«EMPLOYABILITY OF

YOUNG PEOPLE»EESC

Consultative Committee on Industrial ChangeBrussels, November 2013

Claudio Cappellini

CNA EU AFFAIRS

1

Index:

- Unemployment and young people

- The role of SMEs

- The EU, National and Regional Policies and practices inemployability: a multilevel approach

- Cultural and creative Industry: an opportunity for youngpeople

- Some suggestions for follow - up

Unemployment young people

The European Foundation for Living and Working Conditions (Eurofound) hasestimated the current economic loss in the EU of having 7.5 million youngpeople out of work or education or training at over €150 billion every year(1.2% of EU GDP) in terms of benefits paid out and lost output (ECMEMO/13/984).

In February 2013, the youth unemployment rate in the EU was 23.5 %, withrates of 58.4 % and 55.7% respectively in Greece and Spain, in Italy 40.4%according to OECD sources.

Since 2008, the youth unemployment decreased only in Germany. Worryingly,given according to which the EU, in 2011, at least 30% of young people were atrisk of poverty or social exclusion.

The low-skilled workers are significantly affected by unemployment. The rate ofunemployment among workers who have attended only primary school or theaverage is three times higher than with a college education.

The rate of employment of graduates increased by 12.6 % between 2008 and2012 while, over the same period has decreased by almost 17% that of workerswho have attended only primary school or the media.

Source: ILO report on the world of work , 2013: Scenario EU

Role of SMEs• SMEs play a key role as innovators in Europe’s economy, being the european

economic environment for the 99.8% are SMEs.

• There are only 43,700 enterprises with more than 250 employees, but more than 19million enterprises employ less than 10 people – the so-called micro-enterprises.

• The average European enterprise provides employment for six people, including theowner-manager, and SMEs count for 2/3 of private employment and close to 60% ofthe added value in Europe’s economy.

• In the last decade, SMEs created 80% of the new jobs.

Source: 201306 Framework of Actions Youth Employment final

Role of SMEs• Many small and traditional Crafts and SMEs are challenged by the economic crisis and

structural changes.

• SMEs encounter difficulties in following technical developments, especially as theyoften have to deal with restricted resources and regularly have difficulties in accessto finance and participating in internationalization processes.

• Crafts and SMEs need access to a qualified workforce and young people from theSchool should be attracted by being an entrepreneurs or an apprentis and adequatelifelong learning offers.

• Guidance for all is needed to combat unemployment, maintain workers’ employabilityand facilitate Crafts and SMEs’ adaptation to fierce competition and trades evolution.

• Suitable training offers for SMEs should be available in order to match the demandfor new skills coming from new technologies such as ICT and environmentaltechnologies and from new production processes

• Work-based learning, including apprenticeships and traineeships, can also contributeto smoother transition into the labour market for the young and reduce the risks oflong transitions.

Source: 201306 Framework of Actions Youth Employment final

The EU, National and Regional Policiesand practices in employability:

a multilevelapproach

• Youth Employment Initiative support for the Youth Guarantee

To increase available EU financial support to the regions and individuals struggling mostwith youth unemployment and inactivity, the Council and the European Parliamentagreed to create a dedicated Youth Employment Initiative (YEI). YEI support willconcentrate on regions experiencing youth unemployment rates above 25% andon young people not in employment, education or training (NEETs).

• European Alliance for apprentisship and National and Regional Policies

In this setting, local and regional communities can play a key role in making the CulturalCreative Industries part of regional development (applying the "think small first" principlecontained in the European Small Business Act).

Dialogue between trade unions, employers‘ organisations, educational establishmentsand public authorities on the structure and content of education and training coursespractices showed success.

European Alliance for Apprenticeships

• The aims of the European Alliance for Apprenticeships to improve the quality andsupply of apprenticeships across the EU. Stressing that apprenticeships are one ofthe main elements of a Youth Guarantee scheme, the EU engage to:

- contribute to the access to, supply, quality and attractiveness of apprenticeshipsacross the EU. involvement of social partners, and intermediary bodies such aschambers of commerce, industry and crafts, SMEs organisations, sectoralorganisations in the governance of apprenticeship systems;

- integration of apprenticeship schemes into national/regional education and trainingsystems and a clear regulatory framework, clarifying the responsibilities, rights andobligations of each party involved, in the context of national practices, laws andcollective agreements.

