Long-term unemployed causes and proposals how to solve unemployment

Transcription

1 Long-term unemployed causes and proposals how to solve unemployment Michal Holý, The Labour Office CZ - Local Office in Jablonec nad Nisou October 2012

2 Long-term unemployed causes and proposals how to solve unemployment Contents General overview - Unemployment from the perspective of the unemployed - The economic situation of long-term unemployed - Motivation to work - The process of seeking job - Another solution to unemployment - active employment policy

3 Unemployment from the perspective of the unemployed - Perceived causes of unemployment Previous work career 2 types Important is the time spent in the labor market, the number and length of previous employment, previous experience with unemployment, a) sudden, unexpected unemployment. most common type of finishing previous careers most of people finished their job involuntarily. common for older workers they were working for many years in the same job in the Czech Republic caused by the restructuring of the industry such as shoemaking, glass, mining, textile industry additional factor that worsens their further employment is their advanced age and impaired health status

4 Unemployment from the perspective of the unemployed - Perceived causes of unemployment Previous work career b) fragmented work career These unemployed people have more experience with unemployment They have at the same time more previous jobs, sometimes very short They are mostly with a low educational level and workers in manual occupations

5 Unemployment from the perspective of the unemployed - Perceived causes of unemployment Causes of termination of employment unemployed have promised or believe they can get a better job they could not handle work - associated with negative perceptions of job quality and poor working conditions redundancy, voluntarily, after parental leave Unemployed did not manage their work low wages graduates without any work experience women who have been on parental leave

6 Unemployment from the perspective of the unemployed - Perceived causes of unemployment Explanation of continuation of unemployment 1) Structural, especially labor market conditions there is no work in the region decreasing number of firms decreasing number of vacancies, there is little or no jobs in individiual fields (decline of industry, offices, building industry) or in their field are many candidates or that it is a region with high unemployment and with many job seekers

7 Unemployment from the perspective of the unemployed - Perceived causes of unemployment Explanation of continuation of unemployment 2) Economic - political reasons People blames the government or unethical behavior of some economic groups from unemployment problematic privatization, bad laws sometimes deliberate decline of certain sectors little effort and interest in the company to address the situation of unemployed overall dissatisfaction with the functioning of a market society

8 Unemployment from the perspective of the unemployed - Perceived causes of unemployment Explanation of continuation of unemployment 3) Individual reasons low education lack of individual skills (computing) ignorance of languages lack of experiences lack of informations lack of knowledges and social contacts impaired health status care for children or parents is a priority

9 The economic situation of long-term unemployed Division according economic dependency 1) unemployed and their families, who are "addicted" to social benefits, mainly subsistence benefits (poverty), invalidity and old age pension or parental contribution 2) unemployed who are "hooked" on the income of other household members 3) categories of unemployed, which complements the previous two sources through the use of other sources of income

10 The economic situation of long-term unemployed Necessary solution of their difficult financial situation saving strategy - careful management of funds cost-saving strategies in housing (common life members families from different generations in one household, staying at home parents) minimizing costs for individual commodities (food and dining, clothing) resignation to certain activities and reduction of consumption replacement costs of their own work or production (vegetables, animal breeding, production of clothing) lending a certain amount of money - frequent debts

11 Perception of unemployment by unemployed people and their surroundings Unemployment is a completely new experience or an unexpected life situation - Initial relief associated with the possibility to relax is replaced by negative feelings in the later period, if some unemployed fail to find a job Loss of social contacts Feelings stereotype, boredom and emptiness Negative experiences in job seeking Intolerant contact with the authorities

12 Motivation to work Work as a source of funds it is necessary and obligatory to work Moral point of view - to ensure proper living conditions, to support family, it is not good to be in the working age at home, you need to work, etc. Need for some economic independence (women at partner institutions of the welfare state) The importance of non-economic benefits people want to be in contact with people they want to do something useful they want to gain experience

13 Decreased motivation of the unemployed to accept a job The reasons that deter from taking a job - women: the number and age of children, women want to be alone at home with children, especially if the children are still small, close person (eg partner) is not able or willing to care for the child, women are afraid or unwilling to entrust children to foreign persons they can not find adequate employment in terms of working hours, they can not get adequate public childcare.

14 Decreased motivation of the unemployed to accept a job Deliberate persistence in labor offices - paid social security and health insurance, which resolves these people just registering at labor offices Temporary or permanent resignation of finding employment "Exit strategy" - particularly early retirement or disability pension, in some cases, the care of a child or a close person.

