At the country level, take a strategic approach to youth employment by addressing the issue comprehensively, working across teams.
- Help countries address youth employment issues comprehensively, from the demand and supply side. This requires greater cross-sectoral collaboration within the World Bank Group and with other donors as
appropriate.
- Help countries design interventions targeted to low income youth. Examples for the private sector could include closing the gap between skills demanded by the private sector and those acquired through the educational system.abc
Most country strategies do not identify youth employment as a strategic issue. A combination of complementary interventions works best, and implementation benefits from multisector teams.
- A comprehensive approach is missing in the Bank's youth employment projects. Most projects include isolated interventions. Collaboration across sector teams is limited.
- Subgroups of youth are always worse off. These include the low-income youth in rural areas without the necessary skills and connections to find work, or access credit and land.
WB Action 2.A.: Develop a diagnostic tool to identify binding constraints facing young people as they enter the labor market.
Indicator: Diagnostic toolkit prepared and delivered
Baseline: None prepared
Target: One toolkit delivered. .
Timeline: End FY 2014
WB Action 2.B.: Disseminate knowledge on using the diagnostic tool (WB Action 2.A.) across CMUs to enhance analysis and diagnosis of employment constraints faced by youth as they enter labor market.
Indicator: number of internal workshops organized.
Baseline: No workshops organized to promote use of the developed diagnostic tool.
Target: to be determined by the end of FY13 by HDNSP.
Timeline: End FY 2014
Past Management reports have discussed the Jobs Diagnostic Tool that has a module for youth. This update did not provide an update on this tool or its use. Instead, Management discussed a Systematic Review of Youth Employment Programs (Do youth employment programs improve labor market outcomes) developed by the WB, ILO, and RWI-Berlin. The Bank and Rand Corporation also completed a review of previous toolkits that examine constraints young people face as they enter the market. There are plans to develop a Toolkit for all the Toolkits. The Toolkit for Toolkits would direct users to relevant elements. Management also reported that the first round of projects has been selected for a multi-country portfolio to test new and promising interventions in youth employment. In later years these projects could add new insights and information.
Management reports considerable progress in country level implementation and teams as they now comprehensively (i.e. supply and demand) address youth employment constraints. It provided an example in Tunisia through the support of the Jobs Multi-Donor Trust Fund. This example highlights the use of diagnostic information to mainstream youth issues into WBG operations, but it is difficult to link this example with the broader statement made in Management's reply, as specific evidence of dissemination activities or workshops among country teams related to the Jobs tool or Systematic Review was not provided. The reply also did not provide the number of countries using tools or number of operation employing a comprehensive approach. The Bank anticipates more institutionalization of a comprehensive approach to youth employment issues in future years to CMUs and client countries with the support provided by the Trust Fund.
Follow-up has progressed considerably this year, with specific attention to working across teams to address youth employment comprehensively, and country level implementation. Evidence has been consolidated through a Systematic Review of Youth Employment Programs ("Do youth employment programs improve labor market outcomes?") developed in collaboration between the World Bank, the ILO, and RWI-Berlin. This meta-evaluation aims to understand what works and what affects performances in youth employment programs and labor market outcomes from 1999 to 2014, with evidence on the effectiveness of various interventions and the factors that influence program performance including country context, targeted beneficiaries, and program design and implementation.
Several innovative youth interventions under development are targeting low income youth while bringing together demand and supply side, as per the IEG recommendation, such as the Youth inclusion operation in Morocco and the Productive Inclusion Opportunities for young women and men in Tunisia. For example, the latter supports fundamental shifts in approaches, to specifically targeting poor and disadvantaged segments of youth from a heavy reliance on supply-side jobs interventions to a more demand-driven approach with job creation potential and towards increased reliance on performance-based service provision to youth. Interventions are underpinned by diagnostics of youth employment and value chains through the Jobs Multi-Donor Trust Fund, and the diagnostics toolkit.
