ROLE OF ACTIVE LABOUR MARKET POLICY MEASURES IN YOUTH EMPLOYMENT IN BOSNIA AND HERZEGOVINA Bratislava, 24 May 2016 Dr. sci. Asim Ibrahimagić Bosna i Hercegovina Agencija za rad i zapošljavanje Bosne i Hercegovine S A R A J E V O Bosnia and Herzegovina Labor and Employment Agency of Bosnia and Herzegovina S A R A J E V O Босна и Херцеговина Агенција за рад и запошљавање Босне и Херцеговине С А Р А Ј Е В О Bosnia and Herzegovina Labor and Employment Agency of Bosnia and Herzegovina S A R A J E V O

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 2 Labour market situation in BiH – administrative data A total of 530,370 registered unemployed persons in Bosnia and Herzegovina as of 31 March 2016 A decrease of 1.18% (6,314 persons) in comparison to the previous month  Trends in labour force supply: - Downward trend in the share of semi-skilled workers and those with primary and two-year post- secondary education, - Constant share of skilled and unskilled workers, - Upward trend in the share of persons with tertiary education. Largest share in registered unemployment in March 2016 was made up of skilled workers (33.8%) and persons with secondary education (27.6%).

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina  LFS 2015 – highest unemployment rate recorded among young population aged Youth unemployment (15-24) 62.3%, men 59,5%, women 67,3%.  In addition to the economic crisis, the educational system is yet another contributor to the gloomy youth unemployment statistics, which has been producing labour force for unemployment registers for many years now.  The share of registered unemployed youth with university qualifications has been rising since 2009 (2.96% in 2009, 7.83% in 2015). 3

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina Active employment policy programmes targeting young population  Active employment policy measures targeting young population have been taken to achieve three main goals: 1.Recruitment of young people through subsidized employment in order to provide them with necessary work experience; 2.Development of skills and competencies through training, retraining and skills- upgrading which facilitate youth employment and self-employment; 3.Promotion of labour market efficiency through vocational counselling and mediation in employment. 4

5 Active employment measures in BiH in Employment/self-employment promotion programmes implemented in BiH in 2014 involved about 13,000 persons; 10.5 million EUR was spent for this purpose. -About 65% of the programmes related to subsidies for new employment and self-employment and the programmes mainly involved young people with no work experience, women, returnees and members of Roma communities. Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

6 Most important active employment policy programmes in 2014: Federal Employment Service and cantonal employment offices Employment subsidies and subsidies for acquisition of first work experience - 9,275, EUR Strengthening competitiveness in the labour market – First work experience 2014 (2,500,000 EUR, 1,324 persons). Employment subsidies – An opportunity for all (3,650,000 EUR, 3,770 persons). Subsidies for seasonal jobs (104,000 EUR, 252 persons). Subsidized employment of hard-to-employ persons – Job voucher (480,000 EUR, 319 persons). Preparation for work through training, professional training and development – (982,000 EUR, 1,618 persons). Together in reconstruction - a public works programme – (982,000 EUR, 1,177 persons) Roma employment programme – (336,000 EUR, 92 persons). Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

7 Employment Service of Republika Srpska TOGETHER TO A JOB: employment and self-employment support project for children of the fallen RS Army soldiers, the RS Army soldiers disabled in war and unemployed war veterans – (1,180,000 EUR, 438 persons). First Job Project: support project for acquisition of work experience through traineeship – (1,150,000 EUR, 338 persons). Employment support project in the economy of Republika Srpska in 2014 – (1,175,000 EUR,1077 persons) Roma employment support project in Republika Srpska in 2014 – 113,000 EUR. (78,000 EUR, 23 persons). Employment Programme targeting Older Persons – (58 persons, 175,000 EUR). Roma Employment Programme – (4 persons, 17,500 EUR). Self-employment programme (29 persons, 169,000 EUR). Employment Service of the Brčko District of BiH Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

8 Most important programmes implemented by public employment services in BiH in 2015 Federal Employment Service and cantonal employment offices -Employment subsidies and subsidies for acquisition of first work experience in 2015 (5,600,000 EUR). -Preparation for work through training, professional training and development ( 975,000 EUR, 723 persons). -Self-employment subsidies - START UP (1,350,000 EUR,1,500 persons) Public works programme (720,000 EUR, 709 persons). Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

9 Employment Service of Republika Srpska -TOGETHER TO A JOB: employment and self-employment support project for children of the fallen RS Army soldiers, the RS Army soldiers disabled in war and unemployed war veterans, (1,280,000 EUR,793 persons). - Employment support project in the economy of Republika Srpska in 2015, (2,320,000 EUR, 1,585 persons). - Employment support project for persons above 45 years of age (1,280,000 EUR,785 persons). - Roma employment and self-employment project (149,000 EUR, 40 persons). Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

10 Employment Service of the Brčko District of BiH - Self-employment programme in the Brčko District of BiH in 2015 (231,000 EUR), - Employment project for persons above 45 years of age (77,000 EUR, 20 persons), -Roma employment and self-employment project (32,000 EUR). Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

11 AEP MEASURES PLANNED FOR IMPLEMENTATION IN THE LABOUR MARKET OF BOSNIA AND HERZEGOVINA IN 2016 Federal Government, Federal Employment Service and cantonal employment offices -Subsidized employment, self-employment and preparation for work (26 million EUR, between 10,000 and 11,000 persons). -Vocational guidance (vocational information, active job-search training programme, etc.) ( 103,000 EUR ). -Financing projects in partnership with other organisations and institutions – Federal Employment Service has allocated 512,800 EUR for 500 persons in 2016 Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

