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Active labour market programs’ evaluation – Romanian case

Active labour market programs’ evaluation – Romanian case. Path to a targeted approach in ALMPs design and delivery MISEP meeting, Paris, 3-4 November 2008. Context.

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Active labour market programs’ evaluation – Romanian case

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  1. Active labour market programs’ evaluation – Romanian case Path to a targeted approach in ALMPs design and delivery MISEP meeting, Paris, 3-4 November 2008

  2. Context • PES and ALMPs’ initially designed for tackling large scale restructuring process (massive lay-offs, structural unemployment, inactivity / social assistance or early retirement) • 2003/2004 – turning point: • better economic prospects, labour migration (less pressures on unemployment protection system, lowest unemployment rates in the last two decays: 5.6% ILO rate in 2nd trimester 2008 and 3.9% registered rate in August 2008) • youth unemployment, long term inactivity for socially disadvantaged (major change in the clients’ composition and needs) • Need to completely re-shuffle ALMPs

  3. ALMPs evaluation (1) • Research on ALMPs efficiency, developed by the Romanian National Institute for Scientific Research in the field of Labour and Social Protection, ordered by the Romanian Public Employment Service (National Agency for Employment) • analysis on the net impact of an ALMP through the evaluation of the degree of success on the labour market (getting a job) of a person who participated in an activation programme in comparison to a non-participant

  4. ALMPs evaluation (2) • The active employment measures selected were: • Vocational training • Counseling and assistance for self-employment and business start-up • Stimulation of labour force mobility • Jobs subsidizing through temporary employment in public works for community interest. • The survey focused on two regions of Romania - North-East (persistent high unemployment rate) and Center (massive lay-offs) • Reference population: registered unemployed (participants & non-participants in ALMPs) on following variables: gender, age and education level

  5. Results / Vocational training • 75,3% (N-E) and 85,9% (C) participants considered the courses’ quality as good and very good • While 48% (N-E) and 64,2% (C) found a job after graduation • Over 80% of those employed declare that knowledge acquired helped them in finding a job N-E C

  6. Results / Business start-up • 53% (N-E) and 40,5% (C) participants ranked the quality of business-start up services as good and very good; • Only 26,5% (N-E) and 15,6% (C) of those who started a business declared these services as highly and very highly helpful

  7. 58.2% (N-E) and 29.8% (C) of beneficiaries appreciated the labour mobility measure as useful and very useful 49% (N-E) and 46.9% (C) of beneficiaries ranked the temporary employment in community interest works as useful and very useful Results/ mobility & temporary employment

  8. Impact in North-East region

  9. Impact in Center region

  10. Overall results • Vocational training, business start-up and labour mobility registered positive impact; • Temporary employment in public works resulted in negative effects on employment probability on long term • Positive impact on men and women (exception temp. empl.), higher positive impact on men in case of vocational training and labour mobility, higher positive impact on women in case business start-up • Positive impact in all age groups, except for temporary employment (where the positive results for the age group under 24 are not statistically significant) • Same positive impact on all educational levels, except for temporary employment (the slight positive impact on university graduates is not statistically significant) • Higher earnings for participants to business start-up and labour mobility, compared to non-participants (lower earnings for temporary employment participants)

  11. Outcomes • ALMPs delivery according to individual characteristics and expectations (special PES performance indicator); • Better ALMPs design and delivery (focus on career information and counseling, better linkage to labour market demands); • the most successful employment measures were increased while the weakest (subsidized employment in public interest works) reduced; • PES staff training for providing personalized services to jobseekers, including to vulnerable groups.

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