Youth Employment crisis 2013 A generation at risk – Time for Action

Youth Employment crisis 2013A generation at risk – Time for Action Marta Makhoul International Labour Office for the EU and the Benelux countries

A lostgeneration?

An unprecedented youth employment crisis… In 2012… • 75 million young people are unemployed worldwide • Globally young people are on average nearly three times more likely than adults to be unemployed • Four out of every ten unemployed worldwide is a young women or man • Over 1.2 billion people in the world between 15 and 24 years of age • 40 % of the world's unemployed are young people…. BUT… But… Facts on youth employment crisis

….Unemployment is only the tip of the iceberg • Inequalities, insecurity and vulnerability are rising • Quality of jobs available for youth is declining • Underemployment and poverty for youth is on the rise • Young workers are disproportionately represented in low-paid work • Most young workers in developing countries are in the informal economy. • Temporary employment and lack of permanent employment for youth is rising • More insecure and slower transition from school to work Risk of SOCIAL UNREST Youth are increasingly discouraged than other age groups. Facts on youth employment crisis

Global youth unemployment and unemployment rate, 1991-2013 Source: ILO, Trends Econometric Models, February 2013. Global and regional youth unemployment

Global youth and adult unemployment from 1991-2013 Global youth and adult unemployment rate

European Union Youth unemployment rates (%), from 2000 2013 Youth unemployment rates in the EU

NEET rates in the EU Young people not in employment and not in any education or training

Consequences of youth unemployment Raise risk of future unemployment and/or protracted period of unstable employment Is likely to become more serious the longer youth unemployment crisis continues Valuable work experience is not acquired and professional skills may erode Effects more severe for youth entering the workforce with education level below tertiary level Consequences of youth unemployment Youth are increasingly employed in non-standard jobs, including temporary employment and part-time work Is likely to result in wage scars that continue to depressemployment and earnings prospects Consequences of youth unemployment

Youth labour markets in developing economies Developing regions face major youth employment challenges and large variations in extent and development of youth unemployment Young workers often receive below average wages and are engaged in work for which either overqualified or underqualified • Large numbers of young people not achieving full economic potential • Unemployed • In irregular employment (informal sector) • Neither in labour force nor in education/training quality of work In countries with high poverty levels and high shares of vulnerable employment, youth employment challenge is as much a problem of poor employment quality as one of unemployment Youth labour markets in developing economies

Youth labour markets in developing economies • Labour markets in developing economies do not look like those in developed economies • Abundance of labour • Scarcity of capital • Duality between dominant traditional economies and “modern” economies • Irregular nature of employment • Leave education early • Lack of social protection • Different type of measurement needed Youth labour markets in developing economies

Policies to tackle youth unemployment • Stimulate demand and create jobs for youth through pro-employment macroeconomic policies • Invest in education and training to enhance employability and facilitate the school-to-work transition • Improve labour market integration of young people through targeted labour market policies • Provide career options to young people by supporting entrepreneurship and self-employment • Ensure that young people receive equal treatment and are afforded rights at work Policies for youth employment

ILO’s response to the youth employment crisis: The 2012 ILC Resolution “The Youth Employment Crisis: A call for action” and its follow-up plan The Call for action focuses on five policy areas: • employment and economic policies to increase aggregate demand and improve access to finance; • education and training to ease the school-to-work transition; • labourmarket policies to target employment of disadvantaged youth; • entrepreneurship and self-employment to assist potential young entrepreneurs; and • labourrights that are based on international labour standards to ensure that young people receive equal treatment. ILO’s response to the youth employment crisis: 2012 ILC Resolution

The ILO youth employment programme • Knowledge building • Advocacy and promotion of decent work for youth • Technical assistance ILO youth employment programme

ILO Active Labour Market Policies: What works for youth? • Policy measures should be balanced and adapted to country-specific needs Comprehensive packages of labour market measures targeting specific groups of young people Balanced strategies for growth and job creation Platforms for exchanging knowledge and lessons of what works Apprenticeships, skills training and other work-training programmes Policiy measures Multiple services for entrepreneurship, social enterprises and cooperatives development Targeted youth employment action through tripartite consensus and time-bound action plans Employment services Bipartite and tripartite cooperation Policies for youth employment

Thank you for your attention http://www.ilo.org/global/topics/youth-employment/lang--en/index.htm http://www.ilo.org/ilc/ILCSessions/101stSession/texts-adopted/WCMS_185950/lang--en /index.htm More info: http://ilo.org/global/research/global-reports/global-employment-trends/youth/2013/lang--en/index.htm

Youth Employment crisis 2013 A generation at risk – Time for Action