YOUTH UNEMPLOYMENT
Research paper
Labour Market and Employment Policy, Sociology of Work, English for specific purposes
Spring term 2009/2010
Name and Surname: / MATEJA POHLEVEN, ANA OREŠNIK, TJAŠA DREŠČEK, NINA BIRSA, AJDA LAHMentor: / DR. MIROLJUB IGNJATOVIĆ
Study programme: / SOC-KM
Year of study: / 2.
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INDEX
1. INTRODUCTION 3
2. CHARACTERISTICS OF YOUNG WORKFORCE 4
3. STRUCTURE OF REGISTERED YOUTH UNEMPLOYMENT 6
4. WEAKNESSES OF THE YOUNG WORK FORCE ANDFACTORS WHICH AFFECTING THE SITUATION OF YOUNG WORKERS IN THE LABOUR MARKET 8
5. Where can young people search for help regarding their first employment; how to acquire practical experience needed to start a career and how should young people successfully job hunt 11
6. AVERAGE SALARY THAT A FIRST-TIME JOB SEEKER CAN EXPECT 14
7. YOUTH UNEMPLOYMENT RATE IN SLOVENIA 17
8. YOUTH ACTIVE EMPLOYMENT POLICY (AEP) 21
9. STRUCTURAL IMBALANCE REGARDING THE EDUCATION OF THE RECENTLY UNDERGRADUATED AND THE DEMAND ON THE LABOUR MARKET 22
10. CHOSSING A PROFESSION 23
11. INTERVIEW 24
12. CONCLUSION 25
13. LITERATURE 26
ANNEX 1 29
ANNEX 2 32
INDEX GRAPH
Graph 6.1: Average monthly gross earnings in different age groups and sex, Slovenia, 2008, temporary data 14
Graph 6.2: Average height of the basic salary for a first-time job graduates without work experiance 15
Graph 7.1: Unemployment rate by age group in Slovenia 17
Graph 7.2: Characteristic groups of registered unemployed in Slovenia 18
Graph 7.3: Age structure of registered unemployed in Slovenia 19
Graph 7.4: Youth unemployment in the European Union 20
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1. INTRODUCTION
Times have changed. Unemployment is a considerable problem in many countries around the world and also in Slovenia. Problem is largely felt by young people when they appear in the labour market. Today there is significantly more unemployment among the young than in the past.In terms ofunemployment of youth, Slovenia is below the EU average.
Unemployment is a result of uncertainties and inexperience of new workers, and frequent changes in work when we are looking for secure employment. Young people are one of the most problematic groups because they do not have enough experience how to work and do not know how to look for a job.
The seminar is composed of nine chapters. First, we will focus on the characteristics of young work force and structure of registered youth unemployment, and then we will analyze several factors and vulnerabilities that cause the increasing rate of unemployment. In the next chapter we will explain how young people seek for support that could help them in the process of finding an employment and how can they obtain practical knowledge. What is their first pay, which can be expected. We were wondering in our research paper why young people are problematic groups in the labour market, and in the end we will focus on unemployment in Slovenia.
Hypothesis, that we would like to confirm or disprove in our research paper are next:
- There would be less unemployment among young people if Faculty requires more compulsory practices during the study.
- The problem of unemployment is also reflected in the fact that the employers in the labour market require a specific type of education, which young workers usually do not have.
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2. CHARACTERISTICS OF YOUNG WORKFORCE[1]
The characteristics of young workforce notably differ from the ones of an adult workforce. Despite their recent graduation and fresh knowledge, gained through the long and challenging process of education, employers prefer to employ adult workforce than young workforce. Employers are confused with the constant change in curricula taught at universities, meaning that they are mostly not acquainted with modern knowledge that young graduates acquired along their study course. Together with lack of experience young workforce is not the preferred group that employers would tend to take on. Furthermore there are several more draw back characteristics that have to be taken into account by employer when hiring a young employee- young people are prone to be immature and not responsible, have to little risk aversion and tend to make decisions too speedy. Considering those characteristics, it can be plausible to say that it is very risky for an employer to hire such a person.
