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Internship – Real Start or Illusion? 05/11/2007 Centre’s Team of Interns/Collaborators.

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Presentation on theme: "Internship – Real Start or Illusion? 05/11/2007 Centre’s Team of Interns/Collaborators."— Presentation transcript:

1 Internship – Real Start or Illusion? 05/11/2007 Centre’s Team of Interns/Collaborators

2 PART I. H O N E Y If you are lucky during your internship you get …. practical experience in real job environmentpractical experience in real job environment development of you employability skillsdevelopment of you employability skills understanding whether it is the very workplace you dream about and if not - you will seek for a new job in the future with a much better insightunderstanding whether it is the very workplace you dream about and if not - you will seek for a new job in the future with a much better insight useful contacts and referencesuseful contacts and references career models and learn from themcareer models and learn from them competitive advantage adding this line in CVcompetitive advantage adding this line in CV chance to get a real job at the end chance to get a real job at the end It is a good first step as many employers hardly employ someone with zero working experience

3 PART I. H O N E Y Internship at the ITC ILO gives you chance to: (our experience) get work experience in international environmentget work experience in international environment participate in real projects with real risks but being an intern you do not carry that much responsibility on your shoulders (not considered as officials with regard to Centre’s Internship Programme)participate in real projects with real risks but being an intern you do not carry that much responsibility on your shoulders (not considered as officials with regard to Centre’s Internship Programme) get knowledge about special courses, job vacancies, contests and participate in itget knowledge about special courses, job vacancies, contests and participate in it learn to be more tolerable and open-minded, diversity influences your world view, you learn some general rules of conductlearn to be more tolerable and open-minded, diversity influences your world view, you learn some general rules of conduct Confront your views on tripartite relations with colleagues from different units of the ITC ILO – ACTRAV, ACTEMP etcConfront your views on tripartite relations with colleagues from different units of the ITC ILO – ACTRAV, ACTEMP etc

4 PART II. A FLY IN THE OINTMENT Despite being a good opportunity to get real job experience, at the same time internships may: bring false expectations be useful but only as long as the skills you are gaining are transferable skills; become exploitation of cheap labour “, i.e. “eternal internships” be marred by patronizing attitudes of your bosses, as interns do not dare disagree with them be an execution of the unskilled or useless job “nobody- wants-to-do” – boring and repetitive tasks be accompanied with absence of mentor/supervisor who really follows and directs your progress during the internship

5 EU & INTERNSHIP NEED TO ADAPT TO CHANGE EU & INTERNSHIP NEED TO ADAPT TO CHANGE Main Actors Vladimir Špidla and Jan Figel for High-Quality InternshipsYouth Resource wasted – unemployment and underemployment EU Labour Market 17.5 % YU 1 of 3 remain jobless 1 year after leaving education, temporary/part-time jobs Flexicurity - to improve young people mobility (YFJA) Education - Internship – Labour Market building bridges and activate youth Internship Avoid with little or no pay and with no added value, define properly Avoid with little or no pay and with no added value, define properly Initiative for a European quality charter on internships in 2008 Member states – promote internships, strong link with study curriculum

6 Internships in the US Internships in the US vary in duration between three months to one yearInternships in the US vary in duration between three months to one year They are unregulatedThey are unregulated When offered by private companies, they are always paidWhen offered by private companies, they are always paid They are the stepping stone to working in the companyThey are the stepping stone to working in the company They are widely availableThey are widely available They usually take place in parallel with studies, or during summerThey usually take place in parallel with studies, or during summer Companies rely on the tool because of labor market flexibilityCompanies rely on the tool because of labor market flexibility

7 Q. Internship – Real Start or Illusion WHAT DO YOU THINK ? YOUR EXPERIENCE

8 II. Youth and Labour Market 05/11/2007 Centre’s Team of Interns/Collaborators

9 There is no problem with unemployment in Ukraine!There is no problem with unemployment in Ukraine! Main problem – flow out of qualified youth – brain drain (blue card, demographic problems) -3 mln abroadMain problem – flow out of qualified youth – brain drain (blue card, demographic problems) -3 mln abroad Legalisation of “informal” salaries – real pensionLegalisation of “informal” salaries – real pension Pension for migrants – joint responsibility UA-EUPension for migrants – joint responsibility UA-EU Disproportion supply/demand on youth labour market due toDisproportion supply/demand on youth labour market due to mismatch education outcomes – LM requirements mismatch education outcomes – LM requirements Law “My first work place” - it used to be a sad story….50mln. UAH foreseen in 2008 state budget projectLaw “My first work place” - it used to be a sad story….50mln. UAH foreseen in 2008 state budget project Internships and probation periodsInternships and probation periods UKRAINE Second biggest fear

10 The situation in Belgium All data seasonally adjusted, and for the month of October 2007 (Eurostat)All data seasonally adjusted, and for the month of October 2007 (Eurostat) The total unemployment rate of Belgium is of 7.5%The total unemployment rate of Belgium is of 7.5% The Youth (as defined by ages 15-24) unemployment rate is of: 18.5%The Youth (as defined by ages 15-24) unemployment rate is of: 18.5% Why the difference?Why the difference? Compare this with Netherlands (similar size and economy, in close proximity), and you find rates of (respectively) 3.1 and 5.6.Compare this with Netherlands (similar size and economy, in close proximity), and you find rates of (respectively) 3.1 and 5.6.

