Basic organisation model

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1 Country name: Spain PES name: Public State Employment Service - Servicio Publico de Empleo Estatal (SEPE) Basic organisation model Objectives SEPE contributes to the development of employment policy and manages the unemployment benefit system across Spain. It aims to achieve workers' integration and retention in the labour market and to improve human capital, in cooperation with Regional Public Employment Services and other employment-related agencies. The core aim of the National Employment System is to reinforce coordination between all agents involved in the labour market. Targets The SEPE has specific objectives (not linked to quantitative targets) for employment policy and its delivery. These apply on a national basis and to all autonomous communities. An Annual Labour Policy Plan for 2014 is currently being produced, however the strategic objectives will build on those established for 2013, which are: Measures for improving the employability of young people and supporting entrepreneurship; Measures for improving the employability of other groups particularly affected by unemployment; Measures for improving the quality of vocational training for employment; Measures for improving the linking of active and passive labour policies. More specific objectives include: managing unemployment benefits - increasing electronic and telephone-based processing; improving the internal management of benefits and addressing fraudulent benefit claims; vocational training for employment - monitoring the quality of funded training; promoting vocational training; and controlling internships that link to professional qualifications; statistics and information producing reports on the labour market; establishing working groups to improve information exchanges; finance reducing payment for providers and recipients of certain subsidies; and focusing on quality of advice for the public reducing the time taken to get an appointment; reducing the response time for complaints and improving the telephone advice service. Tasks The tasks of the SEPE include producing and submitting state-level regulatory proposals on employment, vocational training and unemployment protection to the Ministry of Employment and Social Security; producing preliminary draft budgets; stimulating the development of the national employment system in cooperation with the regional PES; cooperating with the Autonomous Communities and social partners to produce the Annual Work Plan of the national employment system and the implementation plans of the European Employment Strategy; and managing and overseeing unemployment benefits. The SEPE is also responsible for using EU funds for co-financing actions and programmes; managing employment and vocational training plans; maintaining databases on employment and unemployment statistics; and undertaking research on the labour market. Structure, organisation levels and autonomy The national employment system is implemented in a decentralised way in Spain. Its cornerstones are: The SEPE, which is responsible for managing employment benefits, as well as for developing, mandating and monitoring employment policies and measures, and coordinating the regional network; The Regional Employment Services in each autonomous community, which are responsible for managing assistance for the unemployed, the employed and employers. Relation to government The SEPE is an independent body of the Central Government affiliated to the Ministry of Employment and Social Services through the Secretary of State for Employment. It has a separate legal entity and is independent of the Central Government. 1

2 Management structure The SEPE includes a central structure, which is governed by a General Council, Central Executive Committee and General Management. The General Management has responsibility for the Departments of Resources and Organisation, Institutional Relations and Legal Assistance, Financial Management, Statistics and Information, ICT, Unemployment Benefits, and Active Labour Policies. A delegated audit agency will be assigned to the General Management from the Central Government General Audit Office. This is accompanied by a peripheral structure with 17 Regional Departments, 52 Provincial Departments and 711 SEPE offices distributed throughout the 50 provinces, Ceuta and Melilla, which manage the processing of unemployment benefits and are shared with the regional PES. The Ceuta and Melilla offices are responsible for employment and training management. An organisation chart (in Spanish) is available at: Partnerships Partner Objectives of partnership Partnership arrangements Local corporations Central Government organisations and their autonomous bodies Universities and not-forprofit institutions Employers' organisations and trade unions Privately-owned integrated vocational training centres Recruit the unemployed to carry out work, or services, that benefit the local community Enabling the recruitment of, or work experience provision for, the unemployed, with the aim of improving their employability Enabling the recruitment of, or work experience provision for, the unemployed, with the aim of improving their employability Vocational training for employment Vocational training for employment subsidies to local corporations for hiring unemployed workers to perform work and services of general and social interest. Subsidies are allocated on the basis of a public call. subsidies to Central Government organisations and their autonomous bodies, to perform work and services of general and social interest. Subsidies are allocated on the basis of a public call. subsidies to Universities and not-forprofit institutes, to perform work and services of general and social interest. Subsidies are allocated on the basis of a public call. subsidies for the development of vocational training actions. The grants will be allocated following a public call subsidies for the development of vocational training actions. The grants will be allocated following a public call 2

