Active Labour Market Policy Measures for Young Unemployed to Integrate into Labour Market Borbély-P., Tibor Bors, Ph.D. Senior Adviser, National Labour Office, Hungary Riga, 21st May 2014

Issues statistical portrait of the youth in Hungary different target groups and sub-groups of the young job-seekers national YG programme planning and implementation 2014: Youth Guarantee – bridging the gap: cooperation with schools active measures for youth

Source: John MauldinSource: John Mauldin If California Were Greece 05/29/2012 „It is simply hard to tear your eyes away from the slow-motion train wreck that is Europe. Historians will be writing about this moment in time for centuries, and with an ever-present media as we see it unfold before our eyes. And yes, we need to tear our gaze away from Europe and look around at what is happening in the rest of the world. There is about to be an eerily near-simultaneous ending to the quantitative easing by the four major central banks while global growth is slowing down. And so, while the future of Europe is up for grabs, the true danger to global markets and growth may be elsewhere. …”

Part I. Statistical portrait on youth employment, unemployment & underemployment in Hungary

Overall employment rate EU28 (15-64) Changes during 2013

Strong regional differences (employment & unemployment rates in Hu, 2013) LFS (15-64/74)

Youth unemployment rate (15-24) among the EU Member States (2011,2012) With absolute numbers 4 MS have more than half of the young unemployed (UK, FR, ES, PL)

Youth employment rate (15-24), Hungary vs. EU27 ( ) Eurostat, LFS Open issues (TBD); dual-status, dual-training work-first vs. train-first approaches changes in school age limits long-term vs. short-term personal & public good of education Consumption growth vs. GDP growth vs. new ways of measuring development (e.g. OECD: Better Life Index) …

Forrás: Eurostat, LFS Employment rate (15-24) by ISCED-levels, HU vs. EU

NEET-rate (15-24) HU vs. EU Forrás: Eurostat, LFS

Registered young job-seekers (15-24) * based on the Hungarian Employment Act January- December 2012 NFSZ regiszter

Registered job-seekers by ISCED groups, 2012 NFSZ regiszter

Part II. Hungarian Practices for youth integration

Content Career guidance Cooperation with schools Active measures National plans for youth guarantee programmes

Career guidance Hungarian PES based on the mandate of the Hungarian ministry responsible for labour has been developing a national lifelong guidance system since Since 2010 the current government has been managing the national programme; the current phase has strong emphasise on open vacancies, vocational training & dual system developments The Berlin Communiqué (3rd July, 2013) on PES actions and youth guarantee programmes highlights the further development of a national vocational counselling structure and a strong link between schools and PES

Cooperation with (primary & VET) schools: recent trends The head office of the Hungarian PES was merged with the National Adult & Vocational Education Institute in 2012 orienting the VET system for the long-term open vacancies; stipendium for primary school students at grades 7 & 8; national list (Gov. edict 331/2012 (XI.28.) on sponsored and non-sponsored vocational occupation at county levels

Dual training, work practice The political programme of the current government set up the goal of dual training system development jointly with the Hungarian Chamber of Commerce and Industry; – the new act on VET (2011) describes the 3-year trade school; strong focus on vocational education also allows students from grade 9 (age 15) get engaged in workplace-based apprenticeship agreements.

Active measure & programmes (I.) First Job Guarantee Support for employers hiring registered jobseeking career starters in part-time or full-time employment for maximum 4 months Entitled: Career starters having not obtained eligibility for jobseekers’ allowance after completing their studies, among them priority is given to unskilled persons and long- term jobseekers. Amount: 100% of the wage and social contribution tax, plus the refund of travel expenses (prepayment) Length: 4 months Financial resources: HUF 3,6 billion (National Employment Fund) Target: placement of 7000 career starters into the labour market- it has succeded Application period: 1 September 2012 to 31 December 2012, but it is continuing in 2014.

A new intervention for those jobseekers who, in absence of suitable jobs, are not able to enter employment locally Target group: jobseekers trying to find employment for at least three months; jobseeking career starters; and employees affected by collective dismissals Period/Amount of the allowance: 18 months, as a fixed amount calculated degressively every six months (max –60.000– Ft/person/month; HUF1,2 Million/person in total) Conditions: – At least six-month long twenty-hour-per-week employment found at least one hundred kilometres or three hours’ (six hours daily in total) travel by public transport from the person’s domicile – Monthly gross earnings may not exceed 300% of the amount of the minimum wage. Resources: This measure is financed within EU-funded active labour market programmes under the New Széchenyi Plan. Active measure & programmes (II.) Housing allowance for mobility

Active measure & programmes (III.) youth entrepreneurship Support stimulating youth entrepreneurship: Target group: young people aged years. Training opportunity: entrepreneurship education (financial literacy, business plan, marketing, legal environment, etc.); mentoring and counselling. Financial support: a non-refundable grant of HUF 3 million A total of HUF 7 billion using EU funds will be available to assist around young entrepreneurs in launching their businesses Trainings start at the beginning of this year, the grant can be applied for after completion of the training. Innovative employment programmes (ÚSZT – HUF 4,7 billion funded by the EU): Target: developing models of employment programmes. Priority target group contains career starters and young people having disadvantaged social background or living in undeveloped regions with lacking work opportunities.

YGI: Europe

YGI: Europe (2) Berlin, High level meeting, 3rd July 2013

YGI: Hungary- open issues PES has ½ of the target group within the registry Another half of young people are not visible for PES Services & tools for effective help must be integrated at a horizontal policy level (How?) How will come first: low skilled (under ISCED 2); long-term unemployed (more than 4 months)

Thank you for your attention

Some issues for discussion dual-status (work & school) of the students / youth dual-training work-first vs. train-first approaches changes in school age limits (increasing, decreasing?) long-term vs. short-term personal & public good of education Consumption growth vs. GDP growth vs. new ways of measuring development (e.g. OECD: Better Life Index) PES (PES 2020) as a broker: one access point for services and active measures but does not count as a provider