FOSTERING DISADVANTAGED YOUTH EMPLOYABILITY: CONTRIBUTIONS OF COMPARATIVE STUDIES OF THE OECD

Transcription

1 Transitions to adulthood in knowledge societies: present and future of young people with low educational levels, 30 November 2012, Palma FOSTERING DISADVANTAGED YOUTH EMPLOYABILITY: CONTRIBUTIONS OF COMPARATIVE STUDIES OF THE OECD Anne Sonnet Senior Economist Employment Analysis and Policy Division Directorate for Employment, Labour and Social Affairs

2 Outline OECD work on youth employment Recent trends in youth labour market G20 process Quality apprenticeships 2

3 OECD work on youth employment Regular monitoring of labour market situation of youth and youth policies (OECD Employment Outlook) Country reviews on: Jobs for Youth Learning for Jobs Skills beyond School Investing in Youth in Emerging Economies 3

4 Role of international organisations in supporting G20 work on youth Background reports on: Recent labour market developments and key challenges Boosting jobs and living standards Youth employment Quality apprenticeships 4

5 JOBS FOR YOUTH REVIEW EU countries: Belgium, Denmark, France, Greece, Netherlands, Poland, Slovak Republic, Spain and UK 7 non-eu countries: Australia, Canada, Japan, Korea, Norway, New Zealand, US Youth spans the age-group 15/16 29 Main Outputs 16 country reports in Synthesis report in 2010: Off to a Good Start? Jobs for Youth 5

6 JOBS FOR YOUTH REVIEW Persisting problems of labour market integration for some disadvantaged youth even before the crisis Two groups have particular difficulties in getting a firm foothold in the labour market 1) Youth left behind 2) Poorly integrated new entrants 6

7 JOBS FOR YOUTH REVIEW ) Youth left behind Youth in this group cumulate disadvantages (no diploma; from immigrant/minority background; living in deprived areas etc.) and are at high risk of dropping out of the labour market Indicator: The NEET group (neither in employment, nor in education or training) 7

8 JOBS FOR YOUTH REVIEW Poorly integrated new entrants Youth who often have diplomas but frequently go backand-forth between temporary jobs and unemployment, even during periods of strong economic growth Proxy Indicator: 8% of EU youth aged in having left education and found a temporary job were not in a stable job two years after. This group is relatively prevalent in countries where there are many labour market demand obstacles for outsiders (e.g. Spain, France, Portugal) 8

9 JOBS FOR YOUTH REVIEW Estimated size of the at-risk youth groups, As a percentage of the youth aged having left education Left behind Poorly integrated 9 b) Unweighted average of countries shown. Source: Estimations based on EU-SILC and European Union labour force survey.

10 JOBS FOR YOUTH REVIEW A comprehensive, coherent and well coordinated approach based on four mutuallyreinforcing areas: 1. Education 2. School-to-Work Transition 3. Labour Demand 4. Active Labour Market Policies 10

11 JOBS FOR YOUTH REVIEW Education Ensure that youth leave education with recognised qualifications Implement better co-operation between employment services and the education system to reach youth as soon as possible when risk of disengagement is detected Strengthen apprenticeship targeted at low-skilled youth and young immigrants Promote second-chance learning opportunities for school drop-outs 11

12 JOBS FOR YOUTH REVIEW School-to-Work-Transition Make the transition from school to work less abrupt Promote the combination of work (no more than 15 hours a week) and study Set up compulsory internships at university starting at the bachelor s level Penalise firms that abuse fake internships for young people who have already graduated 12

13 JOBS FOR YOUTH REVIEW Labour Demand Tackle the demand-side barriers to youth employment Reduce the cost of employing low-skilled youth: youth sub-minimum wage, reduction in social security contributions paid by employers for low-pay workers, apprentice wage Continue efforts to reduce labour-market duality overall: protecting workers following a flexicurity framework Fight discrimination against the hiring of visible minorities Actively encourage the mentoring of graduates with an immigrant background 13

14 JOBS FOR YOUTH REVIEW Active Labour Market Programmes Make active labour market measures for disadvantaged youth more effective with a rigorous mutual obligations approach Provide more resources to public employment services to personally assist unskilled young people to find jobs Make social assistance conditional to a learning obligation to get a qualification Make sure that skill-upgrading services offered are tailored to the current profiles of jobless youth 14

15 JOBS FOR YOUTH REVIEW Actions are needed to prevent most school-leavers from being trapped in long spells of unemployment. But the target group for intensive assistance should be the hard-core group of youth cumulating disadvantages and at high risk of long-term unemployment and inactivity. It is therefore crucial that governments tackle the structural barriers disadvantaged youth face in education and in the labour market and foster their employability. 15

