The results of the evaluation of active employment policies, carried out by the Organization for Economic Co-operation and Development (OECD), were presented today, 8/2/2024, at the event “Connecting people to jobs: Evaluating the impact of training programs and wage subsidies for the unemployed in Greece”, which was organized by the Public Employment Service (PYPA) and the OECD.

As mentioned, the main conclusion is that the employability and income of the beneficiaries were significantly enhanced.

The report is part of a joint action by the European Commission and the OECD, which aims to facilitate the use of high-quality data to assess the results and efficiency of Active Labor Market Policies (ALMPs).

The event, which took place at the “Konstantinos Michalos” Entrepreneurship Center of the Athens Chamber of Commerce and Industry (EBEA), was attended by the Deputy Minister of Labor and Social Security, Vassilis Spanakis, the Director of Employment and Social Governance (DG EMPL) of the European Commission, Barbara Kauffmann , the Deputy Director of Employment, Labor and Social Affairs of the OECD, Mark Pearson and the Commander of the DYPA, Spyros Protopsaltis.

What the evidence shows

According to the OECD report, which examined three training programs of the 2017-2020 period and 17 employment programs of the 2017-2021 period in Greece, the impact of the programs on the employability and income formation of the beneficiaries is particularly important.

Specifically, for the subsidized employment programs for the unemployed:

– 12 months after starting participation, the employment rate of participants was 59% higher than that of non-participants (86.4% vs. 27.7%),

– 24 months after starting participation, the employment rate of participants was 33% higher than that of non-participants (61.4% vs. 28.6%),

– 36 months after starting participation, participants are almost twice as likely to be employed as non-participants, as their employment rate was 59% compared to 32% of the comparison group (27% difference).

For subsidized continuing professional training programs:

– 12 months after starting participation, the probability of employment is 9% higher than that of non-participants (18% vs. 11%),

– 24 months after starting participation, the probability of employment is 9% higher than that of non-participants (24% vs. 15%).

Furthermore, the effects of training on cumulative earnings grow steadily over time and three years after starting training, participants have earned €1,500 (in 2015 prices) more than similar job seekers who did not participate in training .

Also, the report mentions the current reforms, related to the work of DYPA, to improve labor market services in Greece for both job seekers and employers.

D. Michailidou

The Minister of Labor and Social Affairs, Domna Michaelidou, said: “The findings of the OECD report confirm what we advocate. Active employment policies, such as training programs and wage subsidies in companies, are part of the solution to reintegrating the long-term unemployed, young people, women and vulnerable groups into the labor market. A key core of our policy is that no one is left behind. We will achieve this through a network of policies aimed at improving working conditions and cultivating the skills and abilities of workers and the unemployed. Our bet for the four years we are going through is to strengthen citizens’ incomes, approaching and, why not, surpassing the European average. We have already taken important steps. Among the 21 European countries that have a minimum wage, Greece is currently in 10th place, and we continue.”

B. Spanakis

For his part, the Deputy Minister of Labour, Vassilis Spanakis, noted that, in recent years, DYPA succeeded in matching the supply with the demand in the labor market. As he said, this was done through a framework of actions, such as, for example, the “Career Days”, but also through the extroversion presented by DYPA. “The main goal is for the training programs to be adapted to the modern needs of the labor market, something we have achieved and this will concern us in the future as well,” emphasized the Deputy Minister of Labour.

Sp. Protopsaltis

The governor of DYPA, Spyros Protopsaltis, underlined the following: “The positive impact of DYPA’s actions on employability and income, as reflected in the very interesting OECD report, confirms our strategic choice to invest, as much as possible, in the active employment policies. At the same time, it certifies the effectiveness of the reforms that we have implemented in recent years, with these effects being, as stated in the report, greater than the results of similar programs in other countries. For example, the number of participants in our programs has increased significantly, as according to the report and after the changes we implemented, the average monthly number of new participants jumped from less than 1,000 in 2017 to 5,000 in October 2020. The broad report that is done in the report on our current reforms, with the aim of improving our services both for citizens looking for work and for businesses, with an emphasis on the changes of the “Jobs Again” law, confirms that the effort to modernize, extrovert and strengthen DYPA it bears fruit. We continue the effort even more intensively, with efficiency as a compass, as reflected by real data and in-depth analyses.”

B. Kauffmann

The director of Employment and Social Governance (DG EMPL) of the European Commission, Barbara Kauffmann characterized the progress shown by Greece as impressive, especially in reducing the unemployment rate.

However, as he commented, there is still a lot to be done.

In this context, Mrs. Kauffmann emphasized that the evaluations of the initiatives, which are taken, are important, not only to record the results, but also to find out what could be done even better.

According to Ms. Kauffmann, the effectiveness of active employment policies is an extremely important event in order to get more people into the labor market, increase productivity and further reduce the unemployment rate.

During her placement, Ms. Kauffmann also referred to the European pillar of social rights and focused on two of its key principles, which are the upgrading of skills and the active support of employment. At the same time, he added that the action plan proposed by the European Commission defines specific initiatives for its implementation.

M. Pearson

OECD Deputy Director of Employment, Work and Social Affairs Mark Pearson said: “Active labor market policies, such as the two analyzed in the OECD study and presented today, can help connect job seekers with employers and in the development of necessary skills.

Greece’s main challenge is to expand the reach of these policies to include more of the groups that will benefit most from them.”

The report can be found at https://www.oecd.org/employment/impact-evaluation-of-training-and-wage-subsidies-for-the-unemployed-in-greece-4b908517-en.htm.