<strong>European</strong> CommissionOccasional Paper 60, Volume Ihas shown that it is the graduates from prestigious <strong>and</strong> select universities <strong>and</strong> colleges who benefit mostfrom these schemes: among the university graduates, ¾ of graduates from the medicine, pharmacy, theENSI, the ENIT <strong>and</strong> the HEC benefit from support for their professional insertion. In contrast, less than¼ of graduates from other science <strong>and</strong> humanities universities have access to such programmes.Although current ALMP instruments have an overly-limited scope to deal with the core ofunemployment, most of them (SIVP <strong>and</strong> PC50, to give two examples) have a positive impact on theemployment prospects of beneficiaries. However, the evaluation showed that one of the maininstruments, the Fonds National pour l’Emploi (21-21) has a negative impact, i.e. the chances forbeneficiaries to find a job are less than if they had never taken part (see Mahjoub 2009, pp. 28-34).Also in Morocco ALMPs have been focused on graduate workers <strong>and</strong> have suffered fromdispersion <strong>and</strong> lack of coordination between the different public labour <strong>market</strong>s operators. In Algeria,barely 12% of jobs created through ALMPs between 1998 <strong>and</strong> 2002 became permanent jobs, pointingto another weakness in these programmes.These results show that, while ALMPs are a necessary ingredient of a comprehensive nationalemployment policy, they can only be effective in the framework of a larger integrated economic policypromoting employment.3.2 Recent Changes in <strong>Labour</strong> Market Legislation <strong>and</strong> Reform ProjectsIn contrast to the lack of labour <strong>market</strong> regulation reforms in AMCs in the last few years (see Section2.2), recent developments as regards national employment policies in several AMCs allow for somehope <strong>and</strong> lend themselves to further cooperation in this field with the <strong>European</strong> Union.In Algeria, a national employment strategy worthy of this name was only adopted in July 2008. The‘Action Plan to Promote Employment <strong>and</strong> Fighting Unemployment’ defines for the first time acoherent policy framework to promote job creating investment <strong>and</strong> to pursue active labour <strong>market</strong>policies. Its objectives are as follows: (i) supporting job creating investment; (ii) promoting vocational<strong>and</strong> technical training; (iii) a multidimensional policy to encourage companies to create employment;(iv) modernizing the labour <strong>market</strong> management by strengthening labour <strong>market</strong> institutions,particularly the National Employment Agency; (v) promoting youth employment through a newscheme to support professional insertion; <strong>and</strong> (vi) follow-up <strong>and</strong> evaluation mechanisms for the ActionPlan by national structures.In Jordan, the Government National Employment Strategy was put together in 2008 by the Ministryof <strong>Labour</strong> with assistance from the International <strong>Labour</strong> Organization. According to the NationalEmployment Strategy document, previous Jordanian employment policies <strong>and</strong> programmes werelacking for two reasons. First, they were fragmented <strong>and</strong> were not comprehensive enough toeffectively address labour <strong>market</strong> dynamics <strong>and</strong> challenges. For example, employment creationpolicies were formulated separately from tax policies; now there is a commitment to the objective of‘joining up’ employment policy formulation with other aspects of policymaking related to humancapital <strong>and</strong> the economy. These include macro-economic, tax <strong>and</strong> education policies. Second, previousemployment programs were not formulated with full stakeholder participation at all levels. Theseshortcomings are common to many other AMCs, <strong>and</strong> extend not only to employment policies, but tax,macroeconomic <strong>and</strong> trade policies as well.There are other changes recently introduced in Jordan’s labour regulation. In 2008, the <strong>Labour</strong> Lawwas exp<strong>and</strong>ed to include the previously excluded domestic work <strong>and</strong> agricultural sectors. Special legalregulations for workers in these two sectors are being formulated. These regulations will setparameters for workers’ employment contracts, working hours <strong>and</strong> for the inspection of theirworkplaces. It is worth noting that the majority of the estimated 300,000 migrant workers in Jordan areeither domestic or agricultural workers. On the other h<strong>and</strong>, the MoL, in partnership with the ILO, aims54
