Youth and Women's Employment in Algeria: Barriers and Opportunities

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Youth and Women's Employment in Algeria: Barriers and Opportunities Youth and Women’s Employment in Algeria: Barriers and Opportunities Ashley Barry, Dina Dandachli Future Projects Youth in Algeria The contents and views expressed in this report are the sole responsibility of Education For Employment and do not necessarily reflect the views of the Middle East Partnership Initiative or the US Department of State. © Education For Employment, 2020 Acknowledgements The authors would like to thank the Middle East Partnership Initiative for its support of the Increasing Employment in the MENA Region – Algeria Project. The authors would also like to thank Rita Álvarez Martínez, Abbey Walsh, Lauren Johnson, Angelica Giangreco Biancheri, Salvatore Nigro, and Aniss Benyoucef for their contributions to this study. Table of Contents Executive Summary 7 Introduction 19 Methodology 25 The Algerian Labor Market: An Overview 29 Study Findings 41 Case Studies 83 Conclusions & Recommendations 103 Abbreviations ADS – Agence de Développement Social (Social Development Agency) IAIG – Indemnité pour les activités d’intérêt général (Allowance for Community Service Activities) AMC – Arab Mediterranean Countries ANEM – l’Agence Nationale de l’Emploi (National Employment Agency) ANGEM – l’Agence Nationale de Gestion du Micro Crédit (National Agency for Management of Microcredit) ANSEJ – l’Agence Nationale de Soutien à l’Emploi des Jeunes (National Agency for Supporting Youth Employment) APC – Assemblée populaire communale (Communal People’s Assembly) BAYF – Building Algerian Youth’s Future Project CDD – Contrat à durée déterminée (Fixed-Term Contract) CDI – Contrat à durée indéterminée (Permanent Contract) CNAC – Caisse Nationale d’Assurance Chômage (National Unemployment Insurance Fund) CNAS – Caisse Nationale d’Assurance Sociale des Travailleurs Salariés (National Social Insurance Fund for Salaried Employees) CNEPD – Centre National de la Formation et de l’Enseignement Professionnels à Distance (National Cen- ter for Distance Learning) CTA – Contrats de travail aidé (Subsidized Work Contracts) DAIP – Dispositif d’Aide à l’insertion Professionnelle (Vocational Integration Assistance Mechanism) DAIS – Dispositif d’Activités d’Insertion Sociale (Social Inclusion Activity Mechanism) EADN – l’Entreprise d’Appui au Développement du Numérique (Support Organization for Digital Development) EFE – Education For Employment ENP – Ecole Nationale Polytechnique (National Polytechnic School) ENSM – Ecole Nationale Supérieure du Management (National School of Management) ISO – International Organization for Standardization MENA – Middle East and North Africa MEPI – Middle East Partnership Initiative MESRS – Ministère de l’Enseignement Supérieur et de la Recherche Scientifique (Ministry of Higher Ed- ucation and Scientific Research) MFEP – Ministère de la Formation et de l’Enseignement Professionnels (Ministry of Vocational Education and Training) MPTTN – Ministère de la Poste, des Télécommunications, des Technologies et du Numérique (Ministry of Post, Telecommunications, Technology, and Digital). MSNFCF – Ministère de la Solidarité Nationale, de la Famille et de la Condition de la Femme (Ministry of National Solidarity, the Family and the Status of Women) MTESS – Ministère du Travail, de l’Emploi et de la Sécurité Sociale (Ministry of Employment, Labor, and Social Security) NEET – Not in employment, education, or training OEDC – Organisation for Economic Co-operation and Development PID – Programme d’Insertion Sociale des Jeunes Diplômés (Social Insertion Program for Young Graduates) STEM – Science, technology, engineering, and mathematics TVET – Technical and vocational education and training USTHB – Université des Sciences et de la Technologie Houari Boumediene (University of Science and Technology Houari Boumediene) Executive Summary In order to increase youth employment, young people must gain an improved understanding of the skills needed to secure jobs and succeed in the workplace, and private sector employers must provide supportive environments to help youth ease the education-to-work transition Much like the Middle East and North Africa (MENA) private sector as part of the recovery are likely to region as a whole, Algeria is home to a large youth benefit youth employment. population. Totaling 22.7 million people, youth under 30 make up 53% of the Algerian popula- A key contributor to youth unemployment in Alge- tion.1 The size of Algeria’s youth population is a ria is the skills gap: youth completing higher edu- strength the country can leverage for economic cation do not leave the university equipped with growth if working-age youth are able to pursue the skills to succeed in the private sector, espe- job opportunities and contribute to their