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Youth guarantee – Experiences
from the first year and next steps
Janne Savolainen
Ministry of Employment and the Economy
Planning officer
12th December 2013
www.youthguarantee.fi 2
Social guarantee 2005-2013
Every young person under 25 will be offered a job, internship, a study place,
a workshop place or rehabilitation, within three months after registering
as unemployed.
• New guidelines regarding the implementation of Social guarantee in 2010
• New target oriented goals to the employment administration in 2011
• The central aspects of the youth guarantee: 1. The assessment of jobseekers’ service needs at the early stages of jobseeking
2. The drawing up of jobseeker’s plans within the time limit
3. The promise made to all young people under 25 years of age that an active alternative will
be arranged not later than within three months of unemployment.
www.youthguarantee.fi 3
Impacts of Social guarantee:
• The youth service process has become more effective due to the youth guarantee
model, when the work process based on a strong beginning and an active and
committed approach has been intensified regarding youth services.
• According to statistical monitoring, the enforcement of the youth guarantee has
considerably increased and accelerated the drawing up of jobseeker’s plans, but
the set target has not been realized. Plans have been drawn up within three
months for 61 %. Only about 45 % of the plans included a promise of an active
measure.
• The youth guarantee has had positive effects particularly on the situation of young
people with relatively good chances to be employed. Instead, the results of the
youth guarantee have been less significant for young people needing more
support than in average, multi-problem youth and young people of immigrant
background or of different ethnic background.
www.youthguarantee.fi 4
What has happened to those born
in 1987
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Boys Girls
No post basic Has been using Income Police record Sentenced Placed to a
Education Antidepressants support foster home
www.youthguarantee.fi 5
Why Finland needed to reform the
Social guarantee?
• In 1987 almost 40 % of the workforce had only basic education.
Today only 17 % of the workforce does not have post basic
education.
• It seems that education level required at the labour market is rising.
New jobs require higher education while at the same time those
jobs requiring low education are disappearing.
www.youthguarantee.fi 6
Why Finland needed to reform the
Social guarantee?
• Each year about 3–5 % of age group do not continue directly to the secondary degree or to preparatory class.
• About 120 000 young aged between 20-29 have only basic education.
• There are about 40 000 NEETs under the age of 30 who have only basic degree.
• About 1000 young aged under 30 retire due to mental health problems each year.
The estimated expenses raising from NEETs is estimated to be around 300 M€ each year
www.youthguarantee.fi 7
Youth guarantee 2013 – definition
in the government program
Every young person under 25 and recent graduates under 30 will be offered a job, a work trial, a study place, a workshop place or rehabilitation, within three months after registering as unemployed.
Every person completing basic education will be guaranteed a place in upper secondary school, vocational education, apprenticeship training, a workshop, rehabilitation or a place in some other form of study.
www.youthguarantee.fi 8
National Youth Guarantee Working Group • Ministry of Employment and the Economy
• Ministry of Education and Culture
• Ministry of Social Affairs and Health
• Ministry of Defence
• Ministry of Finance
• Finnish National Board of Education
• the Association of Finnish Local and Regional Authorities
• Akava - Confederation of Unions for Professional and Managerial Staff in Finland
• EK - Confederation of Finnish Industries
• SAK - The Central Organisation of Finnish Trade Unions
• STTK - Finnish Confederation of Professionals
• Federation of Finnish Entreprises
• The Social Insurance Institution of Finland
• Allianssi - Finnish Youth Cooperation
The working group published in its March 2012 report how the extra (60M€) funding would be allocated and what reforms would be needed.
The group gave 21 recommendations regarding required reforms.
www.youthguarantee.fi 9
The mandate of the working group: to decide how the extra funding from the government would be allocated
What reforms would be needed so that the YG can be fully implemented
The work in practice • Survey among young about their perceptions regarding their future -> 6300
respondents
• The working group had comments from more than 50 experts
• Academics
• Entrepreneurs
• Young
• Government officials
• NGOs
• Based on this work the working group made 22 recommendations. The working group’s report can be found from www.youthguarantee.fi
The national Youth guarantee working group
www.youthguarantee.fi 10
”Voice of the youth” –web survey
Some findings
(6300 respondents)
When making career and education choices young felt that they need more support from employers, PES officers, education coucellors and from career
guidance and workshops
Young are willing to see effort on job searching as a way to gain work
experience. Pay subsidies were also considered as an interesting option.
One in five of those young who had only basic education felt that their health
issues were a barrier between entering labour market.
Apprenticeship and learn by doing methods seemed to be most interesting
options for the unemployed and uneducated.
35 % of the unemployed felt that they are unable to begin in education. Most
important reason was low education benefits and unwillingness to take loan.
www.youthguarantee.fi 11
Youth Guarantee- ”The Finnish model”
• Youth Guarantee will be based on partnership between - Officials - Business - Associations,
Youth themselves are actively participating and creating their own future
Open-minded changes to working methods are needed.
PPPP: PUBLIC-PRIVATE-PEOPLE-PARTNERSHIP
www.youthguarantee.fi 12
Youth guarantee as from 1st of January
2013
Pillars of the Youth Guarantee:
Education guarantee
Skills programme for young adults
Employment and Economic Development services for youth (PES services)
Rehabilitative services including municipal social and health services
Other individual services for young people, such as
• youth outreach work and
• youth workshop activities
Goal
• to help young people gain access to education and employment.
