Favourable youth labour market (15-24) relative to EU

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Education and th Labour Markt- Autrian Youth in comparion with th EU Gudrun Biffl Kynot Spch at th Intrnational Confrnc on Youth Employmnt Ljubljana, 13./14. Dcmbr 2007

Favourabl youth labour markt (15-24) rlativ to EU Autria ha on of th lowt youth unmploymnt rat in th EU: 2006: 9.2% vru 16.2% EU(15), 17.3% EU(25), 17.5% EU(27) Th only EU-countri with lowr rat: NL (6.6%) and DK (7.7%) Alo th mploymnt rat of youth i amongt th hight Howvr, intrnational comparion of youth mploymnt and unmploymnt rat ay rlativly littl about th problm youth fac in a country. Employmnt and unmploymnt rat of youth ar affctd by th ducation ytm whil it i difficult to combin part-tim work with full-tim ducation in om countri (Italy, Franc, Hungary & Slovakia), othr combin ducation and work in part of th ducation ytm (Grman paking countri), and othr till hav a part-tim youth labour markt, which can b combind with full tim chool (Nordic countri, Holland and UK).

35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 Youth unmploymnt rat (15-24) and total unmploymnt rat: 2006 In % EU 15 EU 25 Blgium Dnmark Grmany Grc Spain Franc Irland Italy Luxmbourg Nthrland Autria Portugal Finnland Swdn UK Cypru Czch Rpublic Etonia Hungary Lithuania Latvia Poland Malta Slovnia Slovakia Bulgaria Romania EU27 S: Eurotat. Unmploymnt rat, total Youth unmploymnt rat (15-24)

70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Youth mploymnt rat in comparion (15-24): 2006 In % of population 15-24 EU 15 EU 25 Blgium Dnmark Grmany Grc Spain Franc Irland Italy Nthrland Autria Portugal Finnland Swdn UK Cypru Czch Rpublic Etonia Hungary Lithuania Latvia Poland Malta Slovnia Slovakia Bulgaria Luxmbourg Romania EU27 S: Eurotat.

Why thn worry about th Autrian youth labour markt? Bcau th youth mploymnt ituation in Autria dtriorat rlativ to th EU Bcau youth mploymnt ha bn dtriorating rlativ to total mploymnt in Autria for om tim Bcau propct for mploymnt and incom curity of an incraing numbr of youth dtriorat In Autria apprntichip ducation i incraingly facing problm, particularly in th Eat. Th dual ducation ytm i not any longr facilitating tranition from chool to work but furthr ducation/ pcialiation i ndd for mploymnt, which i cotly for th tudnt - Brufrifprüfung (19-24 yar old). Globaliation of markt and rapid tchnological chang jopardi mploymnt propct in th abnc of a publicly fundd ytm of continud larning (LLL). Autria faild to dvlop a comprhniv ytm of furthr ducation along th lin of Nordic countri or th UK, thu rducing th mploymnt opportuniti of workr with low to mdium kill (hollowing of th middl).

Youth unmploymnt rat in Autria by gndr 12,0 10,0 8,0 In % 6,0 4,0 2,0 0,0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Männr, 15-19 Jahr Fraun, 15-19 Jahr Männr, 20-24 Jahr Fraun, 20-24 Jahr Q: WIFO.

Economic rtructuring impact on apprntichip ducation abov all in Eatrn rgion of Autria Apprntic in % of 15yar old population 60 50 40 30 20 10 0 B K NÖ OÖ S ST T V W Ö Q: ST.AT., WKO, WIFO-Brchnungn. 1990 1996 2006

Educational and labour markt tatu of 17yar old in Vinna 2001(Cnu) 55,0 45,0 35,0 In % of ag group 25,0 15,0 5,0-5,0 Unmployd Out of Labour Forc Employd, not Apprntic Apprntic School, without A- Lvl School, with A-Lvl Total Hot forign born born Autrria, Forignr born Autria, Autrian

Arbitlonquotn dr anghndn Lhrling in Win 70,0 60,0 2001 2002 2006 50,0 In % 40,0 30,0 20,0 10,0 0,0 M F M+F M F M+F M F M+F M F M+F Inl Aul Ex YU Türki S: LMS, WKO, WIFO.

