federal department of economic affairs, education and research eaer state secretariat for economic...

Federal Department of Economic Affairs,Education and Research EAER

State Secretariat for Economic Affairs SECO

Effective support to first-time job seekers in Switzerland

Markus Weber13 May 2015

Labour Market and Integration


EAER/SECO/TCMI – M. Weber 2

Contents

• Facts and figures about Switzerland and the Swiss labour market• Youth unemployment in Switzerland• Vocational/Professional Education and Training System (VPET) in

Switzerland• General aims for first-time «job seekers»• Apprenticeship marketing measures• Unemployment insurance in Switzerland• Labour market measures

financed by the unemployment insurance• LMM for young people• Participants and costs• Challenges



Facts and figures about Switzerland and the Swiss labour market (1)

Population: 8,236 million, 24% of whom are foreign nationals

Districts: 26 cantons

National languages: German (63%), French (22%), Italian (8%),Rumantsch (0,5%), other (6,5%)

99.6% of all Swiss companies have fewer than 250 employees.These small and medium enterprises (SME)

account for two thirdsof employment, they are often called the backbone

of the economy.

Switzerland is not member of the European Union



Facts and figures about Switzerland and the Swiss labour market (2)

Flexible Labour Market policy

Structure: - primary sector 4,3%- secondary sector 25,3%- tertiary sector 70,4%

Net activity rate (15 - 64 age range): 84,9%

Unemployment / rate (April 2015) all ages : 141’131 / 3,3% Unemployment / rate (April 2015) 15 - 24 age : 17’482 / 3,1%


EAER/SECO/TCMI – M. Weber

Youth unemployment in Switzerland (1)

5

2010 2011 2012 2013 20140

50000

100000

150000

200000

250000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

4.54.0 4.2 4.4 4.5

7.8 7.7

8.4 8.5 8.6

203541

183694192892

204751215486

48957 48540 5289453732

53647

Source: SAKE / ILO

total 15-24 yars total 15-24 yars

2010 2011 2012 2013 20140

20000

40000

60000

80000

100000

120000

140000

160000

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

3.5%

2.8% 2.9%3.2% 3.2%

4.3%

3.2% 3.2%3.4%

3.2%

151986

122892125594

136524136764

24344 17860 18191 1890618067

Source: SECO

total 15-24 yars total 15-24 yars




6

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Jan-

15

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

141131

17482

352813954

registered unemployed

total 15-24 years 15-19 years 20-24 years

reg

iste

red

un

emp

loye

d

Source: SECO




7

Jan

00M

ay 0

0S

ep 0

0Ja

n 01

May

01

Sep

01

Jan

02M

ay 0

2S

ep 0

2Ja

n 03

May

03

Sep

03

Jan

04M

ay 0

4S

ep 0

4Ja

n 05

May

05

Sep

05

Jan

06M

ay 0

6S

ep 0

6Ja

n 07

May

07

Sep

07

Jan

08M

ay 0

8S

ep 0

8Ja

n 09

May

09

Sep

09

Jan

10M

ay 1

0S

ep 1

0Ja

n 11

May

11

Sep

11

Jan

12M

ay 1

2S

ep 1

2Ja

n 13

May

13

Sep

13

Jan

14M

ay 1

4S

ep 1

4Ja

n 15

May

15

Sep

15

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

3.33.1

1.7

3.9

unemployment rate 2000-2015source: SECO; basis: VZ 2010

total 15-24 years 15-19 years 20-24 yearsMonat

un

emp

loym

ent

rate

Source: SECO



Vocational/Professional Education and Training System (VPET) in Switzerland

8

Transition 2

Transition 1School – VET

VET – Labour Market



General aims for first-time «job seekers»

• Aim of the partners of the Swiss PVET system: 95% of young people have a certificate on the upper-secondary level II.

• We want to integrate «school leavers» into the PVET system and not into the labour market (without qualification/education)!

• «Education prior to labour»

• Transition 1: school – VET• Aim: To find a place in the VET (or general education school)

• Transition 2: VET – Labour Market• Aim: To find a first job outside the former apprenticeship host

company

9



Apprenticeship marketing measures

• Information and advice on careers• Apprenticeship records• Creation of host company networks• Provision of state-sponsored transitional options (mainly bridge-

year courses)• VET promotion agents deal directly with companies, encouraging

them to create apprenticeship positions• Placement and individual mentoring of young people who have

been unable to find a suitable apprenticeship• VET Case Management

• In Switzerland, the unemployment insurance is not responsible for all this measures for “apprenticeship seekers”!

