EXPERT GROUP MEETING: Social Integration UN/DESA, 2-4 November 2009 Promotion of Inclusive Poverty Eradication and Productive Employment and Decent Work Policies to advance Social Integration Presentation by Faith Innerarity Outline of Presentation Situational Analysis – Jamaica at a Glance – Poverty and Unemployment Policy Responses – Poverty Eradication – Employment Creation and Decent Work Agenda – Expanding Education, Training and Employment Opportunities for Young People – Community Development Initiatives Conclusion and Recommendations – Way Forward Jamaica at a Glance * Population 2,682,100 Population Growth Rate 0.5% ; Life Expectancy at Birth 72.4%; Adult Literacy (15 and older) 86.0% Total Labour Force: 1,261,300 Employed: 1,136,900 Unemployed: 124,500; Unemployment Rate: 9.9% Male/female unemployment: Male: 6.2%; Female14.5% Real GDP (JA$M): 249,645 GDP Per Capita: US$4,147 Real GDP Growth Rate: 0.7% ; Debt/GDP 108.2% Population below Poverty Line 9.9 % *2007 Statistics Fig. 1 Table 1: Incidence of Poverty by Geographical Area in Jamaica Area 1989 1990 1991 1992 1993 1994 1995 1996 1997 KMA 15.5 13.3 28.8 18.8 16.7 13.8 15.0 17.2 9.3 22.0 25.7 31.4 29.9 22.9 20.0 22.8 22.0 14.8 40.7 37.5 57.2 42.2 29.6 28.8 37.0 32.8 27.4 30.5 28.4 44.6 33.9 24.4 22.8 27.5 26.1 Area 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 KMA 8.6 10.6 9.9 7.6 10.4 9.5 14.4 - - - O/Towns 13.4 12.1 16.6 13.3 18.7 15.8 7.8 - - - Rural 19.5 22.0 25.1 13.3 25.1 24.2 22.1 - - - Islandwide 15.9 17.0 18.7 24.1 19.7 19.1 16.9 14.8 14.3 9.9 O/Towns Rural Islandwide 19.9 TABLE 3: Unemployed By Major Demographic Groups 2006-2007 ('000) 2006 2007 ANNUAL AVERAGE RATE (%) ANNUAL AVERAGE TOTAL 129.4 10.3 124.5 Youth (14-24 yrs) 49.9 23.6 51.3 Adults (25 yrs and over) 79.5 7.6 73.2 MALE 48.8 7 43.1 Youth (14-24 yrs) 20.7 17.4 20.3 Adults (25 yrs and over) 28.1 4.9 22.7 FEMALE 80.6 14.5 81.4 Youth (14-24 yrs) 29.2 31.6 31.0 Adults (25 yrs and over) 51.4 11.1 50.5 Poverty Eradication Programme Reform of the Social Safety Net which commenced in 2001 represents central component of Poverty Eradication Programme Design of a conditional cash transfer programme to ensure: – Better targeting of the poor – Linking of benefits to human capital investment in education and health PATH TARGET GROUPS and BENEFICIARIES Targeted Categories NO. Registered Beneficiaries % NO. % Children 0-17 years 168,000 Pregnant /Lactating 11,000 Women Elderly 33,000 Persons with 19,000 Disabilities (18-59 yrs) 71 5 173,495 783 75 Negligible 14 8 51,583 5,015 21 2 Destitute (18-59 years) 2 4,476 2 Total 5,000 236,000 100 231,446 100 @# PATH Beneficiary Target Groups 236,000 8% 2% 14% Children0-17 Pregnant &lactating Elderly (> 60yrs) 5% Persons with Disabilities Adult poor (18-59 yrs.) 71% Programme Outcome: Targeting From the standpoint of redistribution and coverage of the poorest and most vulnerable PATH has been fairly successful in terms of its targeting mechanism. However, concerns in terms of errors of inclusion and exclusion have had to be addressed. Distribution of Households Receiving Benefits by Quintile Programme Poorest Quintile Quintile 2 Quintile 3 Quintile 4 Quintile 5 Food Stamp 36% 26% 20% 12% 6% School Fee Assistance 20% 21% 25% 23% 11% Public Assistance 60% 17% 14% 5% 4% Poor Relief 35% 23% 22% 15% 4% SESP 24% 32% 20% 16% 7% JADEP 9% 19% 42% 13% 17% PATH 58% 22% 14% 5% 1% PATH Beneficiaries by Quintiles and Area Quintile KMA Other Towns Rural All Island Cumulative 1 2 3 4 5 Below Poverty Line 76 7 16 1 0 78 60 22 13 5 0 65 57 22 15 5 1 57 58 22 14 5 1 59 58 79 94 99 100 n/a PATH Beneficiaries Household Characteristics Household Characteristic PATH Beneficiaries (PATH 2003) Poor Jamaicans (SLC 2002) All Jamaica (SLC 2002) Household Size 1 2 3-5 6 and over 9 7 35 49 13 13 37 36 23 19 41 18 Presence of children 