Training vouchers for employers and employees Lieven Van Wichelen ...

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Training vouchers for employers and employees 
          Lieven Van Wichelen 
   Flemish Employment Administration (Belgium) 

   Thematic review seminar

    Sharing costs and responsabilities for lifelong learning

    Brussels, 28 september 2005 

Administratie Werkgelegenheid

 
 
 
 
 

Administratie Werkgelegenheid

Flanders is

  the northern, Dutch speaking part of Belgium 
 5.9 million  inhabitants  
 3.9 million working population  
   one of three constitutional                                               federal regions  

      Introduction   
Belgium as a federal country

 
 
 
 
 

Administratie Werkgelegenheid

      Introduction   
Belgium as a federal country 

Legislative competences for the three regions: Flanders, Wallonia, Brussels Regional competences include education, vocational training, job mediation, employment programmes  
 
 
 
 

Training vouchers  
        for employers and employees 

Administratie Werkgelegenheid

Policy objectives

EU-benchmark 12,5% participation has increased significantly in Flanders:    from 9,1% in 2003 to 10,8% in 2004, exceeds EU-average participation of working population (aged 25-64) clearly above EU average: 12,6% in Flanders; 11,0% EU average. Possible impact of recent policy initiatives? training vouchers for employers (since Feb 2002) training vouchers for employees (since Sept 2003).  
 
 
 
 

Training vouchers for 

Administratie Werkgelegenheid

Introduced in September 2003 the measure aims to stimulate employees to 00eep up00(knowledge society) and strengthen their position on the labour market (employability) by diminishing financial thresholds that hinder participation in lifelong learning.  
 
 

employees

 
 
 
 
 

Administratie Werkgelegenheid

Description

Employees can annually buy vouchers for up to 0050 50% paid by the employee, 50% paid by the government Vouchers can be used to cover the direct costs related to training or career guidance Cannot be used to replace training costs for the employer. Limited to authorised training agencies        (in order to guarantee the quality of the training) An annual budget of 00 million in 2003,                          raised to 000 million in 2004 and 2005  
 

Training vouchers for employees

 
 
 
 
 

Administratie Werkgelegenheid

Training vouchers for employees 

50,0% 

55.887 

46,6% 

89.079 

45,5% 

45.332 

High skilled 

34,1% 

38.126 

38,1% 

72.914 

39,7% 

39.549 

Medium skilled 

16,0% 

17.864 

15,3% 

29.237 

14,9% 

14.815 

Low skilled 

Requests according to skill level 

14,3% 

16.023 

12,7% 

24.294 

11,1% 

11.095 

50 years and more 

54,3% 

60.799 

54,8% 

104.782 

55,5% 

55.352 

30-49 years 

31,3% 

35.055 

32,5% 

62.154 

33,4% 

33.249 

<30 years 

Requests according to age 

100% 

111.877 

100% 

191.230 

100% 

99.696 

Total requests 

Jan 00August 2005 

2004 

Sept 00Dec 2003

 
 
 
 
 

Administratie Werkgelegenheid

Evaluation

quantitative success under-representation of low skilled employees            15% to 16% of requests, compared to                               28% low skilled in the total workforce under-representation of elderly workers                11% to 14% of requests by employees over 50 years, compared to 17% elderly in the total workforce. risk of substantial dead weight loss  

Training vouchers for employees

 
 
 
 
 

Administratie Werkgelegenheid

Recent adjustments to the system (sept 2004)

More vouchers (up to 0000) for employees starting     higher education Free vouchers (no 50% contribution) for the low skilled First figures indicate moderate success: in 2004 only 2.200 less qualified employees used these new possibilities Profound evaluation will take place in order to improve    take up by less qualified and elderly workers + focus on labour market related courses  

Training vouchers for employees

 
 
 
 
 

Training vouchers for 

Administratie Werkgelegenheid

Introduced in February 2002,

   (cf. Walloon training vouchers since 1998)

the measure aims to stimulate training in SMEs (though it is directed towards all enterprises ). Based on the observation that traditional incentives are: mainly designed for larger enterprises often too bureaucratic and slow in decision-making process to meet the needs of SMEs  
 
 

employers

 
 
 
 
 

Administratie Werkgelegenheid

Description

Firms can purchase training vouchers in sets of 10        (only via the internet) Vouchers are worth 000 a piece, 50% of which is   paid by the firm/employer and 50% by the Flemish government. Maximum of 200 vouchers per year per company. Limited to authorised training agencies

   (in order to guarantee the quality of the training) 

Training vouchers for employers

 
 
 
 
 

Administratie Werkgelegenheid

Increasing budget

000,7 million (2002) 008,7 million (2004) 002,5 million (2005)  

Training vouchers for employers 

16.353 

12.040 

11.110 

Number of firms  

1.482.614 

1.136.742 

715.251 

Number of vouchers purchased 

2004 

2003 

2002

 
 
 
 
 

Administratie Werkgelegenheid

Evaluation

well known among firms /            clear quantitative success focus on SMEs                                            (approx. 85% of the requests) risk of dead weight loss                           (estimated up to 80%).  

Training vouchers for employers

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