Transcript Brigitte Van Der Burg

Youth employment and
unemployment in the
Netherlands
Vilnius, 11 November 2013
Brigitte van der Burg
Outline
1. ‘The Dutch economy’ and employment
situation
2. Policy framework
– Education
– Labour market and social security
3. Initiatives on youth unemployment
1. The Netherlands (key statistics)
Population:
16.715 million
Density:
404,5/km²
GDP:
€ 537.192.383
GDP per capita:
€ 32.139
The Netherlands at a glance: the
economy
Services
• 70% of employees work in the service sector
• Services generate almost 75% of total added value
• Focus areas are transport, logistics, banking and
insurance
Foreign trade
• Export of goods and services 83% of GDP
• Import of goods and services 74% of GDP
Industrial activity
Food processing, chemicals, petroleum refining
and electrical machinery
Youth unemployment is relatively low
Youth unemployment (under25 years), June 2013 (or
latest available)
Source: Eurostat
Youth unemployment in The Netherlands
(January 2003 – September 2013)
Youth unemployment (ILO-definition)
Source: Centraal Bureau voor de Statistiek
2. Policy framework
How the systems contribute to youth employment in The
Netherlands.
1.
Education
Vocational Education and Training (VET)
Early school leavers
2.
Labour market policies and social security
Labour market and institutions
Activating social security
Minimum wages
The importance of an early labour market debut
“A key factor behind the successful labour market performance
is the early labour market debut for many young people,
facilitating later transition into full time position and permanent
contracts”
Source: OECD (2012), Economic Surveys The Netherlands
 Apprenticeships as a vital element in the Dutch educational
system
Vocational Education & Training (VET) in
the Netherlands
Drop outs and early school leaving
• Labour market perspectives of qualified school-leavers are
much better than those of unqualified school-leavers;
• Therefore, policies focus on reducing the number of early
school-leavers;
• Objective: the number of new early school-leavers must be
reduced to 25.000 in 2016.
Reduction of the number of early school-leavers
Achievement 2011:
38.600
(2,9%)
New dropouts: Target and achievement
Source: Ministry of Education, Culture and Sciences, Key
figures 2007 - 2011
2. Policy framework
How the systems contribute to youth employment in The
Netherlands.
1.
Education
Vocational Education and Training (VET)
Early school leavers
2.
Labour market policies and social security
Labour market and institutions
Activating social security
Minimum wages
Well functioning labour markets offer
opportunities for all
‘The well performing labour market has delivered low
unemployment and relatively stable wage developments.’
Source: OECD (2012), Economic Surveys The Netherlands
• The dutch labour market performs well, also for young people:
Relatively low youth unemployment and high youth
employment
Flexible contracts as screening mechanism for employers and
‘stepping stone’
Activating social security
Social security = safety net with a strong focus on activation and personal
responsibility.
Social security for young people (special regime < 27 years)
If young people want to qualify for benefits:
» They have to search actively during 4 weeks for a job or education before
they can apply
» Reintegration into the labor market is decentralized to municipalities. If
young people apply for benefits, municipalities and unemployed young
people make a proposal for reintegration
» Municipalities cooperate with among others the public employment
service, educational institutions, employers and health care providers
Minimum wages affect employment
probabilities
There seems to be a causal relation between the relatively low
minimum wages and relative good labour market outcomes in
The Netherlands (CPB, 2012).
100%
80%
60%
IR:70%
UK: 74%
POR:75%
SL:75%
United
Kingdom
Portugal
Slovak
Republic
LUX:78%
NZ:80%
B: 82%
CZ:85%
FR: 85%
Belgium
Czech
Republic
France
NL:57%
40%
20%
0%
Netherlands
Ireland
Luxembourg New Zealand
Average minimum youth wage as a percentage of
adult minimum wage
Source: OECD (2008), Jobs for youth
Minimum (youth)wages in the
Netherlands
€ 1,600.00
23
€ 1,400.00
22
€ 1,200.00
21
€ 1,000.00
20
19
€ 800.00
18
17
€ 600.00
16
15
€ 400.00
€ 200.00
€ 0.00
15
16
17
18
19
Gross monthly minimum (youth) wages by age,
1 July 2013
Source: Ministry of Social Affairs and Employment
20
21
22
23
3.Specific initiatives
A multidisciplinary approach
• Additional budget for labour market regions,
for specific and dedicated activities
• Co-financing for sectoral plans by social
partners (possibility of ESF)
• School-Ex programme to stimulate students
in secondary VET to stay longer in education
and choose labour market relevant school
curricula