Implemented across
administrative borders –
collaboration is vital!
www.youthguarantee.fi 13
Focus of youth guarantee funding
1. Educatio-
nal guarantee
(MEUR 24/year)
2. Measures promoting
employ-ment (MEUR 28/year)
3. Youth
outreach and youth
work-shops (MEUR 8/year)
4. From the beginning
of 2014 MEUR 4,7
(MEUR 2,4/year)
The Government Programme's policy
outline (60 M€/year):
5. Skills
programme for young
adults (MEUR
27–52/year, running from 2013 to 2016)
Added at the government
spending limits discussion in
March 2012 on the basis of
the preparatory working
group's analysis:
Broadening the criteria for vocational
rehabilitation, legislative reform
www.youthguarantee.fi 14
Promoting youth employment
• Sanssi-card, employers are eligible for pay subsidies
The risk of employing those under 30 is
reduced
Placement of young to labour market is
promoted with work coaching that will
support the young and the employer.
• Work tryouts are offered mainly for those who lack professional degrees
Work tryout has to support
employment plans and carreer
choices
• Supporting and developing new forms of entrepreneurship by training, guidance and startup grants.
Promoting youth entrepreneurship as a choice for paid work
• Increased 60 man-year to career guidance
• Career guidance telephone service
• Career coaching as a new service
Strengthened career guidance
www.youthguarantee.fi 15
Age group completing basic education per year
60 000
Continues directly to the secondary degree
about 55 000
Do not continue directly to the secondary degree about 5000
• New study places for those young who do not have secondary degree certificate, new criteria for student selection and regional distribution of study places under scrutiny
Goal: Each basic schoold graduate are guarantee a place in secondary level or in preparatory class
Education guarantee: background
www.youthguarantee.fi 16
The implementation of the
education guarantee
Renewed criteria for student selection to vocational education
Renewed e-application services for the joint
application process of autumn 2013
Sufficient offering of initial vocational education for young people who have
completed basic education but have no post-basic
qualification or a place in upper secondary education
Renewed preparatory training for vocational
education
www.youthguarantee.fi 17
The implementation of the
education guarantee
Strengthening apprenticeship training for
young people
Developing on-the-job learning and educational models which combine
education in educational institutions and
apprenticeship training
A fixed-term skills programme for young adults in 2013–2016
www.youthguarantee.fi 18
• New web site www.youthguarantee.fi
• TV advertisement
• News paper advertisement
• Internet advertisement
Youth guarantee media campaign
www.youthguarantee.fi 19
Youth guarantee media campaign
Youth will be encouraged to use the opportunities offered by the Youth guarantee, to find a job or a place in education and to gain a sense of personal success
Employers are enouraged to offer jobs for youth and to use the tools offered by the Youth guarantee such as the ”Chance-card” and apprenticeship.
Adults working with the youth are encouraged to give support to young and to cooperate with other professionals
www.youthguarantee.fi 20
2013 at the end of October
• 36 405
2012 at the end of October
•30 634
2013 at the end of October
• 3 071
2012 at the end of October
• 2 347
Recent graduates are those who have graduated within 12 months
www.youthguarantee.fi 21
October 2012
October 2013
The youth unemployment (Statistics Finland)
Unemployment rate %
16,6
16,2
Men
17,8
17,7
Women
15,4
14,9
Note! The figures of Statistics
Finland include full-time students!
www.youthguarantee.fi 22
Average duration of unemployment
in weeks (sliding average)
www.youthguarantee.fi 23
Employment plans prepared for unemployed youth
before unemployment exeeds three months,
January–August 2013
Most of those young people for whom a job-seeking plan has not been drawn up are entering military service, taking
maternity leave or have another valid reason for not having an employment plan.
Total 93.5%
Men 93.4%
Women 93.6%
www.youthguarantee.fi 24
How many have found work, education or
entered in PE – service within three months?
80,7 %
67.9%
Young people under the age of 25
Recent graduates aged between 25–29
www.youthguarantee.fi 25
Success factors
• Wide political support
• Inclusive and open implementation process
• Cross-sectoral cooperation
• Efficient and informative communication
• Broad based participation
• Rigorous long-term monitoring
Challenges
• Economic downturn
• Resources (services & human resources)
• Is YG seen mainly as a political program?
• The service sector is too fragmented
Challenges and successes
www.youthguarantee.fi 26
Youth guarantee – next steps
• On-the-job training of young people under 25 of age will be supported by developing apprenticeship training and other flexible models of combining education and work.
• One stop shop models will be developed and the operating model will be made national during the next ESF programming period
• The criteria for rehabilitation arranged by the Social Insurance Institution will be amended to take account situation in life.
• Best practises will be disseminated
• Enhancing information sharing between authorities
www.youthguarantee.fi 27
Lessons learned
Need for one stop shop
solutions,
Youth needs to be heard,
Cross-sectoral cooperation,
Clear roles and responsibilities,
Informative communication,
Clear indicators,
Creativity!
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