Employment generation inclusive social program

Trabaja Perú

Peru’s context

➢ Peru is located in Latin America.

➢ It has a population over 31 million people (according to the last national census, 2017).

➢ Its capital Lima, hosts about a third of its population.

➢ Peru is organized in 24 regions, 192 provinces and 1874 districts.

➢ It also has a broad cultural diversity:

55 indigenous groups and 47 languages.

General facts:

Peruvian social context – Economic shocks

2,7%

0,6%

5,5%

4,2%

5,0%

6,3%

7,5%

8,5%

9,1%

1,0%

8,5%

6,5%6,0% 5,8%

2,4%

3,3%

4,0%

2,5%

4,0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

A Trabajar Urbano Construyendo Perú Trabaja Perú

Peru: Gross Domestic Product (GDP), 2000 – 2018.Percentage variation

In 2001, Peru was facing an alarming economic recession, which repeated on 2009 and 2014.

48%

55% 54% 52%

59%56%

49%

42%37%

33%31%

28% 26% 24% 23% 22% 21% 22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

A Trabajar Urbano Construyendo Perú Trabaja Perú

65% 64% 64%

72% 73%68%

63%58%

56% 54%51%

48% 47% 46% 46% 45% 45%

5,1% 5,7% 5,2% 5,3% 5,4% 4,7% 4,7% 4,6% 4,5% 4,1% 4,0% 3,7% 4,0% 3,7% 3,5% 4,2% 4,1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

A Trabajar Urbano Construyendo Perú Trabaja Perú

Tasa de subempleo Tasa de desempleo

Peru: Poverty rates, 2000 - 2017 Peru: Unemployment and underemployment rates, 2001 - 2017

Peruvian social context – Poverty and unemployment trends

Poverty rates have fall more than 20 percentual points over the past 18 years.

Underemployment have diminished its rates; however, unemployment rates have remained steady over the past 18 years.

Peruvian social context - Natural disasters risks

Peru’s geographical characteristics and location makes the country vulnerable to different natural disasters:

Located in the Ring of Fire, which makes us vulnerable to seismic activities, like tremors, earthquakes, tsunamis and volcanos.

Located in a tropical area, which expose us to extreme rainfall, flooding, droughts, frosts, etc.

Located in the Andean Mountain Range, which makes us vulnerable to adverse geological phenomena such as landslides and snow slide.

Furthermore, there has been a lack of settlement planning that reflects on housing development in high-risk spaces.

El Niño. 1982, 1997, 2017 Seismic intensities in Peru. Andean Mountain Range

Precariousness concentration areas in Lima

Policy

➢ Building: National policy of employment➢ National policy of development and social inclusion➢ National system of targeting (SIFOH)➢ National system to prevent disasters and to act during emergencies (INDECI)➢ 18 social programs

Trabaja Perú is a social program fromthe Ministry of Labor andEmployment Promotion, that seeks tocreate temporary jobs for unemployedor underemployed population fromurban and rural areas of Peru, who livein poverty or extreme povertyconditions.

It was created in the year 2001, underthe name of A Trabajar Urbano.

¿What is Trabaja Perú?

➢ S/ 39 ($11.8) per worked day

➢ Safety equipment

➢ Accident insurance

Unemployed working age people (18 to 64 years old), with low levels of education (incomplete high school), living in poverty or extreme poverty conditions.

Maximum participations per year: 2

➢ Victims of the violence period in Peru,1980-2000 (official Victims Register)

➢ Gender violence victims

➢ Adults from 30 to 64 years old withdependents.

➢ Disable person

➢ Young adults from 18 to 29 years old

Prioritization criteria

¿Who does the Program benefit?

Benefits

88% of monthly minimum wage

Anual Budget: $ 30 millions

¿How does Trabaja Perú creates temporary employment?

Trabaja Perú creates temporary jobs by financing basic, social and economic infrastructure projects that require highly intensive unskilled labor force.

Projects’ typology with highly intensive unskilled labor force:

➢ Urban infrastructure

➢ Road infrastructure

➢ Sanitation infrastructure

➢ Protection and irrigation infrastructure

➢ Environment protection infrastructure

➢ Archeological and touristic infrastructure

Health centers & education infrastructure

Stairs

Potable water systemRoad and sidewalks paving

Reforestation of streets and avenues

Sports facilities

Parks, squares, pedestrian street

Byroads improvement

Channeling of rivers

Irrigation systems and water reservoirs

Retaining walls

Sewage system

Flood wallsSlopes reforestation and soil/land conversion

Trabaja Perú strategies

Geographical targetingThe Program identifies districts with higher unemployment and poverty rates.(937 targeted districts)

Individual targetingTrabaja Perú individualy identifies participants that meet the requirements.

