sustainability and the case for youth employment presentation 2002 youth employment project- nzbcsd

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Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

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Page 1: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Sustainability and the caseFor Youth Employment

Presentation 2002

Youth Employment Project- NZBCSD

Page 2: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Providing business leadership as a catalyst for change toward sustainable development, and

promoting eco-efficiency, innovation and responsible entrepreneurship.

Page 3: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Sustainable Development

Is about ensuring a better quality of life for everyone, now and for generations to come.

Page 4: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

What is SD?

SD is forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.

Page 5: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

SD encompasses three linked elements:

• Economic/Profit• Environmental/Planet• Social/People

Page 6: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

ForEver

ECONOMY

ENVIRONMENT SOCIETY

Knowledge-intensive

Responsive

Niche-focused

Clustered

Proactive

Educated

Networked

Diverse

Caring

Stretch goals for:

Waste reduction

Air and water quality

Energy efficiency

Biodiversity

Restoration

Everyone walks the talk

Wealth is created sustainably

Kiwis are confident & entrepreneurial

Sustainable New Zealand Scenario

Page 7: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Our Aims

• Business leadership

• Demonstrate best practice

• Policy development

• Global outreach

Page 8: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Our Members3M New Zealand LtdBP Oil NZ LtdCity Care LtdDeloitte Touche TohmatsuFletcher Building LtdFonterra Co-operative Group LimitedHubbard Foods LtdInterface AgenciesLandcare ResearchMeridian EnergyMighty River Power LtdMilburn New Zealand LtdMinter Ellison Rudd WattsMoney Matters NZ LtdMorel & CoNatural Gas CorporationNIWAPalliser Estate Wines of Martinborough LtdPort of Tauranga Ltd

PricewaterhouseCoopers

Richmond Ltd

Sanford Ltd

Shell New Zealand Ltd

Simpson Grierson

Telecom New Zealand Ltd

The Boston Consulting Group

The Living Earth Company

The Warehouse Group Ltd

Toyota NZ Ltd

Transfield Services (NZ) Limited

Transpower

Trust Power

Urgent Couriers Ltd

URS - NZ Ltd

Waimangu Volcanic Valley

Waste Management N.Z. Ltd

Watercare Services Ltd

Page 9: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

BCSD Gulf of Mexico

BCSD Latin America

BCSD Mexico

BCSD Argentina

BCSD Venezuela

BCSD Colombia

BCSD Costa Rica

BCSD CroatiaBCSD Croatia

BCSD Czech RepublicBCSD Czech Republic

BCSD El Salvador

BCSD Honduras

BCSD Indonesia

BCSD MalaysiaPBE Philippines

IEF South Africa

EFZ Zimbabwe

BCSD Thailand

CII India

BCSD PolandBCSD PolandVernadsky Foundation RussiaVernadsky Foundation Russia

APEQUE Algeria

BCSD Brazil

THE REGIONAL NETWORK - BCSDs and Partner Organizations -

FE Spain

FFA Spain

EPE France

BCSD Austria

BCSD NorthSea Region

CGLI USA/Canada

WASIGW.Australia

BCA Australia

BCSD New Zealand

BCSD Mongolia

BCSD Taiwan

Page 10: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

• Sustainable Development Reporting

• Climate Change

• Zero Waste

• Sustainable Consumption

• Successful Schools

• Youth Employment

Current NZBCSD Projects

Page 11: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

NZBCSD Youth Employment Project

Lead NZ business in their role of ensuring current employment or training for all young New Zealanders by 2005

Objective:

Page 12: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Project Deliverables

The ultimate project deliverables will be:• A concise NZ industry guide on the “why” and

“how” for stimulating youth employment• Website area including industry guide,

reporting facility and other “learning by sharing” tools

• Member companies commit to and report against local employment or training targets.

Page 13: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Purpose of the guide• To present the business case for addressing youth

unemployment• To provide a set of tools to assist member businesses to

implement youth employment initiatives• To encourage associate businesses to adopt youth

employment strategies• The guide will achieve its purpose by:

– educating on the issues of youth unemployment– motivating business to accept the challenge of youth

employment– equipping business with the necessary tools and

resources to take on the challenge.

