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Labour Market and the Training of
young people in Spain and the United
Kingdom: a research report project
J.Manuel Galvin
-Expert AdvisorTripartite Foundation for Training in Employment-Observatory of Training in EmploymentBergamo, 17th December 2010
OUTLINE
1. Introduction: background of the research.
2. A brief overview of youth unemployment and
education trends in Spain & UK.
3. Brief overview of current labour market and
training policies for young people in both countries.
4 . Working hypothesis to set up possible ways
forwards in the project research.
1.Introduction:
background of the research
The political mandate:
Youth unemployment situation aggravated in
Spain & UK
 Spain & UK (October 2009) agreed to work together to analyze
youth employment issue, implement innovative measures in support
of employment for the youth of both countries, a problem gradually
aggravated in the context of the world-wide economic crisis.
 Join activity between both labour cabinets: establishing
support measures for the youth employment situation on the basis of
two dimensions (Bilateral vs. European).
 To set up a Task Force comprising civil servants from both
Administrations and led by the Ministry of Labour and Immigration
(MTIN-Spain).
Two working dimensions:
Bilateral vs. European
 Bilaterally:
-The analysis of the situation and the policies adopted in each
country within the respective institutional framework.
-The identification of shared principles and elements underlying cooperation in this area and, in particular, the driving of shared
initiatives.
-The interchange of expertise and good practices.
-The implementation of youth exchange programmes in order to
undertake training and obtain practical experience in companies in
both countries.
 European plane:
-The drafting of a proposal on youth employment for submission
during the six-month Spanish Presidency.
-The fostering of ministerial or other meetings for discussion of the
matter at European level.
Task force outcomes:
first steps agreed to further action
The 3 key outcomes:
Encouraging British and Spanish employers to offer
jobs/training/apprenticeships/work practice programmes to young
people in both countries.
Encouraging young people to set up new businesses
(Competition/Prize for the young entrepreneurs in United
Kingdom/Spain).
Commissioning prominent figures from academia to analyze the
barriers young people have to face in order to find work (internships)
and training: Research report on labour market and training
barriers to overcome by young people in Spain /UK.
2. A brief overview of youth
unemployment and education
trends in Spain & UK
The aggravated –and- dramatic state of the
art of youth unemployment in UE 27
45.0
Youth Unemployment in EU27 (+CRO/ NOR/TURK/USA) 2009-2010 (%)
42.1
40.0
35.0
30.0
25.0
19.1
20.0
15.0
10.0
5.0
2009
2010
NETH
NOR
AUT
DEN
EST
CYP
CZ
GER
LAT
SLV
IRE
LITH
MAL
USA
BUL
UK
EU 27
PORT
FIN
BEL
TURK
LUX
POL
ROM
FRA
SLK
HUN
SWE
ITA
GRE
CRO
SPA
0.0
EUROSTAT_ Labour Force Survey (LFS) :
(2Q _2009 )(Date of extraction) 30/III/2010)
July 2010 (Date of extraction): 1/XII/2010
In 2010 Spain increased share of young unemployed almost
5 points, while UK figures remain stables.
Young unemployment trends (UK)
Unemployment
rates
in UK
age
ranges
Figura 3. Tasas de
desempleo
UK by
según
edad
(Nov 2008-Jan
(2008-2010) 2010)
20
18
16
14
12
10
8
6
4
2
0
Nov -Jan 2008 Feb-Apr 2008 May -Jul 2008 Aug-Oct 2008 Nov -Jan 2009 Feb-Apr 2009 May -Jul 2009 Aug-Oct 2009 Nov -Jan 2010
18-24
25-49
50+
Source: Centre for Economic and Social Inclusion (UK)
Inclusion’s November 2010 ( own elaboration).
Currently, the young UK citizens unemployed aged 18-24 are almost three
times more representatives than their peers aged 25-49 years old.
Unemployment and training trends for young
people in UK
Young people unemployed and inactive and education
(Jul 2008-Oct 2010)
Unemployed, not in full-time education
Inactive, not in full-time education
Unemployed, in full-time education
JSA claimants (18-24)
JSA claimants plus Option participants (est.)
900
800
700
Thousands
600
500
400
300
200
100
0
Jul 2008
Source: Centre for Economic and Social Inclusion (UK)
Inclusion’s November 2010 ( own elaboration).
Oct 2008
Jan 2009
Apr 2009
Jul 2009
Oct 2009
Jan 2010
Apr 2010
Jul 2010
Oct 2010
The gap becomes bigger in UK between Inactive and Unemployed young's not
in full time education, compared to Unemployed in full time education.
Youth unemployment in Spain by range of ages
(2007-2009)
Youth employment in Spain by range of ages 2007-2009
(in thousands)
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
16 -29
16 -19
2007
20 -24
2009
25- 29
Source:Labour Force Survey. (2 Q) 2007-2009
The employment destruction for young people in Spain in the last years
has hit in all range of young ages.
Unemployment in Spain vs. Young unemployment
Unemployment rates in Spain 2007-2009:
Total population vs. Young by range of ages
60
56.3
50
40
33.4
28.4
30
29
21.2
18
20
15
12.6
10
8.3
8
0
Total Unemployment
16 -29
16 -19
2007
20 -24
2009
25- 29
Source:Labour Force Survey. (2 Q) 2007-2009
In 2009, the groups aged 16-19 (38 points %) and 20-24(15 points %) were
the most hit by unemployment compared to total unemployment rate
in the country.
