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Ministry of Employment and Social Protection GREECE

MISEP Meeting ‘Initiatives to help integrate young people into the labour market as part of anti-crisis measures in Greece’. Ministry of Employment and Social Protection GREECE Ioanna Palla

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Ministry of Employment and Social Protection GREECE

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  1. MISEP Meeting‘Initiatives to help integrate young people into the labour market as part of anti-crisis measures in Greece’ Ministry of Employment and Social Protection GREECE Ioanna Palla Analysis and Documentation Unit October 2009

  2. Statistical data(I) At constant prices, 2000, s/a figures At current prices, s/a figures Source: National Statistical Service of Greece

  3. Statistical data (II) Source: National Statistical Service of Greece, Eurostat

  4. National Action Plan on Employment: Response to crisis • Designed and implemented as an immediate response to the crisis It is in line with: • The principles & goals of the Lisbon Strategy • The European Economic Recovery Plan and the National Reform Program for Growth & Jobs • The Updated Hellenic Stability and Growth Program (2008-2011) – Jan 2009

  5. National Action Plan on Employment: Response to crisis Main Goals: • Maintain existing jobs • Enhance job creation, inter alia, by exploiting new, dynamic sectors of the economy, green economy, as well as professional training/ re-training • Reduce unemployment and support the most vulnerable social groups through targeted policies

  6. National Action Plan on Employment: Response to crisis • Dynamic: Total Budget: EUR 3,239,000,000 (30% national, 70% community resources) • Integrated: Expected to cover ~1.33million employees and unemployed • Flexible: It allows for adjustments if necessary

  7. National Action Plan on Employment: Response to crisis Actionsare mostlyfocused on: • Support to the sectors that are mostly affected by the crisis (construction, tourism sector) • Support to SMEs (the vast majority of businesses in Greece) • Support to the financially weaker population groups. • Special programs for employment of young people aged 16-25 years old • Training of unemployed in new technologies and Informatics • Subsidizing new sectors of the economy (social, green) • Promoting women’s employability- development of social care structures 7

  8. Flagship measure of ACTION PLAN:Conversion of unemployment benefit into employment benefit (I) Main characteristics: • The state provides the employer subsidy equal to the unemployment benefit for every unemployed hired • Applies to the private sector, public sector, broader public sector and local authorities • It offers temporary employment up to 3 years, with • fully paid salary and full social security rights • It is funded by national resources

  9. Conversion of unemployment benefitinto employment benefit (II) Programs based on this measure: • a) The general guidelines of the implementation of the conversion measure will cover 60,000 unemployed (18-64) in public and private sector. Duration of the subsidized employment equal to the period that the unemployed is entitled the benefit (5-12 months) • b) 20,000 beneficiaries (aged 18-64) will be employed in Municipalities. Duration of the program: up to 36 months • c) ~50,000 beneficiaries will be employed in hotel enterprises

  10. Specific measures for young people:1. Program:‘A start, an opportunity’-I Designed for: young people (16-25 years old) who complete or abandon school earlier and do not continue in the education system Provides young people with 3 choices: • Obtain professional experience (full wage & social security rights) • Acquisition of certified knowledge & skills in informatics • Participation in counseling program

  11. 1. Program: ‘A start, an opportunity’-II • Beneficiaries: 40,000 young people • Total Budget of the program: EUR 246.4m • Budget of the option -work experience: EUR 160,000,000 (national resources) • OAED is planning to evaluate the program in the near future, following the implementation monitoring of the program

  12. 2. Program for obtaining professional experience (STAGE) • Aim: to help young unemployed people to obtain professional experience and adjust their skills to the changing needs of the labour market • Efforts are taken to match the skills of people with the right jobs • Unemployed people are employed in the public or private sector • Duration of the program: up to 18 months 12

  13. 3. Program for subsidizing new professionals - young scientists- 2009 • Aim: to assist young scientists (doctors, dentists, vets, pharmacists, lawyers and engineers, that graduated from University or Engineering Schools) aged up to 34 yrs old to start up their own business • Subsidy: EUR 15,000 / person • Beneficiaries: 6,000 (women: 60%) • Duration of subsidy: 12 months • Total budget: EUR 90,000,000 13

  14. 4. Program for subsidizing young self-employed • Aim: to help unemployed people in getting employed through the financial assistance of their business initiatives • Subsidy: EUR 18,000 for people aged 22-32 EUR 15,000 for people aged 33-64 • Total budget: ~EUR 105,000,000 • Beneficiaries: 4,500 • Participants have to follow a preparatory course in entrepreneurship 14

  15. 5. Special program of subsidized employment for young people Aim: to promote young unemployed people in employment Business (with up to 50 employees) are being subsidized to employ young unemployed people aged up to 30 yrs old Total budget: EUR 101,250,000 Beneficiaries: 10,000 Duration of program: 24 months 15

  16. 6. Training programs for unemployed people in ICT • A)Training of young unemployed in basic ICT skills, Budget: EUR 30m, beneficiaries: 30,000 • B) Training of unemployed in specialized ICT skills, Budget: EUR 14.4m, beneficiaries: 4,000 • C) Training of unemployed in ICT distance, Budget EUR 15.6m, beneficiaries: 10,000 16

  17. 7. Programs for young people, women, disabled people • Specialized programs for young people up to 25 yrs old, women, disabled in cooperation with NGOs • Aim: to support employment and entrepreneurship • Beneficiaries: 2,250 people • Total budget: EUR 35,000,000 17

  18. Contribution of the National System for the Connection of Vocational Education and Training with Employment (ESSEEKA)to young employment The system is being upgraded with new actions in 2009: • Establishment of an ‘Integrated System for Identifying the needs of the Labour Market’ • Development and implementation of ‘Continuing Vocational Training System’ • Development of the ‘Counseling System on Life-long Learning’ 18

  19. Conclusions • Response to the crisis is mostly implemented through further strengthening of ALMPs (targeted) • The overall strategy of the Greek Government and data available so far indicate that our measures are in the right direction • Our aim is to speed up the implementation of the actions included in the Plan • We monitor systematically the developments in the labour market to a) assess effectiveness of the measures and b) proceed with redesign where necessary 19

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