Minya Labour Market Analysis Final Qualitative Report – January 2014 V2.0 (Revised February 16th,2014) 2 TABLE OF CONTENTS 1. Introduction to LMA Research Project 5 1.1. Study Objectives 5 1.2. Methodology 6 1.3. Geographical Coverage 7 1.4. Primary Research Sample Definitions 7 1.5. Primary Research Sample Structure 8 2. Growth Summary 9 3. Secondary Research Findings 13 3.1. Minya Governorate Overview 13 3.2. Minya Population Distribution 13 3.3. Education in Minya 15 3.3.1. Elementary Education 17 3.3.2. Preparatory Education 18 3.3.3. Secondary Education 20 3.3.4. Technical Secondary Education 22 3.3.5. University Education 26 3.3.6. Vocational Training 27 3.4. Employment in Minya 28 3.5. Economic Activities in Minya 31 3.5.1. Industry in Minya 31 3.5.1.1. New Industrial Zones in Minya 38 3.5.1.1.1. New Minya Industrial Zone 38 3.5.1.1.2. Other Industrial Zones 39 3.5.2. Agriculture in Minya 40 3.5.3. Mining and Quarrying in Minya 42 3.6. Small and Medium Enterprises in Minya 43 3.6.1. Governmental Bodies 44 4. Primary Research Findings 46 4.1. Minya Workers’ Perspective 46 4.1.1. Associations to “Work” 49 4.1.2. Job Classification 50 4.1.2.1. Public Sector 51 4.1.2.2. Craftsmanship 51 4.1.3. Challenges and Frustrations of Minya’s Labour 54 4.1.3.1. Challenges Facing Farming 54 4.1.3.2. Challenges Facing Other Craftsmen 57 4.1.4. Employment Seeking Channels 58 4.1.5. Perceptions to Education and Training 59 4.1.6. Unemployment Coping Mechanisms 61 4.1.7. Migration 62 4.1.7.1. Challenges Facing Migrating Labour 64 Minya Labour Market Analysis – Qualitative Report ©TNS January 2014 3 4.1.7.2. Means of Finding work Abroad 65 4.1.8. Starting a Business in Minya 67 4.1.8.1. Drivers for Starting a Business 67 4.1.8.2. Challenges Facing Startups 68 4.2. Employers’ Perspective 70 4.2.1. Introduction to Chapter 70 4.2.2. Spontaneous Perceptions to Labour in Minya 73 4.2.3. Worker Classification 73 4.2.4. Recruitment Methods 75 4.2.4.1. Referral 75 4.2.4.2. Civil Society Advertisements 76 4.2.4.3. Street Pickups 76 4.2.4.4. Recruitment Process Challenges 77 4.2.5. The Working Relationship 78 4.2.5.1. Daily Vs. Stable Hiring 78 4.2.5.2. Contracts and Insurance 79 4.2.5.3. Turnover and Challenges Facing Employment Stability 79 4.2.6. Training 81 4.2.7. Women 83 4.2.7.1. Women in Agriculture 83 4.2.7.2. Women in Industry 83 4.2.7.3. Women in MSE’s 83 4.2.7.4. Barriers Against Employing Women 84 4.2.8. Employing Returnees 86 4.3. A Collective Look on Employment in Minya 87 4.3.1. Introduction to Chapter 87 4.3.2. Factors Driving Unemployment in Minya 90 4.3.2.1. Education 90 4.3.2.2. Peer Pressure 91 4.3.2.3. Deteriorating Economy 92 4.3.2.4. Transportation Difficulty 93 4.3.3. Evaluating Available Opportunities 94 4.3.4. Existent Efforts Countering Unemployment in Minya 95 4.3.4.1. Governmental Efforts 95 4.3.4.2. Civil Society 96 4.3.4.2.1. Small Development Organizations 96 4.3.4.2.2. Large Civil Society Organizations 96 4.3.4.2.3. Challenges Facing Civil Society Efforts 98 4.4. Evaluating the ICRS Concept 99 4.4.1. Introduction and Methodology 99 4.4.2. Reactions to Concept 99 APPENDIX A: Mapping Labour Market Stakeholders in Minya 102 A1. Mapping by activity 103 1. Technical Schools 103 2. Training Academies 105 3. Vocational Training Centers 107 4. Medium and Large Enterprises 108 5. Organizations Providing Microfinance 111 6. Private Job Matching and Employment Service Providers 114 A2. Mapping by location 115 1. Minya 115 2. Abu Qurqas 118 Minya Labour Market Analysis – Qualitative Report ©TNS January 2014 4 3. Mallawi 119 4. Dayr Mawas 120 5. Samalut 121 6. Matay 124 7. Beni Mazar 126 8. Maghagha 128 9. Edwa 130 Minya Labour Market Analysis – Qualitative Report ©TNS January 2014 5 1. INTRODUCTION TO LMA RESEARCH PROJECT Contracted by IOM, TNS has conducted an extensive research project for a Labour Market Analysis in Minya. 1.1 Study objectives: 1. Understand and provide analysis of the labour market needs identifying priority and emerging economic sectors 2. Understand and provide an analysis of Micro and Small Enterprises (MSE) immediate needs gaps, and solutions to enhance their productivity, sustainability and growth\ 3. Understand and provide analysis on employers’ (Medium and Large Enterprises) needs for recruitment and their projection for future recruitment needs 4. Understand and provide an analysis on the gaps between jobseekers’ needs and employers’ needs within and throughout the governorate with a focus on the emerging, prominent and promising sectors of Micro and Small Enterprises (MSEs). 