MODULE © International Training Centre of the ILO tackling youth employment problems tackling youth employment problems problem identification and situation analysis A Tackling youth employment problems Turin, 2 – 11 July 2007

M1 Problem identification and analysis modulemodule © copyright International Training Centre of the ILO 2 learning objectives after completing this module, participants will be able to establish better diagnosis of youth employment problems by… …strengthening their knowledge of basic employment concepts …reviewing recurrent youth employment problems …developing their capacity at developing an alternative or critical analysis of labour market situations

M1 Problem identification and analysis modulemodule © copyright International Training Centre of the ILO 3 outline A.employment: concepts and definitions –youth, labour force, employment, unemployment… –decent work B.youth employment problems –what young people want –what young people find –4 common problem areas C.understanding youth employment problems –causes and consequences –a matter of analysis

modulemodule employment: concepts and definitions

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 5 selected fundamental labour economic concepts youth labour force employment unemployment underemployment decent work

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 6 youth: definition standard UN definition: years old –15-19 = teenagers –20-24 = young adults countries may use other age limits –working age reporting –compulsory schooling –for policy purposes IPEC –5 – 18 = children S

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 7 youth: concepts the youth, as a group, differ in many ways from labour force participants in other age groups –they are less experienced –but are they are more adaptable… –they may be less productive –but they are often paid less…

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 8 youth: concepts at the same time they are, within their group, as diverse as the overall population: some young people are worse off than others –family background –gender –location (e.g. urban vs. rural) –ethnic background, caste, religion –disability, health problems –language, literacy –other skills

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 9 the labour force: definition comprises all persons who, during a specified brief period (either one week or one day), are either employed or available for work and seeking it Resolution concerning statistics of the economically active population, employment, unemployment and underemployment, adopted by the Thirteenth International Conference of Labour Statisticians (October 1982)

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 10 the labour force the currently active population, also referred to as the labour force the unemployed

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 11 employment: definition the state of performing, during a specified reference period, some work for wage or salary, or profit or family gain, in cash or in kind

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 12 employment: categories paid-employment –including apprentices self-employment –employers, own account workers, members of producers’ cooperatives –unpaid family members including… …the under-employed …full and part-time workers … at work or not at work

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 13 particular groups students, homemakers, pensioners engaged in economic activity contributing family workers producers for own and household consumption apprentices and trainees members of the armed forces others

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 14 unemployment: definition the status of all persons above a specified age who during the reference period were without work, but available for work and actively seeking it

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 15 underemployment (16th ICLS) underutilisation of the productive capacity of the employed population in relation to alternative work situation –time-related underemployment: insufficient hours of work –inadequate employment situations: inadequate use of capacities

modulemodule youth employment problems

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 17 youth employment problems not all youth are affected by employment problems but, on the whole, youth appear to be more affected than older people while youth unemployment rates are invariably higher than comparable rates for adults, youth unemployment is not necessarily the only, or, in terms of numbers affected, the worst of youth employment problems

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 18 employment: what young people want –full employment –stable employment –productive employment –rewarding employment –freely chosen employment –respect for rights at work –safe work –social security –voice, representation –social dialogue i.e. decent work!

M1 Problem identification and analysis > A. Employment concepts and definitions modulemodule © copyright International Training Centre of the ILO 19 decent work is at the heart of social progress “the primary goal of the ILO today is to promote opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and human dignity” ILO D.G. Juan Somavia:

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 20 employment: what young people find –unemployment –under-employment –precarious employment –low levels of productivity –low earnings, poverty –hazardous work –forced labour –child labour –denial of rights at work –lack of “voice”, representation

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 21 common problem areas: 1.low quality of jobs that the youth are in 2.inadequate quality of labour supply 3.ineffective (labour market) institutions 4.youth unemployment

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO low quality of jobs that youth are in low pay (or no pay) few hours, underemployment long hours, no vacation no contract, no rights no social protection harassment, maltreatment unhealthy, unsafe work no voice, no representation no prospects

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO inadequate quality of labour supply illiteracy low levels of education low quality of education low levels of skill skills mismatch lack of employability health problems

