1. TOWARDS AN EMPLOYMENT POLICY FOR YOUTH Non official translation

2. The chilean reality on youth employment is similar to the rest of the world. The participation of young workers is low and they have higher provabilities of loosing their job first than older workers. In the case of young women the results are worst. In Chile, participation of young people in the laboral market is 30.9%, much lower than the world and Latin America. CHILEAN TENDENCIES Non official translation

3. PREVIEW: In Chile, the population between 15 and 24 years old shows a higher rate of unemployment compared to adults, reaching 19% aproximately. Some of the causes of this situation: Massive incorporation to empleoyment market from an initial situation of inactivity. More rotation in the first employment. Longer unemployment periods due to their lack of information of the laboral market and few network support. Different forms of laboral incorporation, that depend on educational level, social capital, habilities and family conditions. People with more education have access to employments with better conditions, more stability and formality, including higher wages. Non official translation

4. Unemployment Rates and Laboral Participation, Period July-September 2006, by Sex and Age Rank Age Rank Women Men Total Unemployment Participation Unemployment Participation Unployment Participation 15-19 years old34,77,425,816,628,312,3 20-24 years old19,840,014,664,316,652,1 15-24 years old22,223,217,338,119,130,9 25-34 years old11,055,28,692,29,573,6 35-44 years old8,152,74,896,26,074,0 45-54 years old5,949,04,793,75,171,0 55-64 years old2,532,34,178,93,654,7 65 and more1,27,51,925,01,715,2 Total9,537,77,171,37,954,2 Non official translation

5. Young people wages are in general lower than the rest of the workers. The wages of people between 15 and 24 years old, represent the 53.7 % of month average incomes, of the rest of the workers. (They receive in average half of the wages that adults receive.) For young women, this difference is shorter than in the case of men, because women receive in general lower salaries than men. In the case of women between 15 and 24 years old, their average income represents 62.6% of the total average. YOUNG PEOPLE AND WAGES: Non official translation

6. Age Composition of Economically Active Population and Reasons of Nonparticipation Non official translation

7. Young People´s Unemployment by Income Ranks Divided by income ranks, unemployment rate is much higher in vulnerable socialeconomic grupos. Non official translation

8. GUIDELINES OF POLICY: Considering the information checked previously, we aknowledge as fundamental, the design, implementation and promotion of a jointed policy that make possible the entrance of youth to the labour market, especially the unprotected and poor young people, they reproduce systems of poverty since they have less education, less contacts or support nets, less qualification, being vulnerable to contexts of social and laboral exclussion. ORIENTATIONS: Opening a way of promotion of part-time job for young people. Applying incentives for hiring of youth manpower. Stenghtening of labour insertion conditions for youth. Non official translation

9. PROGRAMMS AND TOOLS Direct labor hiring subsidies Youth in social risk Training and hiring subsidies Training Programs Transferences to public services Non official translation

10. HIRING SUBSIDIES FOR EMPLOYERS Program: PROEMPLEO, labor hiring subsidies, in its normal modality as well as with Solidary Chile. Charactersitics: Approximately US$ 330 is paid to the company for each worker hired,corr esponding to 40% of the monthly minimum wage for four months. A training bonus amounting to approximately US$ 85 per worker is also paid The program operates during a time of the year in which unemployment increases on a cyclical basis (May to August of each year). Non official translation

11. ECONOMICALLY VULNERABLE YOUNG PEOPLE Objetivos: Decrease youth unemployment rates, creating opportunities for social and economic vulnerable population of our country. Young People that belong to Solidary System hired in market jobs. Charactersitics: Subsidy for 50% to the minimum income for a period of 12 months. Trainning bonus of US$116 for every worker hired by the employer. Non official translation

12. APPRENTICE CONTRACT Objetivo: Promote and support hiring young people up to 25 years old in learning conditions in order teach them a job, through theoric and practic training, based in competences. Charactersitics: : Young women and men between 16 and 25 years old, that belong to low family incomes, socially vulnerable, unemployed, with parental responsability, that belong to the poorest income ranks. Subsidy for 50% to the minimum income for a period of 12 months. Trainning bonus of US$650 for every worker hired by the employer. Non official translation

13. NATIONAL SCHOLARSHIP PROGRAMM BENEFICIARIES: Under 20 years old and older than 18 years old with parental responsability. Men and Women between 20 and 45 years old. Socially and economically poor. Unemployed, first time job seekers and independent workers. BENEFITS: Free training courses in different occupations, up to 500 hours. Movilization subsidies and incomes to buy tools to develope an independent job. Technical asistence during 24 hours per day, distributed in 6 months and/or 384 hours of laboral experience. Insurance for personal accidents. Non official translation

14. TRANSFERENCES TO PUBLIC SERVICES Objectives: Train young soldiers of the army, navy and air force. Young people living in irregular situations. Youth in process of rehabilitation in special centers. Men and Women in special conditions of liberty. Non official translation