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A few measures to increase youth employment in Romania. Corina RACEANU, PhD 15th – 18th May 2012, Ealing. Current challenges for accession of youth to the labour market. The demographic decline of population The change in social structure

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a few measures to increase youth employment in romania

A few measures to increase youth employment in Romania

Corina RACEANU, PhD

15th – 18th May 2012, Ealing

current challenges for accession of youth to the labour market
Current challengesfor accession of youth to the labour market
  • The demographic decline of population
  • The change in social structure
  • The migration of labour force - 79% of young people think they can do better abroad
  • Economic crisis - 1 of 5 young people is unemployed
  • Lack of harmonization between education system and labor market needs
  • Volatility of the political system
current challenges for accession of youth to the labour market1
Current challenges for accession of youth to the labour market
  • Change of youth attitudes towards work - only 11% of young people surveyed believe they can succeed in life by working – this is due to reminiscence of the communist system of “connection" in employment and to corruption
  • Lack of work experience before the first employment - low involvement of the youth in voluntary activities and internships.
some measures were taken to facilitate the access of youth to the labour market
Some measures were taken to facilitate the access of youth to the labour market

• Financial incentives for employers who hire young people who never worked before

• Subsidies for employers from the Unemployment Insurance Budget - for hiring young graduates, vulnerable groups, young people during the holidays

• Exemptions from payment of the contribution to the unemployment budget

• Training costs supported by the Unemployment Insurance Budget,

• Financial support for apprenticeship at the

workplace.

some measures were taken to facilitate the access of youth to the labour market1
Some measures were taken to facilitate the access of youth to the labour market

1. Measures for preventing and combating social exclusionLaw nr.116/2002 Law on preventing and combating social exclusion:

  • To facilitate access of young people between 16 and 25 to a work place
  • A County Agency provides professional guidance, mediation and job placement of young people through personalised social assistance
  • A contract of solidarity between youth and County Agencies for employment is signed between min 1 year and max 2 years
  • Insertion employers – based on agreements with the Agency are receiving monthly basic salary established at the moment of hiring young people, but not more than 75% of the average net wage (in March 2012 is 1543 lei = 460 euro x75% = 345 euro maximum salary)
some measures were taken to facilitate the access of youth to the labour market2
Some measures were taken to facilitate the access of youth to the labour market
  • There is an increasing number of young people supported in 2011, as follows:
  • - 2076 young people were mediated and counseled, - 2013 solidarity contracts were signed with young people in difficulties- 1874 young people were engaged.
some measures were taken to facilitate the access of youth to the labour market3
Some measures were taken to facilitate the access of youth to the labour market

2. Measures for training of young peopleLaw 279/2005 on apprenticeship at the workplace• any person between 16 and 25

• the duration of the apprenticeship period is between 1 and 3 years• apprenticeship training at work includes theoretical and practical training or practical training only• apprenticeship in the workplace is organized on levels 1, 2 and 3 of qualification set by legislation• the employer is required to organise assessment of training skills obtained in non-formal and informal learning system

some measures were taken to facilitate the access of youth to the labour market4
Some measures were taken to facilitate the access of youth to the labour market
  • financial support for apprenticeship at the workplace: - employers receive a monthly subsidy of 60% from social reference indicator of unemployment insurance, i.e. 300 ron = 70euro - apprentices receive the minimum gross salary, i.e 700ron = 160euro.
  • The Law does not succeed due to employer’s lack of interest.
some measures were taken to facilitate the access of youth to the labour market5
Some measures were taken to facilitate the access of youth to the labour market

3. Measures to encourage entrepreneurship among young people

3.1. Start Program

Launched in 2009, aims to: - develop the entrepreneurial skills -entrepreneurship training workshops, - access to funding - grant for up to 70% of eligible expenditure of the investment project, but not more than 100,000 lei = 22.800EURO/beneficiary,

- intended for micro-enterprises that are less than two years old.The program is successful.

some measures were taken to facilitate the access of youth to the labour market6
Some measures were taken to facilitate the access of youth to the labour market

3.2 The program for young beginners in business

Launched in 2011

  • - the applicant is younger than 35 - first established a limited liability company that operates for an indefinite period- provides grants of up to 10,000 euro- provides guarantees for 80% of the loan amount (max 80.000euro)- exemption from payment of social security contributions for up to 4 employees. Contractor is required to employ at least 2 people.

The program is successful.

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