On the other hand, young future employees are mentally and physically very fit- have a lot of energy and motivation, therefore can be taken on for challenging and demanding (both mentally and physically) jobs; are more innovative, creative and flexible and are less likely to object substandard working conditions and wages that do not correspond to their level of education. These represent a competitive advantage in the labour market.
However, we cannot ignore two important ideas. Achieved level of formal education is still of great importance in modern states nowadays but if an individual wants to be successful and make a career, formal education is not enough. In addition an individual has to be very clever, innovative, fearless and very flexible. Secondly, level of achieved education is moving up. Secondary level of formal education sufficed years ago but today it is no longer the case. You have to achieve at least post secondary level of education to mean something to employers nowadays. Young people nowadays usually continue studying after secondary schools, amount of graduates greatly increased in recent years, hence representing more competition in the labour market, therefore a lot of graduates become unemployed and have to register at the Employment Service.
Beside knowledge, young people have skills that can be very beneficial to the employer, such as: use of computer and internet; telecommunication knowledge; working in teams; foreign languages knowledge. All of those are needed or even indispensable nowadays. Young people acquire such skills informally, while they grow up in their spare time, for example: internet surfing; use of mobile phones and computers; language and other extra curriculum courses; travelling. Travelling, especially backpacking is a trend among undergraduates, during which youth gets to know different cultures, traditions, learn and practice foreign languages which can present useful skills and knowledge in their careers later on. Of course, children that come from wealthier families have better conditions when it comes to informal education. Namely, parents can buy their children new mobiles phones, iPods, computers, laptops, send them to expensive language courses abroad and similar. On the contrary, children of parents that are not that wealthy cannot afford to go on such courses and have all the modern technology gadgets; therefore do not have such possibilities and conditions to acquire mentioned skills.
Youths lack work experience. Although formal education provides basic knowledge, an individual cannot compete successfully in the labour market without work experience. Work experience is very valued when an individual enters labour market. That is the reason why many young people decide to work while studying, becoming temporary student workforce.
3. STRUCTURE OF REGISTERED YOUTH UNEMPLOYMENT[2]
Until the 90s young people (up to 26 years of age) represented a majority of the unemployed. Later on rates changed- registered unemployment rate of older people increased due to several bankruptcies, inflexibility and lack of modern technology knowledge. Number of young unemployed people, in absolute sense, was never decreasing, even increasing. Relatively speaking, youth unemployment rate again increased in 2003. On average, young gradates enter labour market after 24th year of age.
The rate of active seekers among young unemployed is increasing from year 2000 on, in 2003 the rate is 23 % and in 2004 rate increases to 25 %. The rate of active job seekers among long-term job seekers is increasing after year 2001, in 2002 the rate is 22 % and in 2004 is 22 %.
Generally, unemployment rate has been decreasing since 2000 until it has started to rise again after recession took place. The rate of active young job seeker is increasing. Young people after leaving schools cannot find jobs therefore can be unemployed for extended period of time which is a big issue. Every young person, that is in such a situation for more than 6 months is considered to be long-term unemployed. A lot of European policies are aimed at resolving such issues. In this area Slovenia is no exception: every young unemployed, after 6 months period of job seeking, is included in so called active employment policy.
Among all unemployed in 2001, there was 55 % of so called long-term unemployed (ones that are unemployed for more than a year). The rate decrease down to 45 % in 2004. 40 % of young unemployed were redundant for more than 6 months in 2001, and 38 % in 2004. 28 % of young unemployed were redundant for more than a year in 2001, and 26 % in 2004.
Unemployment of women was not problematic in the 90s, because industries that went bust hired mainly men population. Women experienced higher unemployment rates in 1993 and after, when textile industries and footwear manufacturing experienced problems, some of the companies even filed for bankruptcy. 73 % of all young unemployed were female gradates in 2003. Data show than women have bigger problem seeking regular jobs than man, no matter what age group they belong to. Reasons for that would be maternity, increased number of sick days and less physical condition compared to men. Women are known to be emotionally less stable, more vulnerable and lack determination compare to men.
