FIRST STEP TO FIRST JOB YOUTH EMPLOYMENT UGT TRADE UNION CONFEDERATION PERSPECTIVE 25 March 2013 UNIÃO GERAL DE TRABALHADORES

DATA ON YOUNG PEOPLE 2012 Unemployment rate in Portugal – 15.7% Unemployment rate in Portugal – 15.7% Youth unemployment rate – 37.7% Youth unemployment rate – 37.7% Drop-out rate – 21.3% (45% in 2002) Drop-out rate – 21.3% (45% in 2002) Leading to low wages, fixed-term contracts, poor working conditions, (precariousness) Leading to low wages, fixed-term contracts, poor working conditions, (precariousness) UNIÃO GERAL DE TRABALHADORES

MAIN INITIATIVES FOR YOUNG PEOPLE Professional Traineeship Programme: - Created in Quite successful - About 70% of insertion rate (before the crisis) Impulso Jovem Programme: - Created in August Part of the Strategic Plan of Initiatives to promote Youth Employment and to support SMEs - In line with the Commitment for Growth, Competitiveness and Employment – January Poor results 3 main pillars: -Professional traineeships; - Supporting recruitment and entrepreneurship; - Supporting investment. UNIÃO GERAL DE TRABALHADORES

IMPULSO JOVEM IMPULSO JOVEM August 2012 Why did it fail? (UGT’s view) The economic crisis; The economic crisis; The multitude of measures; The multitude of measures; Lack of clarity of the message; Lack of clarity of the message; Competition between measures. Competition between measures. UNIÃO GERAL DE TRABALHADORES

MAIN CHANGES TO THE PROGRAMME (February 2013) The age limit is now 25 years old, instead of 30. The youngsters aged will now be comprised by the IEFP traineeships; The age limit is now 25 years old, instead of 30. The youngsters aged will now be comprised by the IEFP traineeships; The traineeships’ duration was extended from 6 to 12 months; The traineeships’ duration was extended from 6 to 12 months; The financial support was reinforced (grant, food and insurance); The financial support was reinforced (grant, food and insurance); The youngsters no longer need to be registered in the IEFP as unemployed for at least 4 months; The youngsters no longer need to be registered in the IEFP as unemployed for at least 4 months; The 50 hours of training are no longer mandatory and may be replaced by workplace learning. The 50 hours of training are no longer mandatory and may be replaced by workplace learning. UNIÃO GERAL DE TRABALHADORES

FRAMEWORK OF ACTIONS ON YOUTH EMPLOYMENT NEGOTIATIONS EUROPEAN SOCIAL DIALOGUE European social partners aim to address three inter-related challenges: Strengthen the quality and relevance of education and training at all levels to address skills mismatches; Strengthen the quality and relevance of education and training at all levels to address skills mismatches; Optimize the role of industry, in particular SMEs, and of high performing public services in Europe as a driver of sustainable and inclusive growth; Optimize the role of industry, in particular SMEs, and of high performing public services in Europe as a driver of sustainable and inclusive growth; Create jobs and attractive career opportunities for young people. Create jobs and attractive career opportunities for young people.Priorities: - - Learning - - Transition - - Employment - - Entrepreneurship UNIÃO GERAL DE TRABALHADORES

SOCIAL DIALOGUE NATIONAL LEVEL UGT’s main claims - The existing national employment measures for young people must be simplified, harmonized and organized towards a specific direction; - The Youth Guarantee is fundamental. The Impulso Jovem Programme should be adapted to its aims, but its implementation in Portugal requires increasing European funding; - If not supported by economic growth policies, all the measures aiming at supporting employment are doomed.

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