Role of Entreprenuership in Active Labour Market Programme TURKISH EMPLOYMENT AGENCY (İŞKUR) Aslı ÇOBAN Employment Expert Skopje; 16-17April 2015

2 CONTENTS I- Labour Market Indicators II- Structure of İŞKUR III- Services of İŞKUR Employment Services Passive Labour Market Policies Active Labour Market Policies Policies for the People with Special Needs IV- Entrepreneurship Programmes

3 Labour Market Statistics Unemployment Rates in The World COUNTRY AB 289,09,6 10,410,810 USA9,39,68,98.17,45,8 GERMANY7,87,15,95,55,35 FRANCE9,19,39,29,810,3 SPAIN17,919,921,424,826,123,9 SWEDEN8,38,67,88,0 7,8 JAPAN5,1 4,64,34,03,5 TURKEY12,510,78,88,18,710,4 GREECE9,512,6 17,724,327,325,8 Source : Eurostat

Source: TURKSTAT 4 Labor Market Statistics Turkey Indicators Non-institutional Population ,45774,947 Population 15+ Ages (Thousand people) ,60857,249 Labour Force (Thousand people) ,27129,181 Employment (Thousand people) ,52426,138 Unemployed (Thousand people) ,7473,043 Labour Force Participation (%) 47,948,849,9 50, Male , Female , Employment Rate (%) 41,243,045,0 45, Unemployment Rate (%) 14,011,99,8 9, Youth Unemployment Rate (%) 25,3 21, , Unregistered Employment Rate (%) 43,843,342,0 39,

5 Structure of İŞKUR Founded in 1946 In 2003, in line with emerging needs and changing circumstances, transformed into İŞKUR and new services added:  Unemployment Insurance Fund  Vocational Courses (Developed)  Sustainability Policies For The Crisis Period In 2011, Job and Vocational Counseling Service accelerated and total number of İŞKUR staff increased from to In 2015, 558 staff in General Directorate, staff in Provincial Units

6 Employment Services Public and Private After 2012 all placements performed by JVC’s Domestic Placements Employers abroad need İŞKUR’s approval to hire workers from Turkey Preparation and modification of bilateral labor force contracts Placements Abroad

7 Domestic Placements

8 Placements Abroad

Fund Asset: TL $ € Composition of unemployment insurance premium: 1% employee 2% employer and 1% state share. (as a percentage of gross wage) Unemployment Insurance Fund Finances: Unemployment Benefit Short Term Work Benefit Active Labor Market Policies Subsidies 9 Unemployment Insurance Fund

Unemployment Benefit 10 Requirements; Losing her/his job out of her/his will and fault To be worked continuously and paid premiums for atthe least 120 days To be paid unemployment insurance premium for at least 600 days within the last three years To be applied to İŞKUR (in person/online) within 30 days Provided Services; Payment of unemployment benefit Payment of general health insurance premiums Provision of vocational development and training course. Job and vocational counseling services Finding a new job Amount of UB; %40 of daily average gross earning May not exceed %80 of the gross of monthly minimum wage. Min: 476,95 TL Max:953,90 TL 201,55 $ 403,10 $ 177,51 €355,02 € Duration of UB; 180 to 300 days

11 Wage Guarantee Fund Employer cannot pay whole salary (such as bankruptcy) İŞKUR pays the unpaid part of the wage Max 3 months Short Time Working Allowance Due to economic, sectoral,regional crisis or compelling reason İŞKUR compensates the employees when the work time is reduced. Max 3 months Job Loss Compensation Related to privatized institutions only The workers who lost their job as a result of privatisation. 3 to 8 months Other Passive Programs

12 Active Labour Market Policies According to labour market analyzes in the provinces Based on employer labour demands 10 $ daily payment to the attendance Min 15 years old Vocational Training Courses “Every job seeker will have a Job and Vocational Counsellor" Supply and Demand side Visits to Employers Job and Vocational Counseling

A counselor will provide; Vocational guidance Guidance to trainings Job Placement Work adaptation Counseling to employers Outcomes; Shorter unemployment period. Higher employment and productivity rate. Sustainable employment 13 Job and Vocational Counselors JVC all over the Turkey Target Groups: Students Unemployed people Employees Employers

