LOCAL EMPLOYMENT DEVELOPMENT: Albania’s experience with territorial Employment Pacts and regional employment funds

1. AER Conference “Why are regions best positioned to tackle youth employment?” LOCAL EMPLOYMENT DEVELOPMENT: Albania’s experience with territorial Employment Pacts andregional employment funds Daniela Zampini Chief Technical Adviser of the UN Joint Programme “Youth Employment and Migration” 26 June 2012

2. 1. Global picture (quantitative and qualitative) 2. Local Employment Development in Albania 3. Some considerations on the way forward

3. UN Youth World Report 2012 • ILO Global EmploymentTrendsforYouth (2012) • YouthEmployment Forum (Geneva, 23-25 May) • Documentadoptedby the 101st International LabourConference (ILC) ….Invest in Youth or lose a generation…

4. …somefigures • Global youth UR stood at 12.7 % in 2012 • The YE crisiswill last until 2016 • Joblessyouth are 75 ml (4 ml more comparedto 2007) • 6.4 ml youthhavedropped out of the labourforce (ILO, GET-Y 2012)

5. …pointtowards • A youthemploymentcrisisofunprecendentedproportions • Youthemployment “traps” • Youthunemploymentisonly the “tip” of the iceberg • Polarization and wideningdisadvantagesamongyoung people

6. Vision Europe 2020 • Priority: Inclusive Growth EU target for inclusive growth include: • 75% employment rate for women and men aged 20-64 by 2020– achieved by getting more people into work, especially women, the young, older and low-skilled people and legal migrants • better educational attainment, in particular:– reducing school drop-out rates below 10% – at least 40% of 30-34–year-olds completing third level education (or equivalent) • at least 20 million fewer people in or at risk of poverty and social exclusion

7. Albania: on the way to… ALBANIA National Action Plan on Youth Employment 2010-2013

8. National Action Plan for YE Output 1.1.5: Social pacts on youth employment are piloted in regions with a high incidence of youth at risk of labour marker exclusion Territorial Employment Pact for Youth in Kukes Region (Y-TEP) Regional Employment Fund in Shkodra Region (Sh-REF)

9. Why TEPs and REFs Because they target specific LOCAL labour market problems (informality; urban/rural divide; labour market segmentation) and build on the local comparative advantages, in response to specific labour market needs. Community-based partnerships for youth employment

10. TEPs and REFs TEPs and REFs promote a close partnership between regional and local actors, social partners and enterprises, local branches of the National Employment Service, civil society organizations, and youth themselves. • TEP and REF actions are based on concertation and partnership, de facto extending the impact and outreach of National Employment Service (NES). • TEP is a European model and REF is modeled on the European Social Fund. It finances employment programmes designed regionally.

11. TEPs and REFs – Target Groups TEP REF • Youth and women unemployed • Informal workers • Young people at risk of exclusion from the labor market • Contributing family workers, in particular in the agricultural sector • School drop-outs and early school leavers • Youth first time job-seekers • Low skilled young workers • Enterprises currently employing(young) workers informally • Low skilled young workers, contributing family members, particularly in the agricultural sector

12. TEPs and REFs – Service Lines TEP REF 1. Entrepreneurship and business advisory services, with a particular focus on women 2. Training incentives/skills training grants 3. Access to credit opportunities 4. Subsidised employment 5. Organization/association building (to enhance voice and representation) 6. Regulatory environment, including rights • Outcomes: • Training programmes based on competences and relevant to labour market needs • Working training contracts to promote first-time employment in the private sector through practice periods, work-experience schemes • A package of incentives in place as part of entreprises development strategies to foster youth employment and human resource development • Service lines: • Entrepreunership and business advisory services , with a particular focus on women; • Training incentives/Skills training grants; • Access to credit opportunities; • Organization and association building (to enhance voice and representation).

13. TEPs and REFs – (some figures) TEP REF • 155,180 USD by the programme (YEM) • 89,000 USD in-kind contributions by private sector, trade unions, and associations • also leverages the impact of grant schemes provided by the Government of Albania for agriculture and rural development in Kukes region (around 300,000 USD). • 942 beneficiaries; about 440 new jobs created • 90,000 USD • 305 jobs

14. TEPs and REFs – Partners TEP REF Over40 partners are involved in the implementation: • National Authorities: competent Ministries, National Employment Service (NES), Institute of Social Insurance (ISI) • Local authorities: (Country and regional Councils, Municipalities, Communes) • Unions and Org. Employers (BSPSH, KSSH, KASH, Business Albania) • Regional agencies of the central institutions: (Regional Employment Office (REO), Regional Directorate for Agriculture (RDAFCP), Kukes Farmers’ Federation (KFF), Kukes Chamber of Commerce (KCoC), etc…) • NGOs, NPOs and University • National Authorities: competent Ministries, National Employment Service (NES), Institute of Social Insurance (ISI) • Local authorities: (Country and regional Councils, Municipalities, Communes) • Unions and Org. Employers (BSPSH, KSSH) • Regional agencies of the central institutions: (Regional Employment Office (REO), Regional Directorate for Agriculture (RDAFCP), Kukes Farmers’ Federation (KFF), Kukes Chamber of Commerce (KCoC), etc…) • NGOs, NPOs and University

15. Possible ways forward: the role of REGIONS • proper targeting and sourcing • quality of jobs • “complicated” but necessary policy coordination and coherence • not only focus on supply-side interventions (demand management; counter-cyclical policies) • social pacts at the local level • “peering” and “peeping”

16. Thank you: zampini@ilo.org