Session II: Tackling youth unemployment at the local level- Cambodian Case

SOMEAN KUOCHNational Employment AgencyEmail: ksomean@gmail.com

The 6th Expert meeting of the Employment and Skills Strategies in Southeast Asia Initiative (ESSSA)

17-18 September, 2014at Century Park Hotel, Bangkok, Thailand

Content

1. Cambodian Youth Profile and Its Key Challenges2. Policies adapted by RGC3. The Way Forward

This presentation is largely based on the data compiled by National Employment Agency and some policies recommendation have been drawn from the study of UNDP on “Investing in Human Capital-Long-term strategy for industrial development and inclusive growth”.

1. Cambodian Youth Profile and Its Key challenges

1950-55

1955-60

1960-65

1965-70

1970-75

1975-80

1980-85

1985-90

1990-95

1995-00

2000-05

2005-10

2010-15

2015-20

2020-25

2025-30

2030-35

2035-40

2040-45

2045-50

2050-55

2055-60

-100

0

100

200

300

400

500

99119

142160

122

-45

283 292 296

237206 208 201 189

166137

11292

7352

295

Population: Annual Birth, Death and Balance (in'000), 1955-2060

Source: United Nations Population Division 2011

Annual Birth

Annual Death

Annual Balance

Cambodian Population by Age Group; 2008, 2013, 2018, &2023

2008 2013 2018 20230%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

33.8 30.1 28.5 27.7

22.3 22.5 19.8 16.7

14.4 17.7 18.6 19.1

25.3 25.4 28.1 30.8

4.3 4.4 5.0 5.7

0-14 15-2425-34 35-6465+ Total population- right axis

Source: Cambodia Population Projection (NIS,2011)

1950-55

1955-60

1960-65

1965-70

1970-75

1975-80

1980-85

1985-90

1990-95

1995-00

2000-05

2005-10

2010-15

2015-20

2020-25

2025-30

2030-35

2035-40

2040-45

2045-50

2050-55

2055-60

-200

-100

0

100

200

300

400

53.863.272.680.6

31-24.6

115.2146.4

91.8

269.6233

206.4172.6

148.8142.8131.4113.2

89 85.2

-57 -47-81.8

Working Age Population: Annual Entry, Exit and Balance (in '000), 1955-2060

Source: United Nations Population Division 2011

Annual Entry

Annual Exit

Annual Balance

2008 2013 2018 20230%

10%20%30%40%50%60%70%80%90%

100%

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

36.0 34.3 29.7 25.1

23.2 27.0 28.028.6

40.9 38.7 42.2 46.2

15-24 25-3435-64 Total WAP- Right axis

Cambodian Working Age Population by Age Group; 2008, 2013, 2018, &2023

Source: Cambodia Population Projection (NIS,2011)

Population by level of completed education and group age, 2013

Source: Cambodian Inter Censal Population Survey (NIS, 2013)

15-19 20-24 25+0

10

20

30

40

50

60

70

80

90

100

1.0 1.7 3.4

22.3 22.3

37.9

41.432.5

29.3

32.6

30.7

22.8

2.59.7

3.20.2 3.1 3.5 Post-secondary ed-

ucation

Upper secondary completed

Lower secondary completed

Primary school completed

Primary school not completed

None or only some education

%

Cohort survival rate of student by grade; 2012-2013

grade 1

grade 2

grade 3

grade 4

grade 5

grade 6

grade 7

grade 8

grade 9

grade 10

grade 11

grade 12

Graduate

s0

100200300400500600700800900

1000

Source: EMIS 2013/2014

• Low cohort survival rate of schooling decreases significantly during primary education and even shaper at lower secondary• Low (expected) marginal returns on education

Reasons for not attending school among persons 6-17 years of age who are not attending school, 2012

Other

No suitable school available/school is too far - No teacher/Supplies

Due to disability - Due to long term illness (over 3 months)

Must help with household chores

Did not do well in school

Too poor

Don’t want to

Too young

Must contribute to household income

0 5 10 15 20 25 30 35

Source: CSES (NIS,2012)

%

• High drop out rate before finishing grade 9:– Barrier for entering formal TVET• [9+(C1+C2+C3)]=Skilled Worker(Formal Vocational Training)• [(12 or C3) + (2 or 4)] = Technician or Engineer (Formal

Technical Education and Training)– Barrier for returning to formal general and higher education

• About 70% of the labour force (15-24) have not competed lower secondary education (CSES)– Lack of basic skills to supports and to push to higher industrial

based– Increase the “low development” trap– Increases the social cost to the economy as the workforces ages

with low education

Unemployment rate by age group, 2012

15+ 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+0123456789

1011

CambodiaUrbanRural

15+ None Primary Secondary Vocational University0123456789

10

CambodiaUrbanRural

Source: Cambodia Labor Force Survey (NIS,2012)

%

% Unemployment rate by educational level, 2012

Employment by sector, 2008-2012

Source: CSES (NIS, 2012)