Job and Vocational Counselors Figures in 2014 December Job and Vocational Counselors 719 jobseekers per JVC in average 320 work-place per JVC in average Interview with jobseekers Company visits School visits

15 Active Labor Market Policies Target: long-term unemployed in the labor market For education and adaptation to the work 9 months employment on the public services Min 18 years old Public Works organized in order to provide participants professional experience 160 actual days 12 $ daily payment to the attendance Min 15 years old On the Job Trainings Business plan Certificate Access to $ Grant (Small and Medium Enterprises Development Organization/short name KOSGEB) 10$ Daily payment to attendance Min 18 years old Entrepreneurship

GRANT SUPPORT FOR DISABLED 16 Projects to Start New Businesses for Disabled Up to TL financal support to people with disabilities who have certificate of ISKUR’s entrepreneurship programme or who have certificate of VET in spesific field of the business to be set up. Supporting the Establishment Costs Covering the costs up to 2000 TL for official application, approval, permission, licenses etc. to start a business. Support For Enterprise Costs Covering %60 of the costs of electricty, communication, heating and water of the newly established business up to TL for 12 months against invoice. Supporting The Establishment Covering the costs of business’ techical equipment relevant with the core business area of the enterprise such as hardware, software, machines, consemable materials, office equipments etc.) up to TL for 12 months against invoice

Active Labour Market Figures 17 YEAR VOCATIONAL TRAINING COURSES ON THE JOB TRAINING PROGRAMMES ENTREPRENEURSHİP TRAINING PROGRAMMES PUBLIC WORK AttandeeManWomanAttandeeManWomanAttandeeManWomanAttandeeManWoman * *March 2015

Active Labour Market Programmes are covered vocational training courses, job and vocational counselling, on the job trainings, public works and entrepreneurship training programmes. Public employment services widely use entrepreneurship training programmes as a tool for reducing unemployment. This policy creates both high level of entrepreneurship skills and sustainable entrepreneurship eco-system. İŞKUR allocates 2,2 billion TL for active labour market programmes in Entrepreneurship as a Labour Market Policy

19 Entrepreneurship Training Programmes Entrepreneurship training programmes are delivered to help those registered in the Institution establish and improve their own businesses and enable them to apply Small and Medium Enterprises Development Organisation (KOSGEB) New Entrepreneur Support It is delivered to people who are registered to the Institution, are willing to benefit from entrepreneurship training programme, undergo evaluation processes developed by the Institution and are found acceptable for benefiting from this programme within job and vocational counselling services.

20 Entrepreneurship Training Programmes Participation Conditions Conditions are as follows: registered to the Institution (not only unemployed but also worker) At least 18 years old, Not having benefited from the same module in the Entrepreneurship programme before. “Applied Entrepreneurship Training Participation Certificate” is given to participants. This certificate is a document that can be used to apply KOSGEB New Entrepreneur Support.

21 Entrepreneurship Training Programmes Participation Conditions Each participant attending programmes; receives trainee compulsory expense (20 TL/13$), whose amount has been determined by the Administrative Board of the Institution, for each actual training day they attend. In the course of the programme general health insurance premiums and insurance of occupational accidents and professional diseases premiums of participants are paid.

22 Entrepreneurship Training Programmes Content of Training In trainings; applied and interactive techniques like sample case, exercise etc. are used. In workshops, analysis/research studies realized by the participants are evaluated together with the other examples that the trainer would present. Success stories of successful entrepreneurs may be included in trainings. These trainings are composed of four modules;  1st Module: Examining entrepreneurship qualities, developing business ideas and exercises on creativity – 8 (eight) hours,  2nd Module: The concept of business plan and its components (market research, marketing plan, production plan, management plan, financial plan) - 18 (eighteen) hours,  3rd Module: Workshops for consolidation of business plan components (market research, marketing plan, production plan, management plan, financial plan) - 24 (twenty four) hours,  4th Module: Writing business plan and points to consider during its presentation - 20 (twenty) hours.

23 Source: Turkish Employment Agency – İŞKUR

24 Thank You for Your Attention