EMPLOYMENT, SUSUTAINED ECONOMIC GROWTH AND SOCIAL INCLUSION

EMPLOYMENT, SUSUTAINED ECONOMIC GROWTH AND SOCIAL INCLUSION

RUDECINDO VEGA CARREAZOMinister of Labor and Employment Promotion

Ministry of Labor and Employment and Promotion

SUMMARY

I. ECONOMIC CONTEXT

II. ACTIVE NATIONAL POLICIES FOR DECENT WORK

III. POLICY INSTRUMENTS FOR DECENT WORK

IV. CHALLENGES.

I. ECONOMIC CONTEXT


In recent years, Peru is among the fastest growing economies

Global GDP 2002-2010 (Var. % Cumulative)

Fuente: FMI.

4

Peru, 73.2

Argentina, 57.4 Colombia, 45.2

Ecuador, 44.5 Brazil,

40.9Chile, 39.5

Mexico, 18.9

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Lowest inflation in the region

5Fuente: FMI.

Lowest inflation in Latin America 2002-2010 ( % )

23,2

10,9

6,75,3 4,5

3,2 2,4

Venezuela Argentina Brasil Colombia México Chile Perú


Peru has steadily grown

• The GDP has doubled from the 2000 fiscal year

• Fastest Per capita GDP growth since the 50’s

• Per capita GDP is recovering after 3 decades of decline in economic growth.

6

GDP Per capita(10 year average, ∆ %)

Fuente: BCRP.

2,52,9

0,7

-3,2

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4,4

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51-60 61-70 71-80 81-90 91-00 01-10


Overall Poverty has declined

• Poverty declined from 50% to 30%.• Extreme poverty fell from 24% to

10%.

7

Incidence of Poverty and Extreme Poverty

(Perú: 2002 – 2010)

Fuente: BCRP.


Employment will continue to rise and poverty levels will decline, if growth is sustained

8

GDP, Employment and Poverty(Peru Estimates: 2011-2016)

• Total jobs created 2011-2016 : 2,012,106• Total number of people lifted out of poverty 2011-2016 : 1,912,833

Out of Poverty

Out of Poverty Out of

Poverty Out of Poverty Out of

PovertyOut of

Poverty

Jobs Created

Jobs Created

Jobs Created

Jobs Created

Jobs Created

Jobs Created

GDPPovertyEmployee EAP


II. ACTIVE NATIONAL POLICES FOR DECENT WORK


NATIONAL EMPLOYMENT POLICIES

• Promote productive, formal and decent work.

• Promote vocational, technical and professional training and retraining, in accordance with labor market requirements.

• Develop and enhance entrepreneurial skills of the working-age population and promote their businesses within the context of social inclusion, competitiveness and gender.

• Promote equal opportunities in the labor market, especially in regard to gender.


III. POLICY INSTRUMENTS FOR DECENT WORK

III.1. EMPLOYMENT GENERATION, EMPLOYABILITY AND ENTREPRENEURSHIP PROGRAM

III.2. DEVELOPMENT SERVICES TO PROMOTE DECENT WORK: ONE STOP SHOP FOR JOB PROMOTION

III.1 EMPLOYMENT GENERATTION, EMPLOYALBILITY AND ENTREPRNERUSHIP PROGRAM


PROGRAM: “ WORKING PERU”

1.- OBJECTIVE Generate temporary employment for unemployed and underemployed people in urban and rural

areas as well as in conditions of poverty and extreme poverty by funding social infrastructure, economic and productive, unskilled labor intensive projects.

2.- PUBLIC OBJECTIVEParticularly male and female heads of the household, who prove that they have at least one underage child; unemployed and underemployed youth and/or disabled adults who are in a position to participate in carrying out projects.

3.- COMPONENTS a) Temporary employment generation b) Development of productive capacitiesc) Promotion of sustainable development

4.- STRATEGIES

a) Develop social and economic infrastructure projects [ temporary employment + training (during) One Stop Shop of Job Promotion]

b) Develop productive infrastructure projects [ temporary employment + training (during and post) One Stop Shop of Job Promotion]

c) Financial contribution from local governments [ tripartite agreements, district and provincial municipality and Working Peru]

d) Sustainable investment: investment + maintenancee) Generating projects: district and provincial municipalities (prospective GR)

5.- COVERAGE22 Departments, 993 Poorest districts, Districts with high rates of unemployment and underemployment

6.- 2016 GOAL 500 000 Temporary JobsMinistry of Labor and Employment and Promotion

1.- OBJECTIVEFacilitate youth access to the formal labor market and enterprise development through job training and promoting entrepreneurship, respectively.

