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Youth Employment Programme

Job quality for young people and non-standard forms of employment

Mariya Aleksynska Inclusive labour markets, labour relations, and working conditions branch Conditions of Work and Equality Department September 18, 2014

Youth Employment Programme

Introduction

• The weakening of the global recovery continues

aggravating the youth job crisis

• Lack of available new jobs means not only high

unemployment and inactivity of youth, but also lower selectivity of youth about the types of jobs they accept

• Previous policies (“reforms at the margin”) led to labour

market segmentation, which particularly affects youth

Youth Employment Programme

Non-standard forms of employment «Standard»: Full-time Open-ended Direct «Non-standard»: Part-time, on-call, unsocial hours Temporary: FTC, casual, project-based, daily TWA, labour brokers

Youth Employment Programme

Incidence and trends among youth Fact 1: Young people are over-represented in all forms of NSFE in the majority of European countries Fact 2: The incidence of NSFE among youth is growing and, in some instances, it is growing faster than among other age groups

Youth Employment Programme

Employees with part-time jobs by age group as percentage of working population, 2013

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

B e l g i u m C z e c h R e p u b l i c G e r m a n y I r e l a n d S p a i n C r

• a

t i a C y p r u s L i t h u a n i a H u n g a r y N e t h e r l a n d s P

• l

a n d R

• m

a n i a S l

• v

a k i a S w e d e n I c e l a n d S w i t z e r l a n d T u r k e y

25-64 years 15-24 years

Youth Employment Programme

Employees with fixed-term contract by age group as percentage of working population

0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 28.0% 32.0% 36.0% 40.0% 44.0% 1995 1997 2002 2005 2007 2010 2012 Fixed-term 15-24 years 25-54 years 55-64 years

Youth Employment Programme

Employees with temporary agency contract by age group as percentage of working population

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 2007 2010 2012

Temporary agency 15-24 years

Youth Employment Programme

Job quality: Definitions

OECD

• Earnings quality
• LM Security
• Quality of the

Working environment – Time pressure – Physical and healthplace risk – Workplace intimidation

European Foundation for the Improvement of Living and Working Conditions

• Earnings
• Prospects
• Intrinsic characteristics of

the job – Interesting / challenging – Degree of autonomy – Skill match, etc

• Work-time quality

Academia

• All of those +
• Training
• Job

satisfaction

• Psychological

well-being

• etc

Youth Employment Programme

Job quality: Definitions In addition, ILO approach at the macro level

• Decent Work Indicators

– Informality – Precarious employment (stable employment?) – Time-related underemployment and excessive hours – Working poverty and low-pay rate

• Job quality for Millennium Development Goal 1b:

– Share of the working poor – Share of workers in vulnerable employment – Labour productivity

Youth Employment Programme

Focus on Prospects / Security NSFE may be preferred by some youth, as it can be more easily combined with studying. It can help gaining experience, developing skills, getting attached to the labour market, developing professional network, allowing for softer screening. NSFE can thus become « stepping stones » into regular employment.

Youth Employment Programme

Challenges arise when such employment is involuntary…

Youth Employment Programme

Involuntary part-time employment as percentage

• f the total part-time employment, 2013

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

25-64 years 15-24 years

Youth Employment Programme

Trends in youth involuntary part-time employment

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

2004 2013

Youth Employment Programme

Challenges further arise when transiting into regular employment is compromised …

Stepping stones or dead-ends?

Ø Look at yearly transitions from NSFE to permanent employment, to unemployment/inactivity, and to other NSFE Ø Look at life-long career path: is there more churning?

Youth Employment Programme

Research Findings

• Yearly transitions from non-standard to standard employment remain under

55%, and even under 10% in some countries (France, Spain).

• “Stepping stone” hypothesis of FTC is confirmed in: Denmark, Italy, the

Netherlands, the US: a temporary job, rather than unemployment, significantly increases the probability of further obtaining a regular job.

– The effect seems to be the strongest for young graduates: these are indeed the workers for whom benefits of having lower initial screening, obtaining general rather than specific work experience, and expanding their network through nonstandard jobs are high.

• Caveat: further liberalization of NSFE leads to increased pool of temporary

workers and increased churning; temporary work ceases to be a stepping stone (Spain, Japan)

• The “stepping stone” hypothesis is not confirmed in case of TWA workers in

Sweden, Germany, or specific parts of the US

• Everywhere, NSFE workers have a significantly higher rate of transition into

unemployment or into inactivity as compared to regular workers.

Youth Employment Programme

Policy Challenges: General and Specific

• General policies stimulating aggregate demand and job

creation

• How to improve stepping stone role of NSFE without liberalizing

their use further?

– Policy reforms to mitigate segmentation: creating incentives to favour transitions from NSFE to regular employment of youth

• How to ensure that skills earned in NSFE are transferable?

– Invest in education and training to enhance employability and facilitate the school-to-work transition – Apprenticeships as stepping-stones

• How to ensure that NSFE are not jobs of inferior quality in other

terms?

– Ensuring equal treatment of young workers

• How to ensure that youth does not carry disproportionate

burden of risks?

– Innovative approaches to risk-shedding: how to provide social security coverage for workers with very low tenure and contributions

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