2008 2009 2010 2011 20120%

10%20%30%40%50%60%70%80%90%

100%

6,2006,4006,6006,8007,0007,2007,4007,6007,8008,000

55.6 57.6 54.2 55.8 51.0

15.8 15.9 16.2 16.9 18.6

28.6 26.5 29.6 27.3 30.4

Agriculture (Primary) Industry (Secondary) Services (Tertiary) Employed population- right axis

‘000

Employment by sector and educational level, 2012

Total Agriculture Industry Services0%

10%

20%

30%

40%

50%

60%

NonePrimarySecondaryVocationalUniversity

Source: Cambodian Labor Force Survey (NIS, 2012)

Labour Demand by Skill Type and Sector by QIPs, 2010-2013

Agriculture

Industries

Services

Tourism

TOTAL

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

36,988

322,033

9,331

15,983

384,335

38,050

174,385

10,208

5,174

227,817

Manager Engineer Technician Supervisor Staff Skill Unskill

32,800

1,201

4,370

23,289

3,940

Source: CDC, 2014

• Demand in skill and unskilled workforce is about 95% of total demand by QIP.• Skill workforce need at least Grade 9 + C1 or C2 or C3.

There are growing recruitment difficulties from employer’s perspective!

Acco

mod

atio

n

Const

ruct

ion

Fina

ncia

l

Food

and

bev

erag

e

Garm

ent a

nd a

ppar

el

Rubbe

r and

pla

stics

Aver

age

0

20

40

60

80

100

Share of Hard-to-fill Vacancies by Sector, 2012

%

Source: Employer Skills Need Survey (NEA, 2012)

Type of Skills Shortage

Literacy skillsNumeracy skills

Advanced IT or software skillsStrategic Management skills

Any other skills Planning and organization skills

Office admin skillsWritten communication skills

Customer handing skillsTeam working skills

Problem solving skillsBasic computer literacy / using IT

Oral communication skillsForeign language skills

Technical or practical skills

0 5 10 15 20 25 30 35 40 45 50 %Source: Employer Skills Need Survey (NEA, 2012)

2. Policies adapted by RGC

• Skills development and upgrading, and youth employment issues have been placed on the high priority agenda of the government policy platform: – Rectangular Strategy- Phase III 2014-2018, and its

implementation plan, National Strategic Development Plan (NSDP) 2014-2018.

– National Policy on Cambodian Youth Development 2011

– MoYES’s Strategic Development Plan 2014-2018

– MoLVT’s Strategic Development Plan 2014-2018.

– TVET Development Plan of MoLVT issued in 2008 adopted a two-track policy, that is:• to reduce poverty through provisions of basic skills for the rural poor so as

to improve family income;• to support industrial development through the provision of higher level

skills so as to meet current and future labor demand.

• The commitment to achieve 9 year universal education:– Have Introduced and expanded demand-side programs (e.g.

conditional cash transfer, vouchers, fee subsidy and scholarship, food and nutrition supplements) with incentive design to encourage not only school attendance and completion, but also on learning outcomes.

• Given the high drop out, government have introduced the “education for all” framework and Cambodia qualification framework, which could allow every individual to acquire some skills from the formal education as well as to to continue upgrade his/her skills and move to a higher level of education in different pathways.

• The bridging course have been scaling up and made the TVET system more accessible and effective tool for youth skills development and upgrading.

• Strengthening PPP framework, which is play an important role in endorsing the formal and informal training via:– improving workplace learning by: Legally binding (Apprenticeship) and

Informal (Internship)– Engaging the private sector and, specifically, employers’ representatives, in

TVET dialogues

• Industrial Advisory Group (IAGs) have been constituted (construction, mechanics and ICT/business) in order to review and validate the competence standards, and competency based curriculum.

• The Industrial Liaison Units (ILU) has been set up in all Provincial training centers to interact with the private sector.

• Expanding and enhancing the TVET short term program via existing TVET institutions: post harvest program, national fund for poverty, primer minister’s fund program, and special training program…

• Setting up of the National Employment Agency (NEA) in the 2009 was a key moment in getting employment, LMI and career guidance services. The key functions of NEA are to:– deliver information services to job seekers, employees, employers, skill

training providers and the public to allow them to effectively interchange information openly and provide them the opportunities to meet one another.

– provide new graduates, out-of-school youth and the unemployed with labour market information and training information.

– offer job placement, services, career guidance, employment counseling, technical and vocational training counseling, information about occupational health, workplace safety, skills retraining.

– conduct researches and develop labour market information system to be kept pace with the current and future socio-economic development.

3. The Way Forward

• Increasing the productivity of the under educated and unskilled labor force through TVET.

• Improve the educational attainment of new labour market entrants.

• Using PPP to break systematic under investment in education and TVET.

• Building domestic anchor industries to reduces skills gaps and mismatches in the context of economic diversification: Industry policy and education policy.

“In order for the Kingdom of Cambodia to acquire human resources for national development, the RGC had defined a long term vision to mobilize all effort available in the country with the aim to contribute positively to youth development and to provide them with opportunities to develop their potential, to access education, employment, and health services and to participate in decision making, and to contribute to family, community, national, and global development.”

The vision of National Policy on Cambodia Youth Development.

Thank for your attention!