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International Labour Organization

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Presentation on theme: "International Labour Organization"— Presentation transcript:

1 International Labour Organization
Technical session on the integration of social policies and the setting up of a social protection floor May , 2013, Siem Reap, Cambodia Special attention given to the economically active population: the relationship between employment and social protection «Guaranteeing employment and Profesional Training for Youth» Speaker: Mr. Enrique Deibe, Secretary of Employment, Ministry of Labour, Employment and Social Security, Buenos Aires (MTEySS) , Argentina International Labour Organization

2 Labour market transformations, and the setting up of a minimum social protection floor The winning decade Argentina

3 Job growth 11 . 967 17 605 121 15 809 10 000 12 13 14 16 18 19 Job overview (In thousands). Urban totals only. 1st trimester, 2003 / 2nd trimester, 2012 + 5 , 6 million jobs 4 million employed The current productive model has generated over 5,6 million jobs incorporating to registered employment 4,5 million people Source of information: MTEySS, Permanent Survey of Hoselholds (National Institute of Statistics and Census).

4 Registered job growth Registered Employment Overview
126 241 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 Registered Employment Overview (Base Index 1974 = . Country Totals. 2012 ) + 92 % Registered Employment Growth has achieved the highest levels in the last 38 years: 92% since 2002 The sustained economic expansion including new business creation and productivity growth, in addition to the group of labour policies implemented, made it possible to promote formal work (i.e. registered in the social security system). Registered employment growth has reached its highest level in the last 38 years: 92% since 2002. Source of information: MTEySS, based on the Integrated Argentine System of Social Securtiy - Social Security Secretariat.

5 Improvement of local productivity
From 2002 to 2012, the product per worker has increased 38%, having an immediate effect on the reduction of labour costs and the improvement of the purchasing power of wages. The improvements made it possible to surpass a 27% treshold taking into account the highest point of productivity achieved during the last convertibility regime 100 115 106 146 95 105 110 120 125 130 135 140 145 150 + 38 % Labour productivity evolution in the Argentine Economy (Base Index 1993 = . Total Country Totals 1993 - 2012 ) 27

6 Formal private business growth
308 506 280 300 320 340 360 380 400 420 440 460 480 500 520 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 New private companies prompted registered job creation Number of formal private companies (Industry, commerce and services (Companies – In thousands. Country totals ) Only considering industry, commerce and services, nearly 200,000 formal companies were created in the private sector from 2002 to 2012. The existing companies consolidated their performance and, additionally, a significant number of them, experienced a size growth, allowing a proportional increase on the amount of registered employment. Source of information: MTEySS, based on data of the Observatoty of Employment and Entrepreneurial Dynamics with information of the Integrated Argentine System of Social Securtiy

7 Systematic decrease of unregistered employment
The record expansion of formal employment contributed to the reduction of the unregistered employment rate, which reached a historical minimum point (approx. from 50% in 2003 to 34,6% in the 4th trimester of 2012.) During the last 9 years, 9 out of 10 jobs were registered, only 1 out of 10 remained unregistered. In contrast with what happened during the 1990s when 9 out of 10 jobs created were unregistered 49 , 7 34,6 32 34 36 38 40,0 42 44 46 48 50 - 15 1 p.p. Unregistered employment rate evolution (Total of urban gatherings . 3rd Trim. 2003 4th 2012 ) Source of information: MTEySS, Permanent Survey of Hoselholds (National Institute of Statistics and Census)

8 Unemployment reduction
Evolution of the unemployment rate – Total of urban gatherings The job creation was generalized in all the social groups and made possible a record reduction in the recent history of the unemployment rate that reached a 6,9% in the 4th trimester of 2012, one of the lowest points since 1991. Considering the total of urban gatherings, the unemployed population went from 3 million people in 2003 to approx more than one million in 2012. Source of information: MTEySS, Permanent Survey of Hoselholds (National Institute of Statistics and Census)

9 Social Security benefits increase
9.132 8.894 11.071 17.677 7.000 9.000 11.000 13.000 15.000 17.000 19.000 1997 2001 2002 2006 2010 Evolution of income transfer benefits from the social protection system (Benefits in thousands. Country totals 2010) + 60 % + 94 % 37 % 83% 69 85 0% 10% 20 30 40% 50 60% 70 80 90 100 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % of beneficiaries (children and young people under 18) % of beneficiaries ( retirements and pensions in elder poprulation) Total % of elders and minors with benefits from income transfers from the social protection system (Country totals. ) , 478 460 545 426 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 * Evolution in the distribution of the personal income. Gini Coefficient -per capita household income- Total of urban gatherings.

