Labor market activation of social assistance beneficiaries

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1 Labor market activation of social assistance beneficiaries Colombia: First steps of Red UNIDOS Luz Stella Rodríguez- Novoa World Bank Core Course on Safety Nets 2012: For Protection and Promotion December 10th, 2012

2 Colombia s Social Protection System Conditional Cash Transfer Program (2000) Social Protection Network To reduce extreme poverty (2006)

3 Distinctive features Demand-side, pro-active, multidimensional strategy aimed to eradicate extreme poverty and social exclusion. 3 main objectives To integrate and timely deliver relevant social services to extreme poor families To provide family counseling by trained social workers (cogestores sociales CGS) To grant preferential access to social services

4 Distinctive features Employment and income Identification Nutrition UNIDOS sets 45 Family goals aligned Into 9 different dimensions Access to financial services Health Access to justice Education and Training Family Dynamics Housing

5 Distinctive features Targeting: Extreme poor population: Bottom 1.2 million families in the SISBEN database IDPs families= Approx 5 million people. Personalized family counseling: Provided to families by social workers (cogestores sociales) who are subcontracted with private firms (universities, NGOs, community based organizations, etc). Today 10,000+ CGS working in more than 1,000 municipalities Preparation Counseling (up to 5 yrs) Graduation /Promotion Social/case workers find families and explain them the program Families sign a Co-responsibility Agreement and officially become part of UNIDOS Family baseline (family profiling where are families in the 9 dimensions?) 3 ses. Family Plan ( what families want to do? How can they get it? 3-4 sessions Monitoring and follow up of goals achievement. Families referral to local and national social services (link demand and supply) 5-18 Exit survey ( Did families move out extreme poverty? Did families achieve their family goals?) Promotion (+housing/labor/job services) Short term family counseling to prevent human capital losses (2 sessions)

6 Graduation/Promotion Necessary conditions 1 Families work on the Achievement of goals set up in the Family Plan 50% Achievement + targeted housing/ Income/jobs services 2 Monetary poverty 3 Multidimensional poverty Source: Ministry of Labor (2012) Sufficient condition Government Goal: To graduate 350,000 Families by 2014

7 Objectives: to increase income (especially for people over 60), Employment and Income employability and access to the labor market, and assets and collaterals for those who need to rely on selfemployment UNIDOS goals in the income and employment dimension Adults over 60 have an income source (in cash or in-kind). At least one family member over 15 has a paid job or an autonomous source of income. Working age adults, can access job market intermediation, small business development services, or job training (when needed). Family has legal access to land and/or housing.

8 Labor profile of UNIDOS beneficiaries Source: Ministry of Labor (2012)

9 The challenges on income and employment are cumbersome INCOME AND EMPLOYMENT MINIMUM CONDITIONS/ TOTAL NATIONAL NUMBER OF FAMILIES UNIVERSE REACHED % MINIMUM CONDITION 1. Adults over 60 have an income source (in cash or in-kind). 2. At least one family member over 15 has a paid job or an , ,00 33% autonomous source of income , ,00 75% 3. Working age adults, can access job market intermediation, small business development services, or job training (when needed) , ,00 4% 4. Family has legal access to land and/or housing , ,00 2% Source: ASNPE (January, 2012) TO REACH % ,00 67% ,00 25% ,00 96% ,00 98%

10 ALMP in Colombia Extreme poor/vulnerable populations face important barriers to access productive job/income Low human capital Lack of access to financial capital Non transferable labor experience (rural-urban migration) Need of psychosocial support (specially on IDPs) Problems on the existent ALMP Scattered and disperse supply of income/labor services wide variety of low-coverage, low-budget programs Lack of relevant employment and BDS services Persistent coordination problems between ministries and levels of government Absence of instruments to monitor programs and to evaluate results, performance, and impacts Existing PES does not target low-income poor 2009: Policy document on Income generation strategies for the extreme poor and IDPs

