Zafiris Tzannatos Senior Advisor for the Arab States International Labour Organization

Similar documents
ILO Global Estimates on International Migrant Workers

Opportunities and challenges on youth employment in tourism 27 th World Tourism Network on Child Protection ITB, Berlin, March 9, 2012

GENDER EQUALITY IN THE

Conference on What Africa Can Do Now To Accelerate Youth Employment. Organized by

Full employment and decent work for all: Regional Highlights

GLOBALIZATION, DEVELOPMENT AND POVERTY REDUCTION: THEIR SOCIAL AND GENDER DIMENSIONS

On the Surge of Inequality in the Mediterranean Region. Chahir Zaki Cairo University and Economic Research Forum

UNDP: Urgent job creation on a mass scale key to stability in the Arab region

Youth and Employment in North Africa: A Regional Overview

Creating Youth Employment in Asia

Revolutions and Inequality in North Africa and the Middle East

Chapter 1. Why Focus on Youth Employment?

ENABLING INCLUSION IN MENA

Dimensions of Poverty in MNA. Mustapha Nabli, Chief Economist Middle East and North Africa Region The World Bank

Executive summary. Strong records of economic growth in the Asia-Pacific region have benefited many workers.

Policy Frameworks to Accelerate Poverty Reduction Efforts

INTERNATIONAL MIGRATION AND DEVELOPMENT IN THE ARAB STATES

GCC labour Migration governance

The Arab Economies in a Changing World

INCLUSIVE GROWTH AND POLICIES: THE ASIAN EXPERIENCE. Thangavel Palanivel Chief Economist for Asia-Pacific UNDP, New York

Human Development and Poverty Reduction Progress in Middle Income Arab Countries: Two Competing Narratives

LEBANON: SKILLED WORKERS FOR A PRODUCTIVE ECONOMY?

Poverty in the Third World

Migration in the Long Term: The Outlook for the Next Generations

Investment and Business Environment in the Arab World

The Challenge of Inclusive Growth: Making Growth Work for the Poor

Private Sector Commission

Growth, Employment and Decent Work in the Arab Region: An Overview

GLOBAL EMPLOYMENT TRENDS for WOMEN BRIEF, March 2007

The financial and economic crisis: impact and response in the Arab States

PUBLIC POLICIES FOR GREATER EQUALITY: LESSONS LEARNED IN THE ESCWA REGION

Economic growth, Employment and Poverty in Developing Economies: A focus on Arab region

Human capital and employability in the 14 Partners of the Union for the Mediterranean (UfM) Euro-Med Employment High Level Group Meeting

Democratic Transition and Development in the Arab World. (Stanford University, April, 2012).

Chapter 2 Overview of Sudanese Economy and the Status of ICT in Sudan

GCC LABOUR MIGRATION GOVERNANCE* Mohammed Ebrahim Dito

Demographic Change and Economic Growth in the BRICS: Dividend, Drag or Disaster?

Challenges in the Arab World: An ILO response. Creating decent work opportunities in the Middle East and North Africa

International Monetary and Financial Committee

THE IM(PERFECT) MATCH ILO INTERNATIONAL CONFERENCE

Measuring Entrepreneurship

YOUTH EMPLOYMENT CHALLENGES IN SUB- SAHARAN AFRICA. Ideas4Work (January, 23rd-25th, Dakar)

ADDRESSING THE ISSUE OF YOUTH UNEMPLOYMENT: ISSUES AND THE CAUSES. Samuel Freije World Development Report 2013 Team, World Bank

MDG 1 Eradicate extreme poverty and hunger

North-South Migration To Developing Countries

Objectives. Scope and concepts

TORINO PROCESS REGIONAL OVERVIEW SOUTHERN AND EASTERN MEDITERRANEAN

Migration and Families The multiple role of youth in family migration

Prospects for Inclusive Growth in the MENA Region: A Comparative Approach

July In 2009, economic growth still exceeded 3% in all the countries except Jordan (World Bank, 2009). While the impact of the global

Inclusive growth and development founded on decent work for all

Research Paper: Migration of international students and mobilizing skills in the MENA Region (Tunis, May 13, 2013)

