the uncompetitive groups in labor market and integration

The uncompetitive groups in

labor market and integration

difficulties

Yerevan, September 5,6, 2011

Sona Harutyunyan

Head of RA MoLSI “State Employment Service Agency”

SESA www. employment.am

Republic of Armenia

• Territory - 29,74 sq. km.

• Population - 3.3 million,

• including urban - 2091.1

• Economically active population -

1177.4

• Employed - 1099.8


106.9

85.9

113.7

102.1

0

20

40

60

80

100

120

2007 2008 2009 2010

GDP

The impact of global economic crisis on country’s

economy


Unemployment rate

7

28.7

17.2

19.6 19 19

6.3 7 6.9 6.6

0

5

10

15

20

25

30

35

2007 2008 2009 2010 2011

Officially registered unemployment rate

Unemployment rate according to totalled survey data on household well-being


Unemployment rate in the Republic of Armenia/%

2

3 3.2

5.6

11.1

9.3 9.610.1

4

8.78.1

0

2

4

6

8

10

12

Ara

ga

tso

tn

Ara

rat

Arm

av

ir

Ge

gh

arq

un

iq

Lo

ri

Ko

tay

k

Sh

ira

k

Sy

un

iq

Va

yo

ts D

zo

r

Ta

vu

sh

Ye

rev

an


Uncompetitive groups defined in Legislation

• the disabled,

• the individuals who have returned from confinement institutions and the institutions applying coercive actions (compulsory measures) of medical character,

• the children who reached the labor age and who are left without parent care,

• the individuals demobilized from the compulsory term military service,

• the unemployed with at least 35

years insurance pattern who have still up to 5 years to reach the age for attaining the right for pension ,

• the individuals who have got the status of an unemployed for more than

three years,

• the refugees, • victims of trafficking,

• the individuals registered at the addiction service who are in period of remission.


Other uncompetitive groups

There is a number of groups

that are considered as

vulnerable in labor

market. They are

• the youth (rural youth is

specifically in the focus of

attention),

• migrants



0

5000

10000

15000

20000

25000

30000

35000

40000

45000the youth

the disabled

long-term unemployed

the individuals who have returned from

confinement institutions

the children left without parent care

the individuals demobilized from the compulsory

term military service

the unemployed with at least 35 years insurance

pattern who have still up to 5 years to reach the

age for attaining the right for pension the refugees

The number of uncompetitive groups among the

registered job seekers

The youth in labor market

as of 01.07.2011

• the number of registered youth - 23% of job-seekers (20 thousand)

• 24.4 % of the placed is youth (annual average)

• round 12% of the registered youth gets employed (annual average)

Census of educated youth

0.6

5.20.37

14.6

7.1

22

49.5

secondary general

middle vocational

higher

primary proffessional

basic general

non-complete higher

primary


Major issues

• Lack of work experience,

• Lack of fully developed system of professional orientation,

• Imbalance between labor market supply and demand,

• Imbalance between demand and education quality,

• Absence of vacancies (esp. in rural areas)

• Low wages,

• Low motivation towards labor activities/professions,

• High self-esteem


Disabled in labor market

13351482 1522

1793

1156 1204 1170

0

500

1000

1500

2000

2005 2006 2007 2008 2009 2010 2011

Registartion atSESA

• The number of disabled -185000,

• among which 120000 are at labor age,

• only 9 % is involved in work activity.


5653

77

125

98

110

3337

56

70

94 96

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010

Placed with support of employment

offices

including those placed in the result

of programs

Issues

• Lack of skills and/or work experience,

• Transport and building accessibility problems,

• Unmatched workplaces,

• Low self-esteem,

• Absence of “job coach’s institute”

• Non-productive application of different social incentives,

• Too big attention on behalf of family members,

• Lack of tolerance in social environment,

• Lack of general social responsibility in society.


