Erasmus for Jobs

By

George A. Papandreou
In coordination with
L'viv Luts'k Rivne Ternopil

Constance Spearnak
Master of International A airs International Finance & Economic Policy Columbia University

Alexandre-Philippe Vinel
Master of International A airs International Finance & Economic Policy SciencesPo, Columbia University

A contribution to the ''Europe - Next Steps'' Conference Berggruen Institute on Governance May 28th, Paris

! Erasmus for Jobs May 28th, 2013 I- Youth unemployment has a socio-political, psychological and economic costi. Youth unemployment poses an urgent, contemporary policy challenge of the European Union. The social costs of unemployment--social unrest, detachment, social exclusion-- are devastating, and the economic losses estimated above 150 billion per year, or 1, 2% of EU GDP.ii Defined as the lack of professional activity of an active population under the age of 25 y.o, unemployment now impacts 5,7 million young Europeans (March 2013) compared to 4 million during Q4 2008. The situation has rapidly deteriorated owing to the global financial crisis and a languishing recovery. Youth unemployment now represents 24% of 25 y.o Europeans as compared to 15% in late 2008. A slight expansion of the age range reveals an ever more dire situation-- as of 2011, less than 35% of all Europeans aged 15 to 29 were employed. Primary drivers of youth unemployment include: i) fewer job openings for recent and rising graduates ii) last-in, first-out layoff trends within HR departments iii) lack of work experience among candidates1 iv) mismatch in supply (education/training) and demand (jobs) iii v) lack of emphasis on career-oriented education. The EU has enormous regional disparities. Greece, Italy, Portugal, and Spain, alone, represent one third of total youth unemployment. In February 2013, youth unemployment in Germany was 8% compared to a record high of 63% in Greece. This data is representative of the accumulated costs for Europe--in terms of legitimacy (drop of confidence towards the EU), democratic advancement (47% of young Greeks declare they will cease to vote in future electionsiv), not to mention the impact on the financing of pensions, demography and mental health. EuroFound estimated a partial economic cost of 153bn EUR/y for Europev. Stefano Scarpetta, head of OECD employment analysis and policy division, recently told the Guardian these numbers may well represent the failure of a social model. II- Erasmus for Jobs: the response of the European Union Erasmus for Jobs is inspired by the success-story of existing academic exchanges that fosters a common European identity. The core rationale is to provide a training voucher to the young unemployed to smooth the school-to-work transition across Europe. It neither requires an additional amendment of European treaties nor a sharing of sovereignty. Youth unemployment must be tackled on a national, even local, scale but demands EU support and leadership. This innovative policy initiative relies upon the pillars of vocational training, internships and crossborder mobility within the EU. The scheme is a holistic one--a single platform that provides funding for internships/employment opportunities, provides a clear pathway back into education and training, as well as enables contact with the labor market. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!43% of 20 to 24 y.o Europeans and 28% for 25 to 29 y.o have no work experience at all. In Southern Europe, it reaches 40%+ for both populations.
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! The goal of which is to build a broad and flexible infrastructure that empowers and guides youth to achieve their career goals. The proposed policy initiative would rely upon 3 steps i) a Career & Training opportunities discovery website ii) Candidate coaching, application and selection iii) Vocational training and/or internships for a smooth job landing. Erasmus for Jobs i) is cost efficient ii) aligned with the generational habits of the target audience iii) fosters cross-border mobility within the EU. a) Web-based Tool: The Career & Training Discovery website Assessing career options within the context of labor market trends and forecasts is an unnecessarily difficult task for youth. Its importance is reflected by the paradox i) some academic tracks continue supplying candidates to the job market with inadequate skills leading to a difficult job search, whereas ii) entire industries lack adequately skilled candidates to fill vacanciesvi (strategic industries such as Sustainable Energy engineering companies, health and social care and ICT sectors currently face this shortage of candidates). It is therefore crucial to deploy an interactive career discovery tool for both young graduates and unemployed to autonomously discover, choose career tracks and find adequate training providers to successfully position themselves within the job market. The proposed "tool" combines cost-efficiency, accessibility and alignment with the lifestyle of young people: a website. Upon the completion of a profile (work/education history, skills, desired career path, length of unemployment, etc), a customized report is returned detailing EU-wide employment opportunities, accessible labor market forecast, etc. It also provides career information through a combination of testimonials, descriptions, and smart games. The website content can be promptly deployable through the sharing of national employment agencies documentations, industry association presentations, as well as partnering with companies eager to have a social impact. Industries struggling to find manpower and with important job creation (expansion and/or demand) or companies aligned with EU 2020 objectives (Green energy targets e.g) will be particularly promoted. The site will then disclose a directory of vocational training and/or internship opportunities, for which the candidate can get financial support through Erasmus for Jobs, if selected. With high-quality, real time information on pathways to employment and necessary training to land in such job, the candidate is empowered to fully become the actor of his own future. The web application is effectively an orientation tool for young graduates as well as the entry point to apply for an Erasmus for Jobs training Voucher. b) Application Review & Training Voucher offering (3 months) Application Review. Erasmus for Jobs program would essentially be a training voucher funded by the European Union. Additional financing options can potentially be deployed in a 2nd phase of the program (loan guarantees, preferential interest rates by banks). Candidates eager to benefit from financing opportunities for Erasmus for Jobs would have to undertake a rigorous selection process. Applications are reviewed by career professionals from i) the career service office of their respective universities ii) dedicated and trained youth unemployment task force of !