Page 14: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Methodology

• Establish that youth unemployment is an issue• Understand the causes of youth unemployment• Develop awareness of impact on business• Develop broad employer frameworks, policies or

commitments to guide action• Develop detailed policies, clear objectives, strategies

and initiatives• Promote youth employment measures to businesses.

Page 15: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Research

Page 16: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Understanding Youth Unemployment

• Desktop research

– Statistical analysis

– Literature search

• Schools Careers Advisors Survey

• School Focus Groups.

Page 17: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Youth Unemployment:

Source Statistics NZ

• Unemployment amongst 15 to 24-year-olds was 17.6% at 2001 census

• This figure far exceeds the 7.5% rate for general population unemployment identified in the 2001 census

• Youth unemployment accounts for 41% of total unemployment

Youth Unemployment

24%

17%59%

15yrs to19yrs

20yrs to24yrs

All otherages

• 1 in 6 young New Zealanders are unemployed.

Page 18: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Unemployment Rates by Ethnicity:

Page 19: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Qualifications:

Source Statistics NZ

• 10,000 young New Zealanders leave school each year with little or no formal qualifications

• ¼ of 15 to 24-year-olds have no school qualifications.

School Leaver Qualifications by ethnic group - 1996

0

5

10

15

20

25

30

35

40

45

No Qualifications Bursary or Scholarship

AsianEuropeanPacific PeopleMaori

Page 20: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Where youth are employed:

Source Statistics NZ

0

5

10

15

20

25

% Youth Employed (sectors employingmore than 10,000 young employees)

RetailManufacturingServicePropertyAgricultureConstructionWholesaleHealth

Page 21: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Proportion of young employees in Industry Sectors:

1 Source Statistics NZ

05

10152025303540

% Youth Employed

Service 80,355 Retail 208,317 Cultural and Recreational 41,274 Communication 23,151 Miscellaneous 90,864 Agriculture, Forestry, Fishing 142,758 Construction 103,911 Personal Services 64,317 Manufacturing 223,809 Wholesale 99,444 Property and Business 194,577 Finance and Insurance 51,927 Government / Defence 59,631 Transport 66,498 Electricity, Gas & Water 5,976 Health 140,568 Education 126,540 Mining 3,354

This graph displays the percentage of the workforce that is youth employees (15yrs to 24yrs) in each industry sector. The average overall percentage of youth

employment is 15.7%.

Page 22: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Observations:

Source Statistics NZ

• Most young employees are currently employed in the Retail and Service sectors

• Health and Education are large industry sectors with a very small proportion of young employees

• New Zealand’s Pacific peoples population is growing three times faster than the national average

• The median age of the Pacific Island community is 20 years compared to 32 years in the general community

• Youth population is currently 21% of total. This is expected to drop to 15% in 2051.

1

Page 23: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Observations cont’d:• Young Maori and Pacific Island people are

disproportionately highly represented in unemployment statistics

• There is strong correlation between youth unemployment and poor school achievement

• Unemployment of parents and other family members increases the likelihood of unemployment for a young person

• Student debt arising from student loans for fees is becoming an ever more significant barrier to further training

• The state loses track of youth at risk between leaving school (MOE) and turning 18 (WINZ).

Page 24: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Schools Careers Advisors Survey:

Page 25: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Schools Careers Advisors SurveyObservations:

• Most Students leave school with clear intentions for the future

• Schools would like formal relationships with business but few have them, and fewer still are doing anything to make it happen

• Careers Advisors had a range of opinions about the causes of youth unemployment as follows.

Page 26: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Causes of Youth Unemployment

· All employers want an ‘academic’

·      Employer reluctance to hire young people

·      Family Problems

·      Fewer unskilled jobs available

·      Globalisation

·      Health and Safety Legislation

·      High company taxes

·      Lack of local jobs

·      Lack of motivation 

·     Lack of Role Models

·      Low Skills and Qualifications

·      Low youth rates (causing employment disillusionment)

·   Not enough jobs

·      Parental Indifference

·      Pot Smoking

Page 27: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

School Focus Groups

Focus Group Programme• Introductions

– Name– Current Interests and Study– Current Qualifications– What employers have you had contact with?

• Group Discussion– What is important to employers in a worker?– What do people at home think about work and training?– Are qualifications important?

