Kardeljeva ploščad 5 1000 Ljubljana, Slovenija telefon 01 58 05 100 YOUTH UNEMPLOYMENT Research paper Labour Market and Employment Policy, Sociology of Work, English for specific purposes Spring term 2009/2010 Name and Surname: MATEJA POHLEVEN, ANA OREŠNIK, TJAŠA DREŠČEK, NINA BIRSA, AJDA LAH Mentor: DR. MIROLJUB IGNJATOVIĆ Study programme: SOC-KM Year of study: 2. INDEX 1. INTRODUCTION .................................................................................................................. 3 2. CHARACTERISTICS OF YOUNG WORKFORCE ............................................................ 4 3. STRUCTURE OF REGISTERED YOUTH UNEMPLOYMENT ....................................... 6 4. WEAKNESSES OF THE YOUNG WORK FORCE ANDFACTORS WHICH AFFECTING THE SITUATION OF YOUNG WORKERS IN THE LABOUR MARKET ... 8 5. WHERE CAN YOUNG PEOPLE SEARCH FOR HELP REGARDING THEIR FIRST EMPLOYMENT; HOW TO ACQUIRE PRACTICAL EXPERIENCE NEEDED TO START A CAREER AND HOW SHOULD YOUNG PEOPLE SUCCESSFULLY JOB HUNT ...... 11 6. AVERAGE SALARY THAT A FIRST-TIME JOB SEEKER CAN EXPECT ................. 14 7. YOUTH UNEMPLOYMENT RATE IN SLOVENIA ........................................................ 17 8. YOUTH ACTIVE EMPLOYMENT POLICY (AEP) ......................................................... 21 9. STRUCTURAL IMBALANCE REGARDING THE EDUCATION OF THE RECENTLY UNDERGRADUATED AND THE DEMAND ON THE LABOUR MARKET ................... 22 10. CHOSSING A PROFESSION ........................................................................................... 23 11. INTERVIEW ...................................................................................................................... 24 12. CONCLUSION .................................................................................................................. 25 13. LITERATURE ................................................................................................................... 26 ANNEX 1 ................................................................................................................................. 29 ANNEX 2 ................................................................................................................................. 32 INDEX GRAPH Graph 6.1: Average monthly gross earnings in different age groups and sex, Slovenia, 2008, temporary data ....................................................................................................................... 14 Graph 6.2: Average height of the basic salary for a first-time job graduates without work experiance.............................................................................................................................. 15 Graph 7.1: Unemployment rate by age group in Slovenia .................................................... 17 Graph 7.2: Characteristic groups of registered unemployed in Slovenia .............................. 18 Graph 7.3: Age structure of registered unemployed in Slovenia .......................................... 19 Graph 7.4: Youth unemployment in the European Union .................................................... 20 2 1. INTRODUCTION Times have changed. Unemployment is a considerable problem in many countries around the world and also in Slovenia. Problem is largely felt by young people when they appear in the labour market. Today there is significantly more unemployment among the young than in the past. In terms of unemployment of youth, Slovenia is below the EU average. Unemployment is a result of uncertainties and inexperience of new workers, and frequent changes in work when we are looking for secure employment. Young people are one of the most problematic groups because they do not have enough experience how to work and do not know how to look for a job. The seminar is composed of nine chapters. First, we will focus on the characteristics of young work force and structure of registered youth unemployment, and then we will analyze several factors and vulnerabilities that cause the increasing rate of unemployment. In the next chapter we will explain how young people seek for support that could help them in the process of finding an employment and how can they obtain practical knowledge. What is their first pay, which can be expected. We were wondering in our research paper why young people are problematic groups in the labour market, and in the end we will focus on unemployment in Slovenia. Hypothesis, that we would like to confirm or disprove in our research paper are next: - There would be less unemployment among young people if Faculty requires more compulsory practices during the study. - The problem of unemployment is also reflected in the fact that the employers in the labour market require a specific type of education, which young workers usually do not have. 3 2. CHARACTERISTICS OF YOUNG WORKFORCE1 The characteristics of young workforce notably differ from the ones of an adult workforce. Despite their recent graduation and fresh knowledge, gained through the long and challenging process of education, employers prefer to employ adult workforce than young workforce. Employers are confused with the constant change in curricula taught at universities, meaning that they are mostly not acquainted with modern knowledge that young graduates acquired along their study course. Together with lack of experience young workforce is not the preferred group that employers would tend to take on. Furthermore there are several more draw back characteristics that have to be taken into account by employer when hiring a young employee- young people are prone to be immature and not responsible, have to little risk aversion and tend to make decisions too speedy. Considering those characteristics, it can be plausible to say that it is very risky for an employer to hire such a person. On the other hand, young future employees are mentally and physically very fit- have a lot of energy and motivation, therefore can be taken on for challenging and demanding (both mentally and physically) jobs; are more innovative, creative and flexible and are less likely to object substandard working conditions and wages that do not correspond to their level of education. These represent a competitive advantage in the labour market. However, we cannot ignore two important ideas. Achieved level of formal education is still of great importance in modern states nowadays but if an individual wants to be successful and make a career, formal education is not enough. In addition an individual has to be very clever, innovative, fearless and very flexible. Secondly, level of achieved education is moving up. Secondary level of formal education sufficed years ago but today it is no longer the case. You have to achieve at least post secondary level of education to mean something to employers nowadays. Young people nowadays usually continue studying after secondary schools, amount of graduates greatly increased in recent years, hence representing more competition in the labour market, therefore a lot of graduates become unemployed and have to register at the Employment Service. Beside knowledge, young people have skills that can be very beneficial to the employer, such as: use of computer and internet; telecommunication knowledge; working in teams; foreign languages knowledge. All of those are needed or even indispensable nowadays. 