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The uncompetitive groups in
labor market and integration
difficulties
Yerevan, September 5,6, 2011
Sona Harutyunyan
Head of RA MoLSI “State Employment Service Agency”
SESA www. employment.am
Republic of Armenia
• Territory - 29,74 sq. km.
• Population - 3.3 million,
• including urban - 2091.1
• Economically active population -
1177.4
• Employed - 1099.8
SESA www. employment.am
106.9
85.9
113.7
102.1
0
20
40
60
80
100
120
2007 2008 2009 2010
GDP
The impact of global economic crisis on country’s
economy
SESA www. employment.am
Unemployment rate
7
28.7
17.2
19.6 19 19
6.3 7 6.9 6.6
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011
Officially registered unemployment rate
Unemployment rate according to totalled survey data on household well-being
SESA www. employment.am
Unemployment rate in the Republic of Armenia/%
2
3 3.2
5.6
11.1
9.3 9.610.1
4
8.78.1
0
2
4
6
8
10
12
Ara
ga
tso
tn
Ara
rat
Arm
av
ir
Ge
gh
arq
un
iq
Lo
ri
Ko
tay
k
Sh
ira
k
Sy
un
iq
Va
yo
ts D
zo
r
Ta
vu
sh
Ye
rev
an
SESA www. employment.am
Uncompetitive groups defined in Legislation
• the disabled,
• the individuals who have returned from confinement institutions and the institutions applying coercive actions (compulsory measures) of medical character,
• the children who reached the labor age and who are left without parent care,
• the individuals demobilized from the compulsory term military service,
• the unemployed with at least 35
years insurance pattern who have still up to 5 years to reach the age for attaining the right for pension ,
• the individuals who have got the status of an unemployed for more than
three years,
• the refugees, • victims of trafficking,
• the individuals registered at the addiction service who are in period of remission.
SESA www. employment.am
Other uncompetitive groups
There is a number of groups
that are considered as
vulnerable in labor
market. They are
• the youth (rural youth is
specifically in the focus of
attention),
• migrants
SESA www. employment.am
SESA www. employment.am
0
5000
10000
15000
20000
25000
30000
35000
40000
45000the youth
the disabled
long-term unemployed
the individuals who have returned from
confinement institutions
the children left without parent care
the individuals demobilized from the compulsory
term military service
the unemployed with at least 35 years insurance
pattern who have still up to 5 years to reach the
age for attaining the right for pension the refugees
The number of uncompetitive groups among the
registered job seekers
The youth in labor market
as of 01.07.2011
• the number of registered youth - 23% of job-seekers (20 thousand)
• 24.4 % of the placed is youth (annual average)
• round 12% of the registered youth gets employed (annual average)
Census of educated youth
0.6
5.20.37
14.6
7.1
22
49.5
secondary general
middle vocational
higher
primary proffessional
basic general
non-complete higher
primary
SESA www. employment.am
Major issues
• Lack of work experience,
• Lack of fully developed system of professional orientation,
• Imbalance between labor market supply and demand,
• Imbalance between demand and education quality,
• Absence of vacancies (esp. in rural areas)
• Low wages,
• Low motivation towards labor activities/professions,
• High self-esteem
SESA www. employment.am
Disabled in labor market
13351482 1522
1793
1156 1204 1170
0
500
1000
1500
2000
2005 2006 2007 2008 2009 2010 2011
Registartion atSESA
• The number of disabled -185000,
• among which 120000 are at labor age,
• only 9 % is involved in work activity.
SESA www. employment.am
5653
77
125
98
110
3337
56
70
94 96
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010
Placed with support of employment
offices
including those placed in the result
of programs
Issues
• Lack of skills and/or work experience,
• Transport and building accessibility problems,
• Unmatched workplaces,
• Low self-esteem,
• Absence of “job coach’s institute”
• Non-productive application of different social incentives,
• Too big attention on behalf of family members,
• Lack of tolerance in social environment,
• Lack of general social responsibility in society.
