National Youth Commission

MINISTRY FOR COMMUNITY DEVELOPMENT

Urban Youth Unemployment in Papua New Guinea – Trends, Characteristics and

Challenges for Productive Participation

Theme: New Directions in Research – Security/ Local Governance

Date: 17-19th June, 2014

Venue: Bull Lecture Theatre 3 – ANU

Presenter: Peter Balone Kanaparo A Research Project Funded by National Youth

Commission

Urban Youth Unemployment in Papua New Guinea – Trends, Characteristics and

Challenges for Productive Participation

Theme: New Directions in Research – Security/ Local Governance

Date: 17-19th June, 2014

Venue: Bull Lecture Theatre 3 – ANU

Presenter: Peter Balone Kanaparo A Research Project Funded by National Youth

Commission

Page

Findings of:

National Capital District, Hagen, Kokopo, Goroka, Lae, and Madang in Papua New Guinea

Mr. Peter Balone Kanaparo – (Presenter)

School of Business Administration, University of Papua New Guinea, PNG

Page Overview of the Presentation • Findings from the Research Study • Common issues and challenges facing Youth

in Papua New Guinea today. • Importance of Stakeholder Partnership and

collaboration in addressing Youth Issues in PNG

• Key strategies and plans by National Youth Commission

• Conclusion • Way forward

• Findings from the Research Study • Common issues and challenges facing Youth

in Papua New Guinea today. • Importance of Stakeholder Partnership and

collaboration in addressing Youth Issues in PNG

• Key strategies and plans by National Youth Commission

• Conclusion • Way forward

Number of Youth Respondents /Participants

Kokopo – Males = 27 Females = 24 NCD – Males = 28 Females = 27 Lae – Males = 29 Females = 26 Madang – Males = 30 Females = 20 Goroka – Males = 24 Females = 28Mt. Hagen – Males = 27 Females = 28

Total Males = 165 Total Females = 153

Total Respondents = 318

Age = 12 to 35+

PageResearch Questions

1. Labour Market Prospects • Why did you come to the town or city? • Are you employed – for how long have you been working?

2. Implications for labour market policies • In terms of labour market policy making, what would you

like the government to do? • Do you think the social issues caused by youth are result of

unemployment problem? • As a solution, what would be the appropriate policy

response? • Assistance from Donors and Trade Missions • Do you think the current Youth Policy (long-term benefits)

approach meets the expectation of Medium Term Development Goals and the Vision 2050s developmental pillars?

Urban Youth Unemployment – Answers to Research Questions

•Migration of young people depends on various reasons possibly depending on the economic (macro and micro) development of the nation. •The core reasons why youth migrate to cities and towns are in search for jobs and to study. •The study reveals that 44 percent (n=141) migrated to the urban centers in search for job opportunities, 32 percent (n=101) for schooling, and 24 percent (n=6) for other reasons like staying with relatives, and scarce resource or inadequate economic activities in the rural areas.

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Urban Youth Unemployment – Answers to Research Questions •It is revealed that 32 % (n=103) of the urban youth out of 318 respondents are employed whilst 68 % (n=215) are unemployed. Of 103 employed, 12 % (n=14) are in the formal and 86 % (n=89) are in the informal sectors respectively. •Unlike formal sector employment, informal sector employs most of the unemployed youth in both rural &urban areas. •It is also stated from 146 out of 318 respondents that the government should create more job opportunities for unemployed youth in the country.

PageUrban Youth Unemployment – Answers to Research Questions

•From policy perspective, 142 (45%) respondents revealed that the current youth policy is meeting the expectations of MTD goals and Vision 2050’s development pillars. •While 176 (55%) respondents stated that the current youth policy is not meeting the expectations of MTD goals and Vision 2050’s development pillars. •Twenty six (8%) respondents indicated that the general youth situation and unemployment is good by 26 respondents (8%), while 22 (7%) stated that it is good but not really good where many of the youth policies and MTD goals are still in the implementation stages. •However, of the 318 respondents, 270 (85%) respondents are not happy with the general youth situation and the chronic unemployment issues faced by youth.