1 This part is summarized from Trbanc, 2005. 4 Young people acquire such skills informally, while they grow up in their spare time, for example: internet surfing; use of mobile phones and computers; language and other extra curriculum courses; travelling. Travelling, especially backpacking is a trend among undergraduates, during which youth gets to know different cultures, traditions, learn and practice foreign languages which can present useful skills and knowledge in their careers later on. Of course, children that come from wealthier families have better conditions when it comes to informal education. Namely, parents can buy their children new mobiles phones, iPods, computers, laptops, send them to expensive language courses abroad and similar. On the contrary, children of parents that are not that wealthy cannot afford to go on such courses and have all the modern technology gadgets; therefore do not have such possibilities and conditions to acquire mentioned skills. Youths lack work experience. Although formal education provides basic knowledge, an individual cannot compete successfully in the labour market without work experience. Work experience is very valued when an individual enters labour market. That is the reason why many young people decide to work while studying, becoming temporary student workforce. 5 3. STRUCTURE OF REGISTERED YOUTH UNEMPLOYMENT2 Until the 90s young people (up to 26 years of age) represented a majority of the unemployed. Later on rates changed- registered unemployment rate of older people increased due to several bankruptcies, inflexibility and lack of modern technology knowledge. Number of young unemployed people, in absolute sense, was never decreasing, even increasing. Relatively speaking, youth unemployment rate again increased in 2003. On average, young gradates enter labour market after 24th year of age. The rate of active seekers among young unemployed is increasing from year 2000 on, in 2003 the rate is 23 % and in 2004 rate increases to 25 %. The rate of active job seekers among long-term job seekers is increasing after year 2001, in 2002 the rate is 22 % and in 2004 is 22 %. Generally, unemployment rate has been decreasing since 2000 until it has started to rise again after recession took place. The rate of active young job seeker is increasing. Young people after leaving schools cannot find jobs therefore can be unemployed for extended period of time which is a big issue. Every young person, that is in such a situation for more than 6 months is considered to be long-term unemployed. A lot of European policies are aimed at resolving such issues. In this area Slovenia is no exception: every young unemployed, after 6 months period of job seeking, is included in so called active employment policy. Among all unemployed in 2001, there was 55 % of so called long-term unemployed (ones that are unemployed for more than a year). The rate decrease down to 45 % in 2004. 40 % of young unemployed were redundant for more than 6 months in 2001, and 38 % in 2004. 28 % of young unemployed were redundant for more than a year in 2001, and 26 % in 2004. Unemployment of women was not problematic in the 90s, because industries that went bust hired mainly men population. Women experienced higher unemployment rates in 1993 and after, when textile industries and footwear manufacturing experienced problems, some of the companies even filed for bankruptcy. 73 % of all young unemployed were female gradates in 2003. Data show than women have bigger problem seeking regular jobs than man, no matter what age group they belong to. Reasons for that would be maternity, increased number of sick days and less physical condition compared to men. Women are 2 This part is summarized from Trbanc, 2005. 6 known to be emotionally less stable, more vulnerable and lack determination compare to men. Slovenia has made a lot of effort in recent years to improve situation of young people in the labour markets and has also been quite successful. New trend emerged among older population. Nowadays older workforce tries to improve and refresh their knowledge by continuing their education at universities and numerous courses which is considered a very positive practise. 7 4. WEAKNESSES OF THE YOUNG WORK FORCE ANDFACTORS WHICH AFFECTING THE SITUATION OF YOUNG WORKERS IN THE LABOUR MARKET There are many weak points and consequently factors which affect in young work force. The first and the most important weak point that arises in terms of employment among young people is lack of work experience. The school’s educational system has often represented some negative characteristics that were mostly perceived by young people. Educational programs provide general education, without any practical skills, such as inventions, the use of science, technology, etc. Young people must act as quickly as possible and to specialize in a certain direction, because any subsequent diversion to other areas, causes negative consequences. Employers prefer to employ experienced workers and thus do not impose additional costs on training and learning professional experiences on employees. Studies of young people these days last a long time and that consequently provides less social benefits, which would lead to highly paid and responsible jobs for young people. (Kosem 2008, 22) Another important weak point is also reflected in the salaries of young employees and the situation on the scale of the desirability of a university among students. Youth is a period when young people move from low remuneration of their pocket money to high earnings and longterm jobs that are provided for them through student services. One of the differences in the labour market for young people and adults is certainly the price for which young people are willing to work. (Kosem 2008, 23) Graduates have different position in finding employment, because they come from different universities, which have varying degrees of importance in the hierarchy in society. There is a link between the selected training and the opportunity to find the right job and the university that young people visit. Graduates, who graduated in universities that have a high social standing and high position in the social ladder, have more difficulties to find a job, because they have high expectations for the level of education. They humbly accept jobs that are lowvalued in society. These professionals should be in the labour market highly appreciated, but in opposite - their position is underestimated and under-paid. Their potential is rendered even more, if they