ILO Tripartite Meeting of Experts on  “Youth Employment in the Arab States” Amman (Jordan), 6-8 April 2004: ILO Tripartite Meeting of Experts on “Youth Employment in the Arab States” Amman (Jordan), 6-8 April 2004 Alena Nesporova, Employment Strategy Department, ILO-Geneva


Youth employment programmes – international experience: Youth employment programmes – international experience


Structure of presentation: Structure of presentation Youth statistics – cross-country differences Examples of employment strategies and policies and their youth components Youth employment programmes and policies applied in economically developed, transition and developing countries: achievements and lessons learnt Concluding remarks


Youth statistics – cross-country differences: Youth statistics – cross-country differences Activity rates of youth (15 – 24) declined from 70.1% in 1950 to 59.2% in 2000 while for the adults (26-64) the rates increased from 72.5% to 78.5%. Mainly the result of growing participation of youth in education, i.e. young people are better educated and potentially more productive than other age groups of workers. Difference between adult and youth activity rates large and increasing, ranging from 12 p.p. in Oceania to 27 p.p. in Europe. Activity rates of young males much higher than those of young females but converging (in 1950 the gender gap was 29.2 p.p., in 2000 14.9 p.p.) Activity rates of young people differ a lot by region – the lowest in Europe, followed by Latin America and Northern America, the highest in Asia, Africa and Oceania Unemployment rates of youth consistently higher than the adult unemployment rates, in most countries between 2 and 4 times. In most countries in the world, young men have lower unemployment rates than young women.


Employment strategies and their youth components: Employment strategies and their youth components Youth employment challenge has many dimensions and therefore it needs a comprehensive approach. Countries usually tackle youth issues in the framework of national employment strategies and policies (if they have any). The European Employment Strategy is an example of a regional employment strategy. It obliges the Member countries to implement a comprehensive policy package fostering full employment, improving quality and productivity at work and strengthening social cohesion and inclusion. It sets 10 policy guidelines tackling also specific youth problems. Those most important for youth employment promotion are the following:


European Employment Strategy (cont.): European Employment Strategy (cont.) Active and preventative measures for the unemployed and inactive. Job creation and entrepreneurship. Human capital development and lifelong learning. Gender equality. Integration of disadvantaged people into the labour market.


Youth employment programmes – EU countries: Youth employment programmes – EU countries Youth employment policies and programmes used by EU countries: Youth minimum wage (UK, France, Belgium, Netherlands, Spain, Portugal) Vocational education and training: sequential versus dual systems Obligatory participation in special programmes for young people unemployed for at least 6 months (otherwise they lose entitlement to income support) – e.g.: New Deal in the UK (mainly focusing on intensive job search assistance, in case of no success subsidized work experience, education or subsidized self-employment) First Job Agreements in Belgium: private companies obliged to allocate 3 per cent of their jobs to young persons, 1.5 per cent jobs reserved in public organizations. Recruitment subsidies for young people with less qualifications or above quota. Danish programme: vocational training for up to 18 months. Social integration programmes for disadvantaged youth (such as TRACE in France) combining Skills diagnosis Teaching of basic skills Vocational training Programmes promoting self-employment Business management included in curricula of many secondary schools Training workshops and placement opportunities within local businesses for last year students (UK Graduate Enterprise Programme) Mentor support and special loans for young people


YEP in EU countries (cont.): YEP in EU countries (cont.) Programmes usually designed by MOL with involvement of the social partners and administered by public employment services Findings from evaluations of youth programmes: A combination of vocational training and subsidized work experience works best Targeted programmes meeting specific needs of respective groups are more effective Involvement of the social partners very important (e.g. employers know what types of skills are required, trade unions make sure that the programme improves general employability of young people) Decentralization of programmes to meet local needs but central supervision important. Programmes are in general more effective in a healthy economic climate when aggregate demand is high. However, their effectiveness may also vary with economic conditions: training and job search assistance more important during periods of strong economic growth while employment subsidies and skills upgrading of still employed persons with obsolete skills more important during economic recession.


Youth employment programmes – CEE transition countries: Youth employment programmes – CEE transition countries Subsidized first work experience for secondary school leavers and university graduates in the private sector (e.g. CR, Slovakia, Hungary, Poland) Internships in public institutions (CR) Subsidized on-the-job training combined with recruitment grants (e.g. Hungary) Vocational training for youth without professional qualification (e.g. Poland) RF’s Youth Practice offers apprenticeship and job placement afterwards. Social integration programmes for disadvantaged youth (e.g. “The Bridge” in the Czech Republic) Programmes promoting entrepreneurship among youth Temporary protection against employment termination for apprentices, school graduates, youngsters Job quotas (in Ukraine 5 % of jobs reserved for vulnerable groups including youth, otherwise enterprises levied; in Moscow 1 per cent of jobs in enterprises with staff over 100 reserved for youth under 18) Programmes designed by MOL and administered by public employment services Evaluations of youth programmes directed to training and first work experience in terms of job placement show relatively very good results, in general better than for other groups of jobseekers. Employment protection measures counter-productive, job quotas not effective.


