1 Active citizens combating youth unemployment” Active citizens combating youth unemployment” “JobNet”International conference ROMANIA FACTS AND FIGURES November, November, 2013 Eger, Hungary

2 EVOLUTION OF YOUTH UNEMPLOYMENT RATE IN ROMANIA, AS COMPARED WITH THE EU AVERAGE

3 Total unemployement rate: 7% years old – 8,4% empolyment rate (half of the European average) years old – 22,7% unemployment rate years old – 8,6% unemployement rate Significant regional differences for age group: Highest unemployment rates in Center, (36%) South Muntenia South –East Regions – over 25% Lowest unemployment rates in North-East Region – 11%

4  43,3% of the unemployed persons between years old are long term unemployed (over 12 months)  NEETs youth: 20,3% (2012), increasing from 13,3% in 2007, with a higher percentage within the higher educated youth.  The average length of time between graduation and 1 st job is 10 months

5  Access to labour market occurs later and the income is lower  Romania has the highest poverty level of employed youth between years old: 30,7% are poor (as compared to 19% of total population and 11,2% European average)  One of the most vulnerable groups: youth working in the informal sector, particularly in subsistance agriculture: -Over 40% are young persons between years old - 19 % of total population working in the informal sector are young persons between 15-24% (as compared to 9-13% of the other age groups)

6  Inflexible labour market, that doesn't not allow flexible working contracts, to allow going to school in parallel with a job: - 17,3% of employed youth between years old have a part time job, as compared with 28,9% European average - 3,1% have a temporary job, as compared to 42,1% European average - 3,1% have a temporary job, as compared to 42,1% European average

7 REASONS FOR HIGH UNEMPLOYMENT RATE  Low education level  School drop-out: 17,5% for age group  High costs for going to school (55% of young people that as an impediment)  Discrepancy between school qualifications and labor market needs  Lack of trust in the efficiency of the vocational training courses or reconversion programs, and in the fact that attending those could improve their access on the labor market

8  Lack of work experience makes them vulnerable in the competition with other workers (59% of the employers cannot afford hiring young people without work experience). FROM EMPLOYERS’PERSPECTIVE:  Today’s young generation is less motivated to work as years ago  young people demand too high salaries (71%)  Young people are not willing to accept jobs below their qualifications (65%).

9 ENTREPRENEURSHIP 27% of Romania’s youth declare they want to start a business 1 of 100 young people decides to start a business (as compared to 1 of 4 in Poland or Hungary Reasons for low number of start up business:  lack of money;  bureaucracy;  low level of entrepreneurial education: less than 10% of the young people who start a business have entrepreneurial education, as compared with the 30% EU average;  Negative perception of the career success factors 47% believe “connections and social position” are preconditions for success.

10 Policies for reducing youth unemployment  Granted subsidies to employers who employ graduates. The subsidy is granted for 12 months (18 months for graduates with disabilities), and varies on education level graduated  Employers are exempt for 12 months from paying the social contributions for unemployment for persons hired on open ended contracts  Job Fairs for graduates  Prevention of social exclusion of youth (Law 116/2002)  Access to vocational training  Information and career counseling  Apprenticeship (law under modification)  Support for seasonal work during vacation (Law 72/2002)  European Social Fund projects

11 EXAMPLES OF BEST PRACTICE Vocational training:  Romanian-German Foundation, Timisoara in partnership with Hornbach network  115 persons trained as technicians in commerce  Training delivered by the Romanian-German Foundation, internationally certified by the German Chamber of Commerce  115 trained persons hired by Hornbach network Introducing career counseling and simulated enterprises in schools

12 Center for Rural Assistance – Regional Center for Rural Entrepreneurship - Network of 6 Job Clubs in Western Romania (information, carreer councelling, self marketing skills); - Training in entrepreneurial skills; -Mentoring/coaching for business plans development; -Support for starting up the business -Support for accessing start up funds -Training in crafts production

13 FUNDING OPPORTUNITY FOR TRANSNATIONAL COOPERATION ON LABOUR MARKET INTEGRATION European Social Fund – call to be launched in November Project indicators: - Minimum 6 partnerships created for developing/promoting social policies (excluding the project partners); implementing new methods and instruments for fighting discrimination, transfer of expertise regarding inclusion of Roma population; best practice exchange regarding inclusion of long term unemployed persons etc. - Minimum 6 partnerships created for developing/promoting social policies (excluding the project partners); implementing new methods and instruments for fighting discrimination, transfer of expertise regarding inclusion of Roma population; best practice exchange regarding inclusion of long term unemployed persons etc. - Nr. of joint programs developed for labour market inclusion -Nr. of studies, strategies, reports - Nr. of events focused on exchange of experience -Own contribution: 2%

14 Thank you for your attention Alina Bernecker Executive Director: Center for Rural Assistance Timisoara, Ulpia Traiana 113 Tel: Fax: Cell: