TITLE OF STTA REPORT

KOSOVOUNITED PRIVATE NATIONSENTERPRISE PROGRAM DEVELOPMENT PROGRAMME (UNDP)

Territorial Audit Report

VISAR ADEMI January 01, 2009

This publication was produced for review by the United States Agency for International Development. It was prepared by the KPEP project team of Booz Allen Hamilton based on a Final Report prepared by Short Term Technical Advisor, Xxxxx Xxxxx

OCTOBER, 2017

CONTENTS

ACRONYMS AND ABBREVIATIONS ...... 1

FOREWORD ...... 2

INTRODUCTION ...... 3

PURPOSE OF ASSIGNMENT ...... 4

BACKGROUND INFORMATION ...... 5

- Basic information about the Municipality of Gostivar ...... 5

METHODOLOGY ...... 10 Deleted: 9

MAIN FINDINGS ...... 11

CONCLUSIONS AND RECOMMENDATIONS ...... 17 Deleted: 15

- Short-term transactional activities ...... 18 Deleted: 15

- Long-term Transformational Activities ...... 19 Deleted: 17

ANNEXES: ...... 22 Deleted: 19

ACRONYMS AND ABBREVIATIONS

ALMPs Active Labor Market Programs ESA Employment Service Agency EU European Union FDI Foreign Direct Investment GCDF Global Career Development Facilitation Program GDP Gross Domestic Product HE Higher Education HRM Human Resource Management ICT Information and Communication Technology IT Information Technology LED Local Economic Development Units LLL Life Long Learning MOES Ministry of Education and Science MOLSP Ministry of Labor and Social Policy MSEs Micro and Small Enterprise NAPE National Action Plan for Employment NES National Employment Strategy NFTE National Foundation for Teaching of Entrepreneurship NGOs Non-Governmental Organizations OECD Organization for Economic Cooperation and Development PP Purchasing Power R&D Research and Development RDC Regional Development Centers REG Project Regional Enterprise Growth Project SGA Skills Gap Assessment TVET Technical and Vocational Education and Training TEP Territorial Employment Partnerships Deleted: Plan UNDP United Nations Development Programme USAID United States Agency for International Development VET Vocational Education and Training WfD Workforce Development

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FOREWORD

In today’s global competitive arena the term “knowledge economy” is no mere slogan. It points to the very fact that economic activities are increasingly knowledge intensive and Deleted: real that in this globalized world, success will come to those that are able to generate and harness knowledge in order to stay ahead of the pack. Research shows that in economies that do not have sufficient infrastructure or may be designed as high cost base locations, comparative advantage has shifted to knowledge-based activities that cannot be transferred around the world without a significant cost1. There is a higher probability that high knowledge and skills-based economies will attract and retain investments in Deleted: industries with a strong future. Good education lies at the heart of economic growth and Deleted: It is no secret that development. Notwithstanding, improving the quality and relevance of education is Deleted: g enormously difficult not least because there is no single policy measure that will do so Deleted: At the same time Deleted: effectively. one Even though FYR Macedonia is not at the forefront of this “pack”, if it wants to Deleted: as a country restructure and move to a higher competitive position it needs to focus more on adapting and/or generating knowledge due to its small size and inherited model of open Deleted: the constricting economy. Deleted: habits Deleted: its City of Gostivar is not an exception: An economy that is not vibrant and dynamic with Deleted: to this rule limited capacity to absorb entrants in the labor market, an education that is not following Deleted: . the trends of economy and small organizations with limited capacity to change or transform the way the economy functions. Deleted: how

Consequently, this report underlines that improving the effectiveness and inclusiveness of labor market dynamics requires a fundamental change in approaching education, skills Deleted: of development and competencies of entrants in the labor market as well as in the culture Deleted: to on how private sector companies manage/nurture human capital. Therefore, creation of - Deleted: and change of efficient and productive human resources, development of innovative entrepreneurship Deleted: in Deleted: with programs, structural changes of curricula of formal education institutions, supporting affirmative employment actions of vulnerable groups and establishment of partnership programs between industry and education are some of the initiatives that should be the focus of all stakeholders in the Gostivar Municipality. Deleted: developing Deleted: because However, it is important that all stakeholders work together in restructuring and Deleted: is advancement the local economy since supporting the current job seekers and building Deleted: a the next generation of talents are not stand-alone activities. Job-creation requires Deleted: y concerted effort by all stakeholders. Deleted: and all players must support the Deleted: j Deleted: s Deleted: Deleted: initiatives 1 Macedonia skills assessment_2017 (WB & SP&L).pdf/ Social protection and Labor Global Practice, June Deleted: initiated by donor community, central government and SOCIAL June 2015 the Municipality of Gostivar.

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INTRODUCTION As part of the sub-regional project on Promoting Inclusive Labour Market Solutions in the Western Balkans, the United Nations Development Programme (UNDP) initiated an Deleted: T assessment of the labor market and economic potentials in Gostivar region, with an Deleted: project objective to develop a coherent plan of actions and partnerships for an accelerated and Deleted: a project focusing on inclusive jobs creation. The assessment analyzes labor market dynamics, it evaluates the Deleted: the level of inclusiveness of the vulnerable/marginalized groups and identifies the barriers, Deleted: and current situation which prevent these individuals to access employment opportunities. At the end, the Deleted: if there are certain Deleted: report provides suggestions and remedies on how to overcome these labor market that Deleted: are challanges in order to enhance the participation of these groups in the labor market. Deleted: e Overall, the purpose of this initiative is to undertake a territorial assessment of economic Deleted: d potentials and constraints, skills base, in particular focusing on the vulnerable groups, Deleted: from having equal which shall serve as inputs in designing a diverse and innovative set of employment Deleted: to promotion measures for targeted individuals to increase opportunities for employment Deleted: and Deleted: and self-employment. is Deleted: remedies Therefore, UNDP engaged Visar Ademi, a local consultant, to carry out the field Deleted: inclusiveness assessments, data gathering, and facilitation of the consultation process and formulation Deleted: audit of documents to define the Territorial Employment Partnerships (TEP) of Gostivar. Based Deleted: the local on the developed criteria (size, gravity of the unemployment challenge, economic Deleted: development potential, institutional capacities of ECs, CSWs, VETs, business sector, civil society etc.) Deleted: in target municipalities Deleted: during the inception phase, the Municipality of Gostivar was selected as a TEP location in TEP Deleted: FYR Macedonia. The analysis was conducted during autumn of 2017, following the Deleted: the process indicated in the picture below. Deleted: of However, before proceeding further and in order to conduct an effective labor market Deleted: l assessment, a working definition of inclusive labor markets has to be commonly agreed Deleted: we need to come to a common agreement on the definition as a core of the assessment. According to the OECD, an inclusive labour market is a Deleted: the market that allows and encourages all people of working age to participate in paid work and provides a framework for their development2. At present, based on the assessment in Gostivar the most marginalized groups which are underrepresented in the formal labor market are the ethnic Roma, People with Disability (PWDs), vulnerable women from ethnic minorities and low-skilled workers. The goal, therefore, is to effectively mobilize Deleted: , the talents and resources of these underutilized groups so that they can participate in and benefit from economic growth. Deleted: the Deleted: driving of

2 http://www.oecd.org/employment/making-labour-markets-inclusive.htm

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PURPOSE OF ASSIGNMENT Based on the terms of reference (Annex 1), the specific objectives of this assignment were to:

• Undertake a territorial audit of the local economic potentials, skills base, in Deleted: ¶ S particular focusing on the vulnerable groups, to identify the institutional and Deleted: development individual barriers that prevent certain groups to join the labour market, which shall serve as inputs in designing diverse and innovative set of employment promotion measures for targeted individuals to increase opportunities for employment and self-employment. Deleted: in target municipalities

To achieve this the consultant met a diverse group of stakeholders from public and Deleted: Mr. Ademi private sectors, civil society organisations, business centres and equivalent facilities, Deleted: all employment offices and municipality’s directorates related with local socio-economic Deleted: relevant Deleted: development. Additionally, the consultant was also expected to: the Deleted: business • Ensure that applied methodology and format of TEP is customized to the local Deleted: relevant context and yet adhere to TEP standards and good practices from the region and EU Deleted: to the member states; Deleted: , Deleted: to design interventions under the TEP that meet the • Gather data and conduct a preliminary desk review of relevant documents for the characteristics of the context. municipality as well as the mapping of relevant issues related to the economic, Deleted: Mr. Ademi business and employment potentials, skills levels and gaps of the local labour force, Deleted: would also carry out an institutional, civil society and business map relevant for supporting Deleted: , labour supply and labour demand related activities; Deleted: ,

• Organizing semi-structured interviews with local stakeholders and consultation Deleted: A field visits to the municipality for conducting “territorial audit”. This will entail data process and sharing the preliminary findings from the desk research; Deleted: gathering and/or o • Draft the territorial audit report; Deleted: for organizing Deleted: . • Support the International consultant in conducting the first workshop to present the Deleted: , preliminary findings of the Territorial Audit and identify priority actions; Deleted: , • Draft Territorial Employment Plan, including a capacity development plan and an Deleted: Based on the findings of Territorial Audit, d M&E framework,

• Support conducting the second workshop to present the draft Territorial Audit and Deleted: the International consultant in Territorial Employment Plan to Local Action Group, UNDP and relevant stakeholders, Deleted: s or equivalent

• Consolidate inputs/recommendations received from the consultation process for review/integration in the final document by the International Consultant.