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! local employment agencies. This coaching and interview is crucial in assessing the coherence of the application of the candidate. To confirm its motivation and seriousness, the candidate could notably undertake a 1st online training in the target industry. Professional federations could possibly cooperate in realizing basic online certifications in their respective field. If the candidate reaches a minimum requirement, the process of i) training country identification ii) voucher disbursement would begin. Training Voucher. Erasmus for Jobs would provide assistance to the successful applicant in the form of i) training voucher to be used exclusively with a partnering vocational training provider ii) cost of life subsidy based on the candidate financial background and training place iii) partial reimbursement of travel expenses depending of candidate resources. c) Vocational Training for a smooth job landing (3 months) The benefits of vocational training are since long discussed in extensive literature. It is broadly admitted they significantly contribute to the successful job integration track of young Germans e.g. Vocational training maximizes the cooperation of the workplace and of training institutions through a hands-on approach of education with a study and work time-schedule. Therefore, it allows the benefiter to acquire both experience and a degree highly attractive for employers. Erasmus for Jobs must be part of a European effort in which large companies (driven by Corporate Social Responsibility motives or/and tax incentives) could play an active role to engage academia and training institutes for curriculum development, course design, accepting trainees or providing assistance to SMEs in handling the administrative burden of an intern. Targeted audience & Eligibility Criteria The target population of Erasmus for Jobs are consequently both i) young unemployed under the age of 25 y.o. This age/education criteria has to be completed by a lasting residence status in an European electoral district in which the average youth unemployment rate has been at least 2 points higher than the EU average one over the same period. Inspired from the Structural Funds, these eligibility criteria would both acknowledge regional discrepancies among countries as well as the historic breakthrough of basing a policy based on an EU-region scale. Stakeholder European Union Member-States Private Sector Academia offers. Main responsibilities -Creation, content feeding and deployment of the internet portal. -Funding of the policy initiative. -Deployment of dedicated Youth Unemployment teams in their respective national employment agencies. -Reorganization and empowerment of universities career services. - Curriculum development, course design, accepting trainees. - Adapt curriculum design to integrate labor market oriented training

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References !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!Eurostat!database!! ii!Eurofound, http://www.eurofound.europa.eu/emcc/labourmarket/youth.htm
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!OECD,!database!fast!reference!code:!DELSA/ELSA/WD/SEM(2011)6! !http://greece.greekreporter.com/2013/05/25/youngLgreeksLwontLvoteLforLmeps/!! v!http://www.guardian.co.uk/society/2012/oct/22/europeLlostLgenerationLcostsLstudy!! vi !CEDEFOP!database!! ! ! ! !

