trends of youth unemployment in latvia feliciana rajevska, dr.pol.sc. round table discussion, eger,...
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Trends of Youth Unemployment in LatviaFeliciana Rajevska, Dr.pol.sc.Round Table Discussion, Eger, November 12, 2013
Picture by Ralph Hatton, Riga, Latvia
Number of young people in Latvia will reduce by 15% during next 10 years
Number of young people 2007-2025
Ratio of young people 2007-2025
Source: Ministry of Welfare of Latvia
Youth unemployment 15-24
Source: Eurostat and Ministry of Welfare of Latvia
Unemployment in Latvia
Academic evaluation, 2013• Employment has not recovered and unemployment remains high
with large share of long-term unemployed.
• The nature of unemployment: it is more cyclical than structural• . • The level of vacancies in Latvia is very low – in comparison both to
the pre-crisis levels and to other European countries.
• Available vacancies are filled very quickly which is not consistent with the idea of notable mismatches between supplied and demanded skills
• World Bank Scientific Research – Latvia: Who is Unemployed, Inactive or Needy?. An Assesment of Post-Crisis Policy Options. An Evaluation of Active Labor Market Programms (ALMP) and Related Social Benefit Program, 2013
• http://www.lm.gov.lv/text/2562
The best performing programs
• For men : • professional training in manual, as well as service and a sales jobs • employer provided training in non-manual jobs • informal education programs in project management and software• informal education programs for professional drivers of transport
and industrial vehicles• For women:• employer provided training in manual jobs • professional training in manual jobs • IT (basic skills) • state language (categories 2 & 3) and English intermediate level• professional training in manual, as well as service and a sales jobs • Source: WB research
Non/unstable work. Detailed groupings
• Single/Older/Unemployed/Disabled, 45-61 y. O. –22%• Single Young Males With Low Education, 20-29 – 18%• Older unemployed, fit for work, y.o.50+ – 14%• Stay-at-home mums with small child - 11%• Poorly educated rural male, breadwinner, 30-39 - 11%• Self-employed Older men, 40-54 y.o. – 9%• Disabled Older Women with Working Partner, 50+ – 6%• Highly educated stay-at-home mums, 30-39 y.0.- 6%• Disabled older women, partner not working, 50+ - 4%• http://www.lm.gov.lv/text/2562
Single Young Males With Low Education
• 18% of all unemployed in Latvia(2012)
• Young, 20-29 years old
• Very Low Education
• Never married
• No children
• Rural
ERDB about youth unemployment
• High youth unemployment is due to less experience as natural consequence of age
• Younger cohorts, who are already disproportionally affected by the crisis, do not have as much education as older cohorts
• Large share of skilled youth migrated when Latvia joined the EU.
• Improvement of vocational training programs targeted at youth became very acute for labour market inclusive policy in Latvia. (J.Michelle Brock)
• http://www.lm.gov.lv/text/2562
Youth in Latvia
Source: Ministry of Welfare of Latvia
Low level of education, lack of professional competencies and inappropriate profession acquired : 3 main problem groups
78200
170375
48717
33988
94518
2523
Pre-schooleducation
Basiceducation
Secondaryeducation
Vocationaleducation
Highereducation
Doctoralstudies
Interrupted Interrupted learninglearning
16%16%
Interrupted Interrupted learninglearning
16%16%Discontinue Discontinue
learninglearning36%36%
Discontinue Discontinue learninglearning
36%36%
NEETsNEETs15-1715-177.1%7.1%
NEETsNEETs15-1715-177.1%7.1%
Discontinue Discontinue learninglearning
5.4%5.4%
Discontinue Discontinue learninglearning
5.4%5.4%
Source: Ministry of Welfare of Latvia
Youth guarantee – activities 2014-2020 (indicative)
EDUCATION EMPLOYMENT
Carrer guidance support services for young people
Education offer or job
1/1,5 years vocational education programms
forst working place• volunteer work
• workshops for young people• self-employment/ small business launch
Indicative 59 million euro
Source: Ministry of Welfare of Latvia
YOUTH GUARANTEECOOPERATION MECHANISM
Source: Ministry of Welfare of Latvia
Human Investment is crucial
• The government succeeded at making radical changes, but there was a high social cost to it. This lead to erosion of the human capital.
• The most important lesson derived from the crisis is that investing in human capital (lifelong education, re-training, vocational training etc.) has become crucial for economic growth in Latvia.
