their skills and ultimately their employability. Young people can work for an employer for a maximum of 24 months within the framework of this measure. The employers must work out a training plan and assign them a tutor who helps with his/her training. The wage of the employee in this measure is shared between the employer and the state. The measure was first introduced in 2006 and adapted in 2009 among others to also be open for university graduates. It is run by the national employment agency (ADEM). In 2010 roughly 4.67 million Euro were spent on this initiative making up almost half of all expenses on youth unemployment measures of the fonds pour l’emploi.

  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

Removing practical and logistical barriers

2.2.7 Please provide an overview of your country’s approach to removing practical and logistical barriers for NEETs. Where does the focus of policies and measures lie?

No measures to remove practical and logistical barriers were found that are specifically aimed at NEETs or even specifically at young people in Luxembourg. There are, however, some government measures to give jobseekers logistical support independent of their age, e.g. various financial aides to help with the geographic mobility of job seekers. Furthermore, the national employment agency (ADEM) has a special service for handicapped jobseekers, as well as for those with limited abilities that supports these groups in finding suitable employment.

2.2.8 Please complete the table below with a brief description of up to three policies/ measures to remove practical and logistical barriers to employment for NEETs in your country. Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).

Table 6 - Access to employment: Measures to remove practical and logistical barriers

Access to employment: Measures to remove practical and logistical barriers

Measure 1:

Mesures spéciales en faveur des travailleurs handicaps (Special measures for handicapped workers)

.

Handicapped workers in Luxembourg are supported in a number of ways. Employers can, for example, benefit from direct subsidies of the salaries of disabled workers ranging from 40% - 100% of the total wage, as well as, bonuses for giving employment to handicapped workers entering the labour market for the first time or reentering the labour market after being unemployed. Handicapped workers themselves are supported, e.g., through financial aid for relevant training measures, partial or total exemptions for social security payments and additional vacation time of up to six working days.

Scale of measure (i.e. national, regional or local)

National.

Is the measure tripartite, bipartite or unilateral?

Unilateral.

How is the measure funded (national state funding, European funding, private funding)?

National state funding.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

This measure is aimed at all handicapped workers recognized by the state, thus only indirectly benefits handicapped NEETs.

Is the measure specifically targeted at NEETs who already have a tertiary education?

No.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

It is aimed at disadvantaged people (handicapped), but not exclusively at young people.

Measure 2:

Aides à la mobilité géographique (geographic mobility aid)

Since the mid-1990s job-seekers benefit from financial support to increase their geographic mobility, in case employment is found in a distant location. Funds from the “fonds pour l’emploi” are made available to compensate for costs of:

- commuting from and to work,

- maintaining two residences,

- moving to a new residence

In 2010, roughly 180,000 Euro were spent on this measure.

.

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

Unilateral.

How is the measure funded (national state funding, European funding, private funding)?

National state funding.

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

No, it is a general measure to support the geographic mobility of the unemployed.

Is the measure specifically targeted at NEETs who already have a tertiary education?

No.

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

No.

Measure 3:

Scale of measure (i.e. national, regional or local)

.

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at NEETs who already have a tertiary education?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Employer incentives

2.2.9 Please provide an overview of your country’s approach to incentivising employers to recruit young people (who are NEET). Where does the focus of policies and measures to incentivise employers lie? Where possible you should use only one word or Yes/No (e.g. how is the measure funded? answer: regional; is this measure a NEET specific measure? answer: Yes).

There is a substantial overlap between the categories employer incentives and measures to foster employability. The aforementioned special contracts (CIE, CIE-EP and CAE) gives a strong financial incentive to employers to hire young people, as a large part of the wage of workers with this type of contract is paid for by the government. At the same time the actual aim of these contracts is to increase the employability of young people by supporting them in gaining first experiences in the labor market, which is why they were mentioned in the aforementioned category. With the exception of the bonification d'impôt (tax rebate) no further employer incentives were found.

2.2.10 Please complete the table below with a brief description of up to three policies/ measures to incentivise employers in your country.