Ag-pcific activity rat of mn 100,0 90,0 In % 80,0 70,0 60,0 50,0 40,0 R z i o n R z i o n 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 R z i o n R z i o n 15 bi 19 20 bi 24 25 bi 54

Ag-pcific activity rat of womn 80,0 70,0 In % 60,0 50,0 40,0 30,0 20,0 R z i o n R z i o n 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 R z i o n R z i o n 15 bi 19 20 bi 24 25 bi 54

Raon for th dtrioration of th Youth Labour Markt On th upply id: trong immigration (forign born in total population incrad from 10% 1999 to 14,6% 2006), Rform of rtirmnt pay and Grncard (introducd 2003) raid th upply of unkilld and mikilld workr a wll a tradmn and thu comptition for kill at th ntry port into th labour markt On th dmand id: Incrad pd of tructural chang du to combination of factor: Globaliation, Fall of th Iron Curtain, EU-Intgration, rapid tchnological chang, Which rultd in a ubtantial chang in kill rquirmnt of th work forc (hollowing of th middl): up-, r- and multikilling did not tak plac to th xtnt ncary

Riing trnd of youth unmploymnt Entry port into th labour markt of youth with low and mdium kill ar on th dclin. An incraing proportion of youth lo th job du to conomic problm of th mploying ntrpri (cloing down of th firm or th production unit). Incraing turnovr of youth mploymnt lad to riing unmploymnt rat, particularly of young womn. Incraing flxibility of th labour markt (tmporary work, contract work, caual work) affct tho at th ntry port into th labour markt

Youth: Victim of th trnd toward flxibility? Sinc th mid 1990 th trnd toward mor flxibl mploymnt gain momntum Youth ar mor oftn than th avrag in atypical mploymnt rlationhip, particularly a frlancr and in contract mploymnt Thi rult in high dgr of arning fluctuation and incurity of incom In gnral ducational attainmnt of youth ri; howvr, migrant youth (1t and 2nd gnration) to a lr xtnt than nativ A trnd toward rmaining in th houhold aftr chool can b dicrnd for om group of migrant womn, particularly of Turkih origin. 1995 17.2% Turkih 15-24 yar old womn wr out of th labour forc compard to 32.7% in 2002. In contrat, only 3.8% of all 15-24 yar old womn wr out of th labour forc in 2002, 8.2% of Yugolav young womn, 12.6% of othr forign womn and 3% of young Autrian womn. Th high propnity of young Turkih womn to tay in th houhold ha implication for thir mploymnt propct at latr ag.

Caual mploymnt Frlanc 70 3,0 60 50 Fraun 2,5 2,0 Männr 40 1,5 30 20 1,0 Fraun 10 Männr 0,5 0 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+ 0,0 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

Contract work 16 14 12 10 Männr 8 6 Fraun 4 2 0 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

Dclining trnd of avrag duration of mploymnt piod by gndr and ag Mn Womn 30 1995 1998 2000 2003 30 25 25 20 20 15 15 10 10 5 5 0 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 0 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64

Failur of th Autrian ducation ytm? In th 1990, th pattrn of ducation changd: ignificantly fwr ntrd th labour markt aftr compulory ducation and mor continud ducation, particularly to obtain A-Lvl (ithr Gymnaium or highr lvl vocational chool with univrity ntranc right). Alo migrant youth improvd thir ducational attainmnt lvl vru thir parnt, both th traditional migrant youth (from formr Yugolavia and Turky) a wll a th nw immigrant from CEEC Migrant youth rmain on avrag l ducatd than nativ youth.