This work is supported by the multi-GP Maghreb Youth Employment Taskforce (YETF), established to provide support and guidance on how to mainstream youth economic insertion into WBG operations better focus and reorient existing work towards greater impact on jobs for disadvantaged youth (unemployed, inactive, rural, etc.), and to influence in-country policy dialogue on youth employment through a framework to connect supply interventions and demand interventions for targeted segments of the unemployed youth population.
Comprehensive approaches under development and implementation will be further enhanced and institutionalized through the multi-GP activity on youth employment, led by the Jobs Group as part of the Bank's Global Engagement. This initiative will focus on strengthening the linkages to the labor demand side for youth employment, especially through value chain development and integrated Active Labor Market Programs (ALMPs), for support to operations and clients at country level.
The WBG led Solutions for Youth Employment (S4YE) coalition continues to receive corporate buy-in and commitment from a variety of global practices, including the SPL and the Jobs CCSA. Further work is ongoing to strengthen the commitment to the S4YE coalition beyond these GPs, led by the Senior Director for SPL&J. The S4YE has completed the first round of securing projects for its inaugural Impact Portfolio - a multi-country portfolio of programs that will be used as testing grounds for new and promising interventions in youth employment. Projects from the WBG as well as a range of S4YE partners have been included in this Portfolio, and corporate support for this is expected to continue over multiple years to assess impacts, and draw lessons and knowledge from the wide variety of programs. This Impact Portfolio will complement the WBG portfolio by acting as a testing ground for new ideas, and aims to catalyse knowledge and operations in the future. Work has also been underway on identifying the footprint of projects within the S4YE coalition, and developing knowledge products, such as a dedicated report on Youth Employment and Migration, at the request of S4YE Board members.
The WBG led Solutions for Youth Employment (S4YE) coalition together with the Rand corporation has completed a landscape review of toolkits that are currently operational and co
The Jobs Diagnostic Tool with specific module for youth was developed. It has been applied by the JOBs CCSA within 20 countries in FY15. The Bank's response did not report dissemination activities or workshops among country teams, nor describe what resulted when the tool was used. The reply did not describe how this knowledge was applied to policy dialogue or operational activities.
WB Action 1.B.(a): Prepare good practice note for analysis and diagnosis of employment constraints facing youth.
Indicator: Good practice note prepared and delivered to HD Council, to be disseminated to teams work in Youth Employment issues.
Baseline: No good practice note exists
Target: Practice note prepared and delivered.
Response FY15:
The World Bank has established a new coalition, Solutions for Youth Employment (www.S4YE.org). Under that coalition, we have developed a Flagship Report, Towards Solutions for Youth Employment. This report includes a review of the evidence concerning youth employment interventions, and a number of good practices on youth employment programs. The report indicates that empirical evidence shows that youth employment interventions, especially those that provide skills or entrepreneurship training, or subsidize employment, yield positive and statistically significant results on labor market outcomes for participating youth. The effects are more visible on a number of indicators, namely probability of employment and hours worked. At the same time, though rigorous evaluation results do prove these investments to be worthwhile, the magnitude of the impact is modest. The S4YE flagship report then identifies evidence gaps and outstanding questions that S4YE should take leadership to fill and answer. The report examines the literature, programmatic and organizational learning, to create a knowledge baseline concerning young people's needs how specific and systemic interventions and influences affect their choices, opportunities, and outcomes and what we know about promising practices, implementation, and scale. Having developed this "good practice" note, the next step is to prepare a series of toolkits that assist practitioners in translating the good practices into operational know-how.
Input provided by Angela Elzir (GCJDR), Matthew Hobson (GSPDR), and David Robalino (GCJDR)
WB Action 2.A.: Develop a diagnostic tool to identify binding constraints facing young people as they enter the labor market.
Indicator: Diagnostic toolkit prepared and delivered
Baseline: None prepared
Target: One toolkit delivered. .
Timeline: End FY 2014
WB Action 2.B.: Disseminate knowledge on using the diagnostic tool (WB Action 2.A.) across CMUs to enhance analysis and diagnosis of employment constraints faced by youth as they enter labor market.