are unemployed, because they are not paid and their efficiency is reducing. (Kosem 2008, 23) 8 One of the vulnerabilities of young unemployed people is the sex and age structure of population. The sexual differences between populations are even more exposed, because women and men are still not equally represented. Despite the penetration of the principle of equality and equal employment opportunities, women are still not involved in the actual decision-making positions and important decision-making processes in the political, cultural, economic area in the same proportion as men. (Kozmik and Salecl 1999, 34) Male population is often opposing unequal opportunities for employment; women cannot return to the same job after maternity leave, they are not protected against dismissal, etc. Employers prefer to employ men as women, because of working reliability. Women are generally faced with a greater number of roles in society such as role of mothers, wives, businesswomen, housewives and all of these roles is hard to perform at once. (Jukič 2000, 326-328) According to above findings the factors that are affecting the integration of graduates into the working process are linked into four groups (Kosem 2008, 24): - Education and employment: Dernovšek (2007, 8) notes the ineffectiveness of the study. It does not prepare graduates for the immediate application of knowledge and skills which they acquired during the study. - Labour market characteristics: Companies change their position: the merging, take over each other, concentrate, etc. These characteristics lead to a reduction in the number of employees in the company. Among the first ones in line to fire is a young work force, because their unemployment does not cause much damage to the employer. Reducing the number of workers is also a consequence of technological progress that affects many jobs which become redundant for the company. This reduces the wage and increases the level of experience and knowledge. Consequently there are fewer available jobs for graduates. In addition, young work force is in critical condition, the female population that is already evident from history that they have less stable employment than men. (Kosem 2008, 25) - Social origin: Social background has many important functions in the lives of individuals and it also has a major impact on the educational attainments of individuals. In professional life, children often follow their parent’s career, especially the career of their father. Children belonging to lower social class are most likely expected to have a lower level and vocational opportunities in the labour market, in contrast to those whose parents are in their work high on the social ladder. (Ivančič 1999, 124) 9 - Activities of trade unions: Junankar (1987, 119-131) believes that trade unions have a great influence on the earnings of young people, but not in terms of aid. Their help is assigned to help adult workforce. In cases where young workers harm adult workers in the field of employment, trade unions demand for constraints in employment of young people. 10 5. WHERE CAN YOUNG PEOPLE SEARCH FOR HELP REGARDING THEIR FIRST EMPLOYMENT; HOW TO ACQUIRE PRACTICAL EXPERIENCE NEEDED TO START A CAREER AND HOW SHOULD YOUNG PEOPLE SUCCESSFULLY JOB HUNT Unemployment among young people is increasing which is caused by various factors. One of these is undoubtedly the lack of experience by young people who want to get employed without any practical knowledge immediately after finishing school. The responsibility for the lack of experience is borne by faculties which do not offer and do not require (enough) compulsory practical work to be performed during the study. Very rarely a faculty requires from students to perform the practical part of the study; this, however, would help young people to acquire prior knowledge before getting the first job. In the last period, the lack of the student work is also noticed; and yet, the student work is a possibility for students to obtain a lot of practical experience. Since the students are aware of the fact that they will have difficulties in finding employment, they extend their study by means of prolonging the student status in order to earn some money through the student work, although at the same time they do not work in the field that would provide experience necessary for their further employment. In the search for employment, young people are assisted by numerous organizations and centres, such as CIPS, MojeDelo.com, AIESEC, university’s career centre and others. AIESEC is a global, independent, apolitical and educational organization run by students and young graduates operating in 107 countries and including 1700 universities. It enables young people to develop and find leadership potential in order to have a positive impact on society. AIESEC organization enables its members to develop and find their personal and business potentials. (AIESEC) CIPS information and carrier development centres provide information that an individual needs when planning his/her carrier and finding employment (information on education, professions, labour market and training). CIPS is aimed at young people, who currently do not have access to information and carrier counselling, young people who are in a transition from a lower to a higher level of education, unemployed persons and employment counsellors. They provide information about the labour market, describe professions, explain a about employment possibilities within a certain profession, and assist in writing applications and 11 holding interviews with employers. In addition they also provide individual counselling in carrier planning, designing the educational path and holding job interviews. (CIPS) A great part of attention is dedicated to the university’s carrier centre which is of particular assistance to students finishing mass study programmes who need additional expert assistance. Thus, in the European Union, there is a strong need to enhance the carrier orientation of higher education. (Sultana 2004, 24) Carrier centre forms a link between the professional education and business; it is an intermediary between a student and potential employer. The purpose of the carrier centre is to provide assistance to students when entering the labour market, to establish contacts with economic and other organizations, to provide information for employers with regard to study programmes and assisting them in hiring graduates. (Onnisamaa and Viljama in Dizdarveč and Tušar 2008) By means of their activities, carrier centres raise students’ motivation for the study, reduce the number of wrong decisions regarding education and employment, improve study programmes, contribute to the increased number of graduates and provide better cooperation with employers. (Katzensteiner et al. 2006, 54; Watts 1997,19) They also prepare students for easier entry into the labour market as they inform them about situation in the labour