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How to promote more jobs for youth?

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Presentation by Anne Sonnet (OECD) on the occasion of the 20th LMO meeting on 6 June 2011 in Madrid, Spain

Presentation by Anne Sonnet (OECD) on the occasion of the 20th LMO meeting on 6 June 2011 in Madrid, Spain

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How to promote more jobs for youth? How to promote more jobs for youth? Presentation Transcript

  • European Economic and Social Committee Spanish Economic and Social Council Joint Conference “Youth Unemployment” Madrid, 6 June 2011 How to promote more jobs for youth? Anne Sonnet Employment Analysis and Policy Division Directorate for Employment, Labour and Social Affairs, OECD www.oecd.org/els
  • Impact of the crisis
      • The global crisis has hit youth hard and the short-term outlook is gloomy
      • Youth unemployment rate will remain relatively high in many OECD countries as recovery is relatively sluggish
      • Long-term unemployment among young job seekers is increasing a lot…
      • … .and is likely to leave “scarring” effects, particularly on structurally disadvantaged youth
    www.oecd.org/els
  • Youth long-term unemployment is on the rise Source: National labour force survey. . End 2010, the 15-24 unemployment rate in Spain was 43% and almost 1/3 of young unemployed were unemployed for more than 12 months www.oecd.org/els
  • Structural challenges
      • Significant improvements in the youth labour market prior to the crisis …
      • ...but persisting problems of labour market integration for some disadvantaged youth.
      • Two groups have particular difficulties in getting a firm foothold in the labour market
        • “ Youth left behind”
        • “ Poorly integrated new entrants”
    www.oecd.org/els
  • 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
        • Proxy indicator: The NEET group (neither in employment, nor in education or training) without upper secondary qualification
      • Main policy : a job and a qualification or diploma at the same time
    www.oecd.org/els
  • Poorly integrated new entrants
      • Youth who often have diplomas but frequently go back-and-forth between temporary jobs and unemployment, even during periods of strong economic growth
        • Proxy Indicator: youth aged 15-29 in 2005-2007 having left education and found a temporary job but 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 ”
      • Main policy : adjustments to the way the labour market functions
    www.oecd.org/els
  • In Spain in 2005-07, 15% of youth having left education were left behind and 22% were poorly integrated
    • Estimated size of the at-risk youth groups, 2005-07
    • As a percentage of the youth aged 15-29 having left education
    Source: Estimations based on EU-SILC and EU labour force survey . b) Unweighted average of countries shown. www.oecd.org/els
  • Key short-term policy tools
      • Move towards early intervention programmes and effective job-search assistance for different groups of youth to help youth to remain in contact with the labour market
      • Strengthen apprenticeship and other dual vocational training programmes for low-skilled youth
      • Encourage firms to hire youth, by offering temporary subsidies targeting low-skilled youth and those have completed their apprenticeship, as well as small and medium-sized firms
    www.oecd.org/els
  • Going forward , a number of structural problems should be tackled
      • Ensure that everyone leaving the educational system has the skills needed on the labour market
        • Second-chance learning opportunities for school drop-outs
        • Short-cycle university degrees closely related to the needs of the labour market
        • Greater links between university and the world of work
      • Make the transition from school to work less abrupt
        • More opportunities to work while studying
        • Compulsory internships at university
    www.oecd.org/els
  • G oing forward , a number of structural problems should be tackled
      • Addressing labour demand barriers for youth
        • Tackle discrimination in hiring ( e.g . mentorship for graduates with an immigrant background)
        • Reduce the cost of employing low-skilled youth, through lower social security contributions for low wages youth and/or sub-minimum wages such as in apprenticeship contracts
        • Continue efforts to reduce labour-market duality with particular focus on reducing the gap in employment protection between temporary and permanent contracts
    www.oecd.org/els
  • Concluding remarks
    • Tackling the youth jobs crisis requires a strong commitment from all , the youth themselves, the government through well-targeted and effective measures, the social partners though their dialogue and all actors on the field who can really make the difference in dealing with the human dimension of this crisis
    • Short-term measures need to assist school-leavers and young workers to remain in contact with the labour market
    • These measures are promising if they are consistent with the longer term reform efforts in education, social protection and the labour market that are necessary to ensure youth get a firm foothold in the labour market
    www.oecd.org/els
  • JOBS for YOUTH www.oecd.org/employment/youth www.oecd.org/els
  • JOBS for YOUTH Review of 16 OECD countries (2006-2010)
      • 9 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
    • Synthesis report Off to a good start? Jobs for Youth
    www.oecd.org/els