• Conduct an analysis of key indicators in order to come up with a clear diagnosis of needs

Before they design PHS policies, policymakers must ensure that the context in which PHS take place is clearly understood. In particular, analysis of the following key indicators will help to set out needs in the country and the resulting policy objectives. In particular, the following aspects must be analysed:

• The existence of undeclared market (examples of indicators: the share of undeclared work, the price of undeclared PHS);
• The unemployment situation (example of indicators: the unemployment rate by level of qualification);
• The need for work-life balance (example of indicators: the female activity rate, the percentage of single-parent families and the share of bi-active households);
• The need for PHS in the population (example of indicators: the dependency ratio);
• The characteristics of current formal activities (example of indicators: the share of formal PHS before the measure was introduced, the cost of formal childcare and elderly care, etc.).

This diagnosis will help Member States to specify their objectives and design the PHS measure accurately.

• Select official policy objectives according to the diagnosis and related needs

Once the context is understood and depending on the needs identified, policymakers could specify what the official objectives of the measure are. Selecting official objectives is key to designing the policy accurately and ensuring that it effectively pursues some defined goals. Defining clear objectives is necessary when it comes to monitoring the measure effectively and carrying out assessments of the effects of the measures; however policymakers should bear in mind that the measure also has many side effects that have to be taken into account but which are not necessarily identified as objectives.