Urban Youth Unemployment

Types of Urban Youth Unemployment 1. Frictional Unemployment 2. Structural Unemployment 3. Cyclical Unemployment 4. Technological Unemployment 5. Seasonal Unemployment

1. Frictional Unemployment

•Frictional unemployment occurs when young people search for jobs that best suits their skills and preferences. •Frictional unemployment represents the unusual amount of unemployment resulting from young people who have left jobs that did not work out are searching for new jobs, or young people who are either entering or re-entering the labour force to search for jobs.

2. Structural Unemployment

•Structural unemployment is one of the determinant of urban youth being unemployed. •It usually results from shifts in the pattern of demand for goods and services or changes in technology in the economy that affect the profitability of hiring young workers in specific industries. •Structural unemployment often requires that young workers who lose their jobs learn new skills or move to another location to find satisfactory new jobs. When the demand for goods decreases, some young workers will naturally be dismissed as production of those goods decline.

3. Cyclical Unemployment

•Cyclical unemployment is evident among young people in most of the urban centers in PNG. •Cyclical unemployment results from recurring depressions and cyclical fluctuations in business activities and government projects. •It is also attributable directly to a cyclical decline in real gross national product (GNP). •Cyclical unemployment is the amount of unemployment resulting from declines in real GNP during periods of construction or recession when the economy fails to operate at its potential level.

4. Technological Unemployment

•Technological unemployment is manifested in some urban centers. •This type of unemployment arises due to the advancement of science and technology, resulting in the invention of labour- saving machines and other devices to accelerate production.

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4. Seasonal Unemployment

•Seasonal unemployment arises during certain periods that usually result from the reduction in demands for labour. •This is maybe attributed to the seasonal pattern of consumer’s habits or to variation in production associated with climatic change.

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Urban Youth Underemployment

•Urban youth underemployment is evident in the urban centers.

Summary

•The total amount of unemployment in any month in PNG is the sum of frictional, structural, and cyclical unemployment. •Frictional and structural unemployment result from natural and perhaps unavoidable occurrences in a dynamic economy. •Cyclical unemployment, however, is the result of imbalances between aggregate purchases and the aggregate production corresponding to full employment.

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National Youth Commission’s Task ahead:

Challenges, Issues & Tasks done.

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Issue 1: PNG Youth In School Attendance

Education Reform Implications Cont!.....

• About 80,000 young people leave school every year.

• Less than 10,000 young people absorbed by formal labour sector

• Employment index reveals a real decline in the numbers employed in industries since 1990.

• One third (1/3) of total population is self-employed.

Note this is according to National Department of Education

Issue 2. Employment and Un-employment

Issue 3. Rural urban migration•Urbanization is a major feature of development in every country. In the year 2000, it was estimated that 686,301 people in Papua New Guinea were living in urban centers. The growth in the urban population is attributed to two (2) main factors:

• the migration of rural population to the urban centers

• the desire for modernization for commerce and industry with the desire for urban amenities such as health and education services

How do we address these issues in Papua New Guinea?

NYC has taken a major step forward in addressing these issues and challenges facing our youths in PNG. NYC’s Major Program Implementation Plan:

National Youth Commission approach towards Youth Development in PNG

Current Status on Youth Development• National Youth Policy 2010-2017 taken into consideration

- Millennium Development Goals (UN)- Vision 2050 (PNG Government)- Medium term Development Plan (2011-2015)

• 5 Year Provincial Youth Development Plans the component consist of - Decentralization function of Youth Commission - Statistics on Youth in Papua New Guinea - National Youth Issues for Provincial Action - Youth Friendly Centre as a major program component - Key Strategic Program Areas on Youth Programs

Current Status on Youth Development• National Youth Policy 2010-2017 taken into consideration

- Millennium Development Goals (UN)- Vision 2050 (PNG Government)- Medium term Development Plan (2011-2015)

• 5 Year Provincial Youth Development Plans the component consist of - Decentralization function of Youth Commission - Statistics on Youth in Papua New Guinea - National Youth Issues for Provincial Action - Youth Friendly Centre as a major program component - Key Strategic Program Areas on Youth Programs