market; they also make students’ expectations regarding employment more realistic. In spite of their lack of experience, students who get additional training at various workshops or courses during their study are more interesting for employers; consequently they are more employable. (Dizdarevič and Tušar 2008, 68) University of Ljubljana’s Carrier Centre provides services for students, future students, and graduates entering the labour market for the first time, university staff as well as employers. These services are directed at providing information on the labour market, professions, employment possibilities after the conclusion of the study programme, the possibilities for applying on exchange programmes abroad. It provides advice and assistance to individuals regarding the formulation of the study and carrier path, planning activities, and determining professional goals. It helps with education so that it organizes workshops, courses, round tables to acquire employment skills and competences which are aimed at improving graduates’ employability. They provide to employers various possibilities regarding staffing. (Dizdarevič and Tušar 2008, 89–90) The University of Ljubljana offers many support services to graduates to alleviate their entry into the labour market; 12 - The Leonardo programme offers the possibility to carry out practical training abroad to the graduates who have finished their study recently but are unemployed; - Carrier counselling provides information about employment possibilities in the labour market, assistance in writing the résumé and job application, informs about method of searching for employment and prepares graduates for a job interview (Dizdarevič and Tušar 2008, 93); - An informal method of staff recruiting is the oldest and the most widely used method; it is based on questioning friends, employees and professional colleagues; - Job seekers’ direct contact with employers who are then offered a job without any job advertisement being published anywhere. Employers keep these job applications and use them when the need arises; - Establishing contacts with school is also very popular. Companies invite students to visit them and attend companies’ presentations. Employers co-operate with students when preparing essays, theses, project documents and enable them to perform practical training; - Scholarships are also one of methods to find employment: employers provide to students monetary assistance and practical training in order to find qualified workers; - Public employment offices which also have job seekers databases are always full. - Employment event is a job seeker’s opportunity to meet an employer and vice versa. These events are organized by the company MojeDelo.com, which offers employment opportunities for job seekers with low and medium education levels. An example of good practice is the event entitled in Slovene Karierni kažipot organized by the Faculty of Social Sciences. Employers share their experience and advice with students. - Job advertisement (published in public and visible places as well as in the media) should be placed in such a place that job seekers notice it, considering that it refers to a special part of population. A good example is a web portal dedicated both for job seekers and for employers. (Dizdarevič and Tušar 2008, 36–38) 13 6. AVERAGE SALARY THAT A FIRST-TIME JOB SEEKER CAN EXPECT Mr Divjak from SURS3 made an analysis about average monthly gross earnings in different age groups and sex in year 2008 (see Graph 6.1). Average salary was € 1.431, for men € 1.481 and for women € 1.369. Average salary for young people aged between 15-24 years was € 904, for men € 915 and for women € 868. This is the lowest paid group in Slovenia. Their salary is lower for € 300, compared with the next group. Young between 25 and 34 years have average salary € 1.257, € 1.295 for men and € 1.206 for women. This is the salary that a first-time job seeker can expect. We should not be disappointed when we get monthly gross earnings lower than € 1.000. We can see that almost in all groups women are paid less than men. But what we found important is that the differences between men’s and women’s salary are not so huge – women usually pay up around 90 % of men’s. But we must not forget this are an average numbers, which means that many get more but many get less too. Graph 6.1: Average monthly gross earnings in different age groups and sex, Slovenia, 2008, temporary data Age Total Men Women EUR Ratio w/m % Total 1.431 1.481 1.369 92.4 15-64 1.428 1.476 1.368 92.7 15-24 904 915 868 94.9 25-34 1.257 1.295 1.206 93.1 35-44 1.458 1.538 1.373 89.3 45-54 1.494 1.560 1.426 91.4 55-64 1.805 1.776 1.877 105.7 65+ 3.833 4.035 3.033 75.2 Source: SURS. We summarize the results of research on the first employment of young graduates (Mijatović 2009). The survey was carried out among some employers and job-search agents. The survey is primarily aimed at young graduates and students to further understand the needs of 3 Statistical Office of Republic of Slovenia 14 employers and better assess the real value of the company where they would like to recruit. Authors of studies have placed the two hypotheses, both based on research by SURS: 1. First net earnings of young graduates are much closer to € 700.00 than to € 1.000,00. 2. Young people generally receive fixed-term contracts. The main question for our seminar task and was included in previous research was: “What is the average height of the basic salary for first-time job graduates without work experience? (see Graph 6.2) Graph 6.2: Average height of the basic salary for a first-time job graduates without work experience Source: Mijatović, 2009. According to the results, it demonstrated that the first salary expectation with no prior work experience is often closer to the net € 700 than to € 1.000. Many young people will be put by this information a little closer to ground, but they might be more shorten for some disappointments of taking up a new job, than they would have been without this research and publication. (Mijatović 2009) According to the SURS’ survey, young people aged between 20 and 29 years had € 940 gross monthly income and € 655 net in 2006. This is quite close to € 700. Young people should have in average 3-times lower wages than their older counterparts, because our salary system rewards working years (and therefore possibly related experience), but for youth, enthusiasm, optimism and creative thinking have no obedience, when it evaluates over this salary. This 15 generation is also called “Generation 700”, which summarizes the amount of the first salary. (Mijatović 2009) 16 7. YOUTH UNEMPLOYMENT RATE IN SLOVENIA The transition from school to work brings new responsibilities, new tasks, and new life roles. Age of persons at this transition is rising. Employing unemployed young is faster than older ones because they are flexible and willing to accept different job. In the