• Individual Exercise– What work would you like to do?– What do you hope to be doing when you leave school?

(e.g. Training? Working? Traveling?)– What do you hope to be doing in five years time?

• Conclusion and Discussion– Is working worthwhile?– What do you think Business can do to help young people?

Page 28: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

School Focus GroupsObservations:

• Young people want to work• Teachers, parents and peers are the strong

influencers of beyond-school plans• There is very scant knowledge about apprenticeships• There was little resistance to the commitment

associated with apprenticeship once explained.

Page 29: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Business Case

Page 30: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Youth Employment – The Business Case

• Youth Unemployment is damaging to:– Society– Business– Young people and their families.

Page 31: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Society

• Burden on the Welfare System

• Waste of compulsory education investment

• Reduced potential tax take

• High rates of youth crime

• Correlation to teenage pregnancy, youth suicide and poorer overall health.

Page 32: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Business

• Reduced overall consumption of goods and services

• Youth alienation from business and commercial goals

• Disconnection of business from its future markets• Ageing workforces• Disconnection of business from modern youth

culture / lack of age balance in the workforce• Lack of access to young talent.

Page 33: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Young people and their families

• Failure to continue to gain skills

• Low self-esteem

• Depression

• Family dependence and stress

• Tendency to become unemployable

• Drift into crime.

Page 34: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Youth Employment – The Business Case

• New ideas / new talent• Rejuvenation of the workforce• Inspiration for older workers• Connection to community• Connection to marketplace• Investment in skills with maximum future

potential for application to business and society• Young people want to work / young people are

hard workers prepared to put in long hours.

Page 35: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Possible Projects

Page 36: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Possible Initiatives• Reporting against youth employment targets• Employer Mentoring• Employer representation on Boards of Trustees• School Partnerships• Sponsoring training courses and equipment• Funding training delivery• Scholarships / competitions / awards• Employer Organisations as hiring brokers• Linking with school’s careers advisory services.• ‘Employment to Contracting’ proposal• Pre-Apprenticeship Work Skills Programme

Page 37: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Employment to Contracting• Urgent Couriers has about 70 independent contractor courier drivers

and about 20% of the market• Difficulty recruiting young staff. Barriers include:

– Earning capacity as a contractor. Traffic gridlock– Entry costs of approximately $10,000– Need to have ‘small business’ skills

• Proposal in development:– Urgent will initially employ 5 to 6 courier employees identified from WINZ

Auckland clients for a period of 6 to 9 months– Urgent will purchase vehicles for these employees– Urgent will train these employees – including licensing and small business skills

– during their 6 to 9 month employment– Urgent will save any WINZ subsidy and make this available to the employee at

the end of the period to contribute to the purchase of the vehicle and their continued work as a courier contractor.

Page 38: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Pre-Apprenticeship Work Skills Programme• City Care have WINZ buy-in to a pre-apprenticeship work skills

programme featuring:– 20 young workers over 12 months cycling through 8 occupations– Training to a Level 1 NZQA certificate in employment and work skills including:

• Literacy / Numeracy, Defensive Driving, Personal Finances, Teamwork

– Partnership relationships with:• WINZ / CITO / AWUNZ

• Targeted Outcomes:– Significant personal development of participants– All participants achieve qualification– 12 start full apprenticeships with City Care– Other graduates also placed in apprenticeships– Programme continues annually with City Care– Programme adopted by other industry groups throughout NZ

Page 39: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

Young Workers on Farms• Fonterra looking to tackle barriers to youth employment on

farms. Fonterra have surveyed their farmers and found:– Farmers can be hard employers– Poor understanding of youth culture– Youth unaware of farming career opportunities– Patterns of time-off need addressing

• Education required both ways:– Farmers on the needs of young people and how to be a good employer– Youth on the opportunities farming offers as a career and about the skills

and attitudes needed to succeed

• Fonterra’s farmers want Fonterra to intervene• Fonterra as a company is developing strategies on youth

employment in general, and farm work in particular.

Page 40: Sustainability and the case For Youth Employment Presentation 2002 Youth Employment Project- NZBCSD

For more information visit our websites

nzbcsd.org.nz

wbcsd.org