SUPPLY AND DEMAND IN THE SYRIAN LABOR MARKET

Making Trade Work for Jobs

Online Supplementary Document

Global Employment Trends. January 2008

Economic Growth and Unemployment in SMEs: The Need for New Policy Framework

Youth labour market overview

THE GLOBAL ECONOMIC CRISIS DEVELOPING ECONOMIES AND THE ROLE OF MULTILATERAL DEVELOPMENT BANKS

Youth labour market overview

CIE Economics A-level

Global Employment Trends for Women

Labour market transitions of young women and men in the Middle East and North Africa

Transition from the informal to the formal economy

Current Situation and Outlook of Asia and the Pacific

A Global View of Entrepreneurship Global Entrepreneurship Monitor 2012

Qatar. Switzerland Russian Federation Saudi Arabia Brazil. New Zealand India Pakistan Philippines Nicaragua Chad Yemen

MAGNET Migration and Governance Network An initiative of the Swiss Development Cooperation

Goal 1: Eradicate Extreme Poverty and Hunger

Or7. The Millennium Development Goals Report

Characteristics of the underemployed in New Zealand

REMITTANCE PRICES WORLDWIDE

OVERVIEW OF THE LABOR MARKET IN TURKEY

The Jordanian Labour Market: Multiple segmentations of labour by nationality, gender, education and occupational classes

Urbanization trends in South Asia: Issues and Policy options

Philippe Fargues. Temporary Migration: Matching Demand in the EU with Supply from the MENA

Labor Force Characteristics by Race and Ethnicity, 2015

ASIA S DEVELOPMENT CHALLENGES

The global dimension of youth employment with special focus on North Africa

EXCELLENC IN TEACHING. SRH University Heidelberg Germany. Prof. Dr. Jörg Winterberg STAATLICH ANERKANNTE FACHHOCHSCHUL

Labour Market Research Division Department of Employment Ministry of Labour July 24th, 2012

New Trends in Migration

2011 HIGH LEVEL MEETING ON YOUTH General Assembly United Nations New York July 2011

Sri Lanka. Country coverage and the methodology of the Statistical Annex of the 2015 HDR

Migrant Domestic Workers Across the World: global and regional estimates

SOUTHERN AND EASTERN MEDITERRANEAN ETF OPERATIONS - CONTEXT AND ACTIVITIES

Unemployment and underemployment data

AMID Working Paper Series 45/2005

Stuck in Transition? STUCK IN TRANSITION? TRANSITION REPORT Jeromin Zettelmeyer Deputy Chief Economist. Turkey country visit 3-6 December 2013

Bilateral Migration Model and Data Base. Terrie L. Walmsley

Asia-Pacific to comprise two-thirds of global middle class by 2030, Report says

The Government of the Republic of the Union of Myanmar Ministry of Labour, Immigration and Population Department of Labour.

SPIEF B20 Meeting. 16 June 2016, Saint Petersburg ---- Mr. Heinz Koller, Regional Director for Europe and Central Asia, ILO. Employment issues ----

Trade, informality and jobs. Kee Beom Kim ILO Regional Office for Asia and the Pacific

The Demographic Environment

Statistics Update For County Cavan

Employment for Youth: A Growing Challenge for the Global Community*

Dr. Adel S. Aldosary Associate Professor of Planning Chairman, City & Regional Planning Department King Fahd University of Petroleum and Minerals

Edexcel (B) Economics A-level

The Bayt.com Middle East Jobseeker Confidence Survey. August 2017

Transcription:

Labour Demand and Social Dialogue: The Two Binding Constraints for Creating Decent Employment and Ensuring Effective Utilization of Human Resources in the Arab Region? Zafiris Tzannatos Senior Advisor for the Arab States International Labour Organization Presentation at the Expert Group Meeting on Addressing Unemployment and Underemployment in the Islamic Development Bank Member Countries in the Post-Crisis World Islamic Development Bank Head Quarters 9-10 May 2011

Employers in the MENA region repeatedly and consistently state in various surveys that there is a shortage of skills (% of Firms Stating Skills Are a Major Constraint) 2

If so. Then the youth are unemployable And given there are too many youth, then this is why youth unemployment is highest in the Arab world and labor force participation is the lowest (due to discouraged worker effect) Solution: increase quality and relevance of education and adopt labor-intensive production techniques. Problem with this solution: Practically: increased education and labor intensivetechniques have been the norm in the last 2-3 decades Theoretically: it ignores the labor demand side and institutional factors. 3

