Youth Employment Programme Addressing Youth Unemployment: Issues and the Causes Romina Bandura Panel discussion: World Bank - Global Youth Conference Washington, D.C., 7 March 2012 International Labour Office

Youth Employment Programme OUTLINE I.GET Youth Report I.Youth Employment Trends II.Disadvantages Faced by Youth in the Labor Market III.What Can Be Done? Policy Recommendations

Youth Employment Programme I -Global Employment Trends for Youth (GET Youth) Youth in GET defined as the age group15-24 years old. Youth GET every 2 years by ILO’s Employment Trends Team (Geneva). Other reports: Global GET and GET Women Editions: 2004, 2006, 2008, 2010*, update in 2011 and forthcoming in World and regional labor market indicators for youth, analysis of trends and lessons learned. ILO’s Global Employment Trends Model used to produce estimates. Data: ILO specialists select only those observations deemed sufficiently comparable across countries – with criteria including: (1) type of data source; (2) geographic coverage; and (3) age group coverage. * Special issue on the impact of global crisis on youth

Youth Employment Programme II –Youth Employment Trends (1) Global youth unemployment rate stands at 12.6%, that is 75 million youth are unemployed (4.6m more than in 2007). Of the 200 million unemployed worldwide, 40% are youth. Globally, the youth unemployment rate is 2-3 x that of adults, increased over the crisis period. Regional differences – highest rate increase in developed economies and EU; highest rate in MENA. Unemployment among youth in many LICs is just a luxury for a few youth, while decent work deficits stemming from underemployment, informality and working poverty are the main factors characterizing the youth labour market. Youth labor force participation rates and E/P ratios are declining (education but also discouragement)

Youth Employment Programme II –Youth Employment Trends (2) Youth unemployment is but the tip of the iceberg in many regions. The challenge is to create decent work for youth. Lengthy period of search: LT unemployment rates for youth surpass those of adults in developed countries. Employment Status: part time employment rates increased for youth (often involuntary part time); employment in the informal economy; withdrawal altogether. Young Working Poor: If we add the 150 million young working poor (<1.25/day) to the 75 million youth unemployed then 225 million youth are in vulnerable situation. Globally, young women tend to have more difficulty finding work than young men (except during the crisis in developed economies and the EU). Ethnic groups and disabled as well.

Youth Employment Programme High and Persistent Youth Unemployment….. Youth unemployment rate by region, 1991 to 2011(p) Source: ILO, Global Employment Trends for Youth, October 2011 (p = projection) ( p=projection)

Youth Employment Programme ….especially in some regions Source: ILO, Global Employment Trends for Youth, October 2011 (p = projection) ( p=projection) Youth unemployment rate by region, 1991 to 2011

Youth Employment Programme ….and countries Youth unemployment rate in selected countries, 2007 and 2011 Source: ILO: Short-term indicators of the labour market (national statistics)

Youth Employment Programme Unweighted average b a) Data for Indonesia refer to 2007; for Japan and South Africa to b) Data refer to total NEET rate. Source: ILO and OECD, Giving youth a better start, A policy note for the G20 Meeting of Labour and Employment Ministers, September 2011 Increasing levels of youth discouragement and labour market withdrawal Young people neither in education, employment or training (NEET), selected countries (% of youth aged 15-24)

Youth Employment Programme Fewer jobs available to young people….. ….and of lower quality (1) Source: ILO database Informal employment - Percentage of youth and adult employment (15-24; 25-64)

Youth Employment Programme Fewer jobs available to young people….. ….and of lower quality (2) Source: EUROSTAT Young people in temporary jobs in selected countries, 2007 and 2010

Youth Employment Programme … and meager earnings Source: ILO, GET Youth 2010

Youth Employment Programme III- Factors Shaping Youth Employment  Level of aggregate demand and employment intensity of growth  Size of the youth cohort  Individual characteristics  Labour market regulations  Education and training outcomes  Work experience  Personal aspirations  Representation and voice

Youth Employment Programme  Develop an integrated strategy for growth and job creation  Establish broad-based partnerships on jobs for youth  Improve the quality of jobs and the competitiveness of enterprises.  Invest in the quality of education and training and improve its relevance to labour market needs  Enhance the design an increase funding of active labour market policies in support of national youth employment priorities  Employment services : standard services to all youth and more intensive assistance to disadvantaged youth  Reliable and timely information on the youth labour market. Monitoring and evaluation systems to assess effectiveness of programs IV- What Can Be Done? Policy Recommendations

Youth Employment Programme THANK YOU! Youth Employment Programme International Labour Office Website: Knowledge-sharing platform