Table 7 - Access to employment: Employer incentives
Access to employment: Employer incentives
Name of measure

Scale of measure (i.e. national, regional or local)

Is the measure tripartite, bipartite or unilateral?

How is the measure funded (national state funding, European funding, private funding)?

Is this a NEET-specific measure, or is it a more general measure which also has an impact on NEETs?

Is the measure specifically targeted at NEETs who already have a tertiary education?

Is the measure specifically targeted at young people from a disadvantaged background or a minority group?

Measure 1:

2.2.11 Please provide a more detailed description of the employer incentive which you think is the most effective measure in your country (this measure should be additional to those included in the table above). In addition to the questions raised in the table above, your description should include the details outlined below:

Bonification d'impôt (tax rebate)

Under this measure companies that offer employment to jobseekers that have been registered with ADEM for at least three months for a duration of at least 18 months and a minimum of 16 working hours per week can obtain tax rebates, if a number of further conditions are fulfilled (e.g. the hired jobseekers may not replace someone who has entered into early retirement). Employers can deduce 15% of the monthly gross wage of worker from taxes. The maximum duration a worker can be in this measure at a time is 36 months. The measure is national in scope and administered through ADEM. It is thus a unilateral measure funded by the state. It is not exclusively addressed at NEETs, but rather at all unemployed who have been registered with ADEM for at least three months. No concrete figures on the level of spending under this measure or its success were found.

  • When was it introduced and why? How long will it run for?
  • Is it a mainstream or pilot project?
  • What is the scale of the initiative and how much funding has been allocated to it?
  • Who runs the initiative (is it a public, private or third sector initiative)?
  • What is the target group? How many young people benefit from it?
  • What activities are involved?
  • What are the success factors?
  • Is there any formal evidence of its success (both quantitative and qualitative)?

3. Conclusion

Tackling the problem of youth unemployment in general is a clear policy priority of the government, which is reflected in policy measures undertaken, especially by the national ministries of education and labor. However, the concept of NEETs does not appear as such in government policies and there are only relatively few measures that exclusively address this group. Furthermore, youth unemployment in general has long been on the agenda of labor unions and employer associations, which consult with the government on this issue through the Conseil économique et social (CES) – a permanent tripartite consultative body.

Concerning the impact of EU level action in this field on the Luxembourgish NEET agenda, it is notable that the aforementioned ministries reference to EU action in this field (in particular the Integrated guidelines for the economic and employment policies of the Member States of the EU 2020 Strategy) and are planning to take more action in accordance with EU priorities. However, so far there do not appear to be any recent policy measures that have been created as a result of the EU 2020 Strategy. However, obviously EU level action in this field has a strong agenda setting effect on Luxembourgish policy and will likely help to establish the concept of NEETs as a policy focus.

The existing measures combined with additional action that is planned within the framework of EU policy priorities offer substantial support to the employment prospects of young people. Especially, in the areas of preventing early school leaving, the transition from education to professional life, fostering employability, and employer incentives there are a considerable number of state measures in place to support the employment of young people. Furthermore, relatively recent legislation has also focused on lending support to young job seekers who have completed a tertiary education, which indicates the government’s awareness of the difficulties university graduates face in finding employment in today’s labor market.

Although the Luxembourgish government is active in a number of areas that pertain to youth unemployment, no measures were found that are geared towards removing practical or logistical problems specifically of young people. Nonetheless, there are general policies in place in this area that NEETs qualify for and that seem to be sufficient to address that groups general need for support in this area (e.g. with mobility or for handicapped youth).

However, the concept of NEETs itself does not seem to be strongly engrained in those policies and only few measures specifically target this group. Hence, raising awareness of the challenges this particular subgroup of young jobseekers faces should be the first step in addressing this group’s problems. Subsequently, It is also noteworthy that no major measures were found that address the problem of youth unemployment that are tripartite in the sense that they do not involve non-state actors in their implementation other than private companies. Nonetheless, the social partners were consulted in the legislative process that has led to the creation of most of these measures. An option might thus be to examine the potential benefits of involving community organizations more strongly in the implementation of measures to improve the situation of NEETs.

Hendrik Olszewski, HERA

References

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