10 Active employment policies for unemployed young people (18 to 24 years old with unfinished middle school) 9.440 74.625 2008 2009 2010 2011 2012 YOUTH WITH MORE AND BETTER JOBS PROGRAM -Young beneficiaries covered on a yearly basis 296 participating municipalities through their employment offices in a total of 20 provincial jurisdictions of the country and the Autonomous City of Buenos Aires*. The number of young people served by the program since its inception, amounted to 505,000. Only during 2012 it covered more than 286,000 people, a figure that exceeds the entire youth population in the same age group who does not study and who is actively looking for a job (270,795). On the other hand, . young beneficiaries from this program in 2012 amounted to 37% of the total of young people who does not study and work and who is not looking for a job (763,382)

11 The program benefits They enter the Program by the Municipal Employment Offices which are part of the Network of Employment Services. They take part in the orientation processes and receive labour intermediation services, always assisted by a tutor. Job seeking support is given to them. They receive financial and technical support for new independent entrepreneurships.. They are incorporated into the educational system for the completion of their formal studies. They are granted access to professional training courses and labour skills certification. They acquire qualifying practices in working environments. As long as they stay part of the Program, they receive: A non-remunerative economic support of $450 (U$S 87 per month). They can access a bonus incentive of up to $900 (U$S 173) when the completion of their formal studies is certified or if they take part in professional training projects. Up to $ (U$S 3.654) to start up an independent productive entrepreneurship project in terms of support for fixed capital formation.

12 Yearly evolution of the number of young pepople who accessed formal employment after participating in the Program Program actions made it possible for 34% of the young benefiaciaries to be granted incorporation into the mass of registered job paid employess, which resulted into a remarkable improvement in their labour conditions. In fact, between 2008 and 2012, 316,564 young people stopped benefiting from the Program. Out of them, 105,930 had access to a registered job on a dependency framework

13 Participation in the program increases the chances of getting quality jobs
Employment rate (Registered private employment) Trimester averages EPH PJMyMT Dif. % Average 9,0% 16,8% 86,7% Average 8,5% 17,7% 108,2% Average 11,7% 21,0% 79,5% The employment wage rate in the private sector for the young people who benefited form the Program duplicates the rate of the young people with similar characteristics. EPH = Permanent Survey of Hoselholds PJMyMT= Youth with More and Better Jobs Program

14 Active employment policies (2012)
Relative participation of young people within the perspective of the welfare policy (2003) and the active employment policy (2012) Young people had had a central spot within the target population envisaged for training and employment services. During the current political administration, 4,5 million people received some type of coverage by policy tools involving income transfers. Among them, the rate of the young beneficiaries (up to 24 years old) increased remarkably (from 8,2% in 2003 to 52,2% in 2012). Welfare policies (2003) Active employment policies (2012) More than 24 years old Less than 24 years old

15 Reversal in the tendency rate of the employment policy
Although substantial improvements in employment and the expansion of the social protection system led to a significant reduction in the number of beneficiaries in employment programs of income tranfers between 2003 and 2012 (-61,5%), in absolute terms, the number of young people up to 24years participating in these benefits, more than doubled (from 173,000 to 420,000) Welfare policies (2003) Active employment policies (2012)

16 Variation in the realtive participation of young people in substantive benefits of employment policies Since the beginning of the current political administration, the participation of young people in all the training and employment services increased remarkably. Labour intermediation and assistance Professional training Completion of studies Job training Assisted labour insertion


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