Improving quality and quantity of jobs for youth: A balanced policy - - PowerPoint PPT Presentation

Youth Employment Programme

Improving quality and quantity

• f jobs for youth:

A balanced policy approach

Gianni Rosas Head of ILO’s Youth Employment Programme

Youth Employment Programme

This presentation

• Characteristics of youth labour markets
• Drivers of youth employment outcomes
• A balanced youth employment policy framework
• Concluding remarks

Youth Employment Programme

Youth employment is bound to overall employment….

Youth and adult unemployment rates 1990 - 2010

Source: Matsumoto, Hengge and Islam, 2012

Youth Employment Programme

…but has own specific dimensions

Before and after the crisis: Percentage point changes in youth and adult unemployment rates

Source: Based on ILO KILM database

Youth Employment Programme

Drivers of youth employment outcomes Long-term factors affecting youth labour markets include:

• Size of the youth cohort
• Individual characteristics (e.g. age, gender)
• Education and training outcomes
• labour market institutions
• Level of aggregate demand and employment

intensity of growth

Youth Employment Programme

Youth employment and the supply side (1)

• Young people: the best educated generation ever
• The higher the education and training, the higher

the youth employment outcomes (see graph)

• Addressing skills mismatches and lack of work

experience alone unlikely to improve youth labour market outcomes

• Supply-side measures take the lion share of youth

employment strategies and labour market policies

Youth Employment Programme

Youth unemployment

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Youth employment

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10 20 30 40 50 6 7 8 9 10 11 12 13 14 Youth unemployment rate (%) Mean years of schooling (age 20-24) 20 40 60 80 6 7 8 9 10 11 12 13 14 Youth employment-to-population ratio (%) Mean years of schooling (age 20-24)

Source: Matsumoto, Hengge and Islam, 2012

Youth employment and the supply side (2)

Youth Employment Programme

Youth employment and labour market institutions

• Reforms of provisions concerning recruitment and

dismissal (EPL) have not improved long term youth employment outcomes

• Segmentation based on differing levels of protection

(temporary vs. permanent) for EPL reforms at the margin

• Inconclusive evidence of impact of minimum wage
• n youth employment
• In some countries, rebates in non-wage labour costs

improved youth employment outcomes when labour costs too high

Youth Employment Programme

Youth employment and the demand side (1)

• Lack of labour demand is a binding constraint to

youth employment

• Pace, volatility and pattern of growth play a

significant role in explaining youth employment

• utcomes
• Private fixed capital formation can increase youth

employment outcomes

• Public investment in infrastructure and social

protection can multiply employment opportunities

Youth Employment Programme

• Integrated policies with twin objective of growth

and job creation

• Counter-cyclical measures to reduce volatility and

sustain jobs

• Measures to loosen constraint to private sector

growth (e.g. finance and infrastructure)

• Youth-friendly fiscal policies, particularly to support

targeted demand-side interventions Youth employment and the demand side (2)

Youth Employment Programme 11

A balanced policy framework to promote youth employment

Entrepreneurship as career options Education and training to enhance employability and facilitate school to work transition Pro-employment macro- economic policies to increase investment, productive transformation and growth Rights @ work and equal treatment Targeted labour market policies to improve labour market integration of young people

Policy Areas

Youth Employment Programme

Concluding remarks

• Integrated strategies for growth and job creation to

ensure long-term, sustained and concerted action

• n youth employment
• A balanced approach to address demand- and

supply-side factors, as well as quantity and quality

• f youth employment
• Youth-friendly fiscal policies to implement activation

policies that combine both active and passive labour market policies

Youth Employment Programme

Questions

Youth Employment Programme

For more information

4, route des Morillons CH – 1211 Geneva 22

• Tel. : + 41 22 799 70 19

Fax: + 41 22 799 75 62 Email: youth@ilo.org Web: www.ilo.org/yep Follow us on twitter: @ILOyouth