UK and Spain: structural problems in both education
systems to explain labour market failures (I)
Early School Leavers Spain/UK (1998-2009 )(%)
35
30
31.2
25
20
15
Early school
leavers no
more than
10% in 2010
10
15.7
5
Source:Labour Force Survey. (2 Q) 2010
0
1998
1999
2000
2001
2002
Spain
2003
2004
2005
2006
United Kingdom
2007
2008
2009
Drop out in Spain is 21 points far away from Lisbon objective in 2010 !!!
More structural issues (II)…
Youth education attainment level
-% aged 20-24 with at least Upper 2 Educ- (2005-2009)
90
85
80
70
61.8
59.9
60
50
40
30
20
10
0
2005
2006
EU 27
2007
UK
2008
SPA
2009
Lisbon 2010
Benchmark
Source:Labour Force Survey. (2 Q) 2005-2009
Complexion of upper secondary in Spain (2009) is still 25 points far away
from Lisbon agenda objective in 2010 !!!
More structural issues (III)…
Population aged 18 to 24 years not having completed secundary education and
not following education and/or training 2002-2007 (in %)
50
45
40
45.1
36.3
35
30
30
31
25
20
24.3
19.3
17.8 17
15
10
5
0
2002
2007
Source:Labour Force Survey. (2 Q) 2002-2007
Portugal and Spain leads ranking of disengaged young people from
education and training in Europe.
More structural issues (IV)…
Level of Education attained by population aged 15-24 years old 2009
(in %)
70
66.0
63.3
59.0
60
56.2
53.6
53.2
51.8
51.6
50.3
50
49.1
47.6
47.2
48.3
46.6
45.3
41.2
40.1
40
40.9
39.5
38.6
39.0
37.3
32.9
30
28.8
29.1
25.8
20
13.9
12
10.4
10
9.7
7.9
5
4.5
3.7
1.9
2.1
4.6
2.1
0.6
0
Primarios
Secundarios
Terciarios
Source:Labour Force Survey. (2 Q) 2009
Mind the gap ! : Spain (Middle qualifications) & UK (Basic Education)
The bomb of socioeconomic added risks: scenario
of poverty for young workers
Poverty risk by age group (2008)
25
20
15
10
5
0
Spain
UE 27
Germany
France
18-24
UK
Hungary
Belgium
25-54
Source: Torres, Raymond -International Institute for Labour Studies (IILS–ILO)
The challenges for young workers are dramatics: massive youth unemployment while
increasing gap with adult rates are shaping a more precarious life perspectives : it might
have a dangerous impact on our societies (social unrest / more risk of poverty )
3. Briefing of Education and
Training policies to support
young people in the labour
market (SPA/UK).
Spain: The education and training measures
vs. recent labour market reform.
Public Training Policies aimed
specific support of Young people:
Training workshops & Home Offices
(16-24 years old) :
Programmes employment-training
(sectoral based).From seventh moth, a
labour contract is promoted between
project owner and young unemployed
persons.
at
Specific tools/measures to promote
labour contract s for young people:
Training contracts (16-21 years old).
Contract in practices (not more than 2
years & from 16 years old onwards) .
Contract to foster indeterminate
contractual relations (16-30 years old).
Bonus policy to foster permanent
contracts (16-30 years old).
 Capitalize unemployment benefits to
foster entrepreneurship until 30 years
old (self-employment from
unemployment income benefit).
Royal Decree -Law 10/2010 (16th June) of urgent measures to reform labour market
(chapter III): Bonus policies to foster indeterminate labour contracts /training
contracts are core issues which has been reformed in the new law.
Key stages of Investing in potential in UK:
strategy to increase proportion aged 16-24 in
Education, Training and Employment.
Pre-16: Early identification and support for young people at risk of
disengaging and their families.
16-18 years old: Full participation in education and training, including work with
training to improve skills/qualifications to be success.
Transition period : Advise and Guidance measures to further education/training
(Higher Education) or to become employed in labour market.
18-24 years old :At this stage, young people should be in the position to get the skills
they need to compete in the labour market.
4 . Working hypothesis
to set up possible ways
forwards in the project
research.
Issues and questions to analysis in the framework
of the research (I)
Assessment of new reforms on the labour market and training systems in
both countries already put in place, to fostering employment and education
for young people.
The entrepreneurial dimension and the development of business skills
among young people: self-employment / business creation / higher
education vs. entrepreneurial seedbeds.
 The quality of the employment and quality of the training/education.
 Professional’s skills/qualifications and employment: Which competencies
or new skills for what new jobs could occupy our youths? Will the emerging
sectors (green, white, blue) offer young people real opportunities for
employment with high and/or low qualifications?
 Could in-work apprenticeships in emerging sectors and those already
under way with pilot programmes based on a mixture of acknowledged and
certified basic and specific core competencies be a possible alternative?
Issues and questions to analysis and discuss in
the framework of the research (II)
 Would it be necessary to set up collaboration agreement with companies
in these sectors to create synergies?
 Job market and Training: Unqualified young people vs. Over-qualified
young people.
 The differences and the influence social/family and educational patterns
have on countries in such aspects as emancipation, the choice of educational
itineraries; learning outcomes, entry into the labour market, etc. (consider
examples of emancipation models in other countries).
 Measures encouraging hiring: impact of new types of labour and training
contracts.
 High-quality career advice services and strategies for supporting and
informing young people.
Diagnosis/valuation of the Initial/Occupational Professional Qualification
Programmes on offer.
Training for Employment: forward-looking proposals to identify and foster
criteria for young people with the greatest risk of exclusion to access the
employment market.