ISMERI EUROPA Hungarian Presidency Conference Stepping up to the challenge: repositioning Public Employment Services to enhance youth employment prospects Budapest, April 2011 Andrea Naldini European Job Mobility Laboratory Ismeri Europa YOUTH IN THE EU: OUTREACH, EMPLOYMENT AND POLICY IMPLICATIONS

ISMERI EUROPA European Job Mobility Laboratory Aims of the presentation  Provide an EU overview of youth employment after the crisis on the basis of the studies carried out in the European Job Mobility Laboratory of DG Employment  Focus on specific issues: −How PES can reach out to young people −How PES can support labour demand for young people

ISMERI EUROPA Impact of the crisis on young people Worsening of youth employment conditions: less remain employed, less find employment and more are in education or inactive Inverse correlation between unemployment rate and participation rate: preference for education during the crisis Finding a new job is proving difficult everywhere, though there are significant differences among countries The risk of “scarring effects” and stronger segmentation of the labour market European Job Mobility Laboratory

ISMERI EUROPA Job Mobility Partnership Source: Eurostat, Labour Force Survey Unemployment ratio Unemployment rate Increase in unemployment rate, but different participation in education produced diverse impacts

ISMERI EUROPA REACHING OUT TO YOUNG PEOPLE European Job Mobility Laboratory

ISMERI EUROPA Reaching out to young people: who are they? In 2009 about 60% of young people were students, 30-35% active and the rest (5-10%) inactive About 10% of young people were NEET (Spain above 10% and 9 countries less than 5% - based on self-reporting) The majority of NEET were women (about 60%); men were increasing among both young unemployed and NEET Medium and low educated unemployed young people prevailed, but unemployment was increasing among the high educated as well 25% of the unemployed young people were LTU European Job Mobility Laboratory

ISMERI EUROPA Reaching out to young people: where are they? In 2009 less than 50% of EU27 young unemployed were registered and less than 20% received benefits or assistance About 10% of young employed were in training or education About 25% of young unemployed were in training or education 40% of the employed aged had a temporary contract European Job Mobility Laboratory

ISMERI EUROPA EU27 – Few young people rely on PES Registered and assisted young people (% in 2009) Job Mobility Partnership

ISMERI EUROPA Reaching out to young people: implications for PES Expand PES capacity: not only unemployed young people –“Hunting out” the youth: adapting services, promoting partnerships (education, third sectors, local institutions,...), using new technologies extensively Support education and educational attainment –Providing orientation and work experience for students, combating dropping-out and offering a “second chance for qualification” Extend assistance with strict mutual obligations –Working together with social assistants, designing specific aid schemes European Job Mobility Laboratory

ISMERI EUROPA Reach out to young people: some examples Outreach officers, specialised staff seeking out potential clients (UK) and multi-channelling techniques to come into contact with youth ( , chat, skype, etc.) ‘Hope for suburbs’ plan (FR), intensive training and individual support for students lagging behind Partnership between PES and schools (DE), advisors supporting students to achieve qualifications and find internships Youth guarantees (SE, FI, UK, AT), schemes to support young people in finding a job, attaining a qualification (education or training) Reinforcement of apprenticeships and internships (FR, UK, DE, PL, IE, SL) European Job Mobility Laboratory

ISMERI EUROPA LABOUR DEMAND European Job Mobility Laboratory

ISMERI EUROPA Labour demand: is the school-to-work transition a barrier? The average age of first transitions varies greatly (19 in the UK and 24 in Slovakia) The better educated and those leaving education at an older age tend to have more success in finding jobs...but remaining in education longer does not reduce the short-term chance of being unemployed when entering the LM Apprenticeship-based educational programmes facilitate first transitions (Austria, Germany and Denmark) The school-to-work transition is a crucial step, which takes different forms depending on the characteristics of education systems and the strictness of LM regulation European Job Mobility Laboratory

ISMERI EUROPA Labour demand: are temporary contracts an opportunity or a constraint? Widespread recourse to temporary contracts: in % of employees aged were on temporary contracts compared to 10% of those aged Between 2005 and 2007 about 30% of career pathways of led to a temporary contract In some countries they are a stepping stone for stable contracts, while in other countries they tend to become a permanent condition Segmentation of the labour market is a serious risk, if temporary contracts are not linked to flexible and secure markets European Job Mobility Laboratory

ISMERI EUROPA Temporary contracts for youth Proportion of employees on temporary contracts by age, 2009 European Job Mobility Laboratory

ISMERI EUROPA Labour demand: what are the main limitations on the demand side? Youth employment declined because temporary jobs were easier to shed to adjust to the crisis Temporary workers have less opportunities for training on the job The absence of an adequate certification of qualifications hampers the mobility of young workers Technological, sectoral and productivity changes will speed up in the near future, which will generate mismatches and require considerable skills adjustments Job Mobility Partnership

ISMERI EUROPA Labour demand: implications for PES Support the transition from school to the LM –Defining specific packages of services, bridging youth and enterprises (work experience, mutual knowledge, high- quality workplace learning) Step up vocational training –through more apprenticeship opportunities and supporting the achievement of qualifications –cooperate with education and training institutions and enterprises to favour the identification of skills needs Support career guidance and inclusion of the weakest groups, especially temporary workers Promote the geographical mobility of young workers European Job Mobility Laboratory

ISMERI EUROPA Labour demand: some examples Action plan on youth unemployment (NL): public support for local firms taking on young job-seekers and for PES/Municipalities offering them training and working opportunities Training poles (FR, IT, IE): partnerships between training bodies, universities and firms to target training and human resources to actual needs Geographic mobility: the Brussels region broadened access to language vouchers for young jobseekers and to prepare them for recruitment interviews Incentives to hiring and cuts in non-wage labour costs (BE, BG, CZ, EE, EL, ES, LU, HU, AT, RO, SL, FI) European Job Mobility Laboratory

ISMERI EUROPA Challenges for PES Catering for the needs of young people forces PES to: –Extend their range of intervention to education and training activities, first transitions to LM, temporary workers –Become promoters of partnership/cooperation rather than the sole service providers –Design specific packages of services for young people –Anticipate skills demand involving firms and the education system in a mutual exchange at local level They need leadership, vision, a cooperative attitude, adequate legal and technical infrastructures European Job Mobility Laboratory