Transcript Slajd 1

Preserving employment regarding best
practices for combating poverty and
social exclusion – a special look to the
situation of young people
Wrocław, 26.09.2010.
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The unemployment of youth in the UE
• historically high
• In December 2009 the youth unemployment rate was 21.0% in the
euro area, 21.4% in the EU27. In December 2008: 17.0% and 16.9%
• the Czech Republic has the highest rise in youth unemployment increase of almost 89 % from Nov 2008 until Nov 2009.
• All EU Member States but 3 (DE, LU, PT) show a double digit
increase between Nov 2008 and Nov 2009
• 14 Member States a rise of more than 40 %.
• Ten of these countries are new EU MS (all apart from RO and MT).
• The Baltic states - a great increases. In June 2008 between 8.9 and
11.9 % of young people in Latvia, Lithuania and Estonia. From
March and April 2009 - between 25 and 35.1% - about a threefold
increase in less than a year.
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Changes in unemployment for the EU
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„GLOBAL EMPLOYMENT TRENDS
FOR YOUTH
Special issue on the impact of the
global economic crisis on youth”
August 2010
International Labour Office, Geneva
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The unemployment of youth in the
world
• age group 15 to 24 years
• Global youth unemployment has reached its highest level on
record and is expected to increase through 2010
• end of 2009 - 81 million unemployed young people in the world
- 7.8 million more than in 2007. The youth unemployment rate
rose sharply during the economic crisis – from 11.9 to 13.0%.
• a continued increase in the youth unemployment rate in 2010 to
13.1%, followed by a moderate decline in 2011.
• between 2007 and 2009 youth unemployment increased by 7.8
million vs overall increase of 28.9 million.
• crisis impact on youth was largest in the developed economies
• Young workers in the lower-income regions have been less
obviously impacted by the crisis
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Demographic and youth labour force
trends:
• Globally, in all regions (but not in all countries) the share of
youth in the overall population is currently declining
• The highest youth labour force participation rates - East
Asia (59.2%) and Sub-Saharan Africa (57.5%). The lowest
rates - the Middle East and North Africa (36.4 and 38.0 %).
• youth labour force participation rates decreased globally
from 53.8 % in 2000 to 50.9 % in 2010
• global decrease in youth labour force participation
between 2000 and 2010 reflects the decreases seen in all
regions
• Labour force participation rates for young women are lower
than for young men in all regions except East Asia.
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Youth labour force participation rate, by region and sex, 2000, 2010 and 2015
Source: ILO, Economically Active Population Estimates and Projections, 5th Edition, revision 2009.
Total (%)
Male (%)
Female (%)
2000 2010
2015
2000
2010
2015
2000
2010
2015
WORLD
53.8
50.9
50.2
62.5
58.9
58.2
44.7
42.4
41.6
Developed
Economies &
European Union
Central & South
–Eastern Europe
(non-EU)& CIS
East Asia
53.1
50.2
50.2
55.9
52.6
52.5
50.3
47.7
47.9
42.4
41.7
40.8
48.9
47.7
47.0
35.7
35.5
34.3
67.2
59.2
56.9
65.8
57.0
55.0
68.7
61.6
59.2
South-East Asia
& the Pacific
South Asia
55.8
51.3
50.6
63.5
59.1
57.9
48.0
43.3
42.9
48.0
46.5
46.3
66.1
64.3
64.0
28.5
27.3
27.2
Latin America &
the Caribbean
Middle East
54.2
52.1
51.4
66.5
61.3
59.3
41.7
42.7
43.5
36.9
36.3
34.7
52.6
50.3
48.1
20.2
21.5
20.5
North Africa
39.4
37.9
36.5
53.4
52.5
50.2
25.1
22.9
22.3
Sub-Saharan
Africa
57.8
57.5
57.4
64.1
62.7
61.1
51.4
52.2
52.7
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Demographic and youth labour force
trends:
• as a positive development - a result of more
young people engaging in education
• negative circumstances - the inactive youth
population consists of persons who neither work
nor seek work for a number of reasons. This
group are the “discouraged workers”.
• From 2010 to 2015 youth participation rates are
expected to continue their decrease, but at a
slower pace than the previous period, resulting in
a global participation of 50.2 % by 2015
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Trends in youth employment:
• In 2008 44.7 % of youth were working, compared to 47.%
in 1998. Regions where the youth employment-topopulation ratio increased - Central & South-Eastern
Europe (non-EU) & CIS and Sub-Saharan Africa
• Four regions show youth employment-to-population ratios
between 40 and 50 % over the ten-year period - Developed
Economies & European Union, South-East Asia & the
Pacific, South Asia and Latin America & the Caribbean.
