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Uncompetitive groups in labor market and employment support mechanisms Sona Harutyunyan Head of State Employment Service Agency, Armenia SESA www. employment.am 9 groups entitled as uncompetitive by the Law • disabled • the individuals have returned from confinement institutions and the institutions applying coercive actions (compulsory measures) of medical character • the children who reached the labor age and who are left without parent care • the individuals registered in the national employment service after getting demobilized from the compulsory term military service in case of being in the status of an unemployed at least one year uninterruptedly SESA www. employment.am • the unemployed with at least 35 years insurance pattern who have still up to 5 years to reach the age • the refugees • the victims of trafficking • the individuals registered in medical institutions for the addicted SESA www. employment.am 25000 Youth 20000 Disabled Long-term unemployed 15000 individuals returned from confinement institutions children left without parent care 10000 individuals demobilized from the compulsory term military service unemployed with at least 35 years insurance pattern 5000 refugees 0 SESA www. employment.am GDP according to years 120 113.7 102.1 106.9 100 80 85.9 60 GDP 40 20 0 2007 2008 2009 2010 Տնտեսական ճգնաժամի ազդեցությունը Unemployment rate Official unemployment rate 35 30 25 20 15 10 5 0 31.3 28.1 28.1 28.1 28 27.5 Labour force surveys 7.7 05 0 2 6.7 7.2 06 0 2 07 0 2 7.1 6.3 08 0 2 09 0 2 SESA 6.9 10 0 2 www. employment.am • Each group differs by its peculiarities and difficulties • Each group demands individual approach and methods • All groups have one general problem; the employer is reluctant to recruit representative of an uncompetitive group even if there is a vacancy • Labour market supply exceeds demand tenfold SESA www. employment.am Programs • Vocational training program • “Partial salary compensation to the employers in case they employ individuals uncompetitive in the labor market” program • “Financial support to the unemployed and disabled for state registration of entrepreneurial activities” program • “Compensation paid to the unemployed for the material expenses in connection with work mission to some other place” program SESA www. employment.am Programs • “Organization of paid public works” program, • “Organization of job fairs” • Organization of on-job internship for youth (including people with disabilities) • workplace adjustment for people with disabilities SESA www. employment.am Programs • • • • “Job clubs” Employer Councils employment forums Investment of Supported employment model (Ditch and ILO projects) • Investment of E-learning model SESA www. employment.am Proposals • To review business support program • To encourage job creation through tax privileges for employers • To invest quota system for people with disabilities • To create foundation motivating employment • To encourage creation of social enterprises SESA www. employment.am THANK YOU SESA www. employment.am