Source: 2 July Declaration UEAPME

European Alliance for Apprenticeships

• The European Social Partners agree to focus their efforts within the next 6 months on the following fields of action:

- motivating, advising and challenging member organisations to support the aims ofthe European Alliance for Apprenticeships by getting involved in the establishmentand improvement of apprenticeship systems, trough the development andimprovement of curricula, to ensure that apprenticeships remain attuned to skillsneeds of the labour market; cooperate with schools and employment services to giveyoung people and their parents the opportunity to make informed choices aboutapprenticeships as an educational pathway;

- motivating, advising and challenging enterprises to support the aims of the EuropeanAlliance for Apprenticeships, building upon the improved framework conditions inorder to increase the supply and quality of apprenticeship positions in their ownenterprise and supply chain; sharing experience and support with other enterprises;promoting role models showing the career opportunities that apprentices bringindividuals. Promoting the use of the EU funds, in particular the European SocialFund, to introduce or improve Member States’ dual-learning apprenticeship systems.

Source: 2 July Declaration UEAPME

Euopean Alliance for Apprenticeships

• The European Commission agrees to focus its efforts on specific actions for steering the European Alliance for Apprenticeships, in particular:

a. advancing comparative analysis and policy guidance on the costs, benefits andfunctioning of apprenticeship schemes in different settings, with a view to enhancingtheir effectiveness;

b. generating targeted guidance and cooperation by peer learning/review to supportpolicy reform in Member States, in particular those with VET-related country-specificrecommendations;

c. transforming the results of EU-funded projects, as well as the results of the analysesinto a user-friendly toolbox covering issues such as business-VET schools cooperation,helping SMEs to host apprentices, improved vocational guidance, cooperation with socialpartners and intermediary bodies, and qualifications of trainers of apprentices;

d. ensuring the best use of EU funds for contributing to the objectives of the Alliance,ranging from support for systems-level development, to learning content and alsomobility of staff and learners.

f. inviting Eurochambres and other relevant stakeholders to pledge concrete activitiessupporting the Alliance, contributing to the development and concrete delivery of theAlliance.

Source: 2 July Declaration UEAPME

Apprenticeship UK• In UK, over 16 and not in full time education, you might apply to be an apprentice.

• Apprenticeships take between one and four years to complete and cover 1,500 jobroles, in a range of industries, from engineering to financial advice, veterinary nursingto accountancy.

• With up to 17,000 quality Apprenticeship vacancies available online at any time therehas never been a better time to start an Apprenticeship.

• Over 150,000 employers are offering Apprenticeships in more than 200,000 locations.

• Apprenticeships are available at Intermediate, Advanced and Higher (degree) level,covering more than 170 industries and 1500 job roles, from advertising to youth workvia environmental engineering and nuclear decommissioning.

• Quality is key to Apprenticeships. All Apprenticeships must be at least 12 months longand lead to a national qualification that is respected by employers around the world.

• After finishing, the majority of apprentices (85%) will stay in employment, with two-thirds (64%) staying with the same employer.

• A third (32%) of all former apprentices had received a promotion within 12 months offinishing, and of those in work, three quarters (75%) reported taking on moreresponsibility in their job.

• Employers think that qualified apprentices are 15% more employable than those withother qualifications.

Source: http://www.apprenticeships.org.uk/ambassadorsnetwork.aspx

Apprenticeship UK

• Improving the matching between skills supply and demand . This requires increasingcollaboration between educational institutions and social partners so that youngpeople acquire the right skills.

• The Apprenticeship Ambassadors Network (AAN) is a group of senior businessleaders from FTSE 100/250 businesses and small and medium sized enterprisesacross the public and private sectors who have seen the value that Apprenticeshipsadd to our businesses.

• Government remains committed to Apprenticeships and has backed up thiscommitment with funding to support training costs. There are now over 200 differentApprenticeship programmes covering practically all industry sectors.

Source: http://www.apprenticeships.org.uk/ambassadorsnetwork.aspx

Apprenticeship Germany

• On the basis of the way in which it links learning and work and schools andcompanies, the dual training system in Germany appears to be a successful model forthe structuring of the transition from school to working life.

• Federal Institute for Vocational Education and Training (BIBB)

• The core tasks of the central Office at BIBB are as follows:

• Establish bilateral vocational education and training cooperation agreements onbehalf of the BMBF and provide support and guidance for such cooperation

• Initiate and promote network activities, cooperation measures and pilot projects

• Conduct advisory measures and ensure appropriate transfer of results to the(specialist) public in Germany and abroad.

