Only a third of trainees is on the labor market – publico

                 

                         
                     

                 

 
                         

The Court of Auditors (TdC) recognizes that internships subsidized by the state helped reduce unemployment levels last year and eased labor costs of enterprises, but only 33.3% of trainees were integrated into the market work. The alert is left in a monitoring report on implementation of the budget of Social Security in 2014, released on Monday.

                     

                         In the document, the TB concludes that the reduction in unemployment in 2014 was “largely offset by the creation of internships funded by the IEFP.” Active labor market policies, says the institution led by Guilherme d’Oliveira Martins, “experienced an increase of 8.7% over the same period last year, thus contributing positively to the dynamism of the labor market, particularly in the part that regards the creation of jobs for others that grew by 1.6% in 2014, compared with a fall of 2.6% for the 2013 year as a whole. “

But if, on the one hand, the stages have “the merit of keeping the labor market part of the unemployed labor force”, this is done with “high insecurity rates, aspect that follows from the very nature of internships” and “not caring here to take into account the rate of integration of this population in the labor force after completion of stage “

In parentheses, the TB realizes that assessment:.” In 2013, 42.4% of trainees were integrated into the market job after internship and in 2014 only 33.3%. “

The TB also states that the stages at the same time relieving labor costs” passed on to the private sector of the economy “, also have the “demerit downward pressure to wages in the private sector with direct consequences on the collection of contribution revenue.”

Winter Economic Bulletin, Banco de Portugal concluded that the dynamism of the labor market in 2014 was being strongly influenced by the work placements and changes in the methodology used by the National Statistics Institute (INE) in the Labour Force Survey.

To the bop, the private employment for others presented a recovery since the third quarter of 2013, “but more moderate than suggested by the Labour Force Survey”, and one third of this evolution is explained by the effects of active employment policies, including internships funded by the Employment and Vocational Training Institute (IEFP). Replaced by numbers, the institution said that employment for others would not have grown 6% estimated by INE, but only 2.5% in the third quarter 2014, and 0.9 points of this growth were the result of work placements funded by the state.

The government has said that 70% of young people is in the labor market after the stage and of these, 30% are in business.