3 Employers developing training actions for their workers, or for unemployed people with a commitment to recruitment Training centres and bodies offering training not geared towards the achievement of a professional qualification. Vocational training for employment Vocational training for employment subsidies for the development of vocational training actions. The grants will be allocated following a public call subsidies for the development of vocational training actions. The grants will be allocated following a public call Role of social partners Representative employers' organisations and trade unions are involved within the main governing bodies of the SEPE, the General Council (eight trade union representatives and eight employers' organisations representatives) and the Central Executive Committee (four trade union representatives and four representatives of employers' organisations, which are part of the General Council). The SEPE also cooperates with social partners in the production of the Annual Work Plan of the national employment system and the European Employment Strategy implementation plans. Network and information management For internal communication, the SEPE uses an intranet (including wikis, circulars, and reports); Mi Portal (My Web Portal) for HR issues; internal mailing lists and regular meetings. In addition, various databases are used, the national Public Employment Services Information System or SISPE (containing information on the unemployed and training) and the MERLIN database related to the organisation's management. Financing model Sources of financing The total amount of PES finances peaked in 2011 and has decreased every year since then. This pattern is also observed in the government budget contributions. ESF funding has increased between 2012 and PES Sources of Finances Total Government budget Social security contributions /indirect salary costs ESF Other - of which repayment of subsidies granted in previous years Note: all values stated in Euro is based on actual spending and 2014 on the forecast budget

4 Annual expenditure Total PES expenditure, including that for ALMPs and unemployment benefit, has declined between 2012 and In contrast, staff costs and other costs have increased between 2012 and PES annual expenditure Total PES expenditure ALMPs ALMPs for young 590 people/youth Guarantee Unemployment benefits Other Other benefits Staff costs Note: All values stated in Euro. Expenditure on ALMPs expenditure on young people has only taken into account expenses incurred by credit reserve programmes and allowances for promoting recruitment data is pending agreement on State PES participation in the Youth Employment Operational Programme (POEJ). Human resources Number of staff and staff directly serving clients (Full-time equivalent) Total PES staff at central services 561 Staff servicing clients at central services 6 Total PES staff at provincial departments Staff servicing clients at provincial departments Total PES staff at benefits office Staff servicing clients at benefits office

5 Integration of employment services and benefit provision The SEPE is responsible for the payment of unemployment allowances and other relevant social benefits. All recipients of unemployment benefits are obliged to register with the PES. Type of allowance/benefit Unemployment benefit Responsibilities Registration Payments Employment services for recipients The regional PES carries out the initial registration and ongoing monitoring of eligibility The SEPE carries out the inspection, payment and control of the benefit The regional PES manages job matching services Unemployment allowance The regional PES carries out the initial registration and ongoing monitoring of eligibility The SEPE carries out the inspection, payment and control of the benefit The regional PES manages job matching services Active insertion income The regional PES carries out the initial registration and ongoing monitoring of eligibility The SEPE carries out the inspection, payment and control of the benefit The regional PES manages job matching services Clients / customers Jobseekers Registered unemployed means those active jobseekers who are registered with the SEPE, as of the last day of each month, excluding those in employment situations set out in the Ministerial Order of 11 March Jobseekers per national category Employed With limited availability With employment relationship