second quarter of 2009, were unemployed young (aged between 15-34 years) looking for work about nine months, the unemployed, who were older than 34 years, about a year and a half. (Svetin 2010) Many young people aged 15-34 years are already familiar with the work during the educational process. Almost half of young people work through the student employment office. (Svetin 2010) The youth4 unemployment rate in Slovenia is more or less constant. In year 2009 it increased in comparison with year 2008. At the beginning of the year 2009 it fell, but then increased again. We can say that at the end of year 2008 the youth unemployment rate was very low (compared with year 2009). It was about 11 %. In the first quarter of year 2009 it increased on 15 %, which was a huge difference. Probably it was a result of economic crises all over the world. And in this time, not only that young people hardly get or find a job, all workforce have the same problem. In the second and in the third quarter of year 2009 the youth unemployment fell a little, while the unemployment in other age groups is constantly increasing (see Graph 7.1). (Zavod RS za zaposlovanje) Graph 7.3: Unemployment rate by age group in Slovenia Unemployment rate by age group 15-24 yrs 25-49 yrs 50-64 yrs Total Source: Zavod RS za zaposlovanje. 4 Young in age group between 15-24 years. 17 We do an analysis of structural characteristics of registered unemployment in Slovenia (Zavod RS za zaposlovanje). We can say that the average number of all registered unemployed is falling since 1998, with the exception of the last year because of the worldwide economic crises. The same is with young people, younger than 26, and first-time job seekers. We concentrate on last six years since Slovenia is a member of the European Union. In year 2004 was in Slovenia unemployed 26.2 % of youth. Five years later, in year 2009, there was only 15.4 % of youth unemployed. Quite the same is with first-time job seekers – in year 2004 there were 25.2 % unemployed, and in year 2009 there was 14.3 % unemployed first-time job seekers (see Graph 7.2). Graph 7.4: Characteristic groups of registered unemployed in Slovenia Average percentage of each category Year Average number of Younger than 26 all registered First-time job seekers unemployed 2004 92.826 26.2 25.2 2005 91.889 24.2 24.3 2006 85.836 21.2 22.3 2007 71.336 16.7 19.4 2008 63.216 14.4 16.9 2009 86.354 15.4 14.3 Source: Zavod RS Za zaposlovanje. Further on, we analyse age structure of registered unemployed (Zavod RS za zaposlovanje). We can see that the number of youth up to age 18 is falling, probably because of the longer education because younger study more and longer and decide for higher educational level. In comparison with year 2000, in year 2009 was the number of those unemployed only 25.7 % of those in year 2000. The number of youth unemployed aged between 18 and 25 is falling too, and achieves 53.8 % compared with year 2000. But the number of youth unemployed aged between 25 and 30 increased since year 2000, but is falling for the last three years (see Graph 7.3). 18 Graph 7.5: Age structure of registered unemployed in Slovenia Age 2000 2004 2005 2006 2007 2008 2009 class Index 2009/2000 Up to 18 505 / 270 / 274 / 180 / 98 / 117 / 130 / years 0.3 % 0.3 % 0.2 % 0.1 % 0.2 % 0.1 % 0.5 % 25.7 Over 18 22.193 20.437 / 19.003 / 12.380 / 9.046 / 8.282 / 11.929 53.8 years to / 21.2 22.5 % 20.5 % 13.2 % 12.5 % / 12.3 25 years 15.8 % % % Over 25 11.467 14.524 / 15.750 / 13.174 / 10.581 / 9.824 / 15.365 134.0 years to / 11.0 16.3 % 17.0 % 15.5 % / 15.9 30years 16.8 % 14.8 % % % Source: Zavod RS za zaposlovanje. According to European Commission Youth data (see graph 7.4), »in November 2009, the youth unemployment rate (under-25s) was 21.0 % in the euro area and 21.4 % in the EU27. In November 2008 it was 16.6 % in both zones. The lowest rate was observed in the Netherlands (7.5 %), and the highest rates in Spain (43.8 %) and Latvia (36.3 % in the third quarter of 2009)«. There are some more numbers that are mentioned (European Commission Youth 2010): Since the start of the economic and financial crisis, the youth unemployment rate has increased by 28.9 % in the EU27. Percentagewise, the Czech Republic has the highest rise in youth unemployment, with an increase of almost 89 % from November 2008 until November 2009. All EU Member States but 3 (DE, LU, PT) show a double digit increase in youth unemployment in the last 12 months 14 Member States have seen a rise in youth unemployment of more than 40 %. Ten of these countries are the new EU MS (all apart from RO and MT). As we can see in graph, Slovenia is not rating so bad. Our youth unemployment in September 2009 was 14.3 %. Since November 2008, the change was 48.9 %. This is a huge number, but we can see that there are many countries with worse result. We should not be satisfied with 19 this, because all more developed countries have better results, for example: Belgium’s change is only 25.4 %, Germany’s 6.1 %, France’s 24.3 %, United Kingdom’s 21.8 %, and EU average is only 28.9 %. In Slovenia we have much more to do, to be competitive with developed countries. Graph 7.6: Youth unemployment in the European Union Source: European Commission Youth. 20 8. YOUTH ACTIVE EMPLOYMENT POLICY (AEP) Within the framework of the Active Employment Policy (AEP) and the Operational Programme for Human Resources Development for the period 2007–2013 Slovenia has introduced possible measures to encourage higher employment rates among young people and to improve their competence. Employers are entitled to recovery of contributions from wages in case they employ first-time job seekers under 26 and 28 who have been unemployed for more than 24 months. Under the AEP, young people are given the opportunity to join different programmes, providing them with information on various jobs and employment opportunities as well as vocational guidance. At the same time, the programmes are meant to motivate and to assist young people to find employment, to gain proper knowledge, provided by educational institutions, and national professional qualification. In addition, they are important in workplace learning (on-the-job training) and in adult training and education, in encouraging self-employment, promoting social inclusion and work activities, such as public works. It is also not to forget to mention “job clubs”, a kind of group counselling for unemployed, and “employment corners”, both being additional offer of the Centre for Vocational Guidance and Information (CIPS). (ZSSS 2008) There are various ways of a job search, ranging form the media, including newspapers and web portals, to specific events on the matter. For a job search to be efficient, it is, however, necessary to use several different ways at a time, which, in today’s information society, can be difficult. It is important that people searching their first job, are well aware of their needs, capabilities and