2.- PUBLIC OBJECTIVE

• Unemployed youth between the ages of 15 to 29• With little or no experience• In cases of poverty and extreme poverty

3.- COMPONENTS a) Training and job placementb) Training and entrepreneurship

4.- STRATEGY

• Identifying the demand for youth labor in the labor market and the identification of youth entrepreneurship.

• Job training and entrepreneurship promotion• Provide job placement services for youth trainees• Develop strategies for job placement for youth trainees• Develop strategies for corporate engagement.

5.- COVERAGE Nationwide ( Urban and Rural areas)

6.- 2016 GOAL 327 000 young people trained

PROGRAM “WORKING YOUTH”

14Ministry of Labor and Employment and Promotion

1.- OBJECTIVEPromoting employability to improve worker productivity, workers at risk of losing their jobs, underemployed and unemployed that allow the creation of career paths and their integration onto the formal labor market, dependent or independent, respectively.

2.- STRATEGY

• Indentify the labor demand in the labor market, enterprises and sectors for job skills certification

• Provide job training services, job skills certification and enterprise promotion• Provide job placement services• Develop strategies for corporate engagement

3.- PUBLIC OBJECTIVE • Unemployed, workers at risk, underemployed workers

4.- COMPONENTS a) Training and job placementb) Competency certificationc) Technical Assistance in Entrepreneurship

5.- COVERAGE 12 Departments

6.- 2016 GOAL 175 000 people benefited

PROGRAM “LET’S GO PERU”

15Ministry of Labor and Employment and Promotion

PROGRAM “RESPONSIBLE PERU”

1.- OBJECTIVE Promoting corporate social responsibility generating decent employment

2.- PUBLIC OBJECTIVE Private companies from various economic sectors

3.- COMPONENTSa) Employment in economic infrastructure projectsb) Training and job placementc) Employment and entrepreneurship in productive infrastructure projects

4.- STRATEGY

• Indentifying of projects for CSR projects that generate employment, based on actions of national and international privates companies in diverse economic sectors

• Signing of agreement with companies to develop CSR projects as generators of employment.

• Implementing bank projects that incorporate private initiatives, regional and local governments.

• Training and certification of companies to implement CSR projects as generators of employment.

• Promoting the certification of companies to implement CSR projects generators of employment.

5.- COVERAGE Nationwide


III.2 DEVELOPMENT SERVICES TO PROMOTE DECENT WORK: One Stop Shop for Job

Promotion


DEVELOPMENT SERVICES TO PROMOTE DECENT WORK

“One Stop Shop for Job Promotion (Work for all)”: services and program to promote employment and employability for decent work:

Services Labor Market Information Career Guidance and Occupation Information (SOVIO) Job Certificate (CERTIJOVEN) Geo-referenced Information of Business Opportunities through the

Geographic Information System for Entrepreneurs (SIGE) Job Competency Certification (CERTIFICA) Information and Guidance for migrants (INFOMIGRA) Job Intermediation Training and Job Placement Training for entrepreneurship

Programs “Working Peru” “Let’s Go Peru” “Youth to Work”


ADULTO MAYOR

YOUTH

Linkage

Information for Business- SIGESE

RVIC

ESSE

CTO

RS

ALL BENEFICIARIES

MTPE (DGPE)MINEDU

MTPE (DGPE)PRODUCEMINEDU

MTPE(DGPE)

MTPE(DGPE)

Socioeconomic Labor

Monitoring

Vocational Guidance Service and Occupational Information

Youth to Work/

Let’s Go Peru

/

Youth to Work /

Let’s Go Peru

SIGE

Youth to

Work/ Let’s

Go Peru

Job Center

Certijoven

Work PeruLet’s Go Peru/

INST

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ENTS

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(tar

get

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latio

n)

YOUTH WOMEN THE DISABLED

THE ELDERLY ADULTS MIGRANT

S

General Direction StandardsGeneral Direction Standards GR/GL

Infomigrant

ONE STOP PROMOTION SHOP FOR EMPLOYMENT PROMOTION (WORK FOR ALL)

Base line

MTPE (DGFP)MINEDU

MTPE(DGSNE)

MTPE (DGFP)MINEDU

MTPE(DGPE)

USO PRODUCTIVO DE REMESAS

MIGRANTSPivot

1 2

34

5

6

INDIGENOUS

LABOR MARKET

INFORMATION

VOCATIONAL GUIDANCE

JOB TRAINING

SELF EMPLOYMENT

TRAINING

JOB PLACEMENT

• Placement

•Job Search Advice

•Labor Market Information

•Simplified Certification

TEMPORARY EMPLOYMENT

CERTIFICAION OF JOB SKILLS

PRODUCTIVE USE OF

REMITTANCES

YOUTH WOMEN

THE DISABLED ADULTS

THE ELDERLYTHE

DISABLED

THE DISABLED

THE DISABLED

THE DISABLED

YOUTH

YOUTHYOUTH

WOMEN

WOMEN

WOMENWOMEN

ADULTS

ADULTS

ADULTS

ADULTSTHE ELDERLY

IV. CHALLENGES


CHALLENGES

• Re-institutionalized the Ministry of Labor and Employment Promotion.

