The coordination between employment and education strategies Context and actions to tackle youth unemployment - LAF Seminar on Employment Policies: fight against youth unemployment - Bruxelles, October 17 th, 2013 Cristina Mereuta, European Training Foundation

Who we are The European Training Foundation (ETF) is an EU agency that helps transition and developing countries to harness the potential of their human capital through the reform of education, training and labour market systems in the context of the EU's external relations policy. ETF is based in Turin, Italy (operational since 1994). It contributes to social and economic development, and long- term stability in EU neighbouring countries.

ETF works with the countries surrounding the European Union (ETF partner countries) Enlargement: Albania, Bosnia and Herzegovina, Kosovo*, FYR Macedonia, Montenegro, Serbia, Turkey, Iceland European Neighbourhood and Partnership Instrument: Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, R. Moldova, Morocco, Palestine, Russia, Tunisia, Syria, Ukraine Central Asia: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan

Main functions:  to provide information, policy analyses and advice on human capital development issues in the partner countries;  to promote knowledge and analysis of skill needs in national and local labour markets;  to support relevant stakeholders in partner countries in building capacity in human capital development;  to facilitate the exchange of information and experience among donors engaged in human capital development in partner countries;  to support the delivery of Community assistance to partner countries in the field of human capital development;  to disseminate information and encourage networking and the exchange of experience and good practice between the EU and partner countries and amongst partner countries in human capital development issues. What we do

Youth in ETF Partner countries Many PCs witness a demographic pressure, lack of job creation and a large informal economy with precarious employment conditions, high school drop- out rates and low employability even among the graduated youth. These challenges result in high youth unemployment rate. Many young people are neither in employment nor in education or training (NEETS). The transition of young people from education to work is hindered by many obstacles, such as: – lack of job vacancies, – lack of labour market transparency – low capacities of career guidance and job matching services.

Transition from education to work - sure start or going on a wire - SCHOOLJOB

and offer “the abundant but impractical knowledge of recent graduates” due to emphasis put on “knowledge accumulation” over “problem solving and creativity” (Arandarenko); low educational attainment (early school leaving) Demand… Improved practical job-related skills; Key competences such as computer literacy and foreign languages; Entrepreneurial thinking; Right attitude to work

ETF support - Torino process A process launched in 2010 Based on a participatory approach to offer partner countries a framework and technical support aimed at achieving progress in their VET systems. Goal - to empower evidence-based policy making and reinforce national institutions through the delivery of EU assistance. The overall concept is that VET reforms in transition countries will only be successful and sustainable if policy development, formulation and implementation are firmly based on broad local ownership and embedded in existing institutions. To build consesus on the possible ways forward for VET policy and system development, considering the VET contributions to enhanced competitiveness and sustainable and inclusive growth

Torino Process - 5 building blocks IIIIIIIVV Vision and state of the art in vocational education and training Demographic, economic and labour market needs Social demands for VET and promoting social inclusion Internal quality and efficiency of initial and continuous VET delivery Governance and financing of VET system and institutional capacities for change

Key policy areas Implementation of reforms in quality assurance, teacher training and key competences; Defining national qualifications framework and indicative referencing against the European Qualifications Framework as an instrument for improved transparency and governance for vocational training; Entrepreneurship learning as an important contributors towards meeting the labour market demands; Assisting vulnerable groups through improved social inclusiveness feature of educational system.

SEE region policy vision on VET VET is perceived as an important policy priority able to contribute to economic growth and social development; National policies and strategies were established to target VET sector development and participation increase; Key reform areas: – Development of qualifications framework providing clear pathways through education systems; – Enhancing the adult learning to assist skills formation and upgrading; – VET as a stepping stone in lifelong learning; – Stronger links between education and work.

Addressing the labour market and social difficulties Poor labour market performance even in pre-crisis period; Significant levels of precarious employment; Structural skills mismatches; Long term unemployment and extremely high youth unemployment; Current economic context poses additional challenges on countries with unfinished transition to market economies; Young people are heavily affected by unemployment and informal employment

SEE region specific challenges FRAGMENTATION – improving participatory approaches and expanding cooperation across government and stakeholders towards a shared vision for lifelong learning; IMPLEMENTATION – vision and strategies should be home-grown, feasible, have clear indicators of achievement and a sound capacity and financial basis; EVIDENCE – expanding the availability of information on economic and social development goals and skills needs to inform visions and strategies.

Challenges Decision-making is concentrated in central government with limited devolution of tasks or resources to regional or local authorities; Responsibilities on education and training are split between different ministries, departments and agencies; Coordination among institutions in charge of education, employment, social and economic development, financing is constrained by highly centralised and hierarchical decision making processes; Lack of a clear vision on reshaping the role of State from controller to facilitator; Territorial authorities and social partners have frequently a limited role or involvement in VET policy (the powers of regional or local authorities are not well defined and they are short on capacity and resourcing). Deficit of information on medium and longer term skills needs

EU policy goals and cooperation processes EU policy objectives and targets to improve performance, quality and attractiveness of VET are seen as a key source of inspiration for reforms in the Enlargement region; Adoption of EU benchmarks could support a clear reference of VET system towards European strategic objectives; Currently, the process of systems and policies alignment is frequently based on good practices exchange rather on road map for implementation.

