labour market and the training of young people in spain and the united kingdom: a research report...
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Labour Market and the Training of young people in Spain and the United Kingdom:
a research report project
J.Manuel Galvin -Expert Advisor-
Tripartite Foundation for Training in Employment--Observatory of Training in Employment-
Bergamo, 17th December 2010
OUTLINE
1. Introduction: background of the research.
2. A brief overview of youth unemployment and education trends in Spain & UK.
3. Brief overview of current labour market and training policies for young people in both countries.
4 . Working hypothesis to set up possible ways forwards in the project research.
1.Introduction:background of the research
Spain & UK (October 2009) agreed to work together to analyze youth employment issue, implement innovative measures in support of employment for the youth of both countries, a problem gradually aggravated in the context of the world-wide economic crisis.
The political mandate: Youth unemployment situation aggravated in
Spain & UK
Join activity between both labour cabinets: establishing support measures for the youth employment situation on the basis of two dimensions (Bilateral vs. European).
To set up a Task Force comprising civil servants from both Administrations and led by the Ministry of Labour and Immigration (MTIN-Spain).
Bilaterally:
-The analysis of the situation and the policies adopted in each country within the respective institutional framework.-The identification of shared principles and elements underlying co-operation in this area and, in particular, the driving of shared initiatives.-The interchange of expertise and good practices.-The implementation of youth exchange programmes in order to undertake training and obtain practical experience in companies in both countries.
Two working dimensions: Bilateral vs. European
European plane:
-The drafting of a proposal on youth employment for submission during the six-month Spanish Presidency.-The fostering of ministerial or other meetings for discussion of the matter at European level.
Encouraging British and Spanish employers to offer jobs/training/apprenticeships/work practice programmes to young people in both countries.
Encouraging young people to set up new businesses (Competition/Prize for the young entrepreneurs in United Kingdom/Spain).
Commissioning prominent figures from academia to analyze the barriers young people have to face in order to find work (internships) and training: Research report on labour market and training barriers to overcome by young people in Spain /UK.
Task force outcomes: first steps agreed to further action
The 3 key outcomes:
2. A brief overview of youth unemployment and education trends
in Spain & UK
The aggravated –and- dramatic state of the art of youth unemployment in UE 27
SPA
CRO
GRE IT
A
SWE
HU
N
SLK
FRA
ROM
POL
LUX
TURK BE
L
FIN
PORT
EU 2
7
UK
BUL
USA
MAL
LITH IR
E
SLV
LAT
GER CZ CY
P
EST
DEN AU
T
NO
R
NET
H
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
42.1
19.1
Youth Unemployment in EU27 (+CRO/ NOR/TURK/USA) 2009-2010 (%)
2009 2010 EUROSTAT_ Labour Force Survey (LFS) :(2Q _2009 )(Date of extraction) 30/III/2010)
July 2010 (Date of extraction): 1/XII/2010
In 2010 Spain increased share of young unemployed almost 5 points, while UK figures remain stables.
Young unemployment trends (UK)
Figura 3. Tasas de desempleo UK según edad (2008-2010)
0
2
4
6
8
10
12
14
16
18
20
Nov -Jan 2008 Feb-Apr 2008 May -Jul 2008 Aug-Oct 2008 Nov -Jan 2009 Feb-Apr 2009 May -Jul 2009 Aug-Oct 2009 Nov -Jan 2010
18-24 25-49 50+
Unemployment rates in UK by age ranges (Nov 2008-Jan 2010)
Currently, the young UK citizens unemployed aged 18-24 are almost three times more representatives than their peers aged 25-49 years old.
Source: Centre for Economic and Social Inclusion (UK) Inclusion’s November 2010 ( own elaboration).
Jul 2008 Oct 2008 Jan 2009 Apr 2009 Jul 2009 Oct 2009 Jan 2010 Apr 2010 Jul 2010 Oct 20100
100
200
300
400
500
600
700
800
900
Young people unemployed and inactive and education (Jul 2008-Oct 2010)
Unemployed, not in full-time education Inactive, not in full-time education Unemployed, in full-time education
JSA claimants (18-24) JSA claimants plus Option participants (est.)
Tho
usan
ds
Unemployment and training trends for young people in UK
The gap becomes bigger in UK between Inactive and Unemployed young's not in full time education, compared to Unemployed in full time education.
Source: Centre for Economic and Social Inclusion (UK) Inclusion’s November 2010 ( own elaboration).
16 -29 16 -19 20 -24 25- 29 0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
Youth employment in Spain by range of ages 2007-2009 (in thousands)
2007 2009Source:Labour Force Survey. (2 Q) 2007-2009
Youth unemployment in Spain by range of ages (2007-2009)
The employment destruction for young people in Spain in the last years has hit in all range of young ages.
Unemployment in Spain vs. Young unemployment
Total Unemployment 16 -29 16 -19 20 -24 25- 29 0
10
20
30
40
50
60
8
12.6
29
15
8.3
18
28.4
56.3
33.4
21.2
Unemployment rates in Spain 2007-2009: Total population vs. Young by range of ages
2007 2009Source:Labour Force Survey. (2 Q) 2007-2009
In 2009, the groups aged 16-19 (38 points %) and 20-24(15 points %) were the most hit by unemployment compared to total unemployment rate
in the country.
