AER Conference “Why are regions best positioned to
tackle youth employment?”
LOCAL EMPLOYMENT DEVELOPMENT:
Albania’s experience with
TERRITORIAL EMPLOYMENT PACTS and
REGIONAL EMPLOYMENT FUNDS
26 June 2012
Daniela Zampini
Chief Technical Adviser of the UN Joint Programme “Youth Employment and Migration”
1. Global picture (quantitative and qualitative)
2. Local Employment Development in Albania
3. Some considerations on the way forward
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UN Youth World Report 2012
ILO Global Employment Trends for Youth (2012)
Youth Employment Forum (Geneva, 23-25 May)
Document adopted by the 101st International
Labour Conference (ILC)
….Invest in Youth or lose a generation…
…some figures
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Global youth UR stood at 12.7 % in 2012
The YE crisis will last until 2016
Jobless youth are 75 ml (4 ml more compared to
2007)
6.4 ml youth have dropped out of the labour force
(ILO, GET-Y 2012)
…point towards
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A youth employment crisis of unprecendented
proportions
Youth employment “traps”
Youth unemployment is only the “tip” of the iceberg
Polarization and widening disadvantages among
young people
Vision Europe 2020
Priority: Inclusive Growth
EU target for inclusive growth include:
1.
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
2.
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)
3.
at least 20 million fewer people in or at risk of poverty
and social exclusion

Albania: on the way to…
ALBANIA
National Action Plan on Youth Employment 2010-2013
Traditional and transition indicators for young people 15 to 29 (percentage)
Traditional labour market indicators
Transition indicators
2008 2009
Inactivity rate
Unemployment rate
Unemployment ratio
58
24.7
10.2
54.5
21.9
9.9
2008 2009
Transition not started
In-transition
51.4
42.9
2008 2009
In school
40.2
34
Inactive
11.2
17.7
Unemployed
10.3
10
Involuntary part-time
5.6
3.7
46.3 Involuntary temporary work
2.8
2.1
Discouraged workers
7
9.6
17.3
20.9
5.7
2
51.7
Vulnerable employment
Employment rate
31.3
35.6 Transition completed
5.7
2 Employed
Source: INSTAT, Labour Force Survey (LFS), 2008 and 2009.
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)
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
employment
partnerships
for
youth
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.
TEPs and REFs – Target Groups
TEP
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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
REF
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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
TEPs and REFs – Service Lines
TEP
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
REF
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Outcomes:
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Training programmes based on competences
and relevant to labour market needs
Working training contracts to promote firsttime 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:

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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).
TEPs and REFs – (some figures)
TEP
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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
REF
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90,000 USD
305 jobs
TEPs and REFs – Partners
TEP
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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
REF
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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
Possible ways forward:
the role of REGIONS
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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”
Thank you: zampini@ilo.org