6 Other Under 24 years old Aged over Men Women Date of observation: December 2013 Source: Estadística de Empleo Employers NUMBER OF COMPANIES (DIFFERENT ID NUMBER)º BY WORK SECTOR COMMUNICATED SECTOR FISHING AND AGRICULTURE INDUSTRY CONSTRUCTION SERVICES DISTRIBUTION OF EXISTING EMPLOYERS IN THE DATA BASE OF 2013 SECTOR INDUSTRY NUMBER % FISHING AND AGRICULTURE CONSTRUCTION SERVICES TOTAL BY SECTORS Other clients Other clients include public/private training centres and organisations that provide vocational training for employment; employment agencies, public and private entities (for profit or non-profit) that carry out job-matching activities (either independently or jointly with the public employment services); and not-for-profit organisations involved in developing active labour policy plans as pathways to employment or improving the employability of the unemployed through recruitment into work or services of common interest. Types and methods of service provision The provision of services for jobseekers and employers is devolved to Regional Employment Services. As a result, information on the types and methods of service provision is unavailable to SEPE. A Service Charter from the SEPE is in place, which concerns the services provided to jobseekers, employers, public administrations and non-profit entities. In addition, a Framework Agreement has 6

7 been published for the selection of placement agencies that may cooperate with the PES in the labour market integration of unemployed people. Job vacancies, market share and performance Collecting information on job vacancies The PES use different ways to obtain information on job vacancies, which range from managing the request of the employer's job offer to the PES, visiting companies or using telephone contacts from the PES to seek offers from companies, visiting websites of companies and private portals for the dissemination of offers, consultation of press advertisements on job offers, etc. PES market share and performance SEPE define market share as the proportion of vacancies managed by the PES out of the total number of jobseeker placements, the market share for 2013 stood at 17.1 %. In December 2013, there were new unemployed people; people left unemployment; and people remained unemployed. Matching supply and demand Through polls, it is possible to learn about the candidates who meet the requirements of the positions offered by employers. Among the candidates sent by the PES, the employer sometimes indicates the reason for the rejection of the candidate: lack of interest in the job, lack of experience, lack of qualifications, etc. In case of not finding candidates with a suitable profile, the employer is usually contacted to discuss the possibility of changing the job profile. Sometimes the profiling is done jointly between the PES and the employer offering vacancies. The Occupations Monitoring Observatory of the PES undertakes a study on training needs. For this study, it is necessary to work jointly with INCUAL (National Institute of Qualifications) and FTFE (Tripartite Foundation for Training in Employment). The highest governing, administration and representation body of FTFE is constituted by the General Administration of the State, the State Public Employment Service, and employer and employee representative organizations. The Observatory drafts a report on the most innovative sectors and those with the highest expectations of employability or with requalification needs. These allow to define the priority areas for training, which inform the development of the State PES calls for training plans and training actions. Active Labour Market Policies The Annual Plan for Employment Policy contains the actions and measures of the active labour market policies which will be carried out by the regional PES in the Autonomous Communities, financed by both national funds and their own financial resources. The Annual Plans also defines the actions and measures to be undertaken by the National Public Employment Service itself in its area of competence. The Plan contains four objectives: Objective 1. Measures for improving the employability of young people and supporting entrepreneurship. Objective 2. Measures for improving the employability of other groups particularly affected by unemployment. Objective 3. Measures for improving the quality of vocational training for employment. Objective 4. Measures for improving the linking of active and passive labour policies. Law 11/2013, of 26 July, on measures to support entrepreneurship and stimulate growth and job creation (part of the Youth Entrepreneurship and Employment Strategy ) has established incentives for hiring young people until the unemployment rate falls below 15 % including social security reductions and the use of different types of contracts (internship contracts, training and learning contracts, first job contracts and open-ended work contracts). Implementation of ALMPs is largely devolved to the autonomous regions. Supporting young people - Youth Guarantee The Youth Guarantee was introduced on 19 December Policy context In 2013 the Ministry of Employment and Social Security developed and introduced the Youth Enterprise and Employment Strategy , following dialogue with social partners. The objectives include improving the employability of young people, improving the quality and stability of employment, promoting equal opportunities in labour market access and promoting entrepreneurship. 7