ambitions. This is thus crucial in pursuing a successful career. (Brečko 2006, 20) 21 9. STRUCTURAL IMBALANCE REGARDING THE EDUCATION OF THE RECENTLY UNDERGRADUATED AND THE DEMAND ON THE LABOUR MARKET A degree does not necessary guarantee undergraduates to easily find a job. There has come to structural imbalances on the labour market, reflecting not just in the type of education but also in different professions. (Trbanc in Kramberger and Pavlin 2007, 51) In their research Young Undergraduates in Labour Market published in 2004, Verša and Spruk state that there are several reasons influencing the unemployment of the young undergraduates, among them also being a low number of free posts. Another reason could as well be the recent soar in the number of undergraduates, which represents an obstacle in the Slovene economy as there is impossible to employ all the new job seekers on the labour market. The researches show that the majority of the unemployed undergraduates (45.2 %) have completed their education in humanities, business studies or law. (Verša and Spruk 2004, 14) Recently, the Ministry of Higher Education, Science and Technology together with the Ministry of Education and Sport are strongly promoting skill shortage occupations in the media and primary and secondary schools, as there is a great need to fill such vacancies, most of them available in technical and natural sciences. Due to the high youth unemployment rates, especially among those looking for their first job, young people are forced to accept one of the flexible forms of employment, such as fixedterm work, part-time jobs, work under contract etc. 22 10. CHOSSING A PROFESSION Choosing a profession means planning a career, especially when referring to a career in its narrower sense, i.e. a professional career. A selection of a profession continues to enjoy its special status gained in the times when a choice of a profession was still regarded as a decision for a lifetime. Today, people could change their profession up to six times. (Brečko 2006) These days, choosing a profession refers mostly to choosing an appropriate university education leading to a desired profession. The choice of a profession or personal and professional goals in their own right, however, usually remains neglected. (Kozoderc 2005, 16) Young people start planning their careers by choosing an undergraduate study they like, while they decide on a certain profession later on. (Ažman and Rupar 2005, 13) It would be better, however, to first choose a profession and than an undergraduate study. 23 11. INTERVIEW5 We also did an interview with Mr Martin Pelicon, who is working in the field of marketing communication and takes care for a partner network, looking for new ideas for the development of portal MojeDelo.com. Job portal MojeDelo.com intends much attention to young people, who are facing with finding a job. Most of the products and services on Portal are offered for free. They edit brochure »Student« and »Graduate«, which are useful information for those who are first entering in the labour market. In addition, advices and news are published daily. The largest project is certainly a Career fair (last year in early November at the Gospodarsko razstavišče 6 in Ljubljana, free entrance), where the job seekers had a unique opportunity to meet with individuals who are responsible for personnel (those who work in Human resources). When publishing relevant jobs on the site, employers indicate that a post is suitable for beginners too. He mentioned a country as the one being responsible for high youth unemployment rate, because it does not encourage youth employee to participate in labour market. Three quarters of jobs are still occupied without being published, for this reason it is good to be proactive and call in any enterprise that seems interesting and ask about employment. According to Mr Pelicon Faculties give enough knowledge, which is worthless if you do not know how to use it in your own benefit. Formal education is only a good base, useful knowledge can only be got with work and practice. 5 6 The entire interview is attached in Appendix. Economic Exhibition 24 12. CONCLUSION Through our research paper and through different sources, we assessed the likelihood of our hypotheses. We found that our hypotheses are correct and we can confirm them. The fact is that faculties do not give us enough practical knowledge, and the majority of faculties do not give any practical knowledge, the student must find their own way how the theoretical knowledge transformed into the practical knowledge. We also found that the reason for the youth unemployment is in most cases is a wrong decision of their profession. There are many professions that employers do not need. There is a big problem how to find an appropriate job for them. We suggest some solutions that could help to solve this major problem: 1. To facilitate the practise and make it more efficient. It is not enough if the practice last two or three weeks and the student does not get acquainted with his/her real future job that he/she study for. 2. Introduce of obligatory practice. Some studies does not have obligatory practice and is hard to find a suitable work in student office, so this is why all studies should have some practice. 3. Try to encourage or stimulate students to get more practical knowledge, even if this mean you have to work for free. But the law should be very strict; otherwise there could be a lot of exploitation of young and free workforce. 4. Our education system should involve more practical knowledge or at least show some practices to young people, that they would know that they exist. 5. It would help students too if there were some kind of registration at the Faculty, because employers demand more and more. 25 13. LITERATURE - AIESEC. Available at: http://www.aiesec.org (accessed on 21st March 2010). - Ažman, Tatjana and Rupar, Brigita. 2005. Načrtovanje in vodenje kariere: priročnik za poklicno orientacijo v srednjih šolah. Ljubljana: Zavod Republike Slovenije za šolstvo. - Brečko, Daniela. 2006. Načrtovanje kariere kot dialog med organizacijo in posameznikom. Ljubljana: Planet GV. - CIPS. Available at: http://www.ess.gov.si/SLO/Ncips/Opis/KajJeCips.htm (accessed on 21st March 2010). - Dernovšek, Branka. 2007. Poudarek je na uporabnosti znanja. Brežice: Savaglas. - Divjak, Matej. SURS. 2010. Strukturna statistika plač, Slovenija, 2008 – ZAČASNI PODATKI. Available at: http://www.stat.si/novica_prikazi.aspx?id=2913 (accessed on 30th March 2010). - Dizdarevič, Maja and Tušar, Vesna. 2008. Potencialna vloga kariernega centra pri zaposlovanju diplomantov univerze v Ljubljani. Available at: http://dk.fdv.unilj.si/diplomska/pdfs/Dizdarevic-Tusar.PDF (accessed on 28th March 2010). - Dolenc, Danilo. 2005. Mladi v Sloveniji. Ljubljana: Statistični urad RS. Available at: http://www.stat.si/novice_poglej.asp?ID=666 (accessed on 30th March 2010). - European Commission Youth. 