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BACKGROUND INFORMATION Basic information about the Municipality of Gostivar The Municipality of Gostivar extends to 513 km2 at the southern end of the Gostivar field in Polog, surrounded by the mountains Shar Planina and Suva Gora. In the east it borders the territory of the municipality of Makedonski Brod, to Deleted: distributed to Deleted: the west with Kosovo3, to the south to Formatted: Superscript the municipalities of Mavrovo and Deleted: level Rostusha and Kicevo, while to the Formatted: Superscript north it borders the municipalities of Deleted: of the city is as following Brvenica and Vrapciste. City of Gostivar Deleted: before is an administrative, political, business Deleted: have been and cultural center not only for the residents of the municipality, but also for the Deleted: surrounding rural municipalities. In the municipality of Gostivar, the total number of Deleted: , which is approximately same as the gender pattern across the country inhabitants is 83,557 which live in 650 km2 (128 inhabitants per km2), which is above the Deleted: five 2 state average (82 inhabitant / km ). Ethnic structure comprises of: Albanians 66.7%, Deleted: the Macedonians 19.6%, Turkish 9.9%; Roma 2.8%; Vlachs 0.0002%, Serbs 0.2%; Bosnians 0.05%; Deleted: city of and Others 0.08%. The age structure has been favorable with 75.8% falling between 15 Deleted: area Gostivar, and the restsix in the and 64 years, 14.8% from 0 to 14 years, and 9.4% 65+years of age. The gender structure Deleted: settlements consists of 49.9% women and 50.1% men. Deleted: ed Deleted: continuously Education Deleted: the There are 11 central primary schools in the municipality, five of which in urban and the Deleted: with rest in rural areas. In the school year 2014/2015 there were 6,809 enrolled pupils. For Deleted: tion more than 10 years, the number of students in primary education has been continuously Deleted: was only Deleted: the dropping, except in 2004/2005 and in 2014/2015, when the number of enrolled children Deleted: school years was higher than in the previous year. Commented [BS1]: Better to use simple graphics to illustrate this kind of quantitative time-series data. Ever since the school year 2000/2001, the number of students has fallen by 5,022 Deleted: From students. In four public high schools, gymnasiums, medical, economic and technical, in Deleted: felled the school year 2014/2015 4,467 students in total, were enrolled. Teaching is conducted in Deleted: the three languages, Macedonian, Albanian and Turkish. There is also a private college (high Deleted: secondary school), Yahya Kemal. FON University and International University of Struga also exist. Deleted: in schools in Gostivar Workers' university "Braka Miladinovci" also delivers language training (English, Deleted: In Gostivar t Albanian, Macedonian, German, Italian and Turkish) and offers courses in natural Deleted: the sciences, as well as in retraining or further qualification for several occupations. Deleted: do Deleted: operates Deleted: , which delivers courses Deleted: in

Deleted: 3 References to Kosovo shall be understood to be in the context of Security Council resolution 1244 (1999). , then for Deleted: for

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In the municipality there is a state institution for care and education of children, and it Deleted: in 2014 also has nursery kindergartens in which 465 children and one private institution. Deleted: was Commented [BS2]: Needs rewording. Besides a day care center for persons with disabilities, there are no other institutions for Deleted: The participants confirmed that in the municipality of institutional protection (homes, institutions, etc.), or for non-residential care (day care Gostivar, b centers, shelters, etc). This number has been steadily rising since 2005, with few Commented [BS3]: Which number? Number of children or needy adults requiring day care? exceptions in 2007 and 2009, and the capacity of the state facility is not sufficient to accommodate all children.

The coverage over the last 10 years for children aged 5 to 9 in primary education is above Commented [BS4]: If this refers to school enrolment better to use either “school enrolment” or “schooling rate”. 85%, while for children aged 10 to 14 it is about 70%. Primary schools cover two-thirds of Deleted: years villages/rural areas, but in the part offer only teaching from 1 to 4 grade. The municipality Deleted: are in about organizes transportation for students from half of the villages where needed. Commented [BS5]: Meaning “some of them”? According to the 2002 census, about 25% of the population has secondary or tertiary Deleted: the Deleted: education, about 53% have completed primary education, and the rest with no or s Deleted: F incomplete primary education. Illiteracy among the young is negligible, while among the Deleted: the elderly (60 or older) is approximately 19%. Deleted: it is Infrastructure Deleted: , Deleted: the municipality organizes transportation. The road infrastructure of the municipality of Gostivar consists of 279 km of roads, out of Deleted: are without which 97% are asphalt. The most important corridors for transit traffic are: the highway Deleted: or incomplete primary M-4 Skopje-Ohrid and the regional road Gostivar-Debar-Ohrid, while Gostivar is Deleted: in connected also by railway traffic through the railway line Skopje-Kicevo. In the Deleted: from the age of municipality of Gostivar, over 80% of households are covered with public water supply Deleted: system, and over 45% is covered with public sewage system. However, many households Deleted: about use septic tanks (about 40%). All settlements in the municipality have installations for Deleted: the electricity. Regarding homes, according to the 2002 census there were 23.22 m2 living Deleted: the Deleted: area per inhabitant. the Health Regarding the health infrastructure, in Gostivar there are two public health institutions - a health center and a general hospital. In 2014, the municipality had 128 health and social Deleted: care facilities, registered as legal entities. In 2010 most of the villages were without a doctor (about 60%). In 2009, there are approximately 1,000 physicians, 2.5 nurses, and Commented [VD6]: This should be double checked 0.01 pharmacists per 1000 inhabitants in the municipality, which is below the national Deleted: 0.01 average. Economic outlook In 2015, 2.392 micro, small and medium business entities were registered, most of which are micro (81%) enterprises. Commented [VD7]: How many are active?

