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Active citizens combating youth Active citizens combating youth unemployment” unemployment”

““JobNet”International conferenceJobNet”International conference

ROMANIA ROMANIA FACTS AND FIGURESFACTS AND FIGURES

13-14 November, 2013 13-14 November, 2013

Eger, Hungary Eger, Hungary

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EVOLUTION OF YOUTH UNEMPLOYMENT EVOLUTION OF YOUTH UNEMPLOYMENT RATE IN ROMANIA, AS COMPARED WITH THE RATE IN ROMANIA, AS COMPARED WITH THE

EU AVERAGE EU AVERAGE

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Total unemployement rate: 7%Total unemployement rate: 7%

15-19 years old – 8,4% empolyment rate (half of the European 15-19 years old – 8,4% empolyment rate (half of the European

average)average)

20-24 years old – 20-24 years old – 22,722,7% % ununemployment rateemployment rate

25-25-3434 years old – years old – 8,68,6% % ununemployement rateemployement rate

Significant regional differencesSignificant regional differences for 15-24 age group: for 15-24 age group:

Highest unemployment rates in Center, (36%) South Muntenia Highest unemployment rates in Center, (36%) South Muntenia

South –East Regions – over 25%South –East Regions – over 25%

Lowest unemployment rates in North-East Region – 11%Lowest unemployment rates in North-East Region – 11%

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43,3% of the unemployed persons between 15-24 43,3% of the unemployed persons between 15-24 years old are long term unemployed (over 12 months)years old are long term unemployed (over 12 months)

NEETs youth: 20,3% (2012), increasing from 13,3% NEETs youth: 20,3% (2012), increasing from 13,3% in 2007, with a higher percentage within the higher in 2007, with a higher percentage within the higher educated youth. educated youth.

The average length of time between graduation and The average length of time between graduation and 11stst job is 10 months job is 10 months

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Access to labour market occurs later and the income is Access to labour market occurs later and the income is lower lower Romania has the highest poverty level of employed youth Romania has the highest poverty level of employed youth between 18-24 years old: 30,7% are poor (as compared to between 18-24 years old: 30,7% are poor (as compared to 19% of total population and 11,2% European average) 19% of total population and 11,2% European average) One of the most vulnerable groups: youth working in the One of the most vulnerable groups: youth working in the informal sector, particularly in subsistance agriculture:informal sector, particularly in subsistance agriculture:

-Over 40% are young persons between 15-34 years oldOver 40% are young persons between 15-34 years old

- 19 % of total population working in the informal sector 19 % of total population working in the informal sector are young persons between 15-24% (as compared to 9-13% are young persons between 15-24% (as compared to 9-13% of the other age groups) of the other age groups)

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Inflexible labour market , that doesn't not allow Inflexible labour market , that doesn't not allow flexible working contracts, to allow going to school in flexible working contracts, to allow going to school in parallel with a job:parallel with a job:

- 17,3% of employed youth between 15-24 years old - 17,3% of employed youth between 15-24 years old have a part time job, as compared with 28,9% European have a part time job, as compared with 28,9% European averageaverage

- 3,1% have a temporary job, as compared to 42,1% - 3,1% have a temporary job, as compared to 42,1% European average European average

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REASONS FOR HIGH UNEMPLOYMENT RATEREASONS FOR HIGH UNEMPLOYMENT RATE

Low education levelLow education levelSchool drop-out: 17,5% for 18-24 age groupSchool drop-out: 17,5% for 18-24 age groupHigh costs for going to school (55% of young people High costs for going to school (55% of young people that as an impediment)that as an impediment) Discrepancy between school qualifications and labor Discrepancy between school qualifications and labor market needsmarket needsLack of trust in the efficiency of the vocational training Lack of trust in the efficiency of the vocational training courses or reconversion programs, and in the fact that courses or reconversion programs, and in the fact that attending those could improve their access on the labor attending those could improve their access on the labor marketmarket

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Lack of work experience makes them vulnerable in the Lack of work experience makes them vulnerable in the competition with other workers (59% of the employers competition with other workers (59% of the employers cannot afford hiring young people without work cannot afford hiring young people without work experience).experience).

FROM EMPLOYERS’PERSPECTIVE:FROM EMPLOYERS’PERSPECTIVE:Today’s young generation is less motivated to work as Today’s young generation is less motivated to work as 5-10 years ago5-10 years ago young people demand too high salaries (71%)young people demand too high salaries (71%)Young people are not willing to accept jobs below their Young people are not willing to accept jobs below their qualifications (65%).qualifications (65%).