15 Decreased motivation of the unemployed to accept a job Unemployed refuse unskilled labor (eg, flow production, heavy manual labor, sale in the hypermarket) company with a bad reputation. work in poor working conditions. unstable work demands on staff time flexibility physically very demanding and exhausting job inadequate capability requirements and commitment unsuitable (impersonal, arrogant) behavior of superiors unpaid wages

16 Decreased motivation of the unemployed to accept a job The problem of unemployment trap low wages offered by the minimum wage or even lower than the subsistence minimum it is not advantageous to work low motivation to work high financial and time costs of commuting accommodation outside the residence meals separately from the family

17 Decreased motivation of the unemployed to accept a job Acceptance of lower quality jobs - reasons long-term unemployed do not want to be unemployed for longer time they do not want to stay on welfare they gain some assurance in employment they expect future improvements they appreciate the importance of work and non-economic benefits of employment they are unable to get another job due to their individual capabilities they are affraid of long-term unemployment

18 Job Searching strategies of unemployed 1) obtain information about the existence of the job 2) the first contact with the employer in order to obtain information about the possibility of work (personal meetings, telephone), 3) stage of applying for a job (job interviews, auditions) In some cases, the unemployed have lack of communication skills stress during job searching mental stress due to repeated rejection by employers

19 Job Searching strategies of unemployed Mediation of employment - problems 1) labor offices do not have suitable jobs for many unemployed (structural unemployment) 2) unemployed with better possibilities of application learn more often information about the vacancy 3) labor offices do not have enough time and resources to adequately address the possibility of the unemployed - so they often focus on the fulfillment of formal contact conditions, but they have no potential to improve the situation of marginalized unemployed

20 Job Searching strategies of unemployed Mediation of employment - problems 4) labor office feels some unemployed do not want to find a job; officials do not pay attention these unemployed, because it will be unnecessary work 5) labor office in some cases abandon ability to find employment to unemployed 6) low activity of both unemployed and office is the result of mutual agreement

21 Job Searching strategies of unemployed The process of seeking employment - the reasons for the low activity 1) holiday effect" - the unemployed delay registration at the labor office 2) health effect" - the unemployed with serious health problems temporarily give up on finding a job 3) nurturing effect" - the unemployed prefer their care obligations - situations of serious health or death of a family member 4) income effect" - focusing on leisure activities among respondents in the pre-retirement age 5) deliberate abuse of the system for economic reasons - work is not advantageous, generous social welfare system

22 Another solution to unemployment Additional qualification (selfeducation) unemployed people are often interested in improving their skills unemployed have much more time for these activities lack of necessary financial resources motivation to improve your chances or to do something with my life the way they can spend some useful activity efforts to reduce the negative psychological impact of unemployment

23 Another solution to unemployment Active employment policy supporting: Young people, workers 55+, vulnerable groups, families, etc. Influencing pupils, students and their parents in the choice of occupation. Deepening and developing cooperation between elementary and secondary schools and employers. Supporting jobs that enable acquiring new vocational skills and competences. Supporting access of women to employment and reconciliation of work and family life.

24 Active employment Policy in the Czech Republic Projects and measures National individual projects ESF Educate for growth, Practice in companies, Educate yourself for growth - retraining, public work, ) Regional individual Projects ESF Grant projects National system of occupation and sector councils Employers tool to influence development of human resources Community work, legislation, etc.

25 Active employment policy Retraining Increasing the level of education The unemployed have greater motivation for learning than if they tried themselves Social impacts - they have nothing to do, bored, they came to know other ideas and new people Increase the chances of finding a job

26 Active employment policy Retraining Retraining developing skills useful in a wider range of job (computers, languages ) are particularly important for older unemployed, in which these findings were not part of the normal education or since obsolete and who are not in the field or basic skills. Specific group, for which retraining seem to be crucial, as the respondents with primary education, which would re associated with practice and obtaining a vocational certificate could significantly contribute to increasing the employability of these candidates. Some unemployed people attended a series of subsequent retraining, in these cases it is important that these new findings could also make use of the new job, for example, mediated by LO or created within the AEPM (APZ).

27 Active employment policy community service - a public works program providing part-time work in maintaining public areas and infrastructure, for a maximum of 12 months and on a renewable basis. The LO may provide a contribution up to the amount of the minimum wage plus social security contributions, very useful measure for long-term unemplyed and people with basic education socially beneficial jobs - established by employers for job-seekers who cannot otherwise find employment whose cost are contributed to by the Labor Office for a period of up to six months (12 months for job-seekers under the age of 25 and over 50, persons with a disability and university graduates over two years after graduation and up to the age of 30).

28 Active employment policy Regional individual projects More than hundred regional projects in Very well targeted In line with regional needs In line with personality of clients Very well managed Provide comprehensive services put emphases on individual attitude, active involvement Combination of various types of activities

29 Active employment policy Regional individual projects good practice example Pilsner region 4 programs Actively to work, Start again, Family is not handicap, Work with help Program Actively to work Long-term unemployed 2 years/428 clients pass (303 women) Individual attitude to clients, Combine activities Concludes Motivation program Retraining Communication course Counseling, diagnostic Employers benefits

30 Active employment policy Regional individual projects good practice example Actively to work 23,36 % clients employed = 100 (428) 558 passed IT courses 394 vocational (professional) retrainings Individual attitude Combined activities Close cooperation with employers Big challenge for all hard work

31 Thank you for your attention. Michal Holý, The Labour Office CZ - Local Office in Jablonec nad Nisou