Employment incentives and entrepreneurship under the Youth Guarantee: Experience from the ground

The report on employment and entrepreneurship under the Youth Guarantee examines employment incentives, direct job creation measures and start-up incentives that help young people overcome employment barriers.

Employment incentives are one of the most common types of Active Labour Market Policy (ALMP) included in Youth Guarantee schemes. They generally take the form of employment subsidies or reductions in hiring costs through social security bonuses.

The report outlines examples of promising programmes that link employment offers with vocational guidance and training as well as mentoring.

It also underlines the benefits of integrated approaches, instead of implementing wage subsidies in isolation. This is particularly the case for young people who need additional sociological and psychological support to overcome the barriers they face. For these young people, measures solely aimed at increasing employability might be insufficient.

On the other side of the spectrum, direct employment creation programmes and start-up incentives are much less common. The report confirms that start-up incentives work much better when they combine different measures such as entrepreneurship training, counselling, mentoring, financial assistance, access to physical and network capital and follow-up services.


Find the report here