internship – real start or illusion? 05/11/2007 centre’s team of interns/collaborators

Internship – Real Start or Internship – Real Start or Illusion?Illusion?

05/11/200705/11/2007

Centre’s Team of Interns/Collaborators Centre’s Team of Interns/Collaborators

PART I. PART I. H O N E YH O N E Y

If you are lucky during your internship you get …. If you are lucky during your internship you get ….

• practicalpractical experience in real job environment experience in real job environment• development of you development of you employabilityemployability skills skills • understanding whether it is the very workplace understanding whether it is the very workplace you you

dreamdream about and if not - you will seek for a new job about and if not - you will seek for a new job in the future with a much in the future with a much better insightbetter insight

• useful useful contactscontacts and references and references• career modelscareer models and learn from them and learn from them • competitive advantage adding this line in competitive advantage adding this line in CVCV• chance to get a chance to get a real jobreal job at the end at the end

It is a good first step as many employers hardly It is a good first step as many employers hardly employ someone with zero working experienceemploy someone with zero working experience

PART I. H O N E YPART I. H O N E YInternship at the ITC ILO gives you chance to: (our Internship at the ITC ILO gives you chance to: (our

experience) experience)

• get work experience in get work experience in international environmentinternational environment

• participate in participate in real projectsreal projects with real risks but being an with real risks but being an intern you do not carry that much responsibility on your intern you do not carry that much responsibility on your shoulders (not considered as officials with regard to shoulders (not considered as officials with regard to Centre’s Internship Programme)Centre’s Internship Programme)

• get get knowledge about special coursesknowledge about special courses, job vacancies, , job vacancies, contests and participate in it contests and participate in it

• learn to be more learn to be more tolerable and open-mindedtolerable and open-minded, diversity , diversity influences your world view, you learn some general rules of influences your world view, you learn some general rules of conduct conduct

• Confront your views on Confront your views on tripartite relationstripartite relations with colleagues with colleagues from different units of the ITC ILO – ACTRAV, ACTEMP etc from different units of the ITC ILO – ACTRAV, ACTEMP etc

PART II. A FLY IN THE OINTMENTPART II. A FLY IN THE OINTMENT

Despite being a good opportunity to get real Despite being a good opportunity to get real job experience, at the same time internships job experience, at the same time internships

may:may:

• bring false expectations• be useful but only as long as the skills you are

gaining are transferable skills;• become exploitation of cheap labour “, i.e.

“eternal internships”• be marred by patronizing attitudes of your

bosses, as interns do not dare disagree with them

• be an execution of the unskilled or useless job “nobody-wants-to-do” – boring and repetitive tasks

• be accompanied with absence of mentor/supervisor who really follows and directs your progress during the internship

EU & INTERNSHIPEU & INTERNSHIPNEED TO ADAPT TO CHANGENEED TO ADAPT TO CHANGE

Main ActorsMain Actors Vladimir Špidla and Jan Figel for High-Quality Internships

YouthYouth Resource wasted – unemployment and Resource wasted – unemployment and underemploymentunderemployment

EU Labour EU Labour MarketMarket

17.5 % YU17.5 % YU

1 of 3 remain jobless 1 year after leaving 1 of 3 remain jobless 1 year after leaving education, temporary/part-time jobseducation, temporary/part-time jobs

Flexicurity - to improve young people Flexicurity - to improve young people mobility (YFJA)mobility (YFJA)

Education - Education - InternshipInternship – Labour Market – Labour Market

building bridges and activate youth building bridges and activate youth

InternshipInternship • Avoid with little or no pay and with no Avoid with little or no pay and with no added value, define properlyadded value, define properly• Initiative for a European quality charter on internships in 2008• Member states – promote internships, strong link with study curriculum

Internships in the USInternships in the US• Internships in the US vary in duration between Internships in the US vary in duration between three three

months to one yearmonths to one year• They are They are unregulatedunregulated• When offered by private companies, they are When offered by private companies, they are always always

paidpaid• They are the They are the stepping stonestepping stone to working in the to working in the

companycompany• They are They are widely availablewidely available• They usually take place in parallel with studies, or They usually take place in parallel with studies, or

during summerduring summer• Companies rely on the tool because of Companies rely on the tool because of labor market labor market

flexibilityflexibility

Q. Internship – Real Start Q. Internship – Real Start or Illusionor Illusion

WHAT DO YOU THINK ? WHAT DO YOU THINK ?

