Productivity, Investment in Human Capital and the Challenge of Youth Employment

THE ROLE OF VARIOUS SOCIAL ACTORS IN THE FIELD OF YOUTH

EMPLOYMENT IN RUSSIA

Fedotova Olga ( Southern Federal University, Russia)Platonova Elena (Moscow Finance and Industry Academia, Russia)

Russia on the map of the world

State Emblem of Russia

THE ROLE OF VARIOUS SOCIAL ACTORS IN THE FIELD OF YOUTH EMPLOYMENT IN RUSSIA

Why are the issues related the young people employment the important for modern Russia? -demographic:-economic;-socio-cultured.

Demographic factors: Main trend of the population in Russia (average prognosis)

138000

139000

140000

141000

142000

143000

Y2011 Y2020 Y2030

Economic factors:

-Labor remuneration is the main part of the total income of the Russian Households (70%). In that case Households are very interested in youth employment. -In Russia during last 20 years Gross formation was kept on the low level: 18,5% of Gross Domestic Product - The average depreciation of the fixed assets in the industrial sector is around 50 %. - The existing working places are old and not so interesting for the educated youth who wants to occupy the innovative working places.

Socio-cultured context:Bologna Process issue

The majority part of the local businessmen ( potential employers) have the diploma of “Specialist” issued in the Soviet time.

What kind of work can do Bachelor and Master? In that case the level of Bachelor is under

education The level of Master seems to be over education.

ACTORS IN THE FIELD OF YOUTH EMPLOYMENT IN RUSSIA

Traditionally there are three main social actors: - State’s institutes; - Households (young people and families); - Unions and Associations; Some else new ones ?

ACTORS IN THE FIELD OF YOUTH EMPLOYMENT IN RUSSIA

State’s institutes:- On the Federal level - On the Regional level ( 83 Russian regions)

Main Actors on the Federal level

• State Duma ( Parliament) - Committee of Young People Affairs

Federal government:-Ministry of Sport, Tourism and Youth Policy (Federal Agency on Youth Affairs )-Ministry of Health and Social development (Federal Agency of the Labor and Employment )

Functions of the Committee of Young People Affairs

• analysis of the current situation in the field of youth policy and youth employment policy;• prepares the changes of the current legislation including the Labor Code;• promotes the prepared changes of the legislation among other Duma’s Committees• takes part in the State Budget process on the annual basis (the financing of the youth policy and youth employment policy)

Functions of Federal Agency on Youth Affairs

-implementing the youth policy in the part related the development of entrepreneurial skills and start own business by young citizens of Russia;- supporting the activity of Youth People Unions, who promote entrepreneurial skills and knowledge- financing the special educational programs and Youth Events - collecting the information on the seasonal and temporary jobs for the students and young people

Functions of the Federal Agency of the Labor and Employment

- implementing the youth policy in the part of support of youth employment and the unemployment protection;- establishing the net of Employment Centre in all regions and indicating the provision of youth jobs;- controlling the work of the Labor Inspections;- financing the training courses for the unemployment young people and the first time job-seekers;- direct financing the new working places for the young invalids.

Actors on the Regional level

- Regional Parliaments;

- Local offices of the Federal Agency on Youth Affairs;

- Local offices of Agency of the Labor and Employment

Issues on the Regional level

Issues related the implementation of youth employment policy:• Low level of financing; • Low effectiveness of the Employment Centres•Low effectiveness of the Labor Inspections;

•working places are concentrated in the non-interesting for young people area;• working places correspond with the low level of salary and wage;• complicated rules for the obtaining the unemployment status;• low level of the unemployment benefit;• poor courses of training

Low effectiveness of the regional Employment Centres: Why?

The role of Households in the field of youth employment

Majority part of the families in Russian Federation declares a higher education as the main value and competitive advantage on the Labor market

0%

20%

40%

60%

80%

100%

education material factors

high lev. middle lev. low lev.

The role of Households in the field of youth employment

Majority part of families in Russian Federation invests to Human capital as follows- first and second higher educations;- Master degree;- Post-graduated course;-Training courses abroad;- New training courses including the additional pedagogical education (“High school teacher”).

The role of Householders in the field of youth employment

Majority part of families in Russian Federation is supporting - the process of youth employment applied to private recruitment agencies;- cross-regions labor mobility- cross-country labor mobility- trans-border labor mobility

Unions and associations in the field of youth employment

There are several types of unions and associations in RF:- recorded in State Register of Young People Unions and Children’s Societies;-Trade Unions;-unions and associations which are supported by political parties;- unions and associations established by Charity Funds (young invalids, talented children etc.)

Unions and Associations in the field of youth employment

Declare: - supporting of the recruiting process (seasonal work in the summer months);-applying to State Institutes in order to establish the safe and relevant working conditions;- promoting of socio-economic development;- promising to be the representative in the Courts (free of charge) in case of the Labor dispute.

New Actors in the field of youth employment in Russia

- State Universities - Institutes belong to “grey” and

“black” economy

State Universities in the field of youth employment in Russia

New functions:- monitoring the employment of the fresh

graduates during the three years after graduation;

- looking for the opportunity to find for its students the vacant working places;

- establishing the net of Centre of carrier development;

- reporting the key indicators of the employment to Ministry of Education and Science;

“Grey” and “black” economy in the field of youth employment in Russia

20 – 30% of Gross Domestic Product ? Percentage of youth people involved in

that sector is under consideration

THE ROLE OF VARIOUS SOCIAL ACTORS IN THE FIELD OF YOUTH EMPLOYMENT IN RUSSIA

Thank you!