11 Why is the rate of Youth unemployment so high? “Allocation D’attente”“Allocation D’attente” Inappropriate school-to-work transition policiesInappropriate school-to-work transition policies Large percentage of young people who do not complete school and/or go on to secondary educationLarge percentage of young people who do not complete school and/or go on to secondary education Fragmentation of the labor marketFragmentation of the labor market High costs of labor (2 nd most expensive after Norway in Europe)High costs of labor (2 nd most expensive after Norway in Europe)

12 The difference Belgium is a special caseBelgium is a special case Data suggests unemployment is mostly long-termData suggests unemployment is mostly long-term Huge regional differences in unemploymentHuge regional differences in unemployment Why?Why? –Mentalities –Economic conditions –Labor costs –Flexibility of the labor market

13 Solutions? Restart economic activity in the SouthRestart economic activity in the South –However, transfers from North to South never ceased, and yet little progress has been made Increase flexibility of the labor marketIncrease flexibility of the labor market –But at what cost? Encourage students to choose technical qualifications over humanistic onesEncourage students to choose technical qualifications over humanistic ones Facilitate school-to-work transitionFacilitate school-to-work transition Abolish “Allocation d’attente” and/or reduce the length of time unemployment benefits can be collectedAbolish “Allocation d’attente” and/or reduce the length of time unemployment benefits can be collected

14 Romania Romania - third EU country after Greece (22,9%) and France (21,6%) with 19,6% of youth unemployment (15-24 years) (EUROSTAT info, November 2007)Romania - third EU country after Greece (22,9%) and France (21,6%) with 19,6% of youth unemployment (15-24 years) (EUROSTAT info, November 2007) Labour crisis/limited staff (mainly in the construction industry, textiles and tourism sector)Labour crisis/limited staff (mainly in the construction industry, textiles and tourism sector) Migration (around 2 billion people abroad)Migration (around 2 billion people abroad)

15 Two important labour market reforms were introduced in the last decade: “Treu Package” in 1997 “Biagi Law” in 2003 aimed to increase flexibility BUT with few emphasis on security issues so we can’t talk about flexicurity Flexibility in Italy

16 The introduction of these reforms brought more segmentation between: workers holding open-ended contracts and workers on temporary employment Temporary employment is exponentially increased in parallel with the spreading of “temporary work agencies” Flexibility in Italy

17 About 40 different types of flexible contracts were introduced BUT NO reforms were introduced about unemployement benefits and lifelong learning CONTRACTS...fixed-term contracts, part-time, apprenticeships, job on call, job sharing, coordinated collaborations (continuous, project-based, occasional), stages/internships (only trough universities or professional training institutes)... Flexibility in Italy

18 TRADE UNIONS The Italian labour market segmentation might also be due to trade unions’ behaviour. They represent mostly the insiders (open-ended employees) and the retired, while the precarious/temporary workers and the unemployed are scarcely represented. They have not pursued a flexicurity strategy, and only now they are beginning to ask for a new unemployment benefit system able to cope with the needs of all workers. Flexibility in Italy

19 So, nowadays we have: less pension benefit low wages low income security difficult in finding open-ended contracts Which means: less perceived job security and life expectations (possibility to buy a house, to build a family, etc...) Flexibility in Italy

20 III. TACKLING YOUTH UNEMPLOYMENT EMPLOYERS’ WAY / WORKERS’ WAY 05/11/2007 Centre’s Team of Interns/Collaborators

21 TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAY 5 key elements for success Promotion of youth entrepreneurshipPromotion of youth entrepreneurship Labour market flexibilityLabour market flexibility Payroll cost policiesPayroll cost policies Policies on school-to-work transitionPolicies on school-to-work transition Business environment conducive to easy start-upsBusiness environment conducive to easy start-ups

22 TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAY elements for success Promotion of youth wage employment and workers ’ rightsPromotion of youth wage employment and workers ’ rights Flexibility + SecurityFlexibility + Security Decent workDecent work Improving the transition from school to workImproving the transition from school to work Promoting more and better jobs for young peoplePromoting more and better jobs for young people

23 TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAY 1) Promotion of youth entrepreneurship Employers’ organisations push governments to undertake a wide range of actions to increase the number of young entrepreneurs, such as: Providing enterprise education in schoolsProviding enterprise education in schools Providing access to support fundsProviding access to support funds Providing young people with easy access to business development servicesProviding young people with easy access to business development services Assisting youth SMEs to break into new markets and meet new clientsAssisting youth SMEs to break into new markets and meet new clients