YOUR EXPERIENCEYOUR EXPERIENCE

II. Youth and Labour II. Youth and Labour MarketMarket

05/11/200705/11/2007

Centre’s Team of Interns/Collaborators Centre’s Team of Interns/Collaborators

• There is no problem with unemployment in Ukraine!There is no problem with unemployment in Ukraine!

• Main problem – flow out of qualified youth – brain drain Main problem – flow out of qualified youth – brain drain (blue card, demographic problems) -3 mln abroad(blue card, demographic problems) -3 mln abroad

• Legalisation of “informal” salaries – real Legalisation of “informal” salaries – real pensionpension

• Pension for migrants – joint responsibility UA-EUPension for migrants – joint responsibility UA-EU• Disproportion supply/demand on youth labour market Disproportion supply/demand on youth labour market

due todue to mismatch education outcomes – LM requirementsmismatch education outcomes – LM requirements• Law “My first work place” - it used to be a sad Law “My first work place” - it used to be a sad

story….50mln. UAH foreseen in 2008 state budget story….50mln. UAH foreseen in 2008 state budget projectproject

• Internships and probation periodsInternships and probation periods

UKRAINE UKRAINE Second biggest fearSecond biggest fear

The situation in BelgiumThe situation in Belgium

• All data seasonally adjusted, and for the All data seasonally adjusted, and for the month of October 2007 (Eurostat)month of October 2007 (Eurostat)

• The total unemployment rate of Belgium is The total unemployment rate of Belgium is of 7.5%of 7.5%

• The Youth (as defined by ages 15-24) The Youth (as defined by ages 15-24) unemployment rate is of: 18.5%unemployment rate is of: 18.5%

• Why the difference?Why the difference?• Compare this with Netherlands (similar size Compare this with Netherlands (similar size

and economy, in close proximity), and you and economy, in close proximity), and you find rates of (respectively) 3.1 and 5.6.find rates of (respectively) 3.1 and 5.6.

Why is the rate of Youth Why is the rate of Youth unemployment so high?unemployment so high?

• ““Allocation D’attente”Allocation D’attente”• Inappropriate school-to-work transition Inappropriate school-to-work transition

policiespolicies• Large percentage of young people who do Large percentage of young people who do

not complete school and/or go on to not complete school and/or go on to secondary educationsecondary education

• Fragmentation of the labor marketFragmentation of the labor market• High costs of labor (2High costs of labor (2ndnd most expensive most expensive

after Norway in Europe)after Norway in Europe)

The differenceThe difference

• Belgium is a special caseBelgium is a special case• Data suggests unemployment is mostly long-Data suggests unemployment is mostly long-

termterm• Huge regional differences in unemploymentHuge regional differences in unemployment• Why?Why?

– MentalitiesMentalities– Economic conditionsEconomic conditions– Labor costsLabor costs– Flexibility of the labor marketFlexibility of the labor market

Solutions?Solutions?• Restart economic activity in the SouthRestart economic activity in the South

– However, transfers from North to South never However, transfers from North to South never ceased, and yet little progress has been madeceased, and yet little progress has been made

• Increase flexibility of the labor marketIncrease flexibility of the labor market– But at what cost?But at what cost?

• Encourage students to choose technical Encourage students to choose technical qualifications over humanistic onesqualifications over humanistic ones

• Facilitate school-to-work transitionFacilitate school-to-work transition• Abolish “Allocation d’attente” and/or reduce Abolish “Allocation d’attente” and/or reduce

the length of time unemployment benefits can the length of time unemployment benefits can be collectedbe collected

RomaniaRomania

• Romania - third EU country after Romania - third EU country after Greece (22,9%) and France (21,6%) Greece (22,9%) and France (21,6%) with 19,6% of youth unemployment with 19,6% of youth unemployment (15-24 years) (15-24 years) (EUROSTAT info, November 2007)(EUROSTAT info, November 2007)

• Labour crisis/limited staff (mainly in Labour crisis/limited staff (mainly in the construction industry, textiles and the construction industry, textiles and tourism sector)tourism sector)

• Migration (around 2 billion people Migration (around 2 billion people abroad)abroad)

Two important labour market reforms

were introduced in the last decade:

“Treu Package” in 1997

“Biagi Law” in 2003

aimed to increase flexibility

BUT

with few emphasis on security issues

so we can’t talk about flexicurity

Flexibility in ItalyFlexibility in Italy

The introduction of these reforms brought more segmentation between:

workers holding open-ended contracts

and

workers on temporary employment

Temporary employment is exponentially increased in

parallel with the spreading of “temporary work

agencies”


About 40 different types of flexible contracts were introduced

BUT

NO reforms were introduced about

unemployement benefits and lifelong learning

CONTRACTS

...fixed-term contracts, part-time, apprenticeships, job on call, job sharing, coordinated collaborations (continuous, project-based, occasional), stages/internships (only trough universities or professional training institutes)...


