Addressing Unemployment Across Europe
Innovative ways to address
long-term unemployment in Europe
Long-term unemployment remains a pressing issue in Europe, despite a decline since 2014. In 2021, 6 million people were out of work for over a year and 2.5 million young individuals affected, showing that traditional methods have often fallen short in reintegrating them into the workforce.
The report ‘Towards zero long-term unemployment in the EU’ highlights promising initiatives across Europe that could be expanded to tackle long-term unemployment. New approaches outlined in the report are a promising policy tool for reducing long-term unemployment and improving the well-being of the unemployed.
Innovative approaches focus on creating jobs that align with both people’s aspirations and local needs. The social economy also shows great promise in finding new ways to address long-term unemployment in Europe. The report recommends supporting innovation that has a positive impact on both the economic and the social well-being of communities, rather than solely focusing on transitioning to the labour market.
Examples include Austria's Marienthal Job Guarantee Pilot, France's Zero Long-Term Unemployment Territories, and Belgium's similar approach, all focusing on matching unemployed individuals with community needs and offering fair-paying jobs. Germany's Solidary Basic Income and the Netherlands' Basisbaan program similarly aim to provide meaningful employment while reducing welfare reliance.
Key success factors behind these initiatives involve offering voluntary, fairly paid jobs with flexible hours at the local level. This helps to build financial independence, professional growth, and self-confidence for unemployed people. Collaborating with local non-governmental organisations also helps to engage with people who are difficult to reach through public employment services.
The report's findings were shared during a webinar organised by the European Competence Centre for Social Innovation targeting policymakers, social innovation practitioners, public employment service staff and other stakeholders working on long-term unemployment. It sets the stage for the ESF+ Social Innovation+ initiative's upcoming call for proposals, allocating €23 million to develop and expand these innovative solutions, aiming for zero long-term unemployment in the EU.