NYC’s New Directions:

1. Revitalisation Programs

1.1. Provincial Youth Development Plan (Provincial level…) 1.2. National Youth Council Network (delivery magnesium) Youth Network (provinces/districts/LLGs).Main delivery mechanism/vehicle to deliver services

1.3. National Youth Development Authority (NYDA) NYC Office/PNG Youth Development HQ/National icon for youths of PNG.NYDI will be the nations focal point in coordinating youth development work in PNG. 1.4. Corporate Plan (2013-2016)1.5. Annual Plan 1.6 Organizational Restructure (after the new Bill) 1.7. Education, Training & Capacity Building (Youth program, (DWU Diploma)

NYDA is the Prerequisites /necessary tools for NYC to move on….

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NYC’s New Directions…….Cont.

2. National Youth Development Institute (National Govt. funded)

2.1. One-stop shop, a multi purpose complex for youths: Information /Resource Centre (1st Pillar, Vision 2015) 2.2. Provincial /District Youth Friendly Centres - NYC entering MOUs with Provincial Govts. Or Local MPs 2.3. A centre for youths to have access to user friendly programs and activities. 2.4. Interact and involve in activities that provides necessary skills in life.

3. Youth Employment & Enterprise Development

3.1. National Youth Employment Framework (main activity to create employment) 3.2. SME baseline survey/self-generating income activities 3.3. Self-management Clinic •Self-confidence & building self-esteem

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Directions for further Policy Analysis

•The policy implication of youth-focused development is that it brings questions of unemployment, migration, poverty and marginality at the centre of political decision making. •This is central because, failure to do so diverts attention away from State and other actors with the power and Moral & Legal responsibility to intervene and bring about change. •More empirical studies is needed to produce evidence based youth policies.

YET, HOW CAN THAT BE DONE?

YET, HOW CAN THAT BE DONE?

Consistency and continuity are the key elements in implementing of this vital youth development programs & activities.

Yet, the issues of Youth Unemployment & Others is “Not a One-Way Street”. Consistency and Continuity is vital component but the most important is: Stakeholders intervention through --------

PagePARTNERSHIP COLLABORATION

Legislation

NETWORKING MAINSTREAMING•Relevant national state agencies

•Provincial administrations •International Non-Government Organizations

•International governments•Aid Donor Agencies

•United Nations development agencies •Local Non-Government Organizations

•Community based organizations•Churches

PARTNERSHIP COLLABORATION

Legislation

NETWORKING MAINSTREAMING•Relevant national state agencies

•Provincial administrations •International Non-Government Organizations

•International governments•Aid Donor Agencies

•United Nations development agencies •Local Non-Government Organizations

•Community based organizations•Churches

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SUMMARY

•PNG has a problem with its youth: Unemployment, Crime violence, rural urban migration, etc…•The Cost to PNG is significant: bad image, Loss of productivity, Cost of security, etc…•NYC is the government’s mandated body to advise on and coordinate youth activities in PNG. •NYC has formulated a plan and direction to address the problems.•NYC among other strategic interventions is proposing a centralized coordinated model with a reach to the provinces that focuses initially on training the future leaders.•The government is being asked to support NYC’s plan.

SUMMARY

•PNG has a problem with its youth: Unemployment, Crime violence, rural urban migration, etc…•The Cost to PNG is significant: bad image, Loss of productivity, Cost of security, etc…•NYC is the government’s mandated body to advise on and coordinate youth activities in PNG. •NYC has formulated a plan and direction to address the problems.•NYC among other strategic interventions is proposing a centralized coordinated model with a reach to the provinces that focuses initially on training the future leaders.•The government is being asked to support NYC’s plan.

Way forward

1.Political Commitment,2.Administrative Drive, & 3.Stakeholder Participation

Way forward

1.Political Commitment,2.Administrative Drive, & 3.Stakeholder Participation

The end and

thank you for

listening …………………………………………………………

“Lets us all collaborate, mainstream & partner in Addressing Youth Issues in Papua New Guinea for better future”.