TRADE UNIONS

The Italian labour market segmentation might also be due to trade

unions’ behaviour.

They represent mostly the insiders (open-ended employees) and the

retired, while the precarious/temporary workers and the unemployed are

scarcely represented.

They have not pursued a flexicurity strategy, and only now they are

beginning to ask for a new unemployment benefit system able to cope

with the needs of all workers.


So, nowadays we have:

less pension benefit low wages

low income security difficult in finding open-ended contracts

Which means:

less perceived job security and life expectations

(possibility to buy a house, to build a family, etc...)


III. TACKLING YOUTH III. TACKLING YOUTH UNEMPLOYMENTUNEMPLOYMENT

EMPLOYERS’ WAY / WORKERS’ EMPLOYERS’ WAY / WORKERS’ WAYWAY

05/11/200705/11/2007Centre’s Team of Centre’s Team of

Interns/CollaboratorsInterns/Collaborators

TACKLING YOUTH UNEMPLOYMENT: THE TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAYEMPLOYERS’ WAY

5 key elements for success 5 key elements for success

• Promotion of youth entrepreneurshipPromotion of youth entrepreneurship• Labour market flexibilityLabour market flexibility• Payroll cost policiesPayroll cost policies• Policies on school-to-work transitionPolicies on school-to-work transition• Business environment conducive to easy start-upsBusiness environment conducive to easy start-ups

TACKLING YOUTH UNEMPLOYMENT: TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAYTHE WORKERS’ WAY

elements for successelements for success

• Promotion of youth wage employment and workers’ rightsPromotion of youth wage employment and workers’ rights• Flexibility + SecurityFlexibility + Security• Decent workDecent work• Improving the transition from school to workImproving the transition from school to work• Promoting more and better jobs for young peoplePromoting more and better jobs for young people

TACKLING YOUTH UNEMPLOYMENT: TACKLING YOUTH UNEMPLOYMENT: THE EMPLOYERS’ WAYTHE EMPLOYERS’ WAY

1) Promotion of youth entrepreneurship1) Promotion of youth entrepreneurship

Employers’ organisations push governments to undertake a wide Employers’ organisations push governments to undertake a wide range of actions to increase the number of young entrepreneurs, range of actions to increase the number of young entrepreneurs, such as:such as:

• Providing enterprise education in schoolsProviding enterprise education in schools• Providing access to support fundsProviding access to support funds

• Providing young people with easy access to business Providing young people with easy access to business development servicesdevelopment services

• Assisting youth SMEs to break into new markets and meet new Assisting youth SMEs to break into new markets and meet new clientsclients


1)1) Promotion of youth wage Promotion of youth wage employment and workers’ rights.employment and workers’ rights.

The trade unions seek to promote:The trade unions seek to promote:• The cooperation with schools and young, NGOs on The cooperation with schools and young, NGOs on

warness-raising about labour rights (as Freedom of warness-raising about labour rights (as Freedom of Association, right to bargain collectively, and other ILS) Association, right to bargain collectively, and other ILS)

• Vocational training and education that must be relevant Vocational training and education that must be relevant to labour market needsto labour market needs

• Improvement of labour market information and Improvement of labour market information and vocational guidancevocational guidance

• Safe working condition in general and opportunities for Safe working condition in general and opportunities for skill training skill training


2) Labour market flexibility:2) Labour market flexibility:Atypical forms of work and temporary agencyAtypical forms of work and temporary agency

• create jobs and economic growthcreate jobs and economic growth• facilitate access to jobsfacilitate access to jobs• help young people gain a foothold in the labour markethelp young people gain a foothold in the labour market• help workers who are going through labour market help workers who are going through labour market

transitionstransitions• acts as a stepping-stone to permanent employmentacts as a stepping-stone to permanent employment• enhances workers’ employabilityenhances workers’ employability• provide much-needed flexibilityprovide much-needed flexibility


2) Flexibility + Security2) Flexibility + SecurityEnsure that the basic labour standards Ensure that the basic labour standards are applied:are applied:• Equal pay for equal workEqual pay for equal work• Same working conditions for the same obligationsSame working conditions for the same obligations• Equal wagesEqual wages• Health and safetyHealth and safety• Social securitySocial security

andand• Active labour market policiesActive labour market policies


3)Payroll cost policies3)Payroll cost policies

Payroll cost Payroll cost policies aim to reduce the cost of taking on young policies aim to reduce the cost of taking on young people for employers. They include:people for employers. They include:

