2007/HRDWG/FOR/015a Economy Report Peru: Policies and Programs for Human Resource Development in Peru (Presentation)

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1 2007/HRDWG/FOR/015a Economy Report Peru: Policies and Programs for Human Resource Development in Peru (Presentation) Submitted by: Peru Forum on Sustainable Career Development Throughout Working Life Chiba, Japan November 2007

2 MINISTRY OF LABOR AND EMPLOYMENT PROMOTION PERU Policies and programs for Human Resource Development in Peru Chiba, November 2007 Ministry s Mission Generate employment promoting opportunities and capabilities for labor insertion and promoting development and competitiveness of micro and small enterprises. Promote democratic system of labor relations: enforcing labor laws, preventing and solving conflicts and improving working conditions. Productive identity: identify and boost local competitive advantages and value local potentialities.

3 Peru: Overview Peru: Overview

4 Peru: Overview Disconnection between demands of the productive market and supply and quality of the careers. 50% of professionals are underemployed. Returns from education: 7.6% %, below the average. Basic education insufficient to provide adequate background to enter the labor market. Growing demand for technical training and careers (weak link with the requirements of the local labor market and low quality). Only 3% of workers receive OJT. Provision of training offered by the government is oriented to activities pursued by big industrial enterprises. Peru: Overview Tax regulations allow the deduction of training expenses from the enterprises income (its difficult to fulfill the requirements). Legal incentives for occupational training: temporary contracts, less than the minimum wage and no need to pay insurance and pensions labor inspections

5 Specific policies of the Ministry Increase labor insertion and correct mismatches between what the educational system offers and what the labor market asks for. New institutional framework for professional training Improve adjustment between supply and demand for qualifications: Organize the supply of occupational training courses. Update and improve the curricula of occupational and technical instruction institutions. Set up participatory processes for evaluating the performance of heads of schools and institutions. Enrol students from the rural areas Specific policies of the Ministry To improve the levels of adjustment ( ) (cont.): Apply different and creative approaches and flexible methodologies. Provide vocational and professional orientation. National System for Evaluation and Certification of the educational quality of the training institutions. Socio-Economical and Labor Observatories: produce, analyze and promote updated and specialized information about the labour market and the occupational education market in a specific city. Supported by local government, universities, unions, chambers of commerce and other local actors.

6 Specific policies of the Ministry Programs implemented by the Ministry PROJOVEN (Youth Employment Program) APROLAB Construyendo Peru (Building Peru)

7 Programs of the Ministry: PROJOVEN Objective: create job opportunities for vulnerable young population. 16 to 24 years old, poor, unemployed or underemployed and not have post secondary training or education 1) Promote labor insertion of poor and talented youngsters. 2) Connect educational institutions and the labor market. 3) Make enterprises aware that hiring young workers is a long term investment in human capital. It provides 3 month courses and after that, the beneficiary is placed in an enterprise for paid internship. Programs of the Ministry: PROJOVEN Cycle of ProJoven Pre-Selection of training institutions and participants Selection of beneficiaries Focalization Register of institutions 2-3 meses Training phase payed by ProJoven in the selected institution. The beneficiary receives an stipend by Projoven Training phase Paid internship in the enterprise. Insertion of the beneficiary in the labor market. Minimun period: 3 months Internship 3 meses 3 meses

8 Programs of the Ministry: PROJOVEN In the following interventions the program s scope of action will be extended and will add: Evaluation of results and impact. Advisory services for effective job hunting. Technical assistance for training institutions Internships and new methodologies: closer relationship with the business sector Focus its attention on the rural sector (mining, gas, petroleum, agro exporting and specially the forest sector and aquiculture). Draft of National Juvenile Employment Plan In 11 years: Aim: 1,182 training courses (60% in Lima) that involved more than 160 institutions 42,203 beneficiaries (65% en Lima) and 58% rate of labor insertion new jobs for youngsters in 5 years Programs of the Ministry: APROLAB Program of Support to Professional Training for Labor Insertion Objective: reorient professional training towards the demands of the market, the socio-economic needs and potentialities of development of the country. Joint effort between the Ministry of Education and the Ministry of Labor funded by the EU and the Peruvian Government. Length: 36 months (starting January, 2005). 3 main activities: Definition and launching of public policies regarding professional training Apply experimentally the new professional training design in 4 cities. Promote innovative experiences in each of the selected regions,

9 Programs of the Ministry: APROLAB The productive sector defines the needs of qualification and keeps them updated DEMAND Certification based on labor competences Adjustment between the demand of the productive market and the educational supply of opportunities for education and training Higher employability and mobility Program of labor insertion Improvement in the quality of life of population More productivity Information system: Socioeconomic and labor Observatory SUPPLY 1. Accreditation of professional training institutions. 2. Local programs of training 3. Quality of the educational opportunities Programs of the Ministry: PROJOVEN The program promotes the Socio-Economical and Labor Observatories in La Libertad, Ica and Cajamarca (training in management of information). What have we done until now: Drafting of specific studies to diagnose the local situation regarding labor insertion and training for work. Drafting of the monitoring system. Strategic alliances with local government and civil society and formation of working groups with the local relevant actors for ownership. Identification and inventory of innovative experiences. Organization of 10 open sessions in 10 cities to consult civil society and local experts about the orientation of professional training (302 participants) Funding of innovative experiences in 4 Peruvian cities. We will provide pedagogic and technological training for approximately 300 teachers of technical training institutions and will provide management tools for more than 100 heads of schools.

10 Programs of the Ministry: Construyendo Peru Construyendo Peru - Building Peru Joining forces with local government, this program is oriented to the poorest people. It provides temporary basic jobs for the local community. It works as a mean to finance, rehabilitate and reconstruct areas that suffered natural disasters. Since June 2007 the Program incorporated the provision of capacity building modules for the participants. general training: self-esteem, entrepreneurship, leadership specific training: minor animal nursing, craftsmanship, apiculture, etc. according to the potentials of each zone. Aug June 07: beneficiaries Aim: Provide temporary jobs for people in 5 years