Employment challenges

Labour market flexibility, informal employment and employability

The following main recommendations in the labour market and training policy areas draw from the assessments that were made in the accession review process. They also take into account the policy reforms undertaken since then. • Reduce severance payments to strengthen incentives for employers to formalise employment relationships. • Promote collective bargaining and consider developing consultation and dialogue with unions and employers to improve trust. • Promote ongoing reforms to strengthen the Labour Inspectorate and labour courts, along with further efforts to eliminate the remaining pockets of informal employment and non-coverage of social insurance. • Increase the age for receiving the full minimum wage from 18 to 25, and prescribe lower rates (increasing with age) for younger workers. • Enhance the public employment service as a complement to higher spending on unemployment benefits. Consider merging it with the national employment and training agency. Consider sub-contracting employment services to the private sector. • Give high priority to policies that develop education and training systems for lifelong learning. Ensure high-quality enterprise training and provide training to workers in the smallest firms. • Establish systematic consultation between the vocational education and training (VET) system and the industrial sector, allowing for discussion at sectoral and regional levels. • Encourage workplace training in all parts of the VET system, building partnerships between training institutions and employers.

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