2010. Latest figures on youth unemployment. Available at: http://ec.europa.eu/youth/news/news1666_en.htm (accessed on 30th March 2010). - European Commission Youth. Youth unemployment in the European Union. Available at: http://ec.europa.eu/youth/pdf/doc1670_en.pdf (accessed on 30th March 2010). - Ivančič, Angelca. 1999. Izobraževanje in priložnosti na trgu dela. Ljubljana: Fakulteta za družbene vede in Andragoški center. - Junankar. 1987. From School to Unemployment? London: The MacMillan Press ltD. - Katzensteiner, Michael, Paula Ferrer-Sama and Gerhard Rott. 2006. Guidance and Counselling in Higher Education in European Union Member States. Krakow: FEDORA. Available at: http://elpub.bib.uni- wuppertal.de/edocs/dokumente/zsb/fedora/general/others/symposiumkrakow2006/symp06 .pdf (accessed on 30th March 2010). - Kosem, Marija. 2008. Brezposelnost diplomantov v Sloveniji. Diplomsko delo. Ljubljana: Ekonomska fakulteta. 26 - Kozmik, Vera and Salecl, Tanja. 1999. Zakon o enakih možnostih, primerjalna analiza. Ljubljana: Vlada Republike Slovenije, Urad za žensko politiko. - Kramberger, Anton. 2007. Strukturni razlogi težje zaposljivosti mladih v Sloveniji. In Zaposljivost v Sloveniji: analiza prehoda iz šol v zaposlitve: stanja, napovedi, primerjanja, ed. Anton Kramberger and Samo Pavlin. Ljubljana: Fora. - Mijatović, Vladimir. 2009. Naziv Generacija 700 mi pove, kakšna bo moja prva plača. Available at: http://www.student-info.net/index.php/studentopolis/novice/ID/59455 (accessed on 30th March 2010). - Mijatović, Vladimir and Belčič, Tinkara. 2009. Rezultati raziskave o prvi zaposlitvi mladih diplomantov. Available at: http://www.student- info.net/index.php/studentopolis/novice/ID/59584/Rezultati-raziskave-o-prvi-zaposlitvimladih-diplomantov (accessed on 30th March 2010). - Možina, Stane (ed.). 2002. Management kadrovskih virov. Ljubljana: FDV. - Mrgole Jukič, Tjaša. 2000. Izobraževanje in zaposlovanje žensk nekoč in danes. Ptuj: Zgodovinski arhiv. Ljubljana: Urad za žensko politiko pri Vladi Republike Slovenije. - Olenik, Dagmar. 2003. Aktivna politika zaposlovanja v Sloveniji. Diplomsko delo. Ljubljana: Ekonomska fakulteta. - Revija MojeDelo. Available at: http://www.revija.mojedelo.com/zaposlitveni- nasveti/mladi-na-poti-v-zaposlitev-396.aspx (accessed on 3rd April 2010). - Svetin, Irena. SURS. 2010. Vstop mladih na trg dela, Slovenija, 2. četrtletje 2009. Available at: http://www.stat.si/novica_prikazi.aspx?id=3029 (accessed on 30th March 2010). - Sultana, G. Ronald. 2004. Guidance policies in the Knowledge Society: Trends, challenges and responses across Europe. Luxemburg: Office for Official Publications of the European Communities. Available at: http://www2.trainingvillage.gr/etv/publication/download/panorama/5152_en.pdf (accessed on 30th March 2010). - Trbanc, Martina. 2005. Zaposlovanje in brezposelnost mladih. Available at: http://www.guidanceeurope.org/country/SLOVENIA/KARIERA/karieraa/zaposlovanjetrbanc/zapo/attach/Zap oslovanje%20in%20brezposelnost%20mladih.doc (accessed on 30th March 2010). - Verša, Dorotea and Viljem, Spruk. 2004. Mladi diplomanti na trgu delovne sile. Ljubljana: Zavod RS za zaposlovanje. Available at: 27 http://www.ess.gov.si/SLO/Dejavnost/Analize/2004/MladiDiplomanti.pdf (accessed on 13th March 2010). - Watts, G. Antony. 1997. Izobraževalno in poklicno usmerjanje v Evropski skupnosti. Ljubljana: Izida. - Zavod RS za zaposlovanje. Brezposelnost. Available at: http://www.ess.gov.si/slo/Dejavnost/StatisticniPodatki/AnketaODelSili/brezposelnost.htm (accessed on 30th March 2010). - Zavod RS za zaposlovanje. Strukturne značilnosti registrirane brezposelnosti. Available at: http://www.ess.gov.si/slo/Dejavnost/StatisticniPodatki/Kazalci/StrukturneZnacilnostiReg BP.htm (accessed on 30th March 2010). - Zveza svobodnih sindikatov Slovenije. 2008. Prva pomoč ob prehodu v zaposlitev: Mladi v aktivni politiki zaposlovanja (APZ): 18-19. 28 ANNEX 1 YOUTH UNEMPLOYMENT We did an interview with Mr Martin Pelicon from MojeDelo.com. The interview was made by e-mail. Martin Pelicon Tržno komuniciranje / Marketing communication t: +386 1 513 57 00 / gsm: +386 40 45 62 62 e: martin.pelicon@mojedelo.com Moje delo, spletni marketing, d.o.o. / Litostrojska 44/c / SI-1000 Ljubljana 080 1 DELO (080 1 3356) / f: +386 1 513 57 29 / URL: www.MojeDelo.com 1. What do you think about the current situation of young people in the labour market? Unenviable. In this time when companies fire more than employ, are first-time job seekers in a very difficult situation. With little or no work experience is very difficult to compete with the flood of candidates, who sign up for increasingly scarce jobs. 2. Do young people have enough opportunities for employment? Jobs can always be found, even in crisis. Moreover, young people always have a lack of opportunities. Is there a problem of a system, or for fear of the elderly that the younger will overcome them, I do not know. Young people should receive more (and better) opportunities, as they are drivers of development. 3. In what way should young people gain experience for a first job? The most difficult is to get a good job if you had no experience. It is wise to use a student work. While selecting the student work you should always have in mind where would you like to work after graduating, because experience from the same or similar work areas will be very important. Otherwise you choose to work for free in a given company - a valuable experience can be a crucial advantage over the other candidate for the same job. 29 4. How can you help young people to find their jobs? Job portal MojeDelo.com intends much attention to young people, who are facing with finding a job. Most of the products and services on Portal are offered for free. So last year we realized a series of free workshops on theme of successful job search in all major Slovenian towns. Each year we edit brochure »Student« and »Graduate«, which are useful information for those who are first entering in the labour market and include the presentation of employers who are interested in such cadre. In addition, advices and news are published daily, which facilitate the problems of the seekers. The largest project is certainly a Career fair (last year in early November at the Gospodarsko razstavišče7 in Ljubljana, free entrance), where the job seekers had a unique opportunity to meet in live with individuals who are responsible for personnel (those who work in Human resources).We regularly perform seminars and workshops at Faculties and high school, where we introduce how to successfully enter the labour market. When publishing relevant jobs on the site, employers indicate that a post is suitable for beginners too. 5. What is the average educational level of young people at the first job? Unfortunately, we do not have such data. 6. Who do you think is responsible for high youth unemployment? It is hard to say. Probably the fault is on many sides. In a country that does little to encourage our young people, in firms that prefer the slightly more experienced staff and the young people themselves who are not active enough to show employers that they are trustworthy. 