Motivation and Summary of the Presentation A recent report argued Low rates of youth employment MENA because of lack of skills and a mismatch between skills taught and those required by the modern labor market. I will instead argue that the solution is not on the supply side ( the other hand ) but more on the lack of demand d for skills Why the youth did not take to the streets in 1995 when the youth unemployment poy e rate, for example, pe, in North ot Africa was as3 31% %(compared paedto 24% in 2010) and the youth share in the working age population was also higher at 30% (compared to 21% today)? I will argue that the problem was not slow rate of employment creation but lack of creation of decent jobs acceptable to adults, too. Unlike the domino effects in East Europe (1989) and East Asia (1997) that were caused from common external factors, what canbe the common factor behind the recent simultaneous developments in the Arab region? I will argue that a common factor has been lack of social dialogue, conflict resolution mechanisms and voice. 4

Caveats The within MENA differences are greater than those between MENA and other regions The presentation being a comparative one focuses on regional aggregates and does not address country specific considerations In economics there are always two hands but in this presentation ti the other hand is deemed d to be relatively less important. 5

Lack of Skills OR Lack of Demand for Skills? 6

Education Achievement and the Desire to Emigrate 7

The Skilled Emigrate Because There is No Demand for Skills 8

If there were demand for skills, the firms would provide training but in MENA they do not 9

Relying on Foreign Workers is not Confined only to the GCC countries Jordan: Employment Growth (number) 2000-2009 10

Is youth unemployment too high OR Is unemployment too high? 11

In the Arab region the youth unemployment rate is 25ti 2.5 times higher h than the total t unemployment rate (24.7% compared to 10.2%) In the UK at the end of 2010, the total unemployment rate across the economy was 79%and: 7.9% The unemployment rate for the 16-17 year-olds was 44.3% The youth (16-24) unemployment rate was 20.3% The graduate unemployment rate was 20%. The ratio of youth to total unemployment rate in the UK comes to 2.5 which is also the ratio in the Arab region. 12

13

Too few jobs for the too many youth Or Too few decent jobs for youth and adults? 14

Annual Employment and Output Growth Rates and Employment/Output Elasticity Asia, 2001-2008 15

Informal employment and unemployment rate in Algeria IE U 16

MENA s agricultural labor force is growing fast for MENA s level of development 17

Putting All This Together Economic growth has indeed been fast (oil, globalization, financial sector, real estate etc) BUT The benefits were not shared equally (monopoly centres and concentration of power and wealth) AND The labor market has not been producing socially desirable outcomes AND Citizens concerns were not adequately voiced 18

Annual Rate (%) of Productivity Growth by Region, 1991-2010 Middle East Sub-Saharan Africa Latin America & the Caribbean Central & South Eastern Europe (non-eu) & CIS North Africa 0.6 0.7 0.7 0.8 08 0.8 Developed Economies & European Union WORLD 1.5 1.6 South East Asia & the Pacific 2.9 South Asia 4.0 East Asia 7.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 19 9.0

In MENA Unemployment Rates Do Not Decline As Household Income Increases from the Lowest to Highest Quintiles, 2000s 20

Proportion of Employed People Living Below $1/day (PPP) in Developing Countries and West Asia, 1997 and 2007 35 30 30.6 25 20 20.4 15 10 5 2.9 5.4 0 1997 2007 Developing Regions ESWA Region 21

Index of Public Accountability 22

Percentage of All Unemployed Receiving Unemployment Benefits, 2008 Western Europe North Am erica Latin America CIS Central and Eastern Europe World Asia Arab States Africa 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Contributory Non-contributory 23

Citizens in Arab Countries Have Seen Slow Increases in Incomes and Have Had Low Voice 24

What needs to be done? 25

To Achieve This Transformation, The Biggest Challenge is to Transform Labour Demand The Response of Labour Supply Will Then Follow 26

And the transformation must start now: The demographic window of opportunity is closing 27

Conclusions What matters more is not the creation of jobs for youth but decent jobs for all It is the demand d for labour that t matters most, that is, transparency and level playing field in the private sector accompanied by meritocratic employment in the public sector This would lead to effective public services and social protection This process cannot go on for long without open social dialogue. 28

Thank you 29