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The business entities are mostly engaged in trade (41%), manufacturing Deleted: from (11%), and others (10%). Deleted: the Deleted: activity Agricultural land in 2015 was 63,413 Deleted: industry hectares, 90% of which were pastures. Deleted: with Arable land comprises mostly plots Deleted: while all other activities account for less than and gardens. Most grow corn, wheat Deleted: of which from cereal crops, vegetable potatoes Deleted: From and onions, and fruit, apples, plums and pears. Deleted: a Deleted: are From the total number of 2,392 private economic operators in the Municipality of Deleted: are Gostivar, 198 are in construction; 915 in wholesale and retail trade; 180 transport and Deleted: n storage; 217 accommodation facilities; 8 financial and insurance activities; 186 Deleted: from professional, scientific and Deleted: the territory of technical activities; 29 in Deleted: for administrative and service auxiliary activities; 5 public administration and defense; 28 Commented [VD8]: Private economic operators registered in public administration and defense? education; 129 health and social Commented [VD9]: Same comment as above protection activities; 20arts, entertainment and recreation and 88 other service activities.

Fig. Breakdown of companies by sector The economic picture of the Municipality of Gostivar shows the diversified structure of the economy. Small and medium-sized enterprises dominate: they account for over 90% of the total number of enterprises and provide the bulk of employment. Deleted: . However, these Deleted: enterprises Among the most important economic sectors in the municipality are: wood processing industry (furniture), construction, food processing industry, textile industry and trade. The wood processing industry is one of the most competitive and show increasing trend of investments in production capacities of such companies. The tradition of textile manufacturing continues with well-established companies and with the formation of new companies, which mainly work by supplying the foreign partners. Main characteristics of local economy

The trend of private sector companies Deleted: investment investment in their business is low and Deleted: investing unfavorable, hitting the lowest value of Deleted: very investment in 2014.

The share of investments in fixed assets in the Deleted: basic Polog region is way below the national average. Deleted: l Deleted: overall

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As it can be seen from the picture no xx, the percentage of investments of local Deleted: on right, the percentage of investments of local ... companies is way below the national level, which is a result of local companies moving its Deleted: as a result of local companies moving its operation in ... operation to other cities, primarily Skopje, the capital of Macedonia. Many interviewees referred to political pressure, corruption in public sector tenders, intimidation to Deleted: told the author of this reportreferred to constantly ... withdraw from auctioning etc. Deleted: ve practices Deleted: on to apply forin public work ... During 2011-2015, the total value of construction works in the municipality of Gostivar was Deleted: in the municipality of Gostivar was are invested …uro... Euro 76,036,699 or on average Euro 15,2 million per year. Construction works in residential buildings account for 91.91% while transport infrastructure for 0.03%. As can be Deleted: participateaccount for with …1.91% while, ... seen from the structure of investments, one can easily conclude that there are no added Deleted: while the lowest share of value or spillover effects in the economy. The construction sector –predominantly a Deleted: onlyfor withis ….03%. As it …an be seen from the ... family business in Gostivar- offers limited jobs for young people and is not attractive in terms of career prospects and pay.

Hardly one can find a production facility or companies using hi-tech equipment. Many of Deleted: , you ... the production facilities that were established in former Yugoslavia (Goteks, Silika, Deleted: active from ex…Yugoslavia (Goteks, Silika, Dekon) ... Dekon) now either are sold or remain in ruins. Moreover, programs employing youth are non-existent besides those that are promoted nationally (Employment Agency, UNDP). There is however, one example of foreign investment that started its operation in Gostivar. The company is PRG, UK based company (PRG) that produces bio-compatible products. If successful operation continues, the management considers opening a Deleted: and as management is saying i…f everything goes as... second factory in Cegrane, a nearby village. Deleted: Deleted: planned they will soon openopening a up the ... Labor market

One of the biggest economic concerns in FYR Macedonia is chronically high level of Deleted