16 In 2012, wide disparities in youth unemployment rates across countries % Youth unemployment As a percentage of all youth (aged 15-24) in the labour force, a 2007 Q4 b and latest value available c 2007 Q4 Latest Note: Countries shown by ascending order of the latest value of the youth unemployment rates available. a) Argentina and Brazil: Selected urban areas only; India: Annual estimated persons/person-days (in million) based on the current weekly activity status. b) for India; 2005 for China; 2007 for Saudi Arabia; 2007 Q3 for Indonesia; and 2008 Q1 for South Africa.. c) 2009 for Saudi Arabia; 2010 for China; for India; 2011 Q3 for Indonesia; 2011 Q4 for Argentina; 2012 Q1 for Brazil the Russian Federation, Turkey and the United Kingdom; and 2012 Q2 for the other countries. Source: OECD Short-term Labour Market Indicators Database, various national labour force surveys and, for China, census estimates. 16

17 Many young people are neither working nor learning in 2011 Share of youth population (aged 15-29) not in employment, education or training (NEET rate) Percentage of youth population aged 15-29, a 2011 b 60 % Both sexes Men Women *: Selected urban areas. Note: Countries are shown by ascending order of the NEET rate in a) Youth aged for Australia.. b) 2004 for Indonesia, 2010 for China, India and South Africa, 2012 Q2 for Australia and 2012 Q1 for Japan. Source: OECD estimates based on labour force surveys and Eurostat, dashboard on EU youth indicators 17

18 The quality of jobs matters The share of working youth in temporary jobs is high in many EU countries Percentage of employed youth aged 15-24, by reason for temporary status, Voluntary Involuntary Other temporary

19 . as well as over-qualification Workers over-qualified for their job as a share of all employed in age group, 2010 (%) 60,0 Over-qualified Over-qualified ,0 40,0 30,0 20,0 10,0 0,0 Source: European Survey of Working Conditions,

20 G20 process for better youth outcomes Co-ordinated macroeconomic polcies G20 summits Co-ordinated action Boosting job creation Labour Ministerials Bringing jobs into growth framework Better youth policies Task force on employment Quality apprenticeships 20

21 Commitment made to: Meetings of G20 Labour and Employment Ministers in 2011 and 2012 Intensify efforts to tackle youth unemployment Consider effective school-to-work transition programmes Provide career guidance, education and facilitate skills acquisition with a strong focus on work experience and decent work Work with the ILO, OECD, other international organisations, and social partners to support implementation of national initiatives for youth employment G20 Task Force on Employment: Promote and strengthen quality apprenticeship systems, including sharing of national experiences and involving the social partners 21

22 G20 Task Force on Employment: Key elements of quality apprenticeships Based on questionnaire and background reports by ILO and OECD, 15 key elements identified Task Force considered that: Apprenticeships efficient way for tackling skills shortages and mismatches and for reducing youth unemployment Subject to national circumstances, scope to scale-up, strengthen and improve the quality of apprenticeship programmes Individual countries could, on a voluntary basis, explore technical cooperation on quality apprenticeships Labour Ministers may wish to encourage further exchanges and follow up on apprenticeships And acknowledge role of the social partners and encourage their efforts to foster agreements that promote and strengthen quality apprenticeships 22

23 Apprenticeships can give youth a better start in work but their use varies considerably across countries Participants in apprenticeship training, based on questionnaire replies Thousands and percentage of youth population in 2011 Apprentices, 2011 As a percentage of youth population (aged 15-24) a,b Data type Apprentices Population a Ratio b Brazil completions 250,842 33, Saudi Arabia stock 45,000 4, United States stock 398,000 38, Russia stock 219,000 20, Spain entrants 60,000 4, Turkey stock 169,945 11, France stock 420,000 7, United Kingdom entrants 457,200 7, Canada stock 400,000 4, Australia stock 449,000 3, Germany stock 1,508,328 9, a) United Nations projections for Brazil and Saudi Arabia. b) In some countries, apprenticeships are open to adult participants as well as youth, hence this ratio should be taken as only an indication of the size of the programme relative to the target population. 23

24 According to the OECD, successful Quality Apprenticeships require: Inclusiveness Participation of disadvantaged youth No age limits Multiple sectors and occupations Skills focus Strong training component Training not too narrow Well integrated with schooling system Competencebased completion Good governance Good governance to avoid misuse Joint management among stakeholders Sharing of costs 24

25 What can be done to expand and improve apprenticeships? Measures Direct costs Benefit Financial incentives High Stimulates demand for apprentices Flexibility of programme Low Stimulates demand for apprentices Involvement of employers and unions Encourage participation of disadvantaged youth Low High (preapprenticeship courses; additional subsidies) Keeps system in line with sector skill needs Increase government returns if school dropout rate falls 25

26 Encouraging participation of disadvantaged youth in apprenticeships Apprenticeships can be particularly effective for disadvantaged youth Disadvantaged youth are often disconnected from school and the labour market In a number of countries take up rates for low-skilled youth are low Pre-apprenticeship programmes to prepare them for standard apprenticeship Some countries (e.g. France and Australia) offer increased subsidies for low-skilled youth Others (e.g. Germany) organise pre-apprenticeship courses 26

27 Thank you 27