12 Employment Service of Republika Srpska -Together to a job: employment and self-employment support project for children of the fallen RS Army soldiers, the RS Army soldiers disabled in war and unemployed war veterans (584,000 EUR,793 persons). - Employment support project in the economy of Republika Srpska (685,000 EUR, 1,585 persons). - Employment support project for persons above 45 years of age (342,000 EUR, 636 persons). - Roma employment support project (49,000 EUR, 40 persons). -Projects to be financed from the budget of the RS Employment Service in accordance with the Employment Strategy and the related action plan for its implementation (5,450,000 EUR). Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

13 Employment Service of the Brčko District of BiH - Employment/self-employment subsidies in the Brčko District of BiH in 2016 (231,000 EUR), - Employment programme targeting older persons (both men and women) (76,000 EUR, 20 persons), -Professional training and preparation for employment (13,000 EUR, 90 persons). Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Agencija za rad i zapošljavanje Bosne i Hercegovine Labor and Employment Agency of Bosnia and Herzegovina

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 15 -Until 15 April ,700 companies have applied for the funding totalling 26 million EUR allocated in the Budget of the Federation of BiH for the implementation of the Regulation on Promotion of Youth Employment. -These companies have expressed interest in hiring a total of 4,500 young employees, while 2,200 applied for self-employment which is a total of 6,700 new young employees in the territory of the FBiH. -Not all of the resources have been allocated yet, but the number of young people planned to be employed from this allocation ranges between 10,000 and 11, The funding framework of 26 million EUR has been distributed to cantons proportionally to the number of the unemployed under the age of 30 in each of them. -The next step is signing of contracts due next month. - Federation of BiH - Regulation on Promotion of Youth Employment

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 15 Employment Action Plan in Republika Srpska for 2016 – a proposal: CONTINUE WITH THE IMPLEMENTATION OF ACTIVE MEASURES FROM 2014 AND 2015 : Roma employment support project in 2015 (25,000 EUR, budget of BiH, grant of the BiH Ministry of Human Rights and Refugees); Together to a job: employment and self-employment support project for children of the fallen RS Army soldiers, the RS Army soldiers disabled in war and unemployed war veterans (584,000 EUR, RS Government); Employment support project in the economy of Republika Srpska targeting young population (685,000 EUR, RS Employment Service); Employment support project for persons above 45 years of age (342,000 EUR, RS Government); Subsidies to employers hiring disabled persons (256,000 EUR, RS Government);

Employment Action Plan in Republika Srpska for 2016 – a proposal ctd.: AEP MEASURES IN 2016: 1. PROMOTE EMPLOYMENT GROWTH AND QUALITY OF JOBS Employment support project in the economy and self-employment targeting young population (3,130,000 EUR, RS Employment Service); 2. ENHANCE PRODUCTIVITY AND LABOUR QUALITY THROUGH HUMAN POTENTIAL DEVELOPMENT Support to young people in gaining their first work experience through traineeship (2,540,000 EUR, RS Employment Service + RS Government); 3. REDUCE LABOUR MARKET EXCLUSION AND POVERTY OF WORKING-AGE POPULATION, IN PARTICULAR OF VULNERABLE AND MARGINALIZED GROUPS, THROUGH THEIR INSERTION IN THE LABOUR MARKET Employment and self-employment support project for children of the fallen RS Army soldiers, the RS Army soldiers disabled in war and unemployed war veterans – Together to a job project (1,350,000 EUR, RS Employment Service + RS Government); Employment support for hard-to-employ persons (persons above 45 years of age, persons in need of social welfare and persons who lack up to three years of pensionable service to be eligible for retirement) (722,500 EUR, RS Employment Service); Roma employment support project in 2016 (112,500 EUR, budget of BiH, grant of the BiH Ministry of Human Rights and Refugees for 2015); 16 Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 11 Effects of the implementation of programmes: 1.) Subsidized youth employment programmes - Priority target group – youth with higher educational attainment. - Around 75% out of the total number of beneficiaries are young persons with higher educational attainment and the remaining 25% are skilled workers and youth with secondary education. Around 80% of the funds was allocated for persons with higher educational attainment and 20% for wage subsidies of young skilled workers and persons with secondary education. - The ratio of persons with higher to persons with secondary education in the participation rate is 5:2, while the ratio between the above groups in unemployment is 1:5. - Success rate: 60% of young persons remains in employment after termination of the programme.

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 12 2.) Subsidized self-employment programmes for youth - Involve smaller number of registered unemployed. - Beneficiaries are young persons under 30, regardless of their level of qualification or educational attainment. - Programmes also provide assistance in business management (accounting services, developing business plans to obtain business loans). - Success rate: Around 40% of start-ups ’’survives’’ for two additional years after the termination of the programme.

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 14 Recommendations: –Increase the scale of the AEPs targeting youth with secondary educational attainment and young skilled workers, –Implement entrepreneurship incentive programmes targeting young population, –Continue with implementation of youth employment incentive programmes and consider the possibility of allocating more funds for this purpose, –Undertake reforms in educational system and introduce the life-long learning concept, –Improve access to the labour market information for the young population.

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 15 -In accordance with the labour market situation and requirements, create employment programmes which are focused on core groups of unemployed youth to achieve more effectiveness and transparency. -Provide for monitoring of employers taking part in employment programmes to prevent programme abuse and enable the right selection of employers. -In order to facilitate a transparent implementation of the programmes, make sure that the general public, the target group in particular, is provided with information on what the programme offers, its modifications and outcomes.

Agencija za rad i zapošljavanje Bosne i Hercegovine Агенција зa рaд и запошљaвaње Босне и Хeрцeговине Labor and Employment Agency of Bosnia and Herzegovina 16 THANK YOU FOR YOUR ATTENTION! Dr. Sci Asim Ibrahimagić Labour and Employment Agency of Bosnia and Herzegovina