24 TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAY 1)Promotion of youth wage employment and workers’ rights. The trade unions seek to promote: The cooperation with schools and young, NGOs on warness-raising about labour rights (as Freedom of Association, right to bargain collectively, and other ILS)The cooperation with schools and young, NGOs on warness-raising about labour rights (as Freedom of Association, right to bargain collectively, and other ILS) Vocational training and education that must be relevant to labour market needsVocational training and education that must be relevant to labour market needs Improvement of labour market information and vocational guidanceImprovement of labour market information and vocational guidance Safe working condition in general and opportunities for skill trainingSafe working condition in general and opportunities for skill training

25 TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAY 2) Labour market flexibility: Atypical forms of work and temporary agency create jobs and economic growthcreate jobs and economic growth facilitate access to jobsfacilitate access to jobs help young people gain a foothold in the labour markethelp young people gain a foothold in the labour market help workers who are going through labour market transitionshelp workers who are going through labour market transitions acts as a stepping-stone to permanent employmentacts as a stepping-stone to permanent employment enhances workers’ employabilityenhances workers’ employability provide much-needed flexibilityprovide much-needed flexibility

26 TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAY 2) Flexibility + Security Ensure that the basic labour standards are applied: Equal pay for equal workEqual pay for equal work Same working conditions for the same obligationsSame working conditions for the same obligations Equal wagesEqual wages Health and safetyHealth and safety Social securitySocial securityand Active labour market policiesActive labour market policies

27 TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAY 3)Payroll cost policies Payroll cost policies aim to reduce the cost of taking on young people for employers. They include: –Direct alteration of wage structures through lower wage-for-age scales in collective agreements and minimum wages –Reducing labour and training costs (through financial government incentives)

28 TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAY 3)Decent work Access to decent work = productive work in which workers rights are protected, which generates an adequate income and is accompanied by adequate social safety netsAccess to decent work = productive work in which workers rights are protected, which generates an adequate income and is accompanied by adequate social safety nets Give fiscal and monetary incentives for the creation of new employment for those industries at lower level from those which are labour intensiveGive fiscal and monetary incentives for the creation of new employment for those industries at lower level from those which are labour intensive Balance flexibility with social security policiesBalance flexibility with social security policies

29 TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAY 4) Policies on school-to-work transition Need for Employability skills Employers relay to the government what employers seek from new recruits in terms of employability skillsEmployers relay to the government what employers seek from new recruits in terms of employability skills Employability skills include: –Applying mathematical concepts to practical situations –Reading input-output graphs –Correct use of basic grammar, spelling and format for correspondence

30 TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAY 4) Improving the transition from school to work Adjust school curricula to the needs of labour marketAdjust school curricula to the needs of labour market Develop national qualifications frameworksDevelop national qualifications frameworks Introduce measures to reduce the number of school dropouts and incentives to encourage to returnIntroduce measures to reduce the number of school dropouts and incentives to encourage to return Combine technical education with training in “employability skills”Combine technical education with training in “employability skills” Make relevant labour market information and career guidance accessible to all young peopleMake relevant labour market information and career guidance accessible to all young people Provide training in entrepreneurship and business supportProvide training in entrepreneurship and business support Build strategic alliances with other stakeholdersBuild strategic alliances with other stakeholders

31 TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAY 5) Business environment conducive to easy start-ups Political, economic and institutional stabilityPolitical, economic and institutional stability Good governanceGood governance Investment in infrastructureInvestment in infrastructure Investment in health careInvestment in health care Investment in education and skills developmentInvestment in education and skills development Promotion of export growth strategiesPromotion of export growth strategies Access to creditAccess to credit Support for Small and Medium Enterprise (SME) developmentSupport for Small and Medium Enterprise (SME) development Policies promoting productivity and competitivenessPolicies promoting productivity and competitiveness Flexible labour market policies and the absence of red tapeFlexible labour market policies and the absence of red tape Safety net for failed start-upsSafety net for failed start-ups

32 TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAY 5) Promoting more and better jobs for young people By promoting job creation programmes that focus on expanding sectors (including services and new technologies)By promoting job creation programmes that focus on expanding sectors (including services and new technologies) By advocating the reduction of overtime and working hours to increase the number of jobs for young recruitsBy advocating the reduction of overtime and working hours to increase the number of jobs for young recruits By negotiating better working conditionBy negotiating better working condition By promoting social protection for all, including young peopleBy promoting social protection for all, including young people By supporting employment protection lawsBy supporting employment protection laws By promoting the abolition of “last hired, first fired”By promoting the abolition of “last hired, first fired” Increase investment in telecommunications infrastructure as well as in the ICTIncrease investment in telecommunications infrastructure as well as in the ICT

33 III. TACKLING YOUTH UNEMPLOYMENT WHAT DO YOU THINK? WHAT DO YOU THINK? HOW EMPLOYERS AND WORKERS CAN TACLLE YOUTH UNEMPLOYMENT?

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