85 Presence of Elderly 41 32 44 Head of Household worked previous 12 months 57 64 72 Main material of outer walls Wood Block and steel Other 46 37 17 41 41 18 29 54 17 9 14 38 Uses Pit toilet 80 70 47 Has electricity Own: TV Washing Machine Car 64 67 85 55 1 1 52 1 2 74 10 13 Has indoor tap/pipe Source: PATH Participant Survey 2003, JSLC 2002 67 57 Programme Outcome: Targeting Beneficiary Identification System (BIS) has had to be reviewed to address, among other issues, the disproportionate selection of households from urban centres including the Kingston Metropolitan area. This is linked to the complexity of having a single poverty measurement instrument that can adequately capture the distinguishing features of rural versus urban poverty. Distribution of PATH Beneficiaries Compared with Distribution of Poor and Share in Total Population By Parish Percentage Parish Percentage PATH Beneficiaries in Parish Oct. 2006 Percentage Jamaica’s Poor in Parish (SLC 2002) Parish Share in Total Population * Kingston & St. Andrew 7.97 20.9 24.8 St. Thomas 5.06 5.1 3.5 Portland 5.11 5.0 3.1 St. Mary 7.39 5.9 4.3 St. Ann 8.48 12 6.4 Trelawny 3.87 4.4 2.8 St. James 5.54 4.5 6.8 Hanover 5.12 1.8 2.6 Westmoreland 7.63 5.1 5.4 St. Elizabeth 10.54 5.8 5.6 Manchester 9.12 8.9 7.1 Clarendon 12.97 12.6 9.2 St. Catherine 11.13 5.8 18.4 100 100 100 Total *Based on Population Census 2001 Health and Education Outcome PATH has resulted in increased school attendance. There has been an increase in the use preventative health care services. Health care visits for children 0-6 years increased by 38%. Supply Challenges In respect of PATH compliance requirements a number of supply side difficulties have been encountered in relation to the physical and human capabilities of health facilities and schools. Specific concerns include the need to expand primary health care capacity at the community level and increase secondary school places for the 15-17 years age group for which a gap still exist. Beneficiary Support Programmes In terms of the beneficiary households, the high cost of transportation, especially in rural areas has impacted negatively on affordability of schooling. Special measures are therefore required to address this issue. Availability of subsidised lunches found to be critical for attendance and in this regard, the School Feeding Programme needs to be strengthened. Coverage Gaps Incidence of poverty 14.8% in 2005 Poverty Line 2005 – Individual J$63,717 – Family of five J$240,816 Estimated 394,000 persons are below the poverty line PATH covers 236,000 Approximately 158,000 persons below the poverty line are not covered by PATH These are mainly the working poor Working Poor “ The working poor are individuals engage in either paid or self employment who belong to households with an adult equivalent per capita household expenditure (or income) that falls below a specified poverty line” (Labour Market and Poverty Studies Unit, University of the West Indies, Trinidad and Tobago) Working Poor: Results of ILO Study Males dominate the working poor The working poor are clustered in the 25 to 44 age group The working poor have lower levels of education The working poor are employed in a variety of sectors, but most are found in agriculture, community and social services, construction and wholesale/retail sales. The working poor work fewer hours than their non-poor counterparts In Jamaica 34% of the working poor are in agriculture. Distribution of NIS Pensioners (March 2007) Population cohort Number NIS Total in Population Pensioner s Percentage NIS Pensioners 60-64 71,300 9,482 13.3 65-69 62,200 14,495 23.3 70-74 50,900 17,146 33.7 75and over 94,600 37,065 39.2 Total 78,188 28.0 279,000 DECENT WORK AGENDA Principles and Rights at Work Equality of Opportunity for Women and Men Enhancing Social Protection