towards an employment policy for youth non official translation

MINISTERIO DEL TRABAJO Y PREVISIÓN SOCIAL

TOWARDS AN EMPLOYMENT

POLICY FOR YOUTH

Non official translation

The chilean reality on youth employment is similar to the rest of the world. The participation of young workers is low and they have higher provabilities of loosing their job first than older workers. In the case of young women the results are worst.

• In Chile, participation of young people in the laboral market is 30.9%, much lower than the world and Latin America.

CHILEAN TENDENCIES


PREVIEW:

In Chile, the population between 15 and 24 years old shows a higher rate of unemployment compared to adults, reaching 19% aproximately.

Some of the causes of this situation:

• Massive incorporation to empleoyment market from an initial situation of inactivity.

• More rotation in the first employment.

• Longer unemployment periods due to their lack of information of the laboral market and few network support.

• Different forms of laboral incorporation, that depend on educational level, social capital, habilities and family conditions. People with more education have access to employments with better conditions , more stability and formality, including higher wages.


Unemployment Rates and Laboral Participation,Period July-September 2006, by Sex and Age Rank

Age Rank

Women Men Total

Unemployment ParticipationUnemployment

Participation Unployment Participation

15-19 years old 34,7 7,4 25,8 16,6 28,3 12,3

20-24 years old 19,8 40,0 14,6 64,3 16,6 52,1

15-24 years old 22,2 23,2 17,3 38,1 19,1 30,9

25-34 years old 11,0 55,2 8,6 92,2 9,5 73,6

35-44 years old 8,1 52,7 4,8 96,2 6,0 74,0

45-54 years old 5,9 49,0 4,7 93,7 5,1 71,0

55-64 years old 2,5 32,3 4,1 78,9 3,6 54,7

65 and more 1,2 7,5 1,9 25,0 1,7 15,2

Total 9,5 37,7 7,1 71,3 7,9 54,2


• Young people wages are in general lower than the rest of the workers.

• The wages of people between 15 and 24 years old, represent the 53.7 % of month average incomes, of the rest of the workers. (They receive in average half of the wages that adults receive.)

• For young women, this difference is shorter than in the case of men, because women receive in general lower salaries than men.

• In the case of women between 15 and 24 years old, their average income represents 62.6% of the total average.

YOUNG PEOPLE AND WAGES:


Age Composition of Economically Active Population and Reasons of Nonparticipation

Young People27%

Adults 73%

15-19 20-24 25-29Home Tasks 3% 18% 44%

86% 55% 25%5% 7% 6%

Reasons for nonparticipations by Age Rank

StudiesOther reasons


Young People´s Unemployment by Income Ranks

Tasa de Desempleo20 a 24 años por quintil de ingresos

0%

10%

20%

30%

40%

50%

I II III IV V Prom

Fuente: CASEN 2003.

• Divided by income ranks, unemployment rate is much higher in vulnerable socialeconomic grupos.


GUIDELINES OF POLICY:

Considering the information checked previously, we aknowledge as fundamental, the design, implementation and promotion of a jointed policy that make possible the entrance of youth to the labour market , especially the unprotected and poor young people, they reproduce systems of poverty since they have less education, less contacts or support nets, less qualification, being vulnerable to contexts of social and laboral exclussion.

ORIENTATIONS:

•Opening a way of promotion of part-time job for young people.

•Applying incentives for hiring of youth manpower.

•Stenghtening of labour insertion conditions for youth. Non official translation

PROGRAMMS AND TOOLS

• Direct labor hiring subsidies

• Youth in social risk

• Training and hiring subsidies

• Training Programs

• Transferences to public services


HIRING SUBSIDIES FOR EMPLOYERS

Program:

• PROEMPLEO, labor hiring subsidies, in its normal modality as well as with Solidary Chile.

Charactersitics:

• Approximately US$ 330 is paid to the company for each worker hired,corr esponding to 40% of the monthly minimum wage for four months.

• A training bonus amounting to approximately US$ 85 per worker is also paid

• The program operates during a time of the year in which unemployment increases on a cyclical basis (May to August of each year).


ECONOMICALLY VULNERABLE YOUNG PEOPLE

Objetivos:• Decrease youth unemployment rates, creating opportunities for social

and economic vulnerable population of our country.

• Young People that belong to Solidary System hired in market jobs.

Charactersitics:

• Subsidy for 50% to the minimum income for a period of 12 months.

• Trainning bonus of US$116 for every worker hired by the employer.


APPRENTICE CONTRACT

Objetivo:• Promote and support hiring young people up to 25 years old in

learning conditions in order teach them a job, through theoric and practic training, based in competences.

Charactersitics: :• Young women and men between 16 and 25 years old, that belong to

low family incomes, socially vulnerable, unemployed, with parental responsability, that belong to the poorest income ranks.

• Subsidy for 50% to the minimum income for a period of 12 months.

• Trainning bonus of US$650 for every worker hired by the employer.


NATIONAL SCHOLARSHIP PROGRAMM

BENEFICIARIES:

• Under 20 years old and older than 18 years old with parental responsability.

• Men and Women between 20 and 45 years old.

• Socially and economically poor.

• Unemployed, first time job seekers and independent workers.

BENEFITS:

• Free training courses in different occupations, up to 500 hours.

• Movilization subsidies and incomes to buy tools to develope an independent job.

• Technical asistence during 24 hours per day, distributed in 6 months and/or 384 hours of laboral experience.

• Insurance for personal accidents.


TRANSFERENCES TO PUBLIC SERVICES

Objectives:

• Train young soldiers of the army, navy and air force.

• Young people living in irregular situations.

• Youth in process of rehabilitation in special centers.

• Men and Women in special conditions of liberty.


towards an employment policy for youth non official translation

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