Dutch approach fighting youth unemployment

Marisa Cartier van Dissel

Policy AdvisorMinistry of Social Affairs and Employment

Outline

1. Figures youth unemployment

2. Young people at risk of unemployment

3. Additional efforts

3

Youth unemployment and unemployment(J anuary 2004 - August 2014)

Youth unemployment

Unemployment and youth unemployment (ILO-definition, seasonally adjusted)Source: Eurostat, 10 October 2014

0

2

4

6

8

10

12

14

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Unemployment Youth unemployment

%

4

Ratio Youth unemployment to average Unemployment is lowest …..

Ratio of Youth unemployment rate (less than 25 years) to average Unemployment rate, 2 nd quarter 2014Source: Eurostat, 23 September 2014

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0ratio

5

Youth unemployment is low …..

Youth unemployment rate (less than 25 years), 2nd quarter 2014Source: Eurostat, 23 September 2014

0

10

20

30

40

50

60

70%

6

…… and youth employment rate is high

Youth employment rate, 2nd quarter 2014Source: Eurostat, 26 September 2014

0

10

20

30

40

50

60

70%

Young people at risk

8

Young people at risk of unemployment

1. School drop-outs.

2. Young people with education that does not match labour market.

3. Young people with migrant background.

School drop-outs

Why?

• Definition: Youngster,12 to 23 years, who does not attend school and who has not achieved a basic qualification.

• Good labour market perspectives.

• Objective: the number of new early school-leavers must be reduced to 25.000 in 2016.

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How?• Absenteeism registration;

• Integrated approach and performance agreements between schools, municipalities and national government;

• Financial incentives for educational institutions;

• Continuous learning pathways from pre-vocational secondary education to secondary vocational education;

• Special focus on:Institutions with higher drop out rates;First year of secondary vocational education.

• School Ex 2.0: stimulate young people in VET to stay longer in education and choose for labour market relevant education (broader focus than early school leaving)

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12

Significant drop in the percentage of early schoolleavers

Percentage of early leavers 18-24 years from education and trainingSource: Eurostat, 9 October 2014

0

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EU Netherlands

%

Preventing youth unemployment

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16 years • Compulsory education

18 years • Qualification requirement

23 years • Early school leaver

27 years• Special regime in Social Assistance

Act for young people

Link education & labour market

Link education and labour market

• Good quality of education.• Education that meets the needs of the labour market.• Apprenticeships & traineeships in educational system.• Mentoring.

15

Key role for social partners in secondary VET

• Work placement and apprenticeships

• Qualifications

Examination

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Young people with migrant background

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Unemployment and (non-western) Youth unemployment(1st quarter 2008 - 2nd quarter 2014)

Non-western youth unemployment

Unemployment rate and (non-western) Youth unemployment rate (ILO-definition)Source: Central Bureau for Statistics Netherlands, 25 August 2014

0

5

10

15

20

25

30

I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II

2008 2009 2010 2011 2012 2013 2014

Unemployment Youth unemployment Non-western youth unemployment

%

Youg people with migrant background

• Raise education level.

• Reach migrants within the generic policy.

• Education in line with labour market needs.

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Additional efforts

Additional efforts

• Additional resources for municipalities and sectors

• Ambassador for Youth Employment.

• Fiscal stimulus for employers to hire young unemployed people.

• Vacancies for young people

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Reintegration into labour market

»Reintegration into the labour market is decentralized to municipalities.

»Municipalities cooperate with among others UWV (public employment service), educational institutions, employers and health care providers

Kennismaken met Rijksbreed | 15 mei 2009Basisadministratie Persoonsgegevens en Reisdocumenten22

Thank you for your attention

Any question?

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Most students attend VET

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Various pathways for various needs…

Secondary vocational education (MBO)

Four different sectors:1. Agriculture2. Engineering & Technology3. Healthcare4. Economics

Two pathways:1. Vocational training (BOL):

Professional training: practical training between 20% and 60%2. Block or day release (BBL)

Apprenticeship based: practical training takes up more than 60%

Four different levels: from assistent training (level 1) to middle management training (level 4)

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