EMCC European Monitoring Centre on Change

Restructuring: job creation measures

  • Observatory: EMCC
  • Topic:
  • Labour market change,
  • Date of Publication: 11 May 2010



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Author:
John Morley
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Many public authorities try to foster the creation of new jobs in areas where restructuring and redundancies have occurred. This study looks at regional and local job creation measures. It lists the initiatives country by country in a set of interactive tables, allowing readers to choose what information is displayed.

Download the full report in Excel format [115 kb]

Regional and local job creation measures

Job losses in a locality will eventually by compensated by new employment but, without active intervention, this process could take a very long time, especially in areas undergoing drastic restructuring as the result of the decline of traditional industries, or the kinds of tumultuous changes that have occurred in some Member States.

Hence public authorities and specialist agencies in areas seeking to maintain or expand employment are often very active in seeking to encourage new firms to enter by promoting the strengths of the locality. Direct financial incentives are limited by State Aid and Regional Policy conditions, but wider support related to infrastructure, factory facilities, even specific training, is frequently available.

Recent developments

Measures may seek to protect those whose jobs are threatened, or to develop new jobs, perhaps through inward investment. Some recent examples include:

  • In Latvia, the ‘Support to Self-employment and to Starting of Entrepreneurship’ programme offers advice, training, and finance (loans and grants) to those starting up new businesses. At the same time, EU funding has helped develop business incubators and promote entrepreneurship.
  • In Hungary a ‘crisis management and economy boosting’ package has been introduced, alongside the ‘employment policy’ package, which includes the refinancing of bank loans as well as the provision of micro-loans, loan guarantees and reduced interest rates.
  • The Slovenian Active Employment Policy programme for 2007-2013 includes employment and self-employment incentives along with advice and guidance, training and education, and programmes to enhance social inclusion. During the period 2007-2008, over 19,000 people received incentives for stimulating employment and self-employment, from a budget of EUR 46 million.
  • In Luxembourg, the government’s economy support plan for the recession includes additional assistance for companies in terms of taxation and related measures. This includes a reduction in the tax rate, the accelerated payment of grants to SMEs, the introduction of greater flexibility concerning the right of establishment, and the introduction of a loan for the purchase of shares in Luxembourg companies.
  • The Norwegian government's initiatives include increased funds for Innovation Norway and more grants for those who want to set up their own businesses.
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