SESA www. employment.am
Long-term unemployed in labor market
Issues
• Lack of experience,
• Low self-esteem,
• Lack of motivation to work,
• Adaptation difficulties and complexes in work environment,
• Low wages
78800
25551
15975
0
10000
20000
30000
40000
50000
60000
70000
80000
Long-term unemployed
Unemployed
1-3 years
3+ years
Educational census
57.829
13 0.4
general
secondary
professional
higher
primary
SESA www. employment.am
Migrants
Issues
• Gaps in legislation,
• Lack of labor migration
assessment mechanisms,
• Lack of pre-departure
counseling mechanisms,
• Lack of labor market
integration mechanisms
SESA www. employment.am
State programs and measures for
uncompetitive groups
Workplace adjustment
Practice
(practical training)
Job fair
Public works
Financial support to
entrepreneurial activities
Salary compensation
job mission
to some other place
Vocational training
State programs
SESA www. employment.am
Vocational training
• Implemented since
1996,
• directed to all
uncompetitive groups,
• implemented through
colleges and
employers
Involvement of uncompetitive groups in the program
56%20%
5%
19%
youth
long-term unemployed
disabled
other
SESA www. employment.am
1316
696
21
1545
610
28
1603
351
17
0
200
400
600
800
1000
1200
1400
1600
1800
2008 2009 2010
Placed in the result of vocational trainings
Those involved in trainings
Placed
Disabled
Partial salary compensation to employer
• Implemented since 2006 on the basis of the Swedish experience,
• All uncompetitive groups defined by legislation are beneficiaries of the program
Involvement of uncompetitive groups
57%
41%
2%Long-termunemployed
Disabled
Other
SESA www. employment.am
52
11
162
40
167
63
229
107
193
94119
55
0
50
100
150
200
250
2006 2007 2008 2009 2010 2011
Involved in the program
Disabled
Financial support to entrepreneurial activities
• Compensation is only
provided for state
registration of
entrepreneurial
activity,
• The program efficiency
increases in cases of
cooperation with other
state or international
organizations
Involvement of uncompetitive groups in labor market
19%
8%
40%
33%
youth
disabled
long-term unemplyed
other
SESA www. employment.am
64
27
104
79
117 113
100
25
0
20
40
60
80
100
120
2008 2009 2010 2011
Financial support to entrepreneurial activities
Involved in the program
Current
Paid public works
• Provision of
temporary
employment
• Implemented for
accomplishment of
social infrastructures,
and maintenance of
cultural and
ecological values
26%
5%64%
5%
youth (rural)
disabled
long-term
unemployed
other
SESA www. employment.am
282
439
7000
218306
4700
314 457
6300
0
1000
2000
3000
4000
5000
6000
7000
2008
2009
2010
Paid public works
Communities involved
Number of approved projects
Number of involved in paid publicworks
Job fair
• Implemented in the frames of international programs (USAID, WB)
• Implemented as a state program since 2009 (6 job fairs annually)
• Career fair for youth (USAID,2011)
SESA www. employment.am
Organization of job fairs
218279
1363
1478
826
2104
10750
17800
0
500
1000
1500
2000
2500
2009 2010
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Number of employers
Number of vacancies
Number of expected
vacancies
Number of job-seekers
Newly implemented programs
Implemented since 2011
• Vocational training for
rural youth
• Organization of practical
training with employers for
young people (also youth
with disabilities)
• Workplace adjustment for
people with disabilities
SESA www. employment.am
International cooperation
• Numerous programs
and measures are
implemented in the
result of international
cooperation
French-
Armenian
Foundation
EC
SIDA
Dutch
MATRA
People
in Need DVV
international
ILO
IOM
UNO
GIZ
WB
USAID
SESA
SESA www. employment.am
Investment of supported employment model
Supported employment model was invested in the frames of SIDA-financed project
Current programs for disabled
• USAID,
• ILO,
• The Netherlands (MATRA).
SESA www. employment.am
Job clubs
• Invested by support of
international projects (WB,
USAID, GIZ) 2009-2010
• We have 16 operating job
clubs
SESA www. employment.am
Employment Forums and Employer Councils
• With support of USAID
2009-2010 12 Employer
Councils are operating,
• With support of GIZ
Employment Forums
have been invested
SESA www. employment.am
Resource Centers
With support of IOM and ILO
• 3 Migration Resource Centers have been localized
for POTENTIAL MIGRANTS
With support of UNO, People in need,
• business promoting programs
• Vocational training programs are implemented
for RETURNEES
e-learning model
Invested by German InWent organization (GIZ at present)
• “How to look for a job” e-learning module has been developed
• A task is set to create a Caucasian e-learning network
SESA www. employment.am
Օn-line registration
• With ILO support a skills
matching register was
created in
www.employment.am
web-page
SESA www. employment.am
Challenges
• Absence of general social responsibility,
• Insufficiency of warranties to meet present
needs,
• Insufficient cooperation with interested
bodies
SESA www. employment.am
SESA www. employment.am
Thank you!