Youth Guarantee country by country - France May 2018 - Europa EU

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Youth Guarantee country by country
               France
               May 2018
Employment, Social Affairs & Inclusion
                       The Youth Guarantee country by country - France

Table of Contents

Table of Contents .............................................................................................. 2
Introduction and context .................................................................................... 3
Commission's assessment .................................................................................. 4
EMCO's assessment ........................................................................................... 5
Youth Guarantee monitoring – Key data ............................................................... 6
Previous year .................................................................................................... 8
Link to further information .................................................................................. 9

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                 The Youth Guarantee country by country - France

Introduction and context

The Youth Guarantee has become a reality across the EU. It has facilitated structural
reforms and innovation in policy design across EU Member States.

This document provides extracts from official Commission documents on the
implementation of the Youth Guarantee in France. It contains extracts from:

      The country report drawn by the Commission for France in the context of the
       European Semester;
      The conclusions of the thematic multilateral surveillance review of the
       Employment Committee (EMCO).
      Results from the data collection on Youth Guarantee schemes.

A section at the end of the document is devoted to the assessments made by the
Commission the previous year.

France presented a Youth Guarantee Implementation Plan on 22 December 2013.

France is eligible for the Youth Employment Initiative.

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Commission's assessment

From the 2018 country report (FR - EN):

"Young people Not in Employment nor in Education and Training (NEETs) rate
(11.9 %) remains stable, even as the EU’s average NEET rate declines. However, the
number of newly employed people as a percentage of the total number employed
(14.3 %) is increasing and catching up with the EU average (14.8 %). Approximately
one third of 18-34 year old NEETs are foreign-born or have at least a foreign born
parent (OECD, 2018)."

"The labour market situation continues to improve. The employment rate (for
those aged between 20 and 64) gradually increased to 70 % in 2016, compared to the
71.1 % EU average, and continued to improve in 2017 in line with the EU trend. In
parallel, the unemployment rate decreased from 10.4 % in 2015 to 10.1 % in 2016
and 9.5 % in 2017 (vs. 7.7 % in the EU and 9.1 % in the euro area) and it has
continued to decrease in 2017. It is projected to decline further, supported by ongoing
reforms. Youth unemployment has fallen from 24.6 % in 2016 to 22.6 % in 2017, but
remained above the EU and euro area average (respectively 16.8 % and 18.9 % in
2016). The limited integration of young people into the labour market is also reflected
in a stable NEET (not in education, employment or training) rate of 11.9 %. There is a
decreasing number of school drop-outs in the 15-19 age group, while unemployment
is still high in the 20-24 age group showing only first signs of improvement in 2017."

"Unemployment continues to fall. The unemployment rate declined from 10.4 % in
2015 to 9.5 % in 2017 and is forecast to decrease further in the coming years, while
the employment rate rose to 71 % in the third quarter 2017. Labour market conditions
for younger, lower-skilled workers, and people with a migrant background (both first
and second generations) remain more difficult."

"Active labour market policies have been refocused to help young not in
education, employment, or training (NEETs). The programme Garantie jeunes –
an intensive counselling framework associated with a minimum income grant for
young NEETs without resources, which is partly financed by the Youth Employment
Initiative – was made untargeted in 2017 and is to be further strengthened in 2018,
with the goal of reaching 100 000 beneficiaries. First evaluations have shown that
young people enrolled in the programme are more likely to subsequently find
employment, especially in a more sustainable form. In 2016, more than two thirds
(68.9 %) of NEETs aged under 25 were registered with the European Youth Guarantee
schemes. The ability of public employment services to swiftly find employment for
young NEETs remains a challenge; a high proportion of young NEETs are registered
with the Youth Guarantee scheme, but almost 80 % of those registered did not receive
any offer for more than 4 months (European Commission, 2017e). A new statistical
tool for monitoring beneficiaries of different programmes for young people (TRAJAM)
was launched in January 2018, together with a new outreach initiative for NEETs,
financed by the new Plan d'Investissement dans les Compétences of the Grand Plan
d’Investissement 2018-2022 (Sections 4.1 and 4.3)."