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO ineffective (labour market) institutions legislation, regulation discrimination labour market information training, retraining employment services representative organisations social dialogue investment climate

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO youth unemployment: a global issue youth and total unemployment by region and sex (in millions), 2004, source: KILM 2005 (Fourth edition)

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 26 question: are young people who are illiterate, or less educated than others, more likely to be unemployed? answer: maybe, maybe not! youth unemployment: assumptions

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 27 youth unemployment and illiteracy unemployment and illiteracy rates of young persons aged 15 to 24 years, 2000 source: KILM, accessed 01/2007

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 28 question: are young women more likely to be unemployed than young men? answer: maybe, maybe not! youth unemployment: assumptions

M1 Problem identification and analysis > B. Youth employment problems modulemodule © copyright International Training Centre of the ILO 29 youth unemployment by sex

modulemodule understanding youth employment problems

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 31 …to better tackle them by… … identifying their symptoms, context and consequences … appreciating their respective causes … knowing the people affected by them … formulating what is to be aimed at and … how objectives should be met understanding youth employment problems

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 32 understanding youth employment problems causes……..problems…..…policies…..….objectives……..solutions cause problem

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 33 consequences of youth unemployment as for unemployment in general –loss/lack of income, poverty –frustration, exclusion of youth being particularly affected –new talent undiscovered/wasted –anti-social behaviour

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 34 causes of youth unemployment affecting the youth particularly –many school leavers among job seekers –time it takes cohorts to find a job –waiting for a better opportunity –first-time insertion hurdles: employability –strict employment protection regulation favouring those already in employment –employer preference for older workers –“last in first out” –…………………………

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 35 causes of youth unemployment affecting the whole of the unemployed –weak overall demand for labour –qualifications mismatch –information constraints –mobility constraints –failing labour market institutions –economic downturn, financial crisis –structural and/or technological change –………………………….

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 36 a matter of analysis using labour market information to identify problems, to explain their causes, and to propose possible solutions in terms of pertinent labour market policies –which indicators –using indicators –using percentage changes –using indices

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 37 which indicators MDG 8: Develop a global partnership for development –Target 16: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth Indicator 45: Unemployment rate of 15- to 24-year- olds, male and female and total

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 38 which indicators Youth unemployment rate Ratio of youth unemployment rate to total unemployment rate Share of youth unemployment in total unemployment Share of youth unemployment in total youth population Proportion of young people who are either employed or in education or training Source: Guidance note for the preparation of national reviews and action plans on youth employment in response to resolution 57/165 on Promoting Youth Employment

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 39 60% of the year old are unemployed men 60% of the unemployed men are year old 60% of the year old men are unemployed 60% of the unemployed are year old men

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 40 Source: ILO, KILM 2003 <1 > a matter of analysis using indicators

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 41 a matter of analysis using indicators Total, youth, and adult unemployment rates in Brazil (2001), Turkey (2002) and South Africa (2000) Source: KILM 2003

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 42 a matter of analysis using indicators Ratio of youth to adult unemployment rate, Brazil (2001), Turkey (2002) and South Africa (2000) Source: KILM 2003

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 43 a matter of analysis using percentage changes percentage changes –the following are monthly wage data in Thai baht for employed persons in manufacturing from the first quarter of the Labour Force Survey:

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 44 a matter of analysis using percentage changes the simplest procedure for percentage changes is to compare the current year “t” with the previous year “t-1”: [ Wt - W(t-1) ] / W(t-1) * 100 using data for 1995 and 1996: ( 4800 – 4114 ) / 4114 * 100 = 16.7 %

M1 Problem identification and analysis > C. Understanding youth employment problems modulemodule © copyright International Training Centre of the ILO 45 a matter of analysis using percentage changes Percentage Changes in Nominal Monthly Wages for Manufacturing, Thailand (Baht) source: KILM 2005

modulemodule points to remember

M1 Problem identification and analysis modulemodule © copyright International Training Centre of the ILO 47 there are international conventions and regulations defining labour market concepts –but national contexts and priorities must be taken into account there are worst youth employment problems than unemployment labour market analysis can be carried out by different actors, even when little information is available question! –question the questions –question the data

modulemodule discussion time…