5. Providing labour market relevant statistics on the governorate 6. Conduct mapping of local labour market related stakeholders 7. Provide information regarding feasibility of using different media to reach out to beneficiary groups 8. Formulate recommendations to enhance job matching and promote self- employment efficiently and effectively Minya Labour Market Analysis – Qualitative Report ©TNS January 2014 6 1.2 Methodology To achieve the desired study objectives, TNS conducted three simultaneous research methodologies Target Output: All available background information on Minya and its labour market; providing the 1 . needed background to understand the current situation as revealed in following Secondary Research methodologies . Gathering all available and relevant data that is published online or through previous research by other parties Target Output: Validating existing stakeholders revealed in secondary research. Revealing only active and 2. existent stakeholders on the ground in Minya Mapping Exercise . Research field team roaming the streets in key administrative centers of Minya and noting all available labour market stakeholders present Target Output: Understanding and analyzing different 3. stakeholders’ points of view, needs and need Primary Research gaps for a comprehensive labour market understanding . Interviews and focus groups with labour market stakeholders such as: (un/underemployed – business sector – civil society – education stakeholders) Minya Labour Market Analysis – Qualitative Report ©TNS January 2014 7 1.3 Geographical Coverage The research covered the nine key administrative centers in the Governorate of Minya: Edwa Maghagha Beni Mazar Matay Samalut Minya Abu Qurqas Mallawi Dayr Mawas Locations depicted by a Blue pin are only covered through secondary research; namely: Beni Mazar Matay Dayr Mawas 1.4 Primary Research Sample Definitions Our interviewed sample was divided into the following segments Private Sector Stakeholders o Medium and Large Scale Enterprises (having over 50 employees) o Private Employment Services o Businessmen Associations Micro and Small Enterprises o Startups and smaller scale businesses o Having less than 50 employees Educational Sector o Technical and Vocational Education Institutions o Local Community Organizations o Training Institutions providing skill enhancement and employment generation related activities o Organizations offering job matching and training activities Local unemployed and under employed beneficiaries o Seasonal workers o Returnees o Agricultural and Industrial workers Minya Labour Market Analysis – Qualitative Report ©TNS January 2014 8 1.5 Primary Research Sample Structure Minya Edwa Maghagha Samalut Abu Mallawi Total Qurqas IDI 26 Private 3 2 1 2 1 1 10 Sector MSE 2 2 1 1 1 1 8 Ed. Sector 3 1 1 1 1 1 8 MFG 16 LME 2 2 MSE 2 2 1 1 1 1 8 Ed. Sector 1 1 1 1 1 1 6 Focus 2 1 1 1 1 1 7 Groups Minya Labour Market Analysis – Qualitative Report ©TNS January 2014 9 2. GROWTH SUMMARY Contrasting to its economic hardships, Minya is a very rich governorate in terms of resources and raw materials. It has rich agricultural lands with great existing and future potential of expanding in the desert. It also has an active limestone and marble mining industry. Consequently, Minya is expected to have a large industrial landscape revolving around such raw materials. Yet, in reality, and while such a scene was once present in the past, the current situation is much different. Many of Minya’s public sector factories have either been privatized or have significantly reduced in size. Interviewees blame several factors such as corruption, economic deterioration or loss of essential crops (such as cotton which used to support a large weaving industry); yet the end result remains that there is a general lack in job supply in the large industrial sector of Minya compared to its potential. New industrial zones have been created yet prior to the 2011 revolution, yet have since then failed to work at their planned potential due to various security and economic difficulties. Especially that some of such industries do not rely on the widely available raw materials in the governorate. This sets farming as the backbone and highest potential economic activity in Minya. But in reality, farming is the least favorable of all possible economic activities among Minya’s inhabitants. Farming is a highly seasonal industry. And with limited governmental support in providing the needed seeds, fertilizers, and insecticides, farming entrepreneurs are forced to buy unsubsidized products which decrease their profits and put them under financial strain. To make matters worse, new farming entrepreneurs bear huge expenses in reclaiming desert lands with limited to no governmental support. In fact, often face difficulties with the government which poses numerous bureaucratic obstacles against them; especially with registering ownership of their desert plots.