How could European cities promote a solid active inclusion model

 The local active inclusion discourse is defined as the multi-pillar approach of regional and local authorities to prevent or combat poverty and social exclusion through a concerted set of cash benefits, active employment measures and access to basic services. It became a key priority for many local policy makers during reform agendas of social policies, particularly after the deep economic crisis of 2008/2009.

European cities apply very different approaches to active inclusion[1], particularly influenced by the broader national social policy context, local needs, interests of key stakeholders and pressure groups and the agendas of social partners who participate in labour market governance[2]. They also use different administrative and operational settings, which include inter alia the establishment of specific Departments, Units, Centres and sometimes Research Labs.

One of the most striking relevant initiatives concerns the establishment of Cities for Active Inclusion (EUROCITIES-CfAI), a dynamic network of nine European cities (Barcelona,  Birmingham,  Bologna,  Brno, Copenhagen,  Brussels, Office  Metropole Europeenne de Lille,  Rotterdam,  Sofia) each establishing a Local Authority Observatory (LAO)[3] within its administration. Their aim is to share information, promote mutual learning and carry out research on the implementation of the active inclusion strategies at the local level http://www.eurocities.eu/eurocities/projects/Cities-for-Active-Inclusion&tpl=home).

Given that the field of social policy remains a national responsibility in the context of EU competencies, EU bodies support since the beginning of the 2000s national, regional and local authorities to combat poverty and social exclusion through a rich set of non-binding (soft) law and financial instruments (European Structural and Investment Funds). In this context, the EU active inclusion discourse was introduced by the European Commission in its Recommendation of 3 October 2008 on the active inclusion of people excluded from the labour market (https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32008H0867)[1], which recommends that the Member States should:

Design and implement an an integrated comprehensive strategy for the active inclusion of people excluded from the labour market combining adequate income support, inclusive labour markets and access to quality services. Active inclusion policies should facilitate the integration into sustainable, quality employment of those who can work and provide resources which are sufficient to live in dignity, together with support for social participation, for those who cannot.

The 2008 Recommendation is in favour of local oriented initiatives, given that it stresses inter alia that the Member States should:

• Take due account of local and regional circumstances and improve territorial cohesion (general principle);
• Provide support for the social economy and sheltered employment as a vital source of entry jobs for disadvantaged people, promote financial inclusion and microloans, financial incentives for employers to recruit, the development of new sources of jobs in services, particularly at local level, and raise awareness of labour market inclusiveness (Inclusive labour markets pillar);
• Take every measure to enable those concerned, in accordance with the relevant national provisions, to receive appropriate social support through access to quality services. In particular, measures should be taken to: provide services which are essential to supporting active social and economic inclusion policies, including social assistance services, employment and training services, housing support and social housing, childcare, long term care services and health services in accordance with specific common principles, taking the role of local, regional and national authorities, applicable Community rules and the different situations, needs and preferences in the Member States into account (Access to quality services pillar).

The importance of developing an active inclusion approach was subsequently reinforced at EU level in 2010, when it was a key theme of the European Year for Combating Poverty and Social Exclusion (https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:298:0020:0029:EN:PDF). Then in 2013 the European Commission’s Social Investment Package (2013 Communication on Social Investment for Growth and Cohesion), in the context of the Europe 2020 Strategy’s social priorities - namely reducing the number of people at risk of poverty and social exclusion by 20 million by 2020 - (https://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20-%20Europe%202020%20-%20EN%20version.pdf), reaffirmed the validity of an active inclusion approach but acknowledged that progress in implementing the 2008 Recommendation on active inclusion at national level had been relatively limited[2]. This approach was further reinforced when active inclusion was made a specific priority in the use of EU Funds during the period 2014-2020[3].

The implementation of the 2008 Recommendation should be combined with the Council Recommendation of 15 February 2016 on the integration of the long-term unemployed into the labour market (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32016H0220%2801%29), which recommends that the Member States should:

• “Support the registration of jobseekers and a closer labour-market orientation of integration measures, inter alia, through a closer link with employers;
• Provide individual assessments to registered long-term unemployed persons;
• Make a specific offer of a job-integration agreement[4] at the very latest when a long-term unemployed person has reached 18 months of unemployment”.

  Finland has established a sound national active inclusion regime with strong participation of regional and local authorities. People excluded from the labour market are entitled to income support benefits, take advantage of various active employment measures and have access to a generous universal set of social and health services[1]. In addition, special programmes are available for the long-term unemployed[2], fully in line with the key principles of the EU inclusive labour markets pillar for unemployed persons.

  a) 33 companies have used till April 2020 the recruitment service offered by the GSIP Project through direct meetings, phone and email.

b) 19 companies have asked for and received advisory and guidance services on apprenticeship, financial support or use of other service.

c) 16 companies were directed to the City of Vantaa services involved in the development of an active inclusion discourse for unemployed persons and the Vantaa based TEO.

d) Almost 100 unemployed jobseekers out of the 9,461 registered to the Vantaa based TEO in October 2019 (1%) have been contacted during recruitment events.

e) Over 60 CVs of unemployed jobseekers have been received.

f) 16 out of 67 job vacancies (24%) offered by companies that have used so far the recruitment service have been fullfilled[1].