Self-targetingIn order to attract the poorest households, as the wage rate is under the national minimum wage.

Targeting strategies:

Intervention strategies:

Project Competition Aimed to Regional Governments and Local Municipalities from targeted districts, who can compete for the Program’s funds (up to S/ 316,000 or $95,757) to cofinancetheir infrastructure projects.

Emergency ProjectsDesigned for districts that were declared in a State of Emergency due to natural disasters in the past year. Local Municipalities can be fully funded for projects up to S/ 1’200,000 ($ 363,636).

Immediate Intervention ActionsDirected to districts that are currently in a State of Emergency due to natural disasters to finance small activities to recover the victims livelihoods.

The 10%:

Immediate Intervention ActionsDirected to districts that are currently in a State of Emergency due to natural disasters to finance small activities to recover the victims livelihoods.

Emergency ProjectsDesigned for districts that were declared in a State of Emergency due to natural disasters in the past year. Local Municipalities can be fully funded for projects up to S/ 1’200,000 ($ 363,636).

✓ No target (geographical / individual)✓ Less requirements✓ Short processes✓ Open during the year✓ Additional resources

Especial protocol to act in emergency:✓ Ensure the services that the

program is prvinding (protecttion tothe participants in the runnngprojects)

Responsible for the follow-up and monitoring of the projects.

Having such a big and diverse country, it is necessary to providetechnical assistance to local government institutions accessibleto their location.

They provide assistance on two subjects:• Technical assistance to design eligible infrastructure projects.• Technical assistance on targeting participants.

20Regional office

across the country

Regional Offices

2018 results

INFRASTRUCTURE PROJECTS INVESTMENT

TEMPORARY EMPLOYMENT

DISABLE PEOPLE

YOUNG PEOPLE

MEN

WOMEN

COFINANCED BY LOCAL MUNICIPALITIES

COFINANCED BY THE PROGRAMINFRASTRUCTURE PROJECTS ACROSS PERU

TEMPORARY EMPLOYMENT GENERATED THROUGHOUT 2018* Including projects initiated on December 2018.

27 504*

364

• 81% Project competition• 19% Emergency Projects

60%

40%

2018

Before After Before After

Vice – SechuraPIURA

Road and sidewalks paving

Zapotal – ChongoyapeCHICLAYO

Improvement of pedestrian street

Challenges and lessons

➢ Promote projects that complement regional and local employment cycles.

Employment cycles in Peruvian departments

Due to different elements, such as weather, agricultural cycle, and traditional economic activities, there are clear economic cycles that have an impact on employment rates across the country that tend to repeat each year.

These cycles differ between departments, and even inside them; especially in regions where there is a vast diversity of environments (coast, highlands and rainforest).

For example, in the department of Cajamarca there is an unemployment increase in the 2nd

trimester of the year, where it experiences the loss of approximately 10 000 job positions.

Employment rate in trimesters. Cajamarca (2014-2017)

Source: National household survey, 2014-2017

Challenges and lessons

➢ Promote projects that complement regional and local employment cycles.

➢ Coordinate with other social programs to promote employment capabilities.➢ Type of projects

Formal employment after the Trabaja Perú

SOURCE: TRABAJA PERÚ AND PLANILLA ELECTRÓNICA DATABASE (2016 Y 2017)

Economic activity N° people %

Agriculture/Fishery/Mining 591 15Manufacture 326 8Construction 549 15Commerce 150 4Services 2,139 57Undetermined 26 0.1Total 3,781 100%

Economic activities of the formally employed

Wage N° people %

Up to $91 569 15

$92- $182 777 21

$183 - $282 1,032 27

$283 - $455 1,039 27

$456 to more 364 10

Total 3,781 100%

Wage of the formally employed

There is still an important gap to include the Program’s participants in formal employments.

93%

7%

Participants in 2016 projects from Trabaja Perú

Participants not formally employed after the Program

Participants formally employed after the Program

Challenges and lessons

➢ Promote projects that complement regional and local employment cycles.

➢ Coordinate with other social programs to promote employment capabilities.

➢ Adequate the Program to vulnerable population:• Have a gender approach on the benefits provided to

women (f.e. day care)• Have a multicultural approach that take into account

traditional economic activities and social rules for employment access.

➢ Improve the emergency component

www.trabajaperu.gob.pe