• More information: http://www.sbfi.admin.ch/index.html?lang=en

10



Unemployment insurance in Switzerland

Main task of the unemployment insurance:

Promotion of a quick and long-lasting integration of jobseekers into the labour market.

Rights and duties of job seekers

Rights: - Receive unemployment benefits

- Get help from job centres to find a new job

Duties: - Actively search for a new job (own initiative)

- Respect control regulations

- Respect instructions from the job centres

11



Agreement between cantonal governments and federal ministry

Federal Ministry (SECO)

Regulatory framework

Steering CommitteeCantonal

governments

Federal act / ordinance

- AVIG

- AVIV

- AVG

- AVV

Financing

- operating cost

- labour market measure cost

Steering tool (benchmark) Activity of cantons

Measurement of efficiency

Communication of results

Review of the situation

Performance indicators

Exchange of best practices

Tra

nsfe

r of b

est

pra

ctices

Co

mp

etitio

n

Activity according to the law:

- counselling- job placement- labour market measures- controls and sanctions

Outcome measurement

4 impact indicators:

- rapid reintegration

- avoid long-term unempl.

- avoid ineligibility for unempl. benefits recipients

- avoid re-registrationsContinuous improvement process



Labour market measures financed by the unemployment insuranceEducational Measures• Courses• Practice firms• Internships for the enhancement of qualification

Practical labour programmes• Programmes, providing temporary employment in the „2nd labour market“• Motivation semesters• Vocational internships

Special Measures• Training subsidies• Job familiarisation subsidies• Financial subsidies for commuters • Promotion and support of self-employment

13



LMM for young people (1)

Motivation semesters

Target group: unemployed “school-leavers” without any upper

secondary education

Aim: Answer three questions (Who am I? What can I do? What do I

want to do?) and find a qualification (apprenticeship)

Duration: 6 months (average), in an organisation

Method: Coaching, training, internal workshops or external firms

14




Vocational internships

Target group: unemployed young people with an upper secondary

education or university degree.

Aim: gain professional (practical) experience and find a job

Duration: 6 months (average)

Method: Internship in a private company or in the public administration

Financing: Company pays 25% of the daily allowance

15




Practice firms

Target group: unemployed young people with an upper secondary

education (in the commercial sector)

Aim: practical professional experience, find a (first) job

Duration: 6 month (average)

Method: Internship in a special organization / Network of different

practice firms in Switzerland and abroad / Trade with virtual

products but real internal processes / “Learning by-doing”

16




Number of persons

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142015

(forecast)Transition 1 (after school)

Motivation semesters 5'708 6'920 6'670 6'366 5'313 5'447 5'187 5'548 5'872 6'163 6'557Total transition 1 5'708 6'920 6'670 6'366 5'313 5'447 5'187 5'548 5'872 6'163 6'557

Transition 2 (after apprenticeship/university)Vocational internships 3'052 3'904 2'063 1'471 2'108 2'633 1'828 1'701 1'800 1'779 1'090Practice firms 3'840 3'019 3'812 3'235 3'034 4'021 2'565 2'441 2'242 1'895 2'065Total transition 2 6'892 6'923 5'875 4'706 5'142 6'654 4'393 4'142 4'042 3'674 3'155

Costs in million Swiss Francs

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142015

(budget)Transition 1 (after school)

Motivation semesters 60.4 66.6 67.5 65.7 65.6 69.5 69 65.5 68.4 72.8 76.8Total transition 1 60.4 66.6 67.5 65.7 65.6 69.5 69.0 65.5 68.4 72.8 76.8

Transition 2 (after apprenticeship/university)Vocational internships 4.7 5.2 3.9 3.2 3.9 3.8 2.9 3.2 3.2 3.3 0.6Practice firms 25.6 26.2 24.4 20.8 21.5 23.4 21.8 19.9 15.3 13.5 13.7Total transition 2 30.3 31.4 28.3 24 25.4 27.2 24.7 23.1 18.5 16.8 14.3

17

Source: SECO



Challenges

• Competition between VET (apprenticeship) and general education (university)

• (International) acceptance of the VET and the higher professional education and training

• Shortages of qualified workers / occupational aptitude / “matching”

• Inter-institutional cooperation: Minimizing the duplication of tasks among different insurance systems as well filling gaps in the social security system

18



Thank you for your attention!

Markus Weber

Expert

Federal Department of Economic Affairs, Education and Research EAER

State Secretariat for Economic Affairs SECO

Section Labour Market and Integration

Specialist Implementation Support RAV/LAM/KAST

Holzikofenweg 36, 3003 Berne

Tel. + 41 58 462 27 63

Fax + 41 58 462 29 83

[email protected]

www.seco.admin.ch

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