by Zhang Bihong

    BRUSSELS, June 17 (Xinhua) -- As the European Union's jobless population has been swelling in recent months, leaders from the 27-member states of the bloc are set to tackle the problem of unemployment at the EU summit on June 18-19.

    With a proposal called Shared Commitment for Employment, put forward by the executive European Commission, the leaders are expected to debate concrete measures to boost employment.

    EU LABOR MARKET GLOOMY

    As investment has stalled, and exports and internal demand in the EU dampened by the global financial crisis, companies have been forced to slash jobs and production.

    As a result, the number of jobless people has been growing in recent months.

    Latest data from the EU statistics agency Eurostat show that more than 1.9 million jobs were lost in the first quarter of this year in the EU, meaning the employment rate fell by 0.8 percent quarter-on-quarter, the sharpest drop since 1995 when records began to be kept.

    At the same time, more than 1.2 million jobs were lost in the 16-nation Eurozone.

    The seasonally-adjusted jobless rate in the Eurozone soared in April to a nine-year high of 9.2 percent from 8.9 percent in March.

    In the EU, the unemployment rate rose to 8.6 percent in April from March's 8.4 percent, the highest since January 2006. It was 6.8 percent in April 2008.

    Eurostat said about 20.825 million people in the EU, of which 14.579 million were in the euro area, were unemployed in April, the number of people unemployed was 556,000 more in the EU and 396,000 more in the euro area than in March.

    The European Commission revised up in May its forecast for this year's Eurozone unemployment to 9.9 percent from 9.3 percent it forecast in January, expecting it to rise further to 11.5 percent next year.

    The EU business federation, Business Europe, which represents more than 20 million European companies, predicted that around 4.5 million people may be out of work in 2009.

    MEASURES TO BE TAKEN

    The hikes in unemployment has sent shock waves in the EU and the Eurozone as it could further dampen consumer spending and delay economic recovery.

    The commission put forward on June 3 the proposal of Shared Commitment for Employment, putting the fight against unemployment, enhancement of job creation and the upgrade of worker skills as its top objectives. It proposed to earmark 19 billion euros from the European Social Fund (ESF) in the 2009-2010 period to assist EU member states to put in place rapid reaction packages focusing on job creation.

    With the European Investment Bank and other financial institutions, a new EU microfinance facility for employment will be set up providing about 500 million euros in loans to promote the creation of small businesses.

    The aim of the facility is to provide new opportunities for the unemployed and some of Europe's most disadvantaged groups to start their own businesses.

    The proposal is based on 10 measures worked out at an employment summit in Prague on May 7.

    The commission focused its proposal on three priorities.

    First, to maintain employment, creating jobs and promoting mobility, including short-time working arrangements accompanied by financial support for training and income loss and creating the right environment for entrepreneurship, innovation and self-employment.

    Second, to upgrade skills, matching labor market needs, including, upgrading skills at all levels to address the short-term employment impact of the crisis and to pave the way for a lower carbon, competitive, knowledge-based economy.

    Third, to give young people opportunities, companies are called upon to provide at least 5 million traineeship places in 2009-2010 to students to develop their employability so that there are at least as many places available as before the crisis (around 2.3 million each year).

    EU leaders are pressing the summit to approve the proposals so that immediate and quick actions can be taken to contain the rising momentum of unemployment.

    European Commission President Jose Manuel Barroso wrote on Tuesday to heads of state and governments, calling for progress to be made on a number of key issues at the upcoming European Council, or the EU summit.

    He urged member states to take tangible steps to keep people in employment, maintain viable jobs and help unemployed people back into work.

Special Report:  Global Financial Crisis