Indicator: number of internal workshops organized.
Baseline: No workshops organized to promote use of the developed diagnostic tool.
Target: to be determined by the end of FY13 by HDNSP.
Timeline: End FY 2014.
Response FY15:
Concerning the Jobs Diagnostic Tool with specific module for youth, the Jobs Group has been involved in 20 countries in FY15. In at least ten of these countries youth represent more than half of the working age population, yet account for only 20-30 percent of the employed. In these countries, the diagnostic exercise has paid special attention to the constraints facing youth, since productive youth employment is essential to reducing poverty and achieving shared prosperity, and the World Bank Group's engagement in these countries incorporate a youth dimension to improve the opportunities to obtain (good) jobs, and that young people have the skills required to take advantage of these opportunities. The work program includes analytical activities to determine the obstacles to creating more, better and more inclusive jobs for youth and the constraints young people face to succeeding in the labor market, as well as the development of Jobs Strategies, all of which may inform the design of potential WBG jobs lending operations. The Jobs Group country engagement will likely grow to up to 30 countries in FY16, for which the Jobs Group will incorporate a youth dimension in both analysis and operations. In addition, the Jobs Multi-Donor Trust Fund has supported an intensified focus on the constraints facing young people in the labor market lessons from these projects and other activities will be instrumental in advancing the knowledge of what works to enhance youth employment.
Input provided by Angela Elzir (GCJDR), Matthew Hobson (GSPDR), and David Robalino (GCJDR)
IEG conducted four interviews to clarify the information reported by Bank Management. This information shows that the Bank is implementing its two planned activities, which address most of IEGâs recommendations.
The Bank proposed two activities to address this recommendation: develop a tool and disseminate it to country management units. In FY 14 the Bank launched the Jobs Diagnostic Tool. It facilitates a country analysis of employment (not just youth, but contains a module related to youth) to help teams identify priorities and challenges for job creation. The Bank reported that this holds promise to improve Bank diagnostics during policy dialogue, design of operation, and development of Country Strategies. As this is a recent activity, there is no data on use of the tool, but it was reported that the Jobs CCSA has prioritized approximately 20 country teams during FY15.
The Bank has recently undergone a reorganization where Jobs is featured with its own CCSA. While this CCSA is not focused on youth employment, this topic is included within its mandate with a multisectoral team from both the Bank and IFC. It is too early to see how the new organization via the Jobs CCSA will be able to support the Bank in designing complementary interventions addressing both supply and demand, as well as better coordinated work across the new Global Practices, which was the essence of IEGâs recommendation.
The Bank has established a new Trust Fund on Jobs, which in the future will finance investment in data and diagnostic tools, research on specific jobs challenges and design and delivery of comprehensive solutions. The new Trust Fund has a specific window devoted to solutions for youth employment.
IEG recommended that the Bank emphasize the design of interventions for low-income youth. The Bank did not develop a specific activity, but it reported that with the twin goals it will focus on jobs creation for people in the bottom 40 percent of income earners.