• Increasing the productivity of workers.

• Reducing the unemployment rate.

• Minimizing gaps of vulnerable groups (youth, the disabled and women).

• Articulating the employment and employability programs at the national and sub national levels.


Thank You Very Much


Ica, Cajamarca, Ica, Cajamarca, La Libertad (2006)La Libertad (2006)

OSEL North Lima (2005)OSEL North Lima (2005)

OSEL OSEL SouthSouth Lima (2006) Lima (2006)

Cusco (2004)Cusco (2004)

Piura (2002)Piura (2002)

Ancash y Ayacucho Ancash y Ayacucho (2008)(2008)

Callao (2009)Callao (2009)

Apurímac (2009)Apurímac (2009)

Regional OSEL Local OSEL

Arequipa (2009)Arequipa (2009)

UcayaliUcayaliLambayeque (2010Lambayeque (2010))

LABOR MARKET INFORMATIONIMPLEMENTED SOCIOECONOMIC LABOR OBSERVATORY

15 OSEL AT THE NATIONAL LEVEL

Tacna (2011)Tacna (2011)


VOCATIONAL SERVICE AND OCCUPATIONAL INFORMATION

CONCEPT DESCRIPTION

1.- OBJECTIVE

Encourage the development of learning pathways and/ or training of individuals, based on the mechanisms of guidance and information to increase the relevance of their choice, thus improving their chances of integrating into the labor market.

2.- PUBLIC OBJECTIVE Youth 16 to 24 years and 4th and 5th grade students

3.- COMPONENTS a) Vocational Talks.b) Vocational Evaluationsc) Vocational Fairs

4.- SCOPE OF ASSISTANCENationwide

5.- 2016 GOAL 175 000 benefited youth


“ INFORMATION SERVICE AND GUIDANCE FOR MIGRANTS: INFOMIGRANT”

CONCEPT DESCRIPTION

1.- OBJECTIVEProvide information services, timely, accurate and reliable orientation on the process of labor migration, to promote employability and the protection of social and labor rights.


• Peruvians interested working abroad• Nationals residing and working outside of Peru• Nationals wishing to return to Peru and,• Foreigners who work or have interest in working in Peru• Andean Migrant Workers

3-4.- SCOPE OF ASSISTANCE • Interactive Platform: http://www.mintra.gob.pe/PERUINFOMIGRA/• Service Module

4.- 2016 GOAL 120 000 people served


GEOGRAPHIC INFORATION SERVICE FOR ENTREPRENEURS “SIGE”

CONCEPT DESCRIPTION

1.- OBJECTIVEFacilitate the process of competitive insertion of the entrepreneurs for productive self employment and businesses by providing access to a geographic system of information in a given territory

2.- PUBLIC OBJECTIVEEconomically Active Population (PEA) located in the departments of Arequipa, Junín, La Libertad, Metropolitan Lima and the Constitutional Province of Callao.

3-. INFORMATION PROVIDED BY THE SERVICE

• Information on the characteristics of the population in an involved area ( age, sex, income, level of education, etc.).

• Enterprise characteristics of the area ( existing businesses in the area, income, size of the company, period of operation).


JOB CENTER

CONCEPT DESCRIPTION

1.- OBJETIVE Linking supply and labor demand


3-. METHODS OF SERVICE

• Peru Careers: http://www.empleosperu.gob.pe

• SERVICE MODELS: MTPE and Local Governments

Job Seekers and businesses requiring labor


UNIQUE LABOR CERTIFICATION SERVICE “CERTIJOVEN”

CONCEPT DESCRIPTION

1.- OBJECTIVE

Facilitate youth access to these documents requested by the companies (identification certificates, police records, employment history and domicile certification), which will save time and money and will allow young people to apply for jobs without restrictions.

2.- PUBLIC OBJECTIVE Young people between the ages of 18 and 25 years with low economic resources.

3-. STRATEGY

The strategy of “CERTIJOVEN” is progressive.

The first stage will be given information on:• Identification (agreement with RENIEC)• Police clearance certificates ( agreement with the Ministry of the Interior) • Career path or job training (with spreadsheet information).• Certificate of residency by affidavit.

The second stage provides certification in studies, health and university degrees.

4.- 2016 GOAL 60 000 young people


THANK YOU


EMPLOYMENT, SUSUTAINED ECONOMIC GROWTH AND SOCIAL INCLUSION

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