11 The plans to activate social assistance Ruta de Generación de Ingresos beneficiaries in the labor market: Red Unidos Tailored routes 1 One stop shops (Employment and BDS centers) 2 Profiling Job Relevant Skills 3 Vocational VOCATIONAL Education EDUCATION ad AND TRAINING Trainning Psyschosocial support Literacy Primary and secondary education Job training Terciary education 4 LABOR INTERMEDIATION LABOR PPP INTERMEDIATION Research on labor market demands Labor intermediation Followup/monitoring BUSINESS DEVELOPMENT ENTREPRENEURSHIP SERVICES AND AND BDS ENTREPRENEURSHIP Technical assistance for small productive projects BDS Seed capital - Micro financial services: insurance, credit, financial education Inclusive business Regional Labor Market Observatories Source: Ministry of Labor (2012) Income Generation Policy Information System

12 Labor activation of UNIDOS beneficiaries : Concentration on 6 main programs to support the graduation/promotion process. 2 agencies: Ministry of Labor and National Dept. of Social Prosperity : Paralely other agencies work on improving program s coverage and pertinence.

13 Trabajemos Unidos: Let s work together Objective: To increase employability of extreme poor and vulnerable groups : Youth, Women, Handicapped, Long-term unemployed, IDPs, and rural population Budget and goals: UD$85 M ( ), 100,000 families Components: Development of local (municipal)employment institutions Support and articulation of employment/job programs and services Active search for labor opportunities

14 Trabajemos Unidos: Let s work together Governance Technical Committee (Min. Labor, Department of Social Prosperity, DNP, SENA) Ministry of Labor Private operators are choose for their capacity to activate beneficiaries into the social labor (not only for employability) Source: Ministry of Labor (2012) Private operator Responsible for: Labor profiling (with SENA), Psychosocial support, Individual action plans Articulation of actors at the local level Contacts with potential employers Cost : US$550/beneficiary

15 Trabajemos Unidos: Let s work together Cycle Labor profiling Psychosocial support Action plans Technical skills Articulation TU PES Sena Job relevant skills: problem solving, learning, communication, personal, social Small stipend to participate in training sessions (up to for 55 days) Referral to existing programs Individual orientation sessions with trained labor counselors Literacy Basic education completion Job-training Local firms Community organizations Local governments Social Income Women Savers Training for Education Incentive Income and Entrepreneurship Route (RIE) Local strategies for employment generation Technical tables Local agreements LABOR MARKET ACTIVATION Source: Ministry of Labor (2012)

16 Existing Ruta programs de Generación for labor de activation Ingresos of the extreme poor Red Unidos One stop shops (Employment and BDS centers) 2 3 JOB RELEVANT SKILLS TU: job-relevant skills (problem solving, learning, 1 communication, PROFILING personal, social) Trabajemos Unidos (TU): Occupational Profiling of UNIDOS beneficiaries + SENA (PES) ENTRY POINT VOCATIONAL EDUCATION AND TRAINING National Learning Service (SENA) Skills orientation, Competences development Technical and technological education Training for rural youth Municipal education secret. 4 LABOR INTERMEDIATION Matching of skills and jobs Employment intermediation (lists of vacancies, preliminar screening) Training for employment incentive (ICE) TU ENTREPRENEURSHIP AND BDS Women Savers SME capitalization Use of unproductive Assets Income and entrepreneurship route (RIE) Source: Ministry of Labor (2012) Follow up

17 Trabajemos Unidos: Let s work together Results after the pilot stage 6 urban centers (4 months): COBERTURA Cantidad Hombres 1969 Mujeres Total Action Plans No. people LMI 2,426* Education and training 11,008 Referral to other programs 1,778 Total 15,212 * Nearly 50% undergoing application process. 14% currently employed. Source: Ministry of Labor (2012)

18 To keep in mind Best exit strategy from extreme poverty is the generation of autonomous income through work Programs are new and there are not conclusive results yet However, It is key to have moderate/realistic expectations about ALMP. Programs are highly dependent on the context Require coordination efforts with UNIDOS and with other programs. The demand for labor/jobs support clearly exceeds available programs. There is need for more money and monitoring. Is important to prepare social protection beneficiaries to move out of assistance into labor. Coordination of services via one-stop shops Labor coaching is a specialized intervention that requires trained professionals. Links with private sector, especially with employers Links with local governments and stakeholders is key.

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