Workplaces with allowance -emergency public work programme

29.04.201029.04.2010

Inga Lukašinska

The Head of Employment division

Riga City Council Welfare Department

Content of presentation

Basic information about project; Riga city experience; Evaluation of practice: advanteges and

challengies

Basic labour market data

Registered unemployment rate end of March 2010:

-Latvia - 17.3%-Riga city - 12.9%

49 126 people were unemployed in Riga city, almost 50% of them did not receive unemployment benefit

Target group of the programme

Registered unemployed not receiving the unemployment benefit

The goal of the programme

Strengthen the social safety net in order to reduce the impact and the severe social consequences of the economic crisis, to reduce unemployment and provide oportunity to earn once living by public work.

To reach the goal -

temporary work placements are created

Project implementer: State Employment Agency (SEA) in collaboration with local municipalities;

Implementation period: September 2009 – December 2010

Total financing: EUR 30,0 Mio

(part of Riga city financing ~ EUR 2 Mio) Financed by ESF and nacional budget

Basic principles of project No specific qualifications are necessary in order to participate

(because low-qualified jobs are ofered) Working hours for project participants are 40 hours per week; Participation in project for person can not exceed the period

of 6 months per year; During the project participants are insured against accidents

at work; The allowance (stipend) paid to the participants is 100 LVL

(EUR 142) per month ( the allowance is approx. 80% of the current minimum monthly wage). The allowance is however not subject to taxes and social contributions!

In addition transportation costs for participants are covered by the programme (12 LVL or EUR 17 per month).

Criteria for establishment of the work

placement established by municipality (can be in cooperation with

NGO’s); with no comercial aims; workplaces have to be newly created in order not to replace

those currently doing the job; placements are developed for period of 6 month; job has to be arranged for 40 hours work week; municipality has to provide supervision at workplace (paid by

project -minimum wage if 1supervisor supervise 30 people); Municipality has to provide workplace with necessary

equipment (paid by project)

Riga city practice

Riga city has planed to create 2397 workplaces;

Currently (06.04.2010.)1424 people are epmloyed (since the beginnig of programme aprox. 2000 people have been employed)

Work placements are organized by 9 municipal institutions, in addition 33 cooperation agreements have been signed (from which 21 with NGO’s)

Types of placements maintenance of public infrastructure: - clean up works (parks, memorial places, roads, areas of

schools, day centres, shelters and other public areas), - garbage collection, - demolition, - gardening works etc. small construtction and repair works of public

buildings (schools, social care centres, day centres, NGO’s, churches etc.)

social care of elderly people, people with disabilities and children (social assistance at home and at institutions - social care centres, day centres)

other unqualified works: kitchen assistent, guards, couriers, distribution of food and human aid for homeless people (at shelters, social care centres, NGO’s)

Profile of participantsGender of participants

38%

62%Man

Woman

Age of participants

28%57%

15%15-29

30-44 years

45-62 years

Groups of participants

506

307

177

6518 6

0

100

200

300

400

500

600

1 2 3 4 5 6

Long term unemployed

Prepension age

Youth, 18-24 Exprisoners Youth,15-17People w ith disabilities

Education of participants

66%

21%

2% 6% 5%

Secondary and secondary vocational

Primary

Higher

No information

After secondary school

Project advantages1. Minimum emergency support for low or no income people;

2. Encouragement of people, maintenance of self-confidence, motivation and social network;

3. In some cases oportunity to find permanent job through programme;

4. Publicly beneficial work, which is otherwise neglected due to lack of resourses;

5. Market support through spending allowances;

6. Relief to municipal Social system (allowance is included in income to calculate means tested benefits)

Project challenges

Rushed implementation process;

Complicated project administration (changing and unclear conditions);

Project financing do not cover real municipality administration expenses (costs for accountant, project coordinators, communication and office supplies);

No option to have part time job.