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Reform of Labour Market Policies in a transition country: The case of Azerbaijan

Reform of Labour Market Policies in a transition country: The case of Azerbaijan ASPEN/ETUI Conference Brno, 20 March 2009 Lizzi Feiler. Overview: Introduction Key questions Methodology Main findings Conclusions. Mandate and research team:

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Reform of Labour Market Policies in a transition country: The case of Azerbaijan

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  1. Reform of Labour Market Policiesin a transition country: The case of Azerbaijan ASPEN/ETUI ConferenceBrno, 20 March 2009 Lizzi Feiler Lizzi Feiler

  2. Overview: • Introduction • Key questions • Methodology • Main findings • Conclusions Lizzi Feiler

  3. Mandate and research team:  World Bank Social Protection and Development Project on behalf of the Ministry of Labour and Social Protection of Azerbaijan, (May - October 2008)  Consultants assigned: ÖSB Consulting (AT), in cooperation with SEOR (NL)  Research team: Lizzi Feiler (team leader), Katja Korolkova, Niek de Jong, Jaap Koning, Ken Walsh, and local experts Lizzi Feiler

  4. Objectives of the project:  to provide strategic input and support for the reform of employment services in Azerbaijan  to assess the capacity of the Public Employment Service (GED)  to develop recommendations and a strategy plan for the improvement of Active Labour Market Policyandprofessional orientation and careers guidance services Lizzi Feiler

  5. Background • Independence 1991 (Azerbaijan is member of CIS) • Oil-based, fast growing economy (GDP growth 2007: 34.7%, 2008: 10.8%) • Employment policy based on 'National Employment Strategy 2006-2015' • General Employment Department (GED)established 1991, as department of theMinistry of Labour and Social Protection of the Population of AZ (MoLSPP) Lizzi Feiler

  6. Structure of employment and unemployment • High underemployment in the rural sector • high levels of informal work (grey economy) • high youth unemployment (specifically among graduates of secondary general education) • mismatch between demand and supply (weak vocational education system) • restructuration and privatisation of state enterprises has not yet taken place on larger scale ( 'ghost jobs') • But: Relatively low unemployment rate: 6.8% (non-EU CEE and CIS countries: 9.1%) Lizzi Feiler

  7. Structure of employment and unemployment Lizzi Feiler

  8. Key questions: • Is the outreach of labour market services sufficient for achieving impact? Who are the clients of the GED? • How is the security dimension covered? How functions the social protection of unemployed? How are placement services organised? • Which Active Employment Market Measures are implemented and with what results? Focus: the role of the GED in delivering ALMM Lizzi Feiler

  9. Assessment criteria of labour market policy International standards and commitments External factors: Macro-economic trends RELEVANCE State program on employment strategy Legal framework RELEVANCE Fiscal policy GED (annual) employment program E F F E C T I V E N E S S International good practice Education and Training policy GED service delivery O U T R E A C H and I M P A C T Labour market participants Lizzi Feiler

  10. Methodology: • Interviews with key staff, partners and stakeholders of the GED • Survey with standardised questionnaire among all 83 local employment offices • Desk research • Evaluation results from a parallel project (net impact assessment of ALMP) conducted by SEOR • Consultation procedure (workshops with key decision makers and stakeholders) Lizzi Feiler

  11. Main findings: Relevance and outreach of services Lizzi Feiler

  12. Security? • Only 17% of the unemployed are registered clients of the GED (2008) • Only 1.5% of the unemployed according LFS and 9.2% of the registered jobseekers receive unemployment benefits (2008) • One third of recipients get the minimum of monthly USD 29 • Strict entitlement rules (f.i. subsistence peasants, landowners are excluded; tight deadlines) Lizzi Feiler

  13. Participants in Active Employment Measures: **) Forecast***) First nine months Lizzi Feiler

  14. Placement of jobseekers and unemployed: Lizzi Feiler

  15. Conclusions: • the outreach of the GED should be increased to cover and serve a higher percentage of the unemployed • the effectiveness of job placement needs to be improved (matching system, service for employers) • better social protection for the unemployed (income security with fair and transparent eligibility criteria) • improvement of active employment measures... Lizzi Feiler

  16. Conclusions: Further development of Active Employment Measures: Labour market training Job fairs Professional orientation and counselling services Start-up schemes more effective contribution to job creation, including rural areas targeted approach, involvement of local actors focus on young people, starting at school age to reduce mismatch demand-led, closer relation with employers Lizzi Feiler

  17. Conclusions: Institutional capacity building and more resources (staff and infrastructure) are a precondition, e.g.: • Development of a performance-driven management approach (result-orientation, increased labour market monitoring system) • More resources - also in stormy weather (staff training, infrastructure) • Enhanced partnership with stakeholders and coordination with other policy areas (education, social policy, SME support) Lizzi Feiler

  18. Policy learning from current trends in Public Employment Services jobseekers:individualised action plans, rights & responsibilities ICT (internet-based) services for jobseekers and employers Management tools: Performance management, benchmarking Costomer-orientation with quality service delivery exchange of experiences Tailor-made services to employers Cooperation with stakeholders, local initiatives, private service deliverers Lizzi Feiler

  19. thank you for your attention! Lizzi.feiler@gmail.com Lizzi Feiler

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