Long-term unemployed in labor market

Issues

• Lack of experience,

• Low self-esteem,

• Lack of motivation to work,

• Adaptation difficulties and complexes in work environment,

• Low wages

78800

25551

15975

0

10000

20000

30000

40000

50000

60000

70000

80000

Long-term unemployed

Unemployed

1-3 years

3+ years

Educational census

57.829

13 0.4

general

secondary

professional

higher

primary


Migrants

Issues

• Gaps in legislation,

• Lack of labor migration

assessment mechanisms,

• Lack of pre-departure

counseling mechanisms,

• Lack of labor market

integration mechanisms


State programs and measures for

uncompetitive groups

Workplace adjustment

Practice

(practical training)

Job fair

Public works

Financial support to

entrepreneurial activities

Salary compensation

job mission

to some other place

Vocational training

State programs


Vocational training

• Implemented since

1996,

• directed to all

uncompetitive groups,

• implemented through

colleges and

employers

Involvement of uncompetitive groups in the program

56%20%

5%

19%

youth

long-term unemployed

disabled

other


1316

696

21

1545

610

28

1603

351

17

0

200

400

600

800

1000

1200

1400

1600

1800

2008 2009 2010

Placed in the result of vocational trainings

Those involved in trainings

Placed

Disabled

Partial salary compensation to employer

• Implemented since 2006 on the basis of the Swedish experience,

• All uncompetitive groups defined by legislation are beneficiaries of the program

Involvement of uncompetitive groups

57%

41%

2%Long-termunemployed

Disabled

Other


52

11

162

40

167

63

229

107

193

94119

55

0

50

100

150

200

250

2006 2007 2008 2009 2010 2011

Involved in the program

Disabled

Financial support to entrepreneurial activities

• Compensation is only

provided for state

registration of

entrepreneurial

activity,

• The program efficiency

increases in cases of

cooperation with other

state or international

organizations

Involvement of uncompetitive groups in labor market

19%

8%

40%

33%

youth

disabled

long-term unemplyed

other


64

27

104

79

117 113

100

25

0

20

40

60

80

100

120

2008 2009 2010 2011

Financial support to entrepreneurial activities

Involved in the program

Current

Paid public works

• Provision of

temporary

employment

• Implemented for

accomplishment of

social infrastructures,

and maintenance of

cultural and

ecological values

26%

5%64%

5%

youth (rural)

disabled

long-term

unemployed

other


282

439

7000

218306

4700

314 457

6300

0

1000

2000

3000

4000

5000

6000

7000

2008

2009

2010

Paid public works

Communities involved

Number of approved projects

Number of involved in paid publicworks

Job fair

• Implemented in the frames of international programs (USAID, WB)

• Implemented as a state program since 2009 (6 job fairs annually)

• Career fair for youth (USAID,2011)


Organization of job fairs

218279

1363

1478

826

2104

10750

17800

0

500

1000

1500

2000

2500

2009 2010

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Number of employers

Number of vacancies

Number of expected

vacancies

Number of job-seekers

Newly implemented programs

Implemented since 2011

• Vocational training for

rural youth

• Organization of practical

training with employers for

young people (also youth

with disabilities)

• Workplace adjustment for

people with disabilities


International cooperation

• Numerous programs

and measures are

implemented in the

result of international

cooperation

French-

Armenian

Foundation

EC

SIDA

Dutch

MATRA

People

in Need DVV

international

ILO

IOM

UNO

GIZ

WB

USAID

SESA


Investment of supported employment model

Supported employment model was invested in the frames of SIDA-financed project

Current programs for disabled

• USAID,

• ILO,

• The Netherlands (MATRA).


Job clubs

• Invested by support of

international projects (WB,

USAID, GIZ) 2009-2010

• We have 16 operating job

clubs


Employment Forums and Employer Councils

• With support of USAID

2009-2010 12 Employer

Councils are operating,

• With support of GIZ

Employment Forums

have been invested


Resource Centers

With support of IOM and ILO

• 3 Migration Resource Centers have been localized

for POTENTIAL MIGRANTS

With support of UNO, People in need,

• business promoting programs

• Vocational training programs are implemented

for RETURNEES

e-learning model

Invested by German InWent organization (GIZ at present)

• “How to look for a job” e-learning module has been developed

• A task is set to create a Caucasian e-learning network


Օn-line registration

• With ILO support a skills

matching register was

created in

www.employment.am

web-page


http://www.employment.am/

Challenges

• Absence of general social responsibility,

• Insufficiency of warranties to meet present

needs,

• Insufficient cooperation with interested

bodies



Thank you!

the uncompetitive groups in labor market and integration

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