Tripartism and Social Dialogue Policy Responses Ratification of ILO Conventions on core labour standards including “Minimum Age of Employment’’ and the “Elimination of the Worst Forms of Child Labour”. CARICOM Single Market and Economy (CSME) and focus on the establishment of a “social floor” Introduction of CARICOM Reciprocal Social Security agreement Strong commitment to tripartism Challenges: Productive Employment and Decent Work Agenda Increasing size and complexity of the informal sector, including a-typical and non-standard forms of employment relationships in formal establishment High levels of youth unemployment Gender inequalities in the labour market Need for active labour market policies Discrimination against persons with disabilities Complex range of labour migration issues Options for Expanded Opportunities for Vulnerable Welfare to work initiative focusing on persons in the economically active agegroup in PATH beneficiary and other poor households. Young school leavers – focus on school to work transition process with link to Jamaica Youth Employment Network (JYEN) and other initiatives. Social pension Welfare to Work Training and job placement for members of beneficiary household in economically active age groups Promotion of entrepreneurial activities through revamped rehabilitation grant programme Community based interventions Provision of range of referral services School to Work Transition Support for PATH beneficiaries beyond age 17 (8,000- 10,000 PATH School Leavers annually) Assistance for further education (Government guarantee of Students Loans) Stipend for skills training/apprenticeship Provision of Job placement services Promotion of Entrepreneurship (grants or soft loans for income generating projects) Training centre for Young persons with disabilities in Western Jamaica School to Work Transition At risk youth targeted: Youths in rural areas and inner-city communities Youths with disabilities HIV/AIDS victims Community Development Initiatives Human and Social Capital Investment Economic Enablement Provision of Basic Social Services Lorenzo Smith, a youth of the Grants Pen Inner-city Community now has a better chance in life. He worked temporarily at the Mega Mart Super Store and is now involved in a Human Employment and Resource Training (HEART ) programme Community Development Economic Enablement Andre Fairclough is now seen as a positive role model in his family and community as he engages in the working world. Security and Justice Police and residents join forces to fight crime High Achievers “Inner-City Student Boasts Highest Test Score on National Exam” “Deaf student soars” Deepening Democracy “Launch of 2008 Democracy SurveyLongitudinal report provides insights on views in the public domain” , Daily Gleaner February 2009 Prime Minister the Hon. Bruce Golding delivers the keynote address at the launch of the National Integrity Action Forum. Seated are Dr. Karen Hilliard, USAID/Jamaica Mission Director, and Prof. Trevor Munroe of the Centre for Leadership and Governance at UWI, Mona WAY FORWARD Integration of economic and social policies, Enterprise development taking into account the rural sector Training and skills enhancement, Expanding coverage and effectiveness of social protection systems Strengthening of the institutional capacity to promote social dialogue and the regulatory framework for enforcement of core labour standards. Strengthened partnerships and collaboration at the international level Way Forward Direct and special focus on the causes of youth unemployment and best practices to eliminate this problem Mainstreaming of gender, age (life cycle vulnerability) and disability in all employment policies and poverty eradication strategies Geographically differentiated strategies for rural and urban areas. The END Thank You