Address to the Asia Pacific Ministers on Youth Employment

Tena koutou, Tena koutou Katoa (Greetings to you all)

Thank you to the Chairperson, Director General, and Regional Directors for your opening remarks.

It is an opportune time to be discussing youth unemployment at this Conference as it is clear that the numbers of our young people out of work has been rising in both developed and developing economies, even where general unemployment rates are stabilising following the global recession.

This has long term implications in terms of generating a well prepared and motivated workforce of tomorrow and, as we have seen, the potential for discontent and social upheaval where youth unemployment is endemic.

We are also losing the competitive edge that is possible when you have high youth employment contributing the energy and creativity that our young workers bring to a job.

In our region the statistics are alarming with young people in South East Asia and the Pacific being up to five times more likely to be unemployed than adults. Youth aged between 15 and 24 account for almost half the region’s jobless .

Youth unemployment is a very complex issue and demands comprehensive responses from us as Governments and the international community. I was pleased to learn that the conclusions of the 14th Asia Regional Meeting last year so strongly emphasised the need to promote opportunities for young men and women and ensure a successful transition from school to work.

As ILO members we should be taking the opportunity offered by the general discussion on youth employment at this Conference to brainstorm practical solutions to youth unemployment and the quality of jobs available to our young people. New Zealand agrees with the ILO that a coordinated global response to the youth unemployment crisis is needed in addition to state action, and that the ILO has a critical role to play here.

The ILO Regional Office already has some good programmes targeting youth unemployment but I’m interested in how we can achieve even more practical solutions for our young.

I am keen to learn more about the initiatives that each of us are implementing in our countries to increase the transition of youth into work and am happy to share some of the initiatives my Government has underway in New Zealand.

New Zealand is certainly not immune to these challenges, as we have high rates of unemployed youth in our country.

In New Zealand we expect the youth unemployment rate to be higher than the adult rate as it includes young people who are, for example, engaged in fulltime study but looking for part-time work. The young people we are most concerned about are those who are disengaged from both study and work.

Our Government has introduced a range of policies which integrate education and skills planning with a range of economic growth initiatives to build skilled and safe workplaces, and a more responsive job market.

We have spent over $237 million on packages to support young people into work.

I want to particularly highlight two recent initiatives to encourage youth employment and achieve better social and economic outcomes for New Zealand youth. These are:

• A Youth Guarantee scheme which provides opportunities for 16 and 17 year-olds who have left school and are unable to find a job, to complete a vocationally focused training programme at a polytechnic, exempt from tuition fees. Another option is through Trade Academies where a student stays enrolled at school and spends part of their week studying towards a trade qualification. The Youth Guarantee scheme gives young people, particularly those at risk of dropping out of school, practical skills and the opportunity for a career. (The Government is investing over $109 million in these and related programmes, to purchase close to 13,000 trade training placements).

• A 6-month subsidised job placement programme (Job-Ops) to help disadvantaged young people gain work experience and secure permanent employment. This initiative includes assistance for employers to invest in the training of their young employees. The aim is for a young person to gain valuable work experience so they are better placed to move into unsubsidised work at the end of it. (Around 2,000 young people have benefited from training through the programme so far).

In addition, the New Zealand Government is currently implementing a programme of welfare reforms which include better targeting the needs of disengaged youth. The intention is that youth who are unemployed return to, or remain in full-time education, training or work-based learning as part of their obligations for receiving welfare. The reforms will adopt an investment approach to tailor supports to the differing circumstances of these youth and focus on those who need extra support to transition from school to work.

I am from Canterbury and this is where I have my constituency, so I cannot end my address to you without referring to the impact of the devastating earthquakes on youth employment since September 2010. With damage to businesses and buildings across the region, and the parts of the CBD in our second largest city Christchurch still cordoned, young people in the service industries (such as retail and hospitality) have been particularly affected.

The Canterbury Employment and Skills Board has been established with the task of ensuring the local labour market has the workers and skills needed for reconstruction. Our Government has increased provision of training for young people and has a number of further initiatives underway to provide local employment opportunities for them. This includes investing $42 million to create thousands more places for construction-related trades training in preparation for the region’s rebuild.

We are particularly targeting Maori, our indigenous people, and Pacific people - both of whom have historically had lower educational achievement and lower labour market participation. Maori and Pacific Islanders make up a large proportion of our young people not in education, training or employment.

In Canterbury, a polytechnic, in partnership with the local Māori tribe, have launched a programme to get more young Maori into trades training. While the polytechnic provides technical training the tribe (or iwi) provide care and support for the students.

We have also launched an initiative to encourage more Pacific people into trades, using partnerships between polytechnics, Pacific churches and community groups. By linking education providers into the community, there are greater connections between the institutions and families, and greater support for learners to give them every chance of success.

I am very proud of the energy and invention with which my fellow Cantabrians have responded to the earthquakes of 2010 and 2011. What we are seeing are some really positive innovations and initiatives by employers, workers and local government agencies to enable a return to work and full production.

In conclusion Chair, we are facing a significant global challenge with the global youth unemployment crisis that has long term implications. There are no easy answers to this. It requires both a global and a local response. The ILO has an important role to play. But critically, it is very clear that the challenge will not be met through rhetoric, but through comprehensive policies and useful actions by governments, employers and workers to improve the situation of our young. Thank you.