Youth employment programmes in developing countries: Youth employment programmes in developing countries Latin America: Two types of programmes: Training programmes + employment subsidies for private firms For example: Chile Joven launched in 1991 Targeted at poor young people laid-off, underemployed or first jobseekers aged 16 to 24 and lacking professional skills Four components: Combination of theoretical classes and internships in private firms (trainees are given subsistence allowance) Dual training combining theoretical classes and on-the-job training through the provision of a labour contract Business management training combined with technical assistance to draft a project and look for funding) On-the-job training and practical experience combined with psychological assistance for marginalized young people Programme designed, funded and supervised by the National Training and Employment Service (under MOL) and the Solidarity and Social Investment Fund (under Ministry of Planning).


YEP in developing countries (cont.): YEP in developing countries (cont.) Chile Joven (cont.): Very good results achieved: about 60% of trainees obtained a job after completion of training. Evaluation found very good targeting (96% of participants from medium or low social-economic background), increase in earnings in comparison with control group of non-participants; high female participation rate. The programme helped develop a training culture in small and medium-sized enterprises.


YEP in developing countries (cont.): YEP in developing countries (cont.) Latin America (cont.): Chilean programme replicated in Argentina, Peru, Colombia and Uruquay Subsidized employment programmes offering tax rebates to firms taking on unemployed youth on a contract or as apprentices (e.g. Practica Laboral para Jovenes in Chile, similar programme in Argentina) offering wage subsidies for newly created jobs such as Primeiro Emprego in Brazil launched in October 2003 targeted at low educated young people aged 16 to 24 from low-income families. Subsidies provided to private enterprises for 12 months.


YEP in developing countries (cont.): YEP in developing countries (cont.) Evaluation of youth programmes in Latin America has found out that: Governments remain the key actor Need for new partnership of governments with the private sector, NGOs, in particular youth organizations, the social partners and international organizations. Need for better coordination of youth programmes and other initiatives Need for improvement of programme performance Need for experienced and knowledgeable programme coordinators and implementers Need for better and more sustainable funding from multiple resources.


YEP in developing countries (cont.): YEP in developing countries (cont.) Egypt - Youth Employment Programme launched in July 2001 by the Cabinet of Ministers and coordinated by the Information and Decision Support Centre of the Cabinet of Ministers. This five-year programme aims to create 800,000 jobs during the first year. 5 components: employment in the government sector employment in jobs for the collection of information in villages jobs in the private sector youth training credit for artisans’ workshops Official statements speak about 782,000 training and job opportunities in the first year while according to official employment statistics, altogether some 100,000 new jobs were created and not only through this programme. The ILO asked to assess two components – youth training and credit for artisans’ workshops.


YEP in developing countries (cont.): YEP in developing countries (cont.) Assessment findings: Youth training can achieve better results in terms of the number of trainees and their job placement if: training is combined with practical experience in enterprises and involves much more the private sector training – its direction, curriculum, quality of trainers, training equipment, training duration and funding – is better matched with real market needs good information on market demand for skills is available through regular enterprise surveys clear instructions on the direction of training etc. given to training centres partnership is kept with private companies for better quality and appropriateness of training and for better job placement of trainees loans are made available to trainees for starting their own businesses better advertising of training.


YEP in developing countries (cont.): YEP in developing countries (cont.) Artisans’ workshops sub-programme can better contribute towards expansion and modernization of workshops and new job creation if: the modalities of credit provision are improved and the provision of credit simplified and accelerated modernization of workshops more supported through better loan conditions support in marketing of products is provided new staff recruitment requirements revised the programme is better advertised.


Conclusions: Conclusions Need for a comprehensive employment policy This policy should be based on a deep and reliable economic and labour market analysis identifying potentials and challenges for young people Appropriate measures need to be applied (and regularly assessed) for interventions on the supply and demand side of the labour market and their better matching for enhancing employability, promoting employment and improving social security of young people. The employment policy has to be formulated, implemented and evaluated in partnerships of governments at various levels with the social partners, youth organizations and other NGOs, with possible assistance from international organizations.