"The proportion of upper secondary students enrolled in vocational education
and training (VET) has been decreasing, following the European trend.
Vocational education and training, either school-based or work-based, represented
41.5 % of total students in upper secondary education in 2015 against 43 % in 2013,
below the EU average of 47.3 %. Apprenticeship accounted for a quarter of secondary

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level vocational enrolment. Increases observein the number of apprentices (+1.7 %
between end 2015 and end 2016) are essentially due to a fast take-up of tertiary level
apprenticeship, currently representing 37 % of all apprentices. The proportion of
vocational upper secondary graduates entering bachelor degrees (licence) has more
than doubled since 2000 (DEPP, 2017), but the rate at which they complete higher
education is 6 %, well below the completion rate of nearly 50 % for those with a
general upper secondary diploma."
For further youth-related matters please refer to the country report.

EMCO's assessment

Conclusions of the Employment Committee’s multilateral surveillance review
on youth employment, December 2017:

France continues to develop a broad base of measures in a context where figures for
the youth labour market situation improve slowly, in accordance with the general
situation of the labour market. Actions in many areas seem to be strengthening the
policy response. These include measures to tackle early school leaving (which is
reducing significantly) or the continued efforts to improve the apprenticeships system.
Overall, the Youth Guarantee system has an extensive outreach and is improving
delivery. However, timeliness of offers is still a challenge. The new Plan of Investment
in Human Capital seems ambitious and promising. The TRAJAM project to connect
available data for better monitoring of individual trajectories could be instrumental in
enhancing the quality of information available on the follow-up of exits and, as a
consequence, on quality of offers.

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                         The Youth Guarantee country by country - France

Youth Guarantee monitoring – Key data1
1. Main trends in young people's labour market performance

              YOUTH UNEMPLOYMENT RATE                                            NEET RATE
                % of active youth aged 15-24                        % of total youth population aged 15-24
 35                                                       25

 30                                                       20

 25                                                       15

 20                                                       10

 15                                                       5

 10                                                       0
      2008 2009 2010 2011 2012 2013 2014 2015 2016 2017        2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

                                    Source: Eurostat, LFS (une_rt_a, lfsi_neet_a)

2. Youth Guarantee delivery

France presented a Youth Guarantee Implementation Plan on 22 December 2013,
which outlined how existing measures would be reinforced to fulfil the objectives of
the YG and provide the best possible support for young people. The YG scheme was
formally launched in January 2014.

The national coordinator of the YG is the General Directorate for Employment and
Vocational training (DGEFP), but the main actors involved in implementation are Pôle
Emploi, the Missions Locales and Cap Emploi (respectively the public employment
services at national level, local level, and for disabled jobseekers).

The data cover Pôle Emploi and Missions Locales. Since data from Pôle Emploi exclude
participants whose counselling programme was delegated to the Missions locales, the
risk of double counting is considered minimal.

Further information is available in the national YG implementation plan.

__________________________________
1
  The information below is taken from the country fiche related to the Youth Guarantee
Data collection (full results can be found on
http://ec.europa.eu/social/main.jsp?catId=1143&langId=en#YGIF).

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                     The Youth Guarantee country by country - France

                                     YG monitoring data 2016

   Proportion of NEETs covered by the YG, 2016       Out of all young people that exited the YG in 2016…
           % NEET population aged 15-24

                                                           8.9%
                                                                                        took up an offer
                                                                         26.3%          < 4m
                                                                                        took up an offer
                                                                                        >4m
                                                 28.6%
                                                                                        unknown
                             68.9%
                                                                                        unemployment
                                                                                        or inactivity
                                                                     36.2%

                              Source: DG EMPL, YG monitoring database2016

The difficulty to deliver timely offers is reflected in the fact that only a quarter
(26.3%) of those leaving the scheme in 2016 took up an offer within 4 months of
registration.

In 2016, the YG scheme in France covered more than two thirds (68.9%) of NEETs
aged under 25. Despite a significant decline in coverage compared to 2014 (-18.3 pp,
from 87.2%), the coverage rate remains above average, though it should be noted
that some of those entering the YG in France are not NEET according to the LFS
definition used to measure the target group.

Additional information

On average in 2016, nearly eight in ten (77.8%) of those registered in the YG scheme
in France at any point during the year had been waiting for an offer for more than 4
months. Nearly a third (31.4%) had been waiting for more than a year.

Follow-up data to look at subsequent outcomes are not yet available.

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Previous year

2017

From the 2017 country report (FR - EN):

"in 2014, native-born residents, aged 15-64 and with two foreign-born parents, had
an unemployment rate of 14.5 %, and as high as 49.6 % for young people, compared
with 8.8 % and 18.7 % for native-born residents with native-born parents. Several
recent studies have stressed the persistence of discrimination among people with a
migrant background in hiring processes and the potential positive macroeconomic
impact on GDP of reducing the impact of discriminations."

