The Long-term Unemployed, Activation and Work
Summary
This study examines the long-term unemployed registered with the Danish public employment service in relation to activation and the labour market. The study was conducted during a period with low unemployment when the activation to work was more highly regarded than at any other time since the 1994 labour market reform. The demands on the public employment service as regards efficiency and results have increased in recent years, and one of the groups that has been in focus has been the long-term unemployed. Previous analyses have generally shown activation to have had a beneficial effect, but its effect in relation to the long-term unemployed has been less certain. The activation efforts do not seem to have resulted in this group returning to employment, and the persons concerned have therefore remained in contact with the public employment service for a relatively long period. The underlying supposition of this study was therefore that the long-term unemployed may not be sufficiently helped by the system operated by the public employment service and the activation. The aim was, through an analysis of the relations between the long-term unemployed and work/ activation, to shed light on circumstances that might be significant for the planning of activation efforts.
The main question of the study was thus: Can activation help the long-term unemployed into employment? The principal results and conclusions of the study can be summarised in the form of three questions, which are briefly discussed below (a more detailed discussion is found in Chapter 7):
- Who are the long-term unemployed?
- Is it possible for the long-term unemployed to get back into employment?
- How is activation viewed by the long-term unemployed?
Answers to these three questions have been arrived at on the basis of information and opinions supplied in a questionnaire by 1,175 respondents who had been unemployed for at least two years immediately prior to the study. The study thus conveys the respondents’ view of their own situation.
1. Who are the long-term unemployed?
As in previous studies, it was found that the majority of the long-term unemployed possessed more resources than immediately assumed and therefore could not be directly described as »problem unemployed«. By far the majority have neither health problems nor difficulties in other areas of life, and are themselves of the opinion that they are able to manage a job. Furthermore, most of them find it important to have a job. They do indeed typically have many years of employment behind them.
A proportion of the unemployed in the study clearly have more problems in relation to the labour market than the group generally; these include the one in four of long-term unemployed who have difficulties both with health and managing a job, and the one in ten who have had very little work over a long period. For these persons, the problem is very often that they have been worn down in a wide sense of the term, the majority of both groups being over fifty with long working lives behind them.
Three facts stand out in describing the group of long-term unemployed taking part in the study. Firstly, women are over-represented (70 per cent). Secondly, they are »older« (52 per cent are 50 years or more). Thirdly, many of them lack belief that they can get back into employment (50 per cent no longer believe, or are uncertain whether, they will ever have a job again). This places the question »Who are the long-term unemployed?« in a wider perspective, and shows that there are many facets to being a long-term unemployed person.
There has been a tendency to equate »long-term unemployed« with »problem unemployed«. The term »problem unemployed« seems implicitly to place guilt and responsibility on the individual unemployed person and contribute to individualising the problems. It would therefore be more constructive to use an expression such as »in a marginal position in relation to the labour market«. It is partly due to the conditions in the labour market that it has no place for certain categories of people and that working in it is not attractive during certain phases of life. This fact naturally raises questions as to the appropriate action to take. Action to get the unemployed into employment should not be limited to schemes that aim at equipping the individual with skills. It is also important to look at the conditions in the labour market, so that it can become more accommodating and express demand for the resources that the unemployed have to offer.
2. Is it possible for the long-term unemployed to get back into employment?
As the primary aim of the activation is to improve the employment chances of the unemployed, it is important to ask the question whether holding an ordinary job is within reach for the long-term unemployed. The answer is a qualified »No«, which means that the practice of activating everyone with employment in the ordinary labour market as the sole success criterion must be questioned.
As a large number of the long-term unemployed in the study seem to be reasonably equipped for being able to manage a job, the primary problem seems not to be shortcomings in the unemployed or the activation. In their own opinion, the majority have sufficient skills to manage a job. It is therefore justified to ask whether there is a place for everyone. Age appears to play a significant part in the competition for jobs. People over 50 have difficulty finding employment when unemployed. The main reason for this is that demand falls with increasing age, which has been shown by several previous studies (e.g. Rosdahl, 1986).
But it is also generally difficult for the long-term unemployed to get a job. In the course of the five-month period between the selection of the sample and the questionnaire, employment had been found by 13-17 per cent of those taking part in the study (depending on whether just ordinary or subsidised employment is counted). It was those in the strongest position that typically achieved employment, i.e., the younger and healthier who had had ordinary work in the preceding five years. Only a few of the respondents – a total of four per cent – had found employment in »the accommodating labour market«.
The majority of the long-term unemployed in the study stated that it was important for them to have a job; but only approximately half themselves believed that they would find ordinary employment again. Those who believed in their own prospects in the labour market have the same characteristics as those who found employment – they are younger and in relatively good health. In addition, they have typically not had a long history of activation, or have experienced that the activation placements they have had have improved their employment potential. Those who believed in their job prospects thus seem to have several reasons for their optimism: being well-qualified to be in a job, the labour market’s preference for them over, e.g., »older« persons, and the ability of the public employment service to help those that are relatively well-qualified to be in a job.
3. How is activation viewed by the long-term unemployed?
The study was not designed to assess or »measure« the effect of activation. That is generally a complicated task, and it is particularly complicated in the case of the long-term unemployed, as they have typically participated in several activation placements. Moreover, it is not possible to carry out such an assessment exclusively on the basis of opinions expressed by the unemployed. But their opinions are important for the activation system, so that the best possible organisation of the efforts can be achieved.
A considerable part of the long-term unemployed in the study – approximately half – stated that their employment chances had been improved by activation. For some, activation had resulted in a clarification regarding their future. Among the positive aspects of activation mentioned were new vocational skills and, in particular, contact with others.
In their own opinion, the majority had participated in a large amount of activation over the last five years – so much that several seem to have been »satiated« with activation. Overmuch activation, both as regards number of activation periods and time spent in activation, seems to produce a negative reaction. A third of the respondents stated that they would prefer not to take part in activation in the future. Another matter related to activation which has been raised by the study is the job-seeking endeavours of the unemployed. It was shown that only half of those who were in activation or on unemployment benefits at the time of the study were actively seeking work. The unemployed do not seem to be looking for work when they are in an activation placement.
Respondents’ opinions of their contact with the public employment service revealed several areas for improvement:
- A good third stated that they had not received guidance or advice from the public employment service regarding training options, job-seeking or employment possibilities, although as long-term unemployed they should have had it.
- One in five experienced having had no influence on the content of their action plan, and approximately 40 per cent considered their action plan to be downright unusable.
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One in three seem not to have had a particularly intense contact with the public employment service – they would have liked more contact.
It is furthermore food for thought that those unemployed persons in the study who were not actively trying to get out of unemployment through job-seeking were more satisfied with the public employment service than those who were actively looking for work and those who had found work again. Respondents’ views regarding activation will be further investigated in the next phase of the project by means of interviews.
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