Source: http://www.bibb.de/Source: http://eacea.ec.europa.eu/education/eurydice/index_en.php

Apprenticeship Germany• Could it be developed into a model for the whole of Europe?

Large numbers of new bilateral cooperation agreements are currently being set up to investigate howcompany-based and school-based learning can be better combined within the respective nationalcontext.

This approach is being further developed at a European level within the scope of the "EuropeanTraining Alliance". Endeavours to reduce youth unemployment include modernisation of vocationaleducation and training systems in accordance with a model of company-related VET.

• Joint German-Greek training projects will be launched from 2014 to assist SMEs and craftmen,educational facilities, and employers and employees in Greece in the introduction of a dualsystem of vocational training at schools and companies.

• The new Education Act of Greece provides the legal basis for supplementing the previous school-based vocational training with training modules at enterprises.

• There are also initiatives with Russia, India, China and South Africa and activities with institutionsin selected G-20 states. The main focus is on the further development of the respectivevocational education and training systems in the direction of company-integrated andemployment-oriented initial and continuing training.

• Round table discussions held at several working levels with representatives of the federalministries and federal states involved, with the trade and industry and social partners, with BIBBand with other bodies with a stake in vocational education and training assist with thecoordination of activities in international VET cooperation.

Apprenticeship Germany

• Entrepreneurship should be promoted as early as at school level and furtherintegrated into secondary and tertiary education, be it general education orvocational education and training.

• Creativity should be encouraged along with entrepreneurship as a mind-set thatpromotes genuine individual initiatives and self-employment, and positive attitudestowards sustainable risk-taking while respecting labour legislation and workers’ rights.

• Apprenticeship can lead to entrepreneurship.

Source: http://www.bibb.de/Source: http://eacea.ec.europa.eu/education/eurydice/index_en.php

Cultural and creative industry

• As recognised by the EU 2020 strategy, the cultural and creative industries play acentral role in growth, competitiveness and the future of the EU and its youngcitizens. By their very nature, they create innovation and jobs, and act as an interfacebetween various branches of industry

• In addition, they are generators of comparative advantage that cannot be reproducedelsewhere, factors for local development and drivers of industrial change.

• CCIs contribute to the "quality of life" in the relevant local area: it influences thetraining system, models of behaviour for young people, and the growing interest inculture disseminated through the work of the CCIs, helping to impart "dynamism" tothe towns and regions concerned.

• adoption of tax concessions and new models and instruments to encourage fundingfor project design in the sector, and the establishment of Participatory Public-PrivateParticipative Partnerships (PPPPs).

• Highlights the importance of fostering greater knowledge of the creative industries inschool programmes and vocational training, as already indicated at European level inthe International Charter of Artistic Craftsmanship.

Cultural and creative industry

• Pilot projects launched in some areas of the Union, creating physical locations forinformal meeting and experimentation (modelled on the science shops, FutureCentres, Multimedia Parks ,etc.) that can promote the direct participation of targetgroups comprising members of the public/users/associations and organized civilsociety.

• Among practical examples of bringing cultures and forms of creativity togetheroutside the major urban centres, often in disadvantaged and/or cross-border areas,and in addition to the consolidated experience of Valencia, the interest raised by therecent experiments with the Puglia Region's "urban laboratories", in which disusedbuildings, including former schools, historic buildings, monasteries, markets andbarracks across the region are renovated and equipped to become, with the region'ssupport, fully -fledged cultural and creative "containers" for young people.

• Another important factor in counteracting marginality is the mobility of young artistsand creative Practitioners. Indeed, there is an ongoing need to exchange bestpractice in order to open up new perspectives and challenge the people of Europe tobetter know and understand each other's cultures.

Source: http://w3.uniroma1.it/montalbano/Files/ces503-2010_fin_as_en.pdf

Employability of young people in SMEs in an economic and social crisis

Festival dell’Intelligenza Collettiva di CNA Giovani Imprenditori (http://www.cnanext.it/edizione-2013)

Some suggestions for follow-up onEmployability for young people

• Open Platform of EU good practices of Dialogue between trade unions, employers‘organisations, educational establishments, Youth Civil Society Organizations andPublic Authorities on the structure and content of education and training coursespractices that were successful;

• operational tools to be implemented at Regional level to promote partnerships on“employability” for young people in SMEs;

Thank you very much

for your attention

europa@cna.it