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! Total job opportunities- EU 27 CEFEDOP, Europe skills challenge, BRIEFING NOTE MARCH 2012 ISSN 1831-2411

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OBJECTIVE

Empowering youth to take an active role in achieving their career goals.

Opportunities

Provide training vouchers aimed to increase work experience and ease the school-to-work transition.

Information

Improving access to labor market information, communicate future labor market needs, and minimize incidence of skills mismatch.

Coordination

Facilitate public-private partnerships targeting youth unemployment and streamline knowledge and data sharing processes.
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OVERVIEW

Erasmus for Jobs

Europe: Next Steps Berggruen Institute on Governance

Recent Graduates

Enrolled Students

Skills Mismatch Skill Demand Unclear market signals Lack of information on training outcomes Labor Market Information

Relevant Training,
School to Work Transition

Career/Education Planning & Guidance

Connecting to Labor Market

Experience

Placement

Erasmus for Jobs

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Job creation

Erasmus for Jobs

Europe: Next Steps Berggruen Institute on Governance

Projected Job Creation by 2020, EU27+ (%)

Primary Sector Manufacturing Construction

Distribution & Transport Business & other services

Non-marketed services Aggregate -10

CEDEFOP

-8

-6

-4

-2

10

12
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Skills mismatch

Erasmus for Jobs

Europe: Next Steps Berggruen Institute on Governance

Over-education is increasing and under-education is decreasing for youth.

Average incidence of skills mismatch (age group 15-19, %)
Over-Education
40 36 32 28 24 20 16 12 8 4 0 2002 2004 2006 2008 2010 Ireland Hungary Iceland

Under-Education
55 50 45 40 35 30 25 20 15 10 5 0 2002 2004 2006 2008 2010

Global Employment Trends for Youth 2013, ILO

Pathway to Employment

Erasmus for Jobs

Europe: Next Steps Berggruen Institute on Governance

Discovery
t Learn about job market t Browse opportunities t Personalized search results

Training Voucher
t Online application process t Funding for training/work

Placement
t Gain relevant work experience t Upgrade skills t Expand professional network

Data
t Centralized data repository t Improved policy design, budgeting & implementation t
&BTJMZ
NPOJUPS
MBCPS
NBSLFU
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VOUCHERS

Erasmus for Jobs

Europe: Next Steps Berggruen Institute on Governance

Vouchers are designed to encourage entrance into sectors with high demand and/or anticipated growth. This structure ensures relevant training while accommodating varied skill levels and career interests.

Focus
Entrepreneurship

Skill Level
High
High, Medium Low, Unskilled All

Program Type
Incubator, Mentorships, Seed capital Training, Internships
Training , Career Guidance

Partners
SMEs, Social Enterprises HEIs Online Ed Training/Job Placement Centers

ICT
Health & Social Care
Green Growth

Internships, Training

Mix
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Key Advantages
Training Vouchers
Work experience Skill acquisition Mobility Ease school-to-work transition Boosts productivity

Erasmus for Jobs

Europe: Next Steps Berggruen Institute on Governance

Online Platform
Labor market information Pathway to employment Language & skills training Communicates skill needs (mismatch) Cost e cient recruiting channel Appropriate job placement (based on skills & education)

Youth

Private Partners

Fosters competition Work experience

Public Partners

Avoid Lost Generation

Easy integration within existing Erasmus framework Highly scalable Quickly deployable Cost e cient 3

Road map

Erasmus for Jobs

Europe: Next Steps Berggruen Institute on Governance

EfJ Pilot within 6 months & fully implemented in 9 months

4 Weeks
Development Prototype Outreach/ Partners Marketing
Funding, Finalize Team

3 Months
Testing EC, Govt, NGOs

6 Months
Pilot Launch SMEs, HEIs

9 Months
Scale Expansion

Design

International Social Media Local, Regional Press Press Campaign

With your support, we can combat record unemployment.

Luts'k Rivne L'viv Ternopil