YOUTH EMPLOYMENT STRATEGIES

Second Meeting of the Working Groups of the XIV IACML San Jose, Costa Rica, May 8 – 11, 2007

Maria Claudia Camacho P.

Departament of Social Development and Employment

Organization of American States

I. Job creation: A priority of the Americas

•Hemispheric priority – IV Summit , XIV IACML

•Sub-regional priority

Tripartite Subregional Employment Forum for Central America and the Dominican Republic – June, 2005 in Tegucigalpa, Honduras.

II Andean Employment Conference – November, 2005 in Cochabamba, Bolivia.

Employment Regional Conference of Mercosur (CREM) – April, 2004 in Buenos Aires, Argentina.

Tripartite Caribbean Employment Forum – October, 2006 in Barbados.

In Sub-regional fora:

Youth are part of vulnerable populations.

Commitment to eradicate discrimination in employment.

Concern about the integration of youth into the labor market centers on providing training.

In Summit of the Americas:

Commitment to reduce youth unemployment and inactivity.

Emphasis on training policies and promoting young people access to their first job.

Improve access to and quality of information services and career counseling

Fight against consumption of illicit drugs, prevention of HIV/AIDS and combating discrimination in the workplace.

How is youth addressed in these contexts?

II. Youth: Brief overview of the situation

•Population•Education•Labor•Diversity

Youth: Population

Currently, 150 million youth (15 – 24 year olds) live in the Hemisphere

Latin America: 103 million – 19% of population

Caribbean: 1 million – 18.6%

United States: 41 million – 13.6%

Canadá: 4.3 million – 13.8%

Youth: Education

Important advancements are registered:

Primary education – Higher enrollment and completion rates

Secondary education – More youth are completing this level

Post-secondary – there is still a lot to be done in this area

More young people are studying and working simultaneously

Rates (%) of education enrollment are persistently higher for young women

Youth between 20 and 24 years-old that completed secondary education in

urban and rural areas (2002)

Regional Education Indicators Project UNESCO/OREALC/OAS 2005

Youth between 25 and 29 years-old that completed secondary education by

income quintile (2002)

ECLAC – Social Panorama 2004

… however, gaps related to income level and geopraphic location are huge, to the detriment of youth living in poverty and rural areas

Youth: Education

0

10

20

30

40

50

60

70

80 Urban

Rural

010

20304050

607080

90100

Quintile V

Quintile I

This situation is more disadvantageous for young women and worsens for low-income youth.

Unemployment rate for youth (15-29 years old) by income quintile, 2002, 17 countries of LA

Youth: Labor

“Youth and employment in Latin America” 2005 - ECLAC

25.8

15.5

11

8.7

5.9

28.1

18.7

14.5

10.68.7

0

5

10

15

20

25

30

Quintile I Quintile II Quintile III Quintile IV Quintile V

1990

2002

Youth unemployment:

16.6% for Latin America and the Caribbean (ILO)

27.3% in the Caribbean (CARICOM)

12% in Canada (Stats Canada)

Youth: Labor

Youth are working in low-productivity sectors

Around 70% of youth 15-19 years-old and 50% of youth 20-24, are working in low-productivity sectors (self-employed workers that don’t receive remuneration, workers with no technical or professional qualifications, domestic workers, etc).

Youth tend to have unstable jobs (short-term contracts) without social protection

The concern goes beyond unemployment ..

Youth: Labor

Percentage of active and inactive youth 20-24 years-old (2002, 17 países A.L.)

82.5

51.9

12.6 15.2

0.6

29.5

3.5 3.7

0

10

20

30

40

50

60

70

80

90

Men Women

Participating in LaborMkt

Student

Household

Other type of inactivity

“Youth and employment in Latin America” 2005 - ECLAC

Disconnected youth:

22 million (21%) in LA and Caribbean – 2 our of 3 are women

5.8 million (14%) in the United States

Youth: Diversity

The diversity of our youth ..

•By gender•By geographic location •By income level•By education level •By race and ethnicity – indigenous and afro-descendents•By family composition – heads of household

With special conditions: Disabilities, HIV/AIDS, social risk..

All of these variables have to be taken into account when job creation strategies for youth are designed. Target population and instruments have to be clearly defined.