"Increased active labour market policy measures targeting low-skilled young
people have succeeded in reducing low-qualified youth unemployment only
slightly. The unemployment rate for low-qualified young people decreased from 40.3
% to 39.2 % between 2014 and 2015. To address their difficulties in entering the
labour market the number of subsidised contracts targeting low-skilled young people
— emplois d’avenir, contrat initiative emploi (CUI-CIE) and contrat d’accompagnement
dans l’emploi (CUI-CAE) — has been increased to reach 45 800 in the market sector
(+65 % between March 2015 and March 2016) and remain stable at 101 300 in the
non-market sector. In the first quarter of 2016, 29.2 % of all young employed were on
subsidised contracts, as were 51.7 % of young employed people without qualifications
(DARES, 2016a). Although these contracts have a positive short-term effect on
employment, they fail to foster sustainable inclusion in the labour market; only 40 %
of young people in the non-market sector were employed 6 months after exiting a
subsidised contract and 66 % in the market sector, where deadweight effect is more
important (Cour des Comptes, 2016a). Also, some weaknesses were identified in
Youth Guarantee implementation in terms of outreach, information and coordination
between actors (European Commission, 2016c)."

"In a flexicurity approach, training rights and activation measures have been
reinforced for the more vulnerable. The reinforcement of training rights through
the personal training account for low-qualified workers and activation measures for
young unemployed people in precarious situations, with the generalisation of the
Garantie Jeunes scheme, is intended to support personal transitions and economic
adaptations. Moreover, the personal activity account (compte personnel d’activité,
CPA), introduced in January 2017, may reduce disparities related to employment
status, by attaching training rights directly to workers."

"Educational inequalities remain high and the vocational education and
training system is not sufficiently adjusted to labour market needs. France
performs well with respect to the Europe 2020 indicators concerning education.
However, educational inequalities linked to socioeconomic background are among the
highest in the OECD. The system of initial vocational education and training does not
lead to a satisfactory integration of young people in the labour market. Access to the
continuous vocational training system is uneven for different categories of workers."

"The initial system of vocational education and training (VET) does not lead
to an optimal integration of young people in the labour market. France is one
of the few OECD countries where opting for VET does not provide better employment
outcomes than general education (CNESCO, 2016b). Production sector specialisations

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still offer better labour market integration outcomes, while trade & sales and even
more secretarial training has a significantly lower post-diploma employment rate,
translating later into a high unemployment rate (30 %). The figures above cast doubt
on whether the existing national and local governance entities have been effective in
defining a range of education and initial training based on economic needs and
employment prospects, rather than favouring available training resources. In this
respect, the 2014 VET reform establishes new national and regional-level VET and
employment coordination bodies, while over 500 additional VET specialties in sectors
with good employment prospects have been announced for the opening of the 2017
school year, along with the creation of 1 000 specific teaching posts. However, given
the relative novelty of these measures and announcements, their impact cannot be
assessed yet."

"Apprenticeship presents better employment outcomes than school-based
initial VET. Apprenticeship offers better labour market integration perspectives, but is
constrained by its cost and its sensitivity to national and territorial economic cycles,
which affect company decisions to hire apprentices. As a result, apprenticeship
represents only one fourth of initial VET. The introduction of a low-qualified apprentice
premium and the increased public sector commitment have recently enabled the
stabilisation of apprenticeship figures. Entry into apprenticeship is also expected to be
eased by its gradual opening to professional qualifications. Synergies between school
and work-based VET have also been initiated to reduce the drop-out rate."

"Despite an early school leaving rate below the EU average, significant
regional disparities remain. There are still too many young people, mainly among
those with an immigrant background, who leave education with at most a lower
secondary level diploma, while the labour market prospects of this group have
significantly deteriorated."

For further youth-related matters please refer to the country report.

Link to further information

Youth Guarantee Database - Promising examples

http://ec.europa.eu/social/main.jsp?catId=1327&langId=en

Youth Guarantee Implementation Plan

http://travail-emploi.gouv.fr/IMG/pdf/dgefp-france-plan-
garantie_jeunesse_1_.pdf

Where to register for the Youth Guarantee?

http://ec.europa.eu/social/main.jsp?catId=1218&langId=en

Youth Wiki France

https://eacea.ec.europa.eu/national-policies/en/content/youthwiki/overview-france

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