But the most striking result was the opening of new jobs by Project Partner companies, which were filled by unemployed jobseekers. In this context, Vantti created 34 job vacancies for specific categories of unemployed persons (i.e. migrants, partially disabled, low-skilled and long-term unemployed[2]).

For me, it is a matter of the heart to help people become employed. A person can be employed quickly and efficiently, as long as a decision for supporting their salary is obtained. Salary support, a Vantaa extra, or alternatively, recruitment support for an under-30-year-old unemployed job seeker, for example, can be applied for in order to assist employment. The new recruitment model is a social and responsible way to improve employment that supports both the growth of companies and society,  Minna Tuomi, Project Coordinator, Vantti

The implementation of the Project’s active inclusion model (inclusive labour markets pillar for unemployed persons) during the first 18 months (January 2019 - June 2020) highlights a set of key challenges and lessons, summarized briefly as follows:

(a) The COVID-19 crisis has created new risks for governments, regions and cities across Europe. Finland, Vantaa and its labour market could not be an exception.

In addition to the tragic loss of human life, the pandemic is likely to increase poverty and inequality, with particularly adverse effects for older persons, persons with disabilities and chronic diseases, migrant workers and forcibly displaced people.  There are signs however that, in spite of significant national measures[1], another group at high risk of poverty and social exclusion is having to decrease any possibility for standard employment and turn to means-tested, minimum-income-protection benefits: workers with non-standard contracts, freelancers, self-employed individuals. And many others, particularly long - term unemployed persons, will eventually deplete their entitlement to unemployment insurance and similar contributory benefits[2].

In this respect, Project Partners need - without abandoning the inclusive labour markets pillar of the Project - to discuss seriously the validity of the total employment indicator and seek:

- guidelines of International Organizations about the treatment of unemployed persons during the pandemic; 

 - international good practices about the performance of municipal active employment services during the pandemic.

(b) The design and use of a sound cooperative plan with main external public stakeholders was strongly beneficial, given that accurate public data on employment, unemployment and business development were taken fully into consideration. Project Partners tried to establish a new internal register for unemployed persons and companies but this process was not completed.    

In this respect, Project Partners decided to consider a more realistic scenario that will take advantage of the existing municipal services: a new register supported by the Yritysohjaamo Service has been used since April 2020.

(c) The identification process of unemployed persons was based in principle on the analysis of existing public registries and data bases, as well as on meetings with specific Vantaa based civil society organizations. But given that unemployed persons are usually faced with other risks and problems (poverty, sickness, disability)[3], it becomes clear that the active inclusion priorities of the Project could be strongly supported through the participation of the competent municipal agency (Vantaa Health and Social Welfare Department - https://www.vantaa.fi/organization/health_and_social_welfare_department) in the internal (city level) partnership structure.

In this respect, Project Partners need to discuss seriously the involvement of the Vantaa Health and Social Welfare Department during the next implementation phases, which might focus on two interrelated activities:

• identification and recruitment of disabled unemployed jobseekers;
• identification and development of vocational training courses for disabled low-skilled employees and employees with outdated skills.

(d) The design and use of recruitment services during the implementation of the first GSIP model “Need for Skilled Workforce” shed light to a rather common problem in national and local active employment programmes: the skill mismatch issue that results in different imbalances between skill supply and demand and is de facto influenced by the different phases of the economic cycle and by the relationships between different types of mismatch (Overeducation, Undereducation, Overqualification, Underqualification, Overskilling, Underskilling, Skill shortage, Skill surplus, Skill gap, Economic skills obsolescence, Physical obsolescence, Crowding out and Bumping down)[4].

In this respect, Project Partners introduced during the test phase of the first GSIP model a job design service, which was strongly appreciated by participating companies, particularly because it was adapted to their real needs using a holistic approach to recruitment[5].

Figure: Four Elements of a Holistic Recruitment Strategy

Source: https://resources.careerbuilder.com/recruiting-solutions/holistic-recruitment-strategy

This service helped them to find the right ways to recruit, which was a real incentive to move from abstarct planning recruiting[6]. Companies were encouraged to searh for potential employees through complex channels, where information about unemployed and other special groups excluded from the labour market (i.e. migrants, disabled) is available. But they also need cost-effective tools to forecast their own skill needs more regularly and accurately, including spotting the differences between skill shortages and skill gaps[7].

(e) The provision of recruitment services during the implementation of the first GSIP model “Need for Skilled Workforce” was in principle promoted by the Project Partners themselves: one Project employee was charged with the recruitment process of unemployed persons and another one focused on crating apprenticeship opportunities. But Project Partners understood that this model was inadequate from time to time.

In this respect, Project Partners decided to consider a more horizontal coordination model between the recruiting service of the Project and the City of Vantaa Employment Service Center. This model will strengthen synergies and take advantage of the high experience and expertise that municipal Employment Services usually offer to the development of local jobs and skills agendas[8].