• At the low end of youth employment-to-population ratios Central & South-Eastern Europe (non-EU) & CIS, the Middle
East and North Africa - the education system in the region
which is both well developed and well utilized.
• Working poverty rates among youth exceed those of adults
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Trends in youth unemployment:
• Youth unemployment was declining before
crisis
• Youth are more likely to be unemployed than
adults - in most regions nearly three times
• global average ratio of youth-to-adult
unemployment rate of 2.8 in 2008
• The share was 40.2 % in 2008 at the global
level - the lowest in the Developed Economies
& European Union at 27.7 %.
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Reasons of the higher youth
unemployment rates:
• a young person might voluntarily engage in
multiple short spells of unemployment as they
gain experience and “shop around” for ajob
• youth often lack both labour market
information and job search experience
• students are more likely to enter and exit
labour force - move between employment,
school enrolment and unemployment
• lack of skills and work experience
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Inequalities in youth labour
markets:
• young women have more difficulties finding
work than young men
• no difference in the magnitude of the increase
in the global female and male unemployment
rates; for youth - the unemployment impact
was greater for women than men.
• The unemployment rate tends to fall with age.
The very young (aged 15-19 years)– have the
greatest difficulties finding work
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Inequalities in youth labour
markets:
• unemployment higher among less educated
young people. Higher education increases the
chances of obtaining full-time employment
with a long-term contract.
• higher unemployment among ethnic
minorities
• the poorer the parents the more likely it is
that the children will be unemployed.
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Longer-term consequences for
youth:
• the state of the labour market may affect the timing
of entry
• consequences in terms of the social norms adopted
by the directly affected cohorts.
• formulation of beliefs about how society and the
economy function.
• unlucky enough to reach maturity at a time of
economic crisis
• unemployed youth will lower reservation wage and
accept poorer quality
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Recovery prospects for youth in
labour markets:
• global unemployment is projected to continue
to rise, with a baseline forecast of 209 million
unemployed in 2010, an increase of 2.3
million versus 2009. The global
unemployment rate will remain at 6.4 %,
versus 5.7 % in 2007
• Slight recovery in youth unemployment rates
are expected over the next year
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Recovery prospects for youth in
labour markets:
• ILO forecasts a continued increase in youth
unemployment in the world in 2010, followed
by a moderate decline in 2011, with the
number of unemployed projected to decline
by 2.7 million to 78.5 million and the global
youth unemployment rate declining to 12.7 %.
• The recovery is expected to be slower than
that of adult rates and also more uncertain
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How to invest in youth
employment:
1. Addressing technical skills mismatches
• facilitating access to vmcational training and
providing ef&eative active Labour market
programmes to unemployed youth‚workplace
training schemes, the creation or
improvement of appre.ticeships systems, the
promotion oF subsidized training programles
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How to invest in youth
employment:
3. Addressing slow job growth barriers
• Wage and/or training subsidies aim to reduce
costs for firms and create incentives for hiring
youth during times of low labour demand.
• Public works programmes provide direct and
temporary employment opportunities at lowwage rate in public works and other activities
that produce public goods or services.
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How to invest in youth
employment:
4. Addressing discrimination in the labour
market
• Affirmative action programmes - interventions
and laws that provide financial incentives to
firms for hiring young workers
• Employee mentoring programmes provide
mentoring services to new employees by
more experienced workers, often members of
a discriminated group.
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How to invest in youth
employment:
5. Addressing inadequate job matching
• Matching failures occur frequently among
youth who often lack relevant information and
access to networks that can help them find
the right job for their skills.
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How to invest in youth
employment:
6. Addressing poor signalling
• a factor for success in the school-to-work
transition is the ability of jobseekers to signal
their acquired skills to employers. Skills
certification systems work as a quality
assurance bridge that recognizes and attests
skills and competencies.
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How to invest in youth
employment:
7. Addressing lack of access to start-up capital
• Comprehensive entrepreneurship
programmes that combine skills training,
mentoring and financial support can
significantly improve the chances of starting a
successful business.
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Thank you for your attention!!!
Marta Jędrych
European Meeting Centre –
Nowy Staw Foundation
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