Chapter IFinal Reportto reform the financing of maternity leave benefits. At the moment, maternity leave benefits arefinanced by employers. This makes women more expensive to hire <strong>and</strong> discourages employers fromhiring them, or means that employers offer women lower wages in order to recoup the cost ofmaternity benefits. MoL intends to design a centrally-financed system of maternity leave benefits tofacilitate the entry of Jordanian women into the labour <strong>market</strong>.In Tunisia, the Ministry for Employment is in the last stage of the definition of a new EmploymentStrategy aiming at restructuring national active labour <strong>market</strong> policies <strong>and</strong> focusing on youthemployment. The National Consultative Commission on Employment has also stressed the problem ofthe quality of training <strong>and</strong> skills of graduate workers, in particular, which explains, in part, theunfulfilled dem<strong>and</strong> for certain categories of employment <strong>and</strong> the gap between the formal qualificationof the unemployed <strong>and</strong> their actual skills.Of course, it is far too early to assess the effectiveness of these new policies, but the very fact thatemployment policies are being reviewed <strong>and</strong> revamped in this fashion is in itself a positive sign.3.3 Alternative Strategies <strong>and</strong> Policy Options for Managing <strong>Labour</strong> Markets MismatchesThere seems to be a quite a wide consensus on the policies to implement. Recent reports on labour,employment <strong>and</strong> <strong>migration</strong> in the Middle East <strong>and</strong> North Africa region are convergent (see, forinstance, World Bank 2009a, Middle East Youth Initiative 2009, but also Section 4.4. or 4.5 ofNational Background Papers). The following are mentioned in all the reports: improvement in theeducation system (to bring transmitted skills closer to labour <strong>market</strong> needs); strengthening ofvocational <strong>and</strong> technical training; support to SMEs; stimulating labour-intensive activities; incentivesto private sector firms to hire new graduates <strong>and</strong> women <strong>and</strong> also in training for workers through taxrebates; the introduction of unemployment insurance schemes; <strong>and</strong> the restructuring <strong>and</strong> extension ofsocial protection schemes.Integration of policies is the keyword here. The national strategies to enhance creation of goodquality jobs require integrating <strong>and</strong> coordinating public policies in four areas: macroeconomic <strong>and</strong>investment promotion policies; education <strong>and</strong> training policies; social protection policies; <strong>and</strong> labourregulation policies. This coordination should take on an institutional shape, i.e. formal exchange <strong>and</strong>consultation between the respective competent Ministries at the national level.There is ample scope for innovation, however, in the policy monitoring <strong>and</strong> evaluation field.Extensive employment policy assessments should be carried out in every country to begin with, <strong>and</strong>monitoring <strong>and</strong> evaluation capacities be substantially strengthened. In this field very little has beendone so far in terms of technical assistance for the design, implementation <strong>and</strong> monitoring of training<strong>and</strong> employment policies, let alone <strong>migration</strong> policies. In any case, the contrast with training,assistance <strong>and</strong> aid ear-marked over the last few years for improving policy-making <strong>and</strong>implementation in the macroeconomic, financial or trade fields is obvious. In Chapter 7 we advancesome concrete proposals along these lines.On the other h<strong>and</strong>, the scope for regional co-operation is great. Common objectives <strong>and</strong> policymakingframework, with a region-wide system of multilateral progress monitoring by each partner,could provide the right incentives to share experiences <strong>and</strong> best practices, adopt effective policies <strong>and</strong>follow-up implementation with a technical perspective.The <strong>European</strong> experience has shown that in order to fight unemployment efficiently, active <strong>and</strong>direct employment policies <strong>and</strong> joint strategies are necessary on a <strong>European</strong> level, along with growthpolicies <strong>and</strong> structural reform. There is no reason why this logic should not be applicable to AMCs,which share with <strong>European</strong> countries a similar labour <strong>market</strong> institutional structure, as described inSection 2.2.55
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