Cambodia’s national employment policy and the linkages with social protection Extending social protection and promoting productive employment Training workshop Phnom Penh, 2-4 November 2011

What is a national employment policy? A vision and a concerted and coherent policy framework linking the policy interventions and the stakeholders having a role in achieving the employment target A vision and a concerted and coherent policy framework linking the policy interventions and the stakeholders having a role in achieving the employment target

Vision Where does Cambodia want to be in 10 years?  Full productive employment for all women and men? If so, vision could be to eliminate poverty through the promotion of productive employment Align with priorities of the NSDP uptade  Private sector development and employment

Concertation Arrive at a common platform through  social dialogue and  broad-based consultations (national, provincial, local)

Policy Coherence Identify and clarify the inter-relationships with other national policies  Macroeconomic policies (fiscal, monetary)  Sectoral policies (agriculture, industry, trade, etc.)  Social policies (education, social protection, health) Ensure policy coherence through clear institutional mechanisms  Interministerial (tripartite) employment committee

Policy interventions  Start from the employment situation analysis and prioritise 3-5 policy areas.  Organise the discussions around the NSDP priorities 3 potential guiding questions could be: 1.What is needed on the employment side to promote economic diversification? 2.What is needed to increase incomes? 3.What is needed to reduce inequalities (urban/rural, within rural areas, between women and men)?

Employment situation change Labor force (4+5)7.1 m7.5 m400‘ Working poor2.1 m1.5 m-600’ Unemployment114‘000112‘000-2‘ Deficit of productive employment (2+3) 2.2 m1.6 m-600’ Productive employment (1-4)4.9 m5.9 m1 m Unemployment rate (%)1.61.5N/A Poverty rate (HPR) (%)30.120N/A New entrants (youth) Rural / Informal economy workers

Diversification  Need for a skilled and educated labour force  Need for a well developed financial sector  Employment-intensive investments for the rehabilitation and construction of physical infrastructure (water and irrigation, transport, energy)

Diversification (Cont’d)  Skilled and educated labour force  Skills for the rural poor to move from subsistence-based agriculture to a more intensive and market-oriented sector  Higher level skills for higher productivity in industry and services (IT, financial services)  Well developed financial sector  Access to finance for SMEs  Access to finance for informal and micro enterprises  Access to finance for the agricultural sector  Employment-intensive investments  Labour-based employment schemes  Choice of technology based on employment criteria + local raw material

Increased incomes In agriculture – Reduce vulnerability to environmental, social and economic shocks – financial sector, etc. – Strengthen security – better/higher skills, etc. – address seasonality – irrigation, diversification, etc. In industry – Wage policy – Collective bargaining – Better/higher skills

Reduce (labour market) inequalities Unequal access to TVET / unequal employability Wage/income gaps Unequal access to employment services and active labour market policies – Decentralised PES, Job centres Voice and representation (farmers’ organisations, cooperatives, trade unions, etc.)

Diversification (Cont’d)- links with SP  Need for a skilled and educated labour force  Basic education and skills for the rural poor  Higher level skills for higher productivity in industry and services (IT, financial services)  Need for a well developed financial sector  Access to finance for SMEs  Access to finance for informal and micro enterprises  Access to finance in the agricultural sector  Employment-intensive investments  Labour-based employment schemes  Choice of technology based on employment criteria + local material Conditional cash transfers on children education Training schemes (e.g. CBT) Training programmes TVET Microcredit schemes Employment funds Public works Employment guarantees

Employment – SP linkages Employment issueSP intervention Reduced vulnerability of poor workers, self-employed workers (in terms of income, employability, equity/equality) Transfers Temporary employment schemes Illness, injury, death benefits training Income generating activities (Livelihood development) Employment schemes Micro credit schemes Training – entrepreneurship, vocational skills Lifecycle approachTransfers conditional on children education, maternal and child health, lifelong learning Old age benefits

What is a national employment policy? A vision and a concerted and coherent policy framework linking the policy interventions and the stakeholders having a role in achieving the employment target A vision and a concerted and coherent policy framework linking the policy interventions and the stakeholders having a role in achieving the employment target

Stakeholders/actors Min. in charge of employment Min. in charge of social protection Min. in charge of rural development Min. in charge of education Min. in charge of industry Min. in charge of economy and finance Workers’ representatives/farmers’ organisations Employers’ representatives Banking sector + microcredit institutions Civil society – women, youth groups, representation of people with disabilities, etc. Etc.