nation’s cially soft skills. While young university graduates economy. However, with unemployment rates of lament a lack of suitable job opportunities, em- 28% for young men and 48% for young women,2 ployers face challenges in filling open positions. today’s Algerian youth face challenges in joining This mismatch is driven by the divergence be- and remaining in the workforce. If Algeria effec- tween the orientation of the Algerian educational tively addresses the underlying challenges driving system and the private sector. youth and women’s unemployment, the Algerian economy and society will reap significant gains. In order to help address the challenges youth face in entering and succeeding in the job mar- COVID-19 and associated recovery efforts are ket, Education For Employment (EFE), with the likely to affect the employment landscape in Alge- support of the Middle East Partnership Initiative ria and across the globe. As of the writing of this (MEPI), launched the Increasing Employment in report, Algeria is undertaking gradual reopening the MENA Region – Algeria Project. The pilot proj- efforts. The longer term effects of the pandemic ect provided soft skills training to 616 youth un- on youth employment in the country are not yet der the Job Training and Placement (JTP) compo- clear, but efforts to promote job creation in the nent, of whom 567 secured jobs following training 8 Executive Summary | Youth and Women’s Employment in Algeria: Barriers and Opportunities completion. In addition, employability and job force participation has increased slightly over search training was provided to 100 public uni- the past 20 years, it remains low at just 15% for versity students who had not previously had ac- women aged 15 and older, and only 8% for female cess to this type of job market-oriented training. youth – less than a quarter of the participation The project was heavily focused on engaging the rates for men in each age group.3 private sector to design tailored training content and secure job opportunities for youth following Algeria experienced a period of uncertainty fol- training completion. lowing the resignation of President Abdelaziz Bouteflika in April 2019. The election of President The purpose of this study is to document results Abdelmadjid Tebboune in December 2019 is likely and key learnings from the Increasing Employ- to moderate this uncertainty, which could create ment in the MENA Region – Algeria Project and to an environment in which private sector compa- advance knowledge of youth and women’s em- nies are confident in accelerating hiring activi- ployment in Algeria, told through the perspec- ties. According to the World Bank, current growth tives of youth and private sector employers. EFE sectors in Algeria include commercial services, asked project graduates to share their perspec- industrial construction, and public works,4 which tives on youth and women’s employment in Al- aligns with EFE’s analysis of the Algerian labor geria via interviews and focus groups, and proj- market in 2019. These growth sectors may change ect employer partners to share their perspectives depending on the ways in which COVID-19 affects through interviews. This approach provided can- different industries. did opinions from real people, giving life to the reality behind the statistics. A total of 118 youth Active labor market programming in Algeria has participated in interviews, 43 youth participated taken many forms over the years, including wage in focus groups, and 12 employers participated in subsidies, trainings, apprenticeships, and job interviews. Topics addressed in the study include matching. The Algerian government, international barriers and supportive factors for youth and NGOs, local Algerian organizations, and multilat- women’s employment, the role of family in young eral institutions have implemented a variety of people’s professional decisions, youth opinions programming models in the country. The Algerian regarding employment potential in the digital government has made significant efforts to re- economy, youth plans for the future, and youth duce unemployment through initiatives that aim attitudes regarding the potential to build careers to integrate individuals into the labor force and for themselves in Algeria. provide support for entrepreneurship projects. Evaluations can be used to determine the effec- The Algerian Labor Market tiveness of current programs and to inform future programming. The Algerian labor market is characterized by high levels of public sector employment, regulation, Youth Employment: Barriers and low private sector job creation, and informality. Supportive Factors The market is also characterized by high levels of youth and women’s unemployment and low lev- Youth face barriers when attempting to enter the els of female labor force participation.
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