European and regional strategic frameworks Education and skills are at the heart of major strategic frameworks at European and regional level – the Europe 2020 Strategy, – Education and Training 2020 (ET 2020) – South East Europe Strategy 2020 Strategy. Drivers for growth, employment and competitiveness; Support for individuals to adapt to constantly changing demands on the labour market and to improve social cohesion. Specific headline targets have been committed at the EU level, supported by corresponding national targets which are highly relevant for Human Resources Development (HRD). Both the EU and SEE 2020 strategies rely on a strong inter- linkage between priorities and targets, and acknowledge that real and long term progress depends on an integrated reform package covering different areas: economic development, education and training, labour market and social aspects.

Europe 2020 Strategy Target - Share of early school leavers: below 10% (%, age group 18-24) Early leavers from education and training in 2012 Source: Eurostat and National Statistical Offices (Enlargement Countries), Notes:* 2010 data; ** 2011 data. Montenegro: 15.5% (females), 9.2% (males), Bosnia and Herzegovina, Montenegro and Kosovo* not available.

Europe 2020 Strategy Target - At least 40% of year- olds completing third level education Tertiary educational attainment in 2012 Source: Eurostat and National Statistical Offices (Enlargement Countries), Notes: * 2010 data; ** 2011 data. Bosnia and Herzegovina, Montenegro and Kosovo* not available.

Europe 2020 Strategy Target - 75% of the year-olds to be employed Employment rate in 2012 Source: Eurostat and National Statistical Offices (Enlargement Countries), Notes: * 2010 datum; 2012 datum, age group 15-64: 56.4%; ** 2011 data. Bosnia and Herzegovina: 38.5%, age group 15-64, 2012; Montenegro: 47.4%, age group 15-64, Bosnia and Herzegovina and Montenegro not available for age group.

Linking education and employment at strategic level EDUCATIONEMPLOYMENT ALBANIANational Strategy for Vocational Education and Training (draft). Targets for 2020 Increase enrolment rate in upper secondary education: 97% Increase enrolment rates in tertiary education: 70% Achieve a 30% share of students attending secondary voc. education Main priorities for 2020: Enhancing the number of people participating in adult training Reducing the share of long-term unemployment Reducing the youth unemployment rate Reducing gender gaps in labour force participation and in employment BOSNIA AND HERZEGOVI NA Strategic Directions for Development of Education. Targets for 2015 Enrolled and completion rates in compulsory education increased to 100%; Enrolment rate in secondary education increased to 90% Enrolment share in gymnasia and four-year vocational schools increased to 80% Enrolment rate in higher education increased to 32% Illiteracy rate reduced to 2% Strategy for Employment Targets for 2014: 2% annual increase in overall employment rates 2.5% per year increase in female employment Youth unemployment decreased to 30% by 2014

Linking education and employment at strategic level EDUCATIONEMPLOYMENT KOSOVO*Kosovo Education Action Plan (KESP) Targets for 2015 and 2016 all children aged 5-6 be included in pre- primary education and 35% children aged 0-5 be included in pre-school education; over 95% children attend compulsory education; at least 35 % of population aged have access to higher education Ministry of Labour and Social Welfare Strategic Action Plan (a new strategy is under development, with targets for 2020) Target for 2013 Increase of vocational training capacities for jobseekers (unemployed) by 35% by 2013 FORMER YUGOSLAV REPUBLIC OF MACEDONIA Draft Strategy for Vocational Education and Training in a Lifelong Learning Context – Better Skills for a Better Tomorrow of FYR Macedonia. Target for 2020 Train youth and adults without qualifications at ISCED 3 level and higher National Employment Strategy Targets for 2015 Increase in the number of secondary education leavers (age group 15-29) who are employed by: 14% Decrease in the number of youth (15- 24) who leave the secondary education system without qualifications: 1.5 percentage points Increase the employment rate of youth (age group 15-29) to: 29%

Linking education and employment at strategic level EDUCATIONEMPLOYMENT MONTENEGRONational Strategy for Employment and Human Resource Development ; Targets for 2015 Share of university graduates in the age group 25-34: 35% Share of children enrolled in preschool in total no. of children up to 6 years of age: 30% National Strategy for Employment and HRD ; Targets for 2015 Employment rate (15-65): 60% Female employment rate (15-65): 50% Unemployment rate (15-65): 15% Registered unemployment rate: 8% Youth unemployment rate (15-24): 28% Share of LTU in total unemployed: 55% Share of self-employed in total employed: 20% SERBIA National Education Strategy. Targets for 2020 Drop out: In primary schools less that 5%, In secondary schools less than 5% Enrolment: 40% of VET students enrol in higher education, 95% of students in general secondary education enrol in higher education Adult education enrolment: 7% enrolled in adult education programmes National Employment Strategy for the period 2011 – 2020; Projections 2020 Activity rate (15-64): 68.8% Employment to population ratio (15-64): 61.4% Employment to population ratio (20-64): 66.3% Unemployment rate (15-64): 10.8% Youth unemployment rate (15-24): 24% Share of LTU (15-64): less than 50% Share of ALMP funds allocated as percentage of GDP: 0.5%

ETF recent initiatives relevant for SEE region FRAME: Skills for Future VET for Social Inclusion and cohesion Expertise on Active Labour Market Policies with a focus on youth Why: To assist countries to develop skills for sustainable economic development and social cohesion on mid and long term perspective What: Skills 2020 Vision and Roadmap; HRD capacity development plan; Monitoring tool to track progress in the field Why: to improve the impact of VET on social inclusion and social cohesion What: cross-country analysis on common factors and best practices for social inclusion; set of recommendations on students ’ selection and tracking; dropping out and transition from education to work and CVT Why: need to expand the expertise on ALMPs relevant for ETF partner countries, with a focus on policies for youth What: study on which ALMP work under which conditions to tackle youth employment and inactivity taking into account the diverse PCs conditions as developing and transition economies.