III. The strategies for youth employment creation in the Americas

• The indispensable articulation of policies

• Key components of these strategies, which must recognize youth heterogeneity

ECONOMIC POLICYECONOMIC POLICYECONOMIC POLICYECONOMIC POLICY

The indispensable articulation of policies

LABOR POLICY LABOR POLICY LABOR POLICY LABOR POLICY SOCIAL POLICYSOCIAL POLICYSOCIAL POLICYSOCIAL POLICY

Guarantee quality employment, reduce inequity and exclusion

Foundation for creating employment

YOUTH POLICIES HAVE TO BE PART OF THIS ARTICULATION

YOUTH EMPLOYMENT

LOCAL LEVELLOCAL LEVELLOCAL LEVELLOCAL LEVEL

Framed by the articulation of economic, labor and social policies, and address great heterogeneity of youth

Key components of youth employment strategies

EDUCATIONEDUCATIONEDUCATIONEDUCATION

• Increase coverage, giving special attention to the rural sector, the poorest areas and youth that don’t work or study.

• Greater flexibility in schedules and requirements, take advantage of new technologies.

• Include development of “soft” skills.

LABOR TRAININGLABOR TRAININGLABOR TRAININGLABOR TRAINING

• Special needs of vulnerable groups are better addressed by these services:

- Mothers (day cares, flexibility)- Youth in greater social risk (psychological

support)

• Improve the quality and pertinence of training.

• A wide variety of providers and the decentralization of these services are key issues (local level)

Framed by the articulation of economic, labor and social policies, and address great heterogeneity of youth

Key components of youth employment strategies

SERVICES LINKING SUPPLY SERVICES LINKING SUPPLY AND DEMANDAND DEMAND

SERVICES LINKING SUPPLY SERVICES LINKING SUPPLY AND DEMANDAND DEMAND

• Crucial for youth given greater labor mobility.

• Intensive use of new technologies, taking into account special interventions for those in rural and marginalized areas.

• These services provide greater transparency and information, allowing for the improvement of equity in access to employment.

Framed by the articulation of economic, labor and social policies, and address great heterogeneity of youth

Key components of youth employment strategies

AWARENESS RAISING AWARENESS RAISING NON DISCRIMINACIONNON DISCRIMINACIONAWARENESS RAISING AWARENESS RAISING NON DISCRIMINACIONNON DISCRIMINACION

• Raise awareness in the private sector and society in general about the great potential of youth – non discrimination policies, particularly regarding youth in greater social risk and women.

• Employers, workers and government joint responsibility in youth employment creation – tripartite social dialogue / corporate social responsibility.

Framed by the articulation of economic, labor and social policies, and address great heterogeneity of youth

Key components of youth employment strategies

INCENTIVES IN HIRINGINCENTIVES IN HIRINGINCENTIVES IN HIRINGINCENTIVES IN HIRING

• Special contract schemes that stimulate youth training in the workplace. Various countries have those schemes and have been adjusting them.

• Must be analyzed in terms of their impact on employability and skills development.

Framed by the articulation of economic, labor and social policies, and address great heterogeneity of youth

Key components of youth employment strategies

ENTREPRENEURSHIPENTREPRENEURSHIPENTREPRENEURSHIPENTREPRENEURSHIP

• Develop an entrepreneurial spirit – even at primary education.

• Take advantage of low opportunity cost for youth to establish their own business.

• Strengthen business incubators, funding (seed capital / angel investors), training.

Framed by the articulation of economic, labor and social policies, and address great heterogeneity of youth

Key components of youth employment strategies

The huge potential of youth in the Americas

• Population pyramid allows greater economic growth and places youth as an important engine for development.

• Taking advantage of this demographic bonus requires that we provide opportunities for productive youth employment.

Mujeres

0%2%4%6%8%10%12%14%16%

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80 +Hombres

0% 2% 4% 6% 8% 10% 12% 14% 16%

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80 +

1980

Mujeres

0%2%4%6%8%10%12%14%16%

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80 +

2005

Hombres

0% 2% 4% 6% 8% 10% 12% 14% 16%

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80 +

Dependency rates:

1980: 74.2%

2005: 56.1%