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ENTREPRENEURSHIPENTREPRENEURSHIP

27% of Romania’s youth declare they want to start a business27% of Romania’s youth declare they want to start a business

1 of 100 young people decides to start a business (as compared 1 of 100 young people decides to start a business (as compared to 1 of 4 in Poland or Hungaryto 1 of 4 in Poland or Hungary

Reasons for low number of start up business: Reasons for low number of start up business: lack of money; lack of money; bureaucracy; bureaucracy; low level of entrepreneurial education: less than 10% of the low level of entrepreneurial education: less than 10% of the young people who start a business have entrepreneurial young people who start a business have entrepreneurial education, as compared with the 30% EU average;education, as compared with the 30% EU average;Negative perception of the career success factors 47% Negative perception of the career success factors 47% believe “connections and social position” are preconditions for believe “connections and social position” are preconditions for success.success.

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Policies for reducing youth unemploymentPolicies for reducing youth unemployment

Granted subsidies to employers who employ graduates. The Granted subsidies to employers who employ graduates. The

subsidy is granted for 12 months (18 months for graduates with subsidy is granted for 12 months (18 months for graduates with disabilities), and varies on education level graduateddisabilities), and varies on education level graduatedEmployers are exempt for 12 months from paying the Employers are exempt for 12 months from paying the

social contributions for unemployment for persons hired on open social contributions for unemployment for persons hired on open ended contractsended contractsJob Fairs for graduates Job Fairs for graduates Prevention of social exclusion of youth (Law 116/2002)Prevention of social exclusion of youth (Law 116/2002)Access to vocational trainingAccess to vocational trainingInformation and career counselingInformation and career counselingApprenticeship (law under modification)Apprenticeship (law under modification)Support for seasonal work during vacation (Law 72/2002)Support for seasonal work during vacation (Law 72/2002)European Social Fund projectsEuropean Social Fund projects

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EXAMPLES OF BEST PRACTICEEXAMPLES OF BEST PRACTICE

Vocational training:Vocational training:Romanian-German Foundation, Timisoara in Romanian-German Foundation, Timisoara in partnership with Hornbach networkpartnership with Hornbach network115 persons trained as technicians in commerce115 persons trained as technicians in commerceTraining delivered by the Romanian-German Training delivered by the Romanian-German Foundation, internationally certified by the German Foundation, internationally certified by the German Chamber of CommerceChamber of Commerce115 trained persons hired by Hornbach network115 trained persons hired by Hornbach network

Introducing career counseling and simulated Introducing career counseling and simulated enterprises in schools enterprises in schools

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Center for Rural Assistance – Regional Center for Center for Rural Assistance – Regional Center for Rural EntrepreneurshipRural Entrepreneurship

- Network of 6 Job Clubs in Western Romania (information, - Network of 6 Job Clubs in Western Romania (information,

carreer councelling, self marketing skills)carreer councelling, self marketing skills);;

- - TrTraiaining in entrepreneurial skillsning in entrepreneurial skills;;

-Mentoring/coaching for business plans development;Mentoring/coaching for business plans development;

-Support for starting up the businessSupport for starting up the business

-Support for accessing start up fundsSupport for accessing start up funds

-Training in crafts productionTraining in crafts production

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FUNDING OPPORTUNITY FOR TRANSNATIONAL FUNDING OPPORTUNITY FOR TRANSNATIONAL COOPERATION ON LABOUR MARKET COOPERATION ON LABOUR MARKET

INTEGRATIONINTEGRATION

European Social Fund – call to be launched in NovemberEuropean Social Fund – call to be launched in NovemberProject indicators: Project indicators: - Minimum 6 partnerships created for - Minimum 6 partnerships created for developing/promoting social policies (excluding the project developing/promoting social policies (excluding the project partners); partners); implementing new methods and instruments for implementing new methods and instruments for fighting discrimination, transfer of expertise regarding fighting discrimination, transfer of expertise regarding inclusion of Roma population; best practice exchange regarding inclusion of Roma population; best practice exchange regarding inclusion of long term unemployed persons inclusion of long term unemployed persons etc.etc.- Nr. of joint programs developed for labour market inclusion - Nr. of joint programs developed for labour market inclusion -Nr. of studies, strategies, reports Nr. of studies, strategies, reports - Nr. of events focused on exchange of experience Nr. of events focused on exchange of experience -Own contribution: 2%Own contribution: 2%

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Thank you for your attentionThank you for your attention

Alina BerneckerAlina BerneckerExecutive Director: Executive Director: Center for Rural AssistanceCenter for Rural Assistance

Timisoara, Ulpia Traiana 113Timisoara, Ulpia Traiana 113Tel: +40 256 221 469Tel: +40 256 221 469Fax: +40 256 221 470Fax: +40 256 221 470Cell: +40 722 778 987 Cell: +40 722 778 987 abernecker@rural-center.orgabernecker@rural-center.org