8 The strategy is closely linked to the Youth Guarantee. In order to reduce the high youth unemployment rate, it includes 100 measures aimed at improving employment integration for young people, either as employees or entrepreneurs. It includes 15 short-term measures that are designed to stimulate recruitment and entrepreneurship, and improve education and training and job-matching within the labour market. It also includes 85 medium and long-term measures that aim to address structural issues that affect youth employment. The Strategy is available online at: Responsibility for Youth Guarantee The Ministry of Employment and Social Security is the public authority responsible for establishing the Youth Guarantee and coordinating partnerships across all levels and sectors. This is specifically managed by the Department of Self-Employment, Social Economy and Corporate Social Responsibility, which is also responsible for the administration of the European Social Fund in Spain and the implementation of the Youth Employment Initiative. The Ministry of Education, Culture and Sport and the Ministry of Finance and Public Administration are also involved, working with local organisations to deliver the Guarantee. PES and the implementation of the Youth Guarantee The SEPE is in charge of the coordination of measures for the implementation of the Youth Guarantee. A permanent working group between the Central Government and the Autonomous Communities has been approved for the coordination and implementation of the Youth Guarantee. The Autonomous Communities' contributions will be set out within a catalogue of actions, so that there is consistency and coherence within the system throughout Spain. The Autonomous Communities, within their remits and within the agreed framework, will undertake initiatives to implement the Youth Guarantee. Each relevant authority, in most cases regional, will carry out profiling and on this basis will offer young people the resources most suited to their situation. This could be training; training that commits the employer to offer recruitment or assistance; re-entry into education; a contract directly dictated by their circumstances; or assistance for entrepreneurship. From January 2014, changes to the PES are being rolled out, in order to ensure that the Youth Guarantee can be delivered effectively. The changes include agreements on the exchange of information, consultation, the operation of information systems, and the Youth Guarantee database. Reaching out to young people not in education, employment or training (NEETs) SEPE does not make contact with young people who have left school but have not yet registered with the PES. Quality of guarantee The National Implementation Plan for the Youth Guarantee in Spain defines a quality job offer as one that guarantees the young person with the opportunity to acquire valid experience and sustainable inclusion in the labour market, according to their personal characteristics (age, education and prior experience). The duration is at least 6 months and the daily work hours should be at least 50 % of the normal working day. The measures to ensure quality offers will depend on what is defined and will be monitored by cross checking data from the General Treasury of Social Security, both on the duration of the contract and on working hours. Funds allocated to the Youth Guarantee In 2012, EUR 420 million was dedicated to the Youth Enterprise and Employment Strategy and in 2013 this figure was EUR 260 million. No information is available on the funds allocated to the Youth Guarantee in Activation measures for young people, within the context of the Youth Guarantee Types of intervention Personalised guidance services Individual action Brief description Ensuring that all young people are fully informed of available services and support, as well as reinforcing cooperation between employment services, vocational guidance providers, training and education centres and youth support services. Personalised assistance is included in the services for the development of Is it new? 8

9 planning Work-based integration School-based integration Subsidies paid to employers Subsidies paid to employees or trainees Language skills, technology training Training to obtain professional qualifications or modules Incentives for entrepreneurship the Youth Guarantee. Access to information and personalised guidance is a starting point for, and complements, training and work-readiness schemes. Plans for the promotion of dual vocational training via the Contract for Training and Apprenticeship. The Ministry of Employment and Social Security and Autonomous Communities will reinforce their training programmes with a commitment to recruitment, particularly for young people. Second chance programmes will be developed, with the aim of timely training for the integration into the labour market of young people who have dropped out of school and are unable to find employment. Amongst other initiatives, a specific plan and funding support is being developed, so that young unemployed people who have few qualifications can voluntarily resume their education. Within the implementation of the Youth Guarantee, there are plans to extend the incentives set out in Law 11/2013 of 26 July to those employers who recruit a NEET under the age of 25. Partial financing is being considered for a grant for young people who are assigned to a company via unpaid internships, as regulated by Royal Decree 1543/2011 of 31 October. Improving training programmes particularly for young people who are involved in the Youth Guarantee, particularly in relation to language skills or IT skills. Incorporating new training actions aimed at gaining professional qualifications, or modules, for young people under 25 years of age into PES training provision, via the corresponding round of vocational training. Creating incentives for entrepreneurship for Youth Guarantee beneficiaries. For example, through assistance for self-employment. Yes No 9