Educational attainmnt lvl of third country tudnt continu to b low Cnu 2001: 50.3% of 20-24 yar old of third countri hav compulory ducation a thir hight ducational attainmt lvl Compard to 13.5% of nativ. Thi i partly th rult of th low tatu/incom of migrant and th limitd knowldg about th rol of chooling for ocio-conomic upward mobility of thir childrn in our ocity/conomy Partly it i th rult of th abrupt incra of migrant tudnt numbr in th arly 1990 (hock to th ytm). Th har of migrant childrn in th compulory chool ytm doubld within a coupl of yar, which wa a challng th chool ytm could not matr. School yar 1980/81: 2.3% of chool childrn wr migrant/forignr;1989/90: 45%; 1992-8% (largly du to rfug inflow from Yugolavia). Sinc th mid 1990 low furthr ri to 9.4% in 2002/2003

25,0 20,0 15,0 10,0 5,0 0,0 Shar of forign tudnt by typ of chool Spcial nd chool Polytchnic Gymnaium Highr vocational collg Mdium vocational chool Apprntichip All chool Lowr Scondary Primary chool S: 1980/81 1989/90 1998/99 1999/00 2000/01 2001/02 2002/03 In % of all tudnt

Studnt who do not pak Grman a thir firt languag 35,0 30,0 25,0 In % of all tudnt 20,0 15,0 10,0 5,0 0,0 S. Bm:ukk Burgnland Carinthia Lowr Autria Uppr Autria Salzburg Styria Tirol Vorarlbrg Vinna Autria 2000/01 2001/02 2002/03 2004/05 2005/06

Rol of parnt ocial tatu for ducational attainmnt of 15yar old: PISA 2003 In all countri urvyd in PISA (2003), childrn of highr tatu/incom/ducation parnt ar doing bttr in chool (highr achivmnt cor) than childrn of low tatu/incom parnt. Th diffrnc in chool achivmnt by ocial tatu of th parnt i lowr th bttr and mor ytmatic/ comprhniv arly childhood ducation and th latr chool lction proc t in, without compromiing avrag ducational achivmnt lvl. In Autria, tudnt with migrant background (1t and 2nd gnration) do wor than nativ childrn with th am ocial background of parnt. Indication ar that migrant do not hav th am ducational opportuniti a nativ childrn.

Diffrnc in Mathmatic cor btwn nativ and migrant youth Diffrnc in mathmatic cor btwn nativ and migrant youth aftr corrcting for ocial tatu of pant (ducation and occupation) Autralia Autria Blgium Canada Dnmark Franc Grmany Luxmbourg Nthrland Nw Zaland Norway Migrant youth atr bttr Nativ youth ar bttr Migrant youth ar bttr Nativ youth ar bttr Swdn Switzrland USA OECD-Avrag Hong-Kong-China Macao-China Ruian Fdration -30-10 10 30 50 70 90 110 Diffrnc in Mathmatic cor -30-10 10 30 50 70 90 110 Diffrnc in Mathmatic cor Q: OECD PISA 2003 2. Gnration 1. Gnration

Concluion Dvlopmnt on th upply and dmand id of th labour markt hav brought about a chang in th ducation a wll a mploymnt opportuniti of youth. Th chang do not hav to lad to a dtrioration of mploymnt opportuniti of youth. But in th abnc of adquat adjutmnt in th ducation ytm, in particular inufficint upport of migrant youth and public financing of furthr ducation of youth, th mploymnt opportuniti of youth hav dtrioratd. In addition, th incraing flxibility of mploymnt rlationhip affct abov all tho at ntry port into th labour markt, and thu youth. Thy bar th brunt of flxibiliation of th labour markr without having rcour to ufficint curity and financial upport to opn up utainabl mploymnt and arning opportuniti.

Will th prcipitou dmographic dclin olv youth labour markt problm? 520.000 7,0 500.000 480.000 460.000 440.000 420.000 6,5 6,0 5,5 5,0 In % of total population 400.000 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 4,5 15-19 har in total population Q: ST.AT., WIFO-Brchnungn.