Slovenia has made a lot of effort in recent years to improve situation of young people in the labour markets and has also been quite successful.
New trend emerged among older population. Nowadays older workforce tries to improve and refresh their knowledge by continuing their education at universities and numerous courses which is considered a very positive practise.
4. WEAKNESSES OF THE YOUNG WORK FORCE ANDFACTORS WHICH AFFECTING THE SITUATION OF YOUNG WORKERS IN THE LABOUR MARKET
There are many weak points and consequently factors which affect in young work force.
The first and the most important weak point that arises in terms of employment among young people is lack of work experience. The school’s educational system has often represented some negative characteristics that were mostly perceived by young people. Educational programs provide general education, without any practical skills, such as inventions, the use of science, technology, etc. Young people must act as quickly as possible and to specialize in a certain direction, because any subsequent diversion to other areas, causes negative consequences. Employers prefer to employ experienced workers and thus do not impose additional costs on training and learning professional experiences on employees. Studies of young people these days last a long time and that consequently provides less social benefits, which would lead to highly paid and responsible jobs for young people. (Kosem 2008, 22)
Another important weak point is also reflected in the salaries of young employees and the situation on the scale of the desirability of a university among students. Youth is a period when young people move from low remuneration of their pocket money to high earnings and long-term jobs that are provided for them through student services. One of the differences in the labour market for young people and adults is certainly the price for which young people are willing to work. (Kosem 2008, 23)
Graduates have different position in finding employment, because they come from different universities, which have varying degrees of importance in the hierarchy in society. There is a link between the selected training and the opportunity to find the right job and the university that young people visit. Graduates, who graduated in universities that have a high social standing and high position in the social ladder, have more difficulties to find a job, because they have high expectations for the level of education. They humbly accept jobs that are low-valued in society. These professionals should be in the labour market highly appreciated, but in opposite - their position is underestimated and under-paid. Their potential is rendered even more, if they are unemployed, because they are not paid and their efficiency is reducing. (Kosem 2008, 23)
One of the vulnerabilities of young unemployed people is the sex and age structure of population. The sexual differences between populations are even more exposed, because women and men are still not equally represented. Despite the penetration of the principle of equality and equal employment opportunities, women are still not involved in the actual decision-making positions and important decision-making processes in the political, cultural, economic area in the same proportion as men. (Kozmik and Salecl 1999, 34) Male population is often opposing unequal opportunities for employment; women cannot return to the same job after maternity leave, they are not protected against dismissal, etc. Employers prefer to employ men as women, because of working reliability. Women are generally faced with a greater number of roles in society such as role of mothers, wives, businesswomen, housewives and all of these roles is hard to perform at once. (Jukič 2000, 326-328)
According to above findings the factors that are affecting the integration of graduates into the working process are linked into four groups (Kosem 2008, 24):
- Education and employment: Dernovšek (2007, 8) notes the ineffectiveness of the study. It does not prepare graduates for the immediate application of knowledge and skills which they acquired during the study.
- Labour market characteristics: Companies change their position: the merging, take over each other, concentrate, etc. These characteristics lead to a reduction in the number of employees in the company. Among the first ones in line to fire is a young work force, because their unemployment does not cause much damage to the employer. Reducing the number of workers is also a consequence of technological progress that affects many jobs which become redundant for the company. This reduces the wage and increases the level of experience and knowledge. Consequently there are fewer available jobs for graduates.
In addition, young work force is in critical condition, the female population that is already evident from history that they have less stable employment than men. (Kosem 2008, 25)
- Social origin: Social background has many important functions in the lives of individuals and it also has a major impact on the educational attainments of individuals. In professional life, children often follow their parent’s career, especially the career of their father. Children belonging to lower social class are most likely expected to have a lower level and vocational opportunities in the labour market, in contrast to those whose parents are in their work high on the social ladder. (Ivančič 1999, 124)