UK and Spain: structural problems in both education systems to explain labour market failures
(I)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090
5
10
15
20
25
30
35
31.2
15.7
Early School Leavers Spain/UK (1998-2009 )(%)
Spain United Kingdom
Source:Labour Force Survey. (2 Q) 2010
Early school leavers no more than
10% in 2010
Drop out in Spain is 21 points far away from Lisbon objective in 2010 !!!
More structural issues (II)…
2005 2006 2007 2008 20090
10
20
30
40
50
60
70
80
90
61.8 59.9
85
Youth education attainment level -% aged 20-24 with at least Upper 2 Educ- (2005-2009)
EU 27 UK SPA Lisbon 2010Benchmark
Source:Labour Force Survey. (2 Q) 2005-2009
Complexion of upper secondary in Spain (2009) is still 25 points far away from Lisbon agenda objective in 2010 !!!
Portug
alSpa
inIta
lia UKGree
ce
Netherl
ands
France
German
y
Belgium
Sweden
Finland
Austria
Denmark
0
5
10
15
20
25
30
35
40
45
50
45.1
30
24.3
17.8
36.3
31
19.317
Population aged 18 to 24 years not having completed secundary education and not following education and/or training 2002-2007 (in %)
2002 2007
Source:Labour Force Survey. (2 Q) 2002-2007
Portugal and Spain leads ranking of disengaged young people from education and training in Europe.
More structural issues (III)…
Portug
al
Dinamarc
a
Aleman
iaIta
lia
Holand
a
Finland
ia
Españ
a
Austria
Belgica
Grecia
Francia
Suecia
Reino U
nido
0
10
20
30
40
50
60
7066.0
63.3
59.0
56.2
53.6 53.251.8
50.349.1
47.2 46.6
39.0
25.8
29.1
32.9
38.640.1
37.3
45.3
28.8
47.6
41.2
48.3
39.540.9
51.6
5
1.9 2.13.7
7.9
0.600000000000001
10.4
2.1
9.7
4.5
13.9
4.6
12
Level of Education attained by population aged 15-24 years old 2009 (in %)
Primarios Secundarios TerciariosSource:Labour Force Survey. (2 Q) 2009
Mind the gap ! : Spain (Middle qualifications) & UK (Basic Education)
More structural issues (IV)…
Source: Torres, Raymond -International Institute for Labour Studies (IILS–ILO)
The bomb of socioeconomic added risks: scenario of poverty for young workers
Spain UE 27 Germany France UK Hungary Belgium0
5
10
15
20
25
Poverty risk by age group (2008)
18-24 25-54
The challenges for young workers are dramatics: massive youth unemployment while increasing gap with adult rates are shaping a more precarious life perspectives : it
might have a dangerous impact on our societies (social unrest / more risk of poverty )
3. Briefing of Education and Training policies to support young people in the
labour market (SPA/UK).
Spain: The education and training measures vs. recent labour market reform.
Public Training Policies aimed at specific support of Young people:
Training workshops & Home Offices (16-24 years old) :
Programmes employment-training (sectoral based).From seventh moth, a labour contract is promoted between project owner and young unemployed persons.
Specific tools/measures to promote labour contract s for young people:
Training contracts (16-21 years old). Contract in practices (not more than
2 years & from 16 years old onwards) .
Contract to foster indeterminate contractual relations (16-30 years old).
Bonus policy to foster permanent contracts (16-30 years old).
Capitalize unemployment benefits to foster entrepreneurship until 30 years old (self-employment from unemployment income benefit).
Royal Decree -Law 10/2010 (16th June) of urgent measures to reform labour market (chapter III): Bonus policies to foster indeterminate labour contracts /training
contracts are core issues which has been reformed in the new law.
Key stages of Investing in potential in UK: strategy to increase proportion aged 16-24 in
Education, Training and Employment.
Pre-16: Early identification and support for young people at risk of disengaging and their families.
16-18 years old: Full participation in education and training, including work with training to improve skills/qualifications to be success.
Transition period : Advise and Guidance measures to further education/training (Higher Education) or to become employed in labour market.
18-24 years old :At this stage, young people should be in the position to get the skills they need to compete in the labour market.
4 . Working hypothesis to set up possible ways forwards in the project
research.
Issues and questions to analysis in the framework of the research (I)
Assessment of new reforms on the labour market and training systems in both countries already put in place, to fostering employment and education for young people.
The entrepreneurial dimension and the development of business skills
among young people: self-employment / business creation / higher education vs. entrepreneurial seedbeds.
The quality of the employment and quality of the training/education. Professional’s skills/qualifications and employment: Which competencies or
new skills for what new jobs could occupy our youths? Will the emerging sectors (green, white, blue) offer young people real opportunities for employment with high and/or low qualifications?
Could in-work apprenticeships in emerging sectors and those already under way with pilot programmes based on a mixture of acknowledged and certified basic and specific core competencies be a possible alternative?
Issues and questions to analysis and discuss in the framework of the research (II)
Would it be necessary to set up collaboration agreement with companies in these sectors to create synergies?
Job market and Training: Unqualified young people vs. Over-qualified young people.
The differences and the influence social/family and educational patterns have on countries in such aspects as emancipation, the choice of educational itineraries; learning outcomes, entry into the labour market, etc. (consider examples of emancipation models in other countries).
Measures encouraging hiring: impact of new types of labour and training contracts.
High-quality career advice services and strategies for supporting and informing young people.
Diagnosis/valuation of the Initial/Occupational Professional Qualification Programmes on offer.
Training for Employment: forward-looking proposals to identify and foster criteria for young people with the greatest risk of exclusion to access the employment market.
