Employment in SEE Main Challenges and the Regional Perspective Skopje, April 2015.

Employment in SEE Main Challenges and the Regional

Perspective

Skopje, April 2015

Unemployment rates

2010 2011 2012 2013 2014 f10

15

20

25

30

35

40

45

Albania

BiH

Croatia

Kosovo*

Montenegro

Serbia

The former Yugoslav Re-public of Macedonia

Source: LFS data

Youth unemployment 2 to 3 times higher than overall unemployment. In many of our countries if you are young

and employed, you are part of the minority.

Long term unemployed constitute on average 70 to 85% of total number of unemployed – severe consequences in

terms of social exclusion and skills obsolescence.

Only about half of the working age population is part of the labour force –

high inactivity rates

Informal and vulnerable employment is harder to measure but widespread and significant – symptom of a dual labor

market?

Most of the unemployed have secondary education – skills mismatch?

Common priorities of our countries for employment creation Enabling business environment Human capital development (LLL, higher, adult, vocational

and non formal education, career guidance, matching skills for jobs, research and development, entrepreneurial education)

Employment policies especially targeting youth, long term unemployed, women, low qualified, minorities, disabled as well as less developed regions

Strengthening capacities of labor market management and coordination with other stakeholders in the labor market (including more data and analysis)

Formal economy and employment Social inclusion and poverty reduction (social

entrepreneurship, social support measures for disadvantaged) Labor mobility

Integrated growth

deeper regional trade and investment linkages and

policies enhancing the flow of goods, investment, services

and persons

Smart growthcommitment to compete on

value added, promoting knowledge and innovation

across the board

Sustainable growth

enhancing competitiveness, entrepre-neurship and a

commitment to greener and more energy-efficient

development

Inclusive growthskills development,

employment creation and labour market participation by

all, including vulnerable groups and minorities

Governance for growth

improving the capacity of public administrations to strengthen the rule of law and reduce corruption so as to create a business-friendly

environment

SEE 2020Vision

South East Europe 2020

Increase of GDP per capita relative to the EU

Growth of Total Trade in Goods and Services

SEE 2020 Embodied in 11 Headline Targets

2010 2020

36.4

44

% of EU 27

2010 2020

94.4

209.5

EUR billion

Reduction of Trade Deficit

Growth of intra-regional trade in goods

Growth of overall FDI inflows

2010 2020

-15.7 -12.3

% of GDP

3.4 p.p.

2010 2020

12.5

30.5EUR billion

2010 2020

3.4

8.8

EUR billion

Inte

grat

ed g

row

thO

vera

ll

122%7.6 p.p.

144% 158%

SEE 2020 Embodied in 11 Headline Targets

Growth of GDP per person employed

2010 2020

27.536.3

thousand EUR

Growth of overall employment rate

Increase of government effectiveness

Incl

usiv

e gr

owth

Smar

t gro

wth

2010 2020

1.7

2.0

million people

Growth of Highly Qualified Workforce

Sust

aina

ble

grow

th

Growth of enterprise creation

2010 2020

30.1

36.1

net registered firms (000)

Growth of exports of goods and services per capita

2010 2020

1.8

4.3

thousand EUR

2010 2020

39.5

44.4

% of 15+

5 p.p.

Gov

erna

nce

f/gr

owth

2010 2020

2.33

2.80

WBI index

33%20%

138% 20%

Progress with employment target?Overall employment rate, % of 15+ population

• SEE 2020 Strategy

• Inclusive Growth Pillar

• Employment Dimension

Labor Mobility Labor Market Governance

Social Economy Development

Example: Labor Mobility Objective: Contribute to socio-economic development and employment creation in South-East Europe through coherent, informed and skills based management of regional labour mobility

Rationale and Relevance: Employment creation, increased worker productivity, economic competitiveness and reduction of skills mismatches.

Only a small share of work permits issued within the region, Montenegro main destination, Serbia major sending country

Remark: Albania 2010, Kosovo 2011, Croatia and Montenegro 2012. Source: National Employment Agencies and Ministries.

Process

SEE 2020 measure to promote labor mobility Two regional studies on labor mobility by

RCC and IOM consultations at the regional level with

the social agenda working group 7 national consultation rounds with

relevant stakeholders at the national level Roadmap on promoting labor

mobility

Regional Observatory• Lack of evidence

Regional Consultative Platform• Insufficient

coordination

Skill Matching Network• Lack of practice

institutionalization