– Direct alteration of wage structuresDirect alteration of wage structures through lower wage-for- through lower wage-for-age scales in collective agreements and minimum wagesage scales in collective agreements and minimum wages

– Reducing labour and training costsReducing labour and training costs (through financial (through financial government incentives)government incentives)


3)Decent work3)Decent work• Access to decent work = productive work in which workers Access to decent work = productive work in which workers

rights are protected, which generates an adequate income rights are protected, which generates an adequate income and is accompanied by adequate social safety netsand is accompanied by adequate social safety nets

• Give fiscal and monetary incentives for the creation of new Give fiscal and monetary incentives for the creation of new employment for those industries at lower level from those employment for those industries at lower level from those which are labour intensive which are labour intensive

• Balance flexibility with social security policiesBalance flexibility with social security policies


4) Policies on school-to-work transition4) Policies on school-to-work transition

Need for Employability skillsNeed for Employability skills

• Employers relay to the government what employers seek from Employers relay to the government what employers seek from new recruits in terms of employability skillsnew recruits in terms of employability skills

Employability skills includeEmployability skills include::– Applying mathematical concepts to practical situationsApplying mathematical concepts to practical situations– Reading input-output graphsReading input-output graphs– Correct use of basic grammar, spelling and format for correspondenceCorrect use of basic grammar, spelling and format for correspondence


4) Improving the transition from school 4) Improving the transition from school to workto work

• Adjust school curricula to the needs of labour marketAdjust school curricula to the needs of labour market• Develop national qualifications frameworksDevelop national qualifications frameworks• Introduce measures to reduce the number of school dropouts and Introduce measures to reduce the number of school dropouts and

incentives to encourage to returnincentives to encourage to return• Combine technical education with training in “employability Combine technical education with training in “employability

skills”skills”• Make relevant labour market information and career guidance Make relevant labour market information and career guidance

accessible to all young peopleaccessible to all young people• Provide training in entrepreneurship and business supportProvide training in entrepreneurship and business support• Build strategic alliances with other stakeholdersBuild strategic alliances with other stakeholders


5) Business environment conducive to easy 5) Business environment conducive to easy start-upsstart-ups

• Political, economic and institutional stabilityPolitical, economic and institutional stability• Good governanceGood governance• Investment in infrastructureInvestment in infrastructure• Investment in health careInvestment in health care• Investment in education and skills developmentInvestment in education and skills development• Promotion of export growth strategiesPromotion of export growth strategies• Access to creditAccess to credit• Support for Small and Medium Enterprise (SME) Support for Small and Medium Enterprise (SME)

developmentdevelopment• Policies promoting productivity and competitivenessPolicies promoting productivity and competitiveness• Flexible labour market policies and the absence of red tapeFlexible labour market policies and the absence of red tape• Safety net for failed start-upsSafety net for failed start-ups

TACKLING YOUTH UNEMPLOYMENT:TACKLING YOUTH UNEMPLOYMENT: THE WORKERS’ WAY THE WORKERS’ WAY

5) Promoting more and better jobs for 5) Promoting more and better jobs for young peopleyoung people

• By promoting job creation programmes that focus on By promoting job creation programmes that focus on expanding sectors (including services and new technologies)expanding sectors (including services and new technologies)

• By advocating the reduction of overtime and working hours to By advocating the reduction of overtime and working hours to increase the number of jobs for young recruitsincrease the number of jobs for young recruits

• By negotiating better working conditionBy negotiating better working condition• By promoting social protection for all, including young peopleBy promoting social protection for all, including young people• By supporting employment protection lawsBy supporting employment protection laws• By promoting the abolition of “last hired, first fired”By promoting the abolition of “last hired, first fired”• Increase investment in telecommunications infrastructure as Increase investment in telecommunications infrastructure as

well as in the ICTwell as in the ICT

III. TACKLING YOUTH III. TACKLING YOUTH UNEMPLOYMENTUNEMPLOYMENT

WHAT DO YOU THINK?WHAT DO YOU THINK?

HOW EMPLOYERS AND HOW EMPLOYERS AND WORKERS CAN TACLLE YOUTH WORKERS CAN TACLLE YOUTH

UNEMPLOYMENT? UNEMPLOYMENT?

internship – real start or illusion? 05/11/2007 centre’s team of interns/collaborators

Documents

real job experience

internship slide

real projects

real risks

job vacancies

new job

useless job

working experience slide