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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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Presentation on theme: "Preserving employment regarding best practices for combating poverty and social exclusion – a special look to the situation of young people Wrocław, 26.09.2010."— Presentation transcript:

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. 1

2 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. 2

3 Changes in unemployment for the EU 3

4 „GLOBAL EMPLOYMENT TRENDS FOR YOUTH Special issue on the impact of the global economic crisis on youth” August 2010 International Labour Office, Geneva 4

5 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 5

6 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. 6

7 7 Total (%)Male (%)Female (%) 200020102015200020102015200020102015 WORLD 53.850.950.262.558.958.244.742.441.6 Developed Economies & European Union 53.150.2 55.952.652.550.347.747.9 Central & South –Eastern Europe (non-EU)& CIS 42.441.740.848.947.747.035.735.534.3 East Asia South-East Asia & the Pacific 55.851.350.663.559.157.948.043.342.9 South Asia 48.046.546.366.164.364.028.527.327.2 Latin America & the Caribbean Middle East 36.936.334.752.650.348.120.221.520.5 North Africa 39.437.936.553.452.550.225.122.922.3 Sub-Saharan Africa 57.857.557.464.162.761.151.452.252.7 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.

8 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 8

9 Trends in youth employment: In 2008 44.7 % of youth were working, compared to 47.% in 1998. Regions where the youth employment-to- population 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 9

10 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 %. 10

11 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 11

12 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 12

13 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. 13

14 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 14

15 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 15

16 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 16


18 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 18


20 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 low- wage rate in public works and other activities that produce public goods or services. 20

21 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. 21

22 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. 22

23 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. 23

24 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. 24

25 Thank you for your attention!!! Marta Jędrych European Meeting Centre – Nowy Staw Foundation 25

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