7. What are the basic rights that young people should know, when they employ? This is the question for an expert in the field of labour law. 8. How should employers behave to their employees? There is no rule here (except that all are obligate to the same law). If you consider that your employer does not behave respectful – do not complicate and replace the centre as quickly as 7 Economic Exhibition 30 possible. There are always enough employers who respect the individual, believe in his/her abilities and appreciate his/her work. Do not waste yours potential where it is not accepted. The majority insists and simply hope for better times, but these times never come. Do not let that this can happen to you. 9. How the young people look for work (internet, newspapers ...)? Every now there is found someone else who use 'traditional' method of advertising in the newspaper, but most of them already use modern media. Most of the advertisements that appear in newspapers are certainly on the Internet too. You should accompany job portals (most popular in the country is MojeDelo.com), track the businesses’ websites (most of them have employment section) and the most important - realize your social capital (tell everyone you know that you are looking for a job). The job will not come by itself, you have to make an effort for it. Be proactive, call to each company that you find interesting and ask if employ. You should always have in mind that three quarters of jobs are still occupied without being published. 10. Do the Faculties give enough knowledge? Yes, Faculties give enough knowledge. This (theoretically) knowledge is worthless if you do not know how to use it in your own benefit. Formal education is only a good base, but useful knowledge can only be got with work and practice. We must be prepared for further learning of new knowledge and experience. 31 ANNEX 2 BREZPOSELNOST MLADIH Intervju z g. Martinom Peliconom z MojeDelo.com. Intervju smo opravile preko spletne pošte. Martin Pelicon Tržno komuniciranje / Marketing communication t: +386 1 513 57 00 / gsm: +386 40 45 62 62 e: martin.pelicon@mojedelo.com Moje delo, spletni marketing, d.o.o. / Litostrojska 44/c / SI-1000 Ljubljana 080 1 DELO (080 1 3356) / f: +386 1 513 57 29 / URL: www.MojeDelo.com 1. Kakšno se vam zdi trenutno stanje mladih na trgu delovne sile? Nezavidljivo. V obdobju, ko podjetja bolj odpuščajo kot zaposlujejo, so iskalci prve zaposlitve v zelo težkem položaju. Z malo ali nič delovnimi izkušnjami zelo težko konkurirajo poplavi kandidatov, ki se prijavljajo na vse bolj redka prosta delovna mesta. 2. Imajo mladi dovolj možnosti za zaposlitev? Vedno se najdejo prosta delovna mesta, tudi v krizi. Sicer pa imajo mladi vedno premalo priložnosti. Ali gre tukaj za problem sistema ali za strah starejših, da jih bodo zagnani mladi izpodrinili, tega ne vem. Mladi bi morali dobivati več (in tudi boljše) priložnosti, saj so gonilo razvoja. 3. Na kakšen način naj si mladi pridobijo izkušnje za prvo zaposlitev? Najtežje je dobiti dobro zaposlitev, če nimaš nobenih izkušenj. Zato je modro izkoristiti študentsko delo. Pri izbiri študentskega dela imejte v mislih kje bi se po končanem študiju radi zaposlili, saj bodo izkušnje iz istega ali podobnega delovnega področja še kako pomembne. Če ne gre drugače se odločite za brezplačno delo v določenem podjetju – dragocene izkušnje so lahko odločilna prednost pred ostalimi, ki kandidirajo za isto delovno mesto. 32 4. Na kakšen način pomagate mladim pri iskanju zaposlitve? Zaposlitveni portal MojeDelo.com veliko pozornosti namenja pomoči mladim, ki se srečujejo z iskanjem zaposlitve. Večina produktov in storitev je brezplačnih. Tako smo v lanskem letu izvedli serijo brezplačnih delavnic uspešnega iskanja zaposlitve po vseh večjih slovenskih mestih. Vsako leto izdamo tudi brošuri 'Dijak' in 'Absolvent', v kateri so uporabne informacije za vse, ki prvič vstopajo na trg delovne sile ter predstavitev delodajalcev, ki se za tak kader zanimajo. Poleg tega dnevno na portalu objavljano nasvete in novice, ki lajšajo težave iskalcem. Največji projekt je zagotovo tudi zaposlitveni sejem (letos v začetku decembra na gospodarskem razstavišču v Ljubljani, vstop prost), kjer imajo iskalci izredno priložnost, da se v živo srečajo s posamezniki, ki so v podjetjih odgovorni za kadrovanje. Po fakultetah in srednjih šolah redno izvajamo seminarje in delavnice, kjer predstavimo kako uspešno vstopiti na trg delovne sile. Pri objavi ustreznih zaposlitvenih oglasov na portalu, delodajalci označijo, da je prosto delovno mesto primerno tudi za začetnike. 5. Kakšna je povprečna izobrazba mladih ob prvi zaposlitvi? Teh podatkov žal nimamo. 6. Kdo je po vašem mnenju odgovoren za visoko brezposelnost mladih? Težko rečem. Verjetno je krivda na večih straneh. Na državi, ki premalo spodbuja zaposlovanje mladih, pri podjetjih, ki se raje odločajo za nekoliko bolj izkušen kader in na mladih samih, ki niso dovolj aktivni, da bi dokazali, da so vredni zaupanja delodajalcev. 7. Katere so temeljne pravice, ki jih morajo mladi poznati, ko se zaposlijo? Vprašanje za strokovnjaka s področja delovnega prava. 8. Kako se morajo delodajalci obnašati do zaposlenih? Pravila tukaj ni (razen, da vse zavezuje enaka zakonodaja). Če smatrate, da se vaš delodajalec do vas ne vede dovolj spoštljivo – ne komplicirajte in čim hitreje zamenjajte sredino. Vedno se najde dovolj delodajalcev, ki spoštujejo posameznika, verjamejo v njegove sposobnosti in cenijo njegovo delo. Ne tratite svojega potenciala tam kjer ni sprejet. Večina vztraja in preprosto upa na boljše čase, ki pa nikoli ne pridejo. Ne dopustite, da se to zgodi tudi vam. 33 9. Na kakšen način naj mladi iščejo delo (internet, časopisi…)? Vsake toliko se najde še kdo, ki uporablja 'tradicionalno' metodo oglaševanja v časopisu, večina pa že uporablja sodobne medije. Večina oglasov, ki se pojavijo v časopisih se zagotovo pojavi tudi na internetu. Spremljajte zaposlitvene portale (najbolj obiskan v državi je prav MojeDelo.com), spremljajte spletne strani podjetij (večina ima rubriko zaposlitev) in kar je najpomembneje – unovčite svoj socialni kapital (vsem, ki jih poznate povejte, da iščete službo). Služba ne bo prišla sama od sebe, zanjo se je treba potruditi. Bodite proaktivni, pokličite v vsako podjetje, ki se vam zdi zanimivo in povprašajte ali zaposlujejo. Imejte v mislih, da se še vedno ¾ delovnih mest zasede, ne da bi bila sploh kje objavljena. 10. Ali dajo fakultete dovolj znanja? Da, fakultete dajo dovolj znanja. To (teoretično) znanje pa je nično, če ga ne znate izkoristiti sebi v prid. Formalna izobrazba je samo dobra osnova, tisto uporabno znanje pa boste pridobili le z delom, prakso. Bodite pripravljeni na nadaljnjo učenje na pridobivanje novega znanja in izkušenj. 34