Federal Department of Economic Affairs, Education and Research EAER State Secretariat for Economic Affairs SECO Effective support to first- time job seekers in Switzerland Markus Weber 13 May 2015 Labour Market and Integration

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber 2 Contents Facts and figures about Switzerland and the Swiss labour market Youth unemployment in Switzerland Vocational/Professional Education and Training System (VPET) in Switzerland General aims for first-time «job seekers» Apprenticeship marketing measures Unemployment insurance in Switzerland Labour market measures financed by the unemployment insurance LMM for young people Participants and costs Challenges

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber 3 Facts and figures about Switzerland and the Swiss labour market (1)  Population:8,236 million, 24% of whom are foreign nationals  Districts:26 cantons  National languages:German (63%), French (22%), Italian (8%), Rumantsch (0,5%), other (6,5%)  99.6% of all Swiss companies have fewer than 250 employees. These small and medium enterprises (SME) account for two thirds of employment, they are often called the backbone of the economy.  Switzerland is not member of the European Union

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber 4 Facts and figures about Switzerland and the Swiss labour market (2)  Flexible Labour Market policy  Structure: - primary sector 4,3% - secondary sector25,3% - tertiary sector70,4%  Net activity rate ( age range): 84,9%  Unemployment / rate (April 2015) all ages : 141’131 / 3,3%  Unemployment / rate (April 2015) age : 17’482 / 3,1%

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Youth unemployment in Switzerland (1) 5

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Youth unemployment in Switzerland (2) 6

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Youth unemployment in Switzerland (3) 7

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Vocational/Professional Education and Training System (VPET) in Switzerland 8 Transition 2 Transition 1 School – VET VET – Labour Market

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber General aims for first-time «job seekers» Aim of the partners of the Swiss PVET system: 95% of young people have a certificate on the upper-secondary level II. We want to integrate «school leavers» into the PVET system and not into the labour market (without qualification/education)! «Education prior to labour» Transition 1: school – VET Aim: To find a place in the VET (or general education school) Transition 2: VET – Labour Market Aim: To find a first job outside the former apprenticeship host company 9

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Apprenticeship marketing measures Information and advice on careers Apprenticeship records Creation of host company networks Provision of state-sponsored transitional options (mainly bridge- year courses) VET promotion agents deal directly with companies, encouraging them to create apprenticeship positions Placement and individual mentoring of young people who have been unable to find a suitable apprenticeship VET Case Management In Switzerland, the unemployment insurance is not responsible for all this measures for “apprenticeship seekers”! More information: 10

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Unemployment insurance in Switzerland Main task of the unemployment insurance: Promotion of a quick and long-lasting integration of jobseekers into the labour market. Rights and duties of job seekers Rights:- Receive unemployment benefits - Get help from job centres to find a new job Duties: - Actively search for a new job (own initiative) - Respect control regulations - Respect instructions from the job centres 11

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber 12 Agreement between cantonal governments and federal ministry Federal Ministry (SECO) Regulatory framework Steering Committee Cantonal governments Federal act / ordinance - AVIG - AVIV - AVG -AVV Financing - operating cost - labour market measure cost Steering tool (benchmark)Activity of cantons Measurement of efficiency Communication of results Review of the situation Performance indicators Exchange of best practices Transfer of best practices Competition Activity according to the law: - counselling - job placement - labour market measures - controls and sanctions Outcome measurement 4 impact indicators: - rapid reintegration - avoid long-term unempl. - avoid ineligibility for unempl. benefits recipients - avoid re-registrations Continuous improvement process

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Labour market measures financed by the unemployment insurance Educational Measures Courses Practice firms Internships for the enhancement of qualification Practical labour programmes Programmes, providing temporary employment in the „2nd labour market“ Motivation semesters Vocational internships Special Measures Training subsidies Job familiarisation subsidies Financial subsidies for commuters Promotion and support of self-employment 13

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber LMM for young people (1) Motivation semesters Target group: unemployed “school-leavers” without any upper secondary education Aim: Answer three questions (Who am I? What can I do? What do I want to do?) and find a qualification (apprenticeship) Duration: 6 months (average), in an organisation Method: Coaching, training, internal workshops or external firms 14

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber LMM for young people (2) Vocational internships Target group: unemployed young people with an upper secondary education or university degree. Aim: gain professional (practical) experience and find a job Duration: 6 months (average) Method: Internship in a private company or in the public administration Financing: Company pays 25% of the daily allowance 15

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber LMM for young people (3) Practice firms Target group: unemployed young people with an upper secondary education (in the commercial sector) Aim: practical professional experience, find a (first) job Duration: 6 month (average) Method: Internship in a special organization / Network of different practice firms in Switzerland and abroad / Trade with virtual products but real internal processes / “Learning by-doing” 16

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber LMM for young people (4) Number of persons Year (forecast) Transition 1 (after school) Motivation semesters5'7086'9206'6706'3665'3135'4475'1875'5485'8726'1636'557 Total transition 15'7086'9206'6706'3665'3135'4475'1875'5485'8726'1636'557 Transition 2 (after apprenticeship/university) Vocational internships3'0523'9042'0631'4712'1082'6331'8281'7011'8001'7791'090 Practice firms3'8403'0193'8123'2353'0344'0212'5652'4412'2421'8952'065 Total transition 26'8926'9235'8754'7065'1426'6544'3934'1424'0423'6743'155 Costs in million Swiss Francs Year (budget) Transition 1 (after school) Motivation semesters Total transition Transition 2 (after apprenticeship/university) Vocational internships Practice firms Total transition Source: SECO

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Challenges Competition between VET (apprenticeship) and general education (university) (International) acceptance of the VET and the higher professional education and training Shortages of qualified workers / occupational aptitude / “matching” Inter-institutional cooperation: Minimizing the duplication of tasks among different insurance systems as well filling gaps in the social security system 18

Effective support to first-time job seekers in Switzerland EAER/SECO/TCMI – M. Weber Thank you for your attention! Markus Weber Expert Federal Department of Economic Affairs, Education and Research EAER State Secretariat for Economic Affairs SECO Section Labour Market and Integration Specialist Implementation Support RAV/LAM/KAST Holzikofenweg 36, 3003 Berne Tel Fax