The World Bank Group has committed to support the goals of ending extreme poverty and boosting shared prosperity in a sustainable manner. Inclusive growth is a special theme within IDA 17 (FY15-17). In many countries, job creation will be a necessity to sustain poverty reduction, and a requirement to make growth more inclusive. The World Development Report 2013 on Jobs noted the contribution of jobs to improving living standards, productivity and social cohesion. The time has come for the World Bank to put a âjobs lensâ onto our diagnostic work, to help clients find solutions which not only stimulate investment, but which also create `good jobsâ, particularly for people in the bottom 40 percent of income earners, and those excluded from growth. To facilitate the diagnostic analysis of employment in countries, and to help our teams and clients identify priorities for job creation, the World Bank Group has developed a multi-disciplinary Jobs Diagnostic Tool (JDT). The tool guides a structured enquiry of the jobs situation, the future jobs challenges and opportunities, and the priority constraints that need to be removed for better jobs outcomes. It supports the identification of country specific priorities for policy action. To do this, the tool combines micro-level data analysis of households and firms with aggregate data analysis at macro and meso level, to derive a comprehensive profile of jobs opportunities and challenges. The focus of this diagnostic is on constraints and opportunities to enhance private sector jobs. While public sector employment represents a considerable share of waged employment in developing countries, most jobs are created by private actorsâbe they large enterprises, small firms, or individuals. The tool can contribute to a broader analysis of the countryâs overall development challenges, such as the WBGâs Systematic Country Diagnostic (SCD) just as a sector analysis can. An SCD may draw on this jobs diagnostic tool as needed, depending on where the country diagnostic process leads. But independent of the SCD, or as a part of the country AAA program, a jobs diagnostic has its own objective and utility for countries and teams to analyze the main constraints for creating and accessing high-value jobs in an economy. The Jobs Diagnostic tool for jobs is applicable more broadly than just for youth, but does include modules for the identification of constraints facing young people.
In addition, with the support of the Bank, The group "Understanding Children's Work" in Rome has been piloting a survey-based tool to understand and diagnose the constraints facing young people in the school-to-work transition. A paper based on that tool was presented at the Annual Meetings 2014 in the Bank.
The SPL practice have started a collaboration with the POV and T&C practices and Jobs CCSA to develop and apply a multi-sectoral operational approach to youth employment that address both demand and supply side constraints to employment creation. This includes identifying policy reforms and interventions that can be supported through different activities of the broad country program (e.g, DPLs, investment operations, Advisory Services) and through specific investment operations. This is currently being applied to operations in the FY15/16 pipeline in the Western Balkans (including Bosnia & Herzegovina, Serbia, and possibly Macedonia) and in Africa (specific countries being defined). The latter would include support to new firms creation through fostering entrepreneurship (since most of job creation is accounted by young firms), active labor market programs including skills training tied to employer needs, and actions to facilitate labor mobility (in light of the importance of indirect job creation from employment spillovers and agglomeration economies). The approach has already being presented and endorsed by management of the Balkans CMU and the Practices.
Together with the Poverty and Education GPs, DEC, and the IFC, the Jobs CCSA and the Social Protection and Labor GP have launched an umbrella Trust Fund on Jobs. This TF will push the frontier of global knowledge in the area of jobs by financing three types of activities: 1) investments in data and diagnostic tools 2) research on specific jobs challenges (e.g., job creation in conflict countries) and pilots and evaluations of innovative solutions (e.g. for youth employment) and 3) design and delivery of integrated job strategies in different country contexts and in partnership with the private sector. This TF will organize these activities around five inter-connected windows that respond to the business needs of different World Bank groups- Regions,-Global Practices (GP)s, Cross Cutting Solution Areas (CCSAs) and the WBâs International Finance Corporation (IFC). One of the five windows under this umbrella TF will finance work on youth employment, specifically the multi-stakeholder Solutions for Youth Employment.
The S4YE Coalition was launched at the Bank Fund Annual Meetings last week, on the 8th October, with a large event in the MC Atrium, and numerous other side seminars and workshops. S4YE is a multi-stakeholder coalition among governments, the private sector, and civil society, that aims to provide leadership and resources for catalytic action to increase the number of young people engaged in productive work. The Coalition will support stakeholders at all levels to connect for coordinated action, to innovate, learn, and identify successful solutions, and to promote and scale up effective policies and investments to enhance employment among youth. Current partners in S4YE include the ILO, Accenture, Plan International, the International Youth Foundation, and Youth Business International. The Coalition has received pledges of support from the governments of Norway, Germany, and Austria, and we are in conversation with other donors, including the UK and Sweden. Please see http://www.s4ye.org for more information. The launch event hosted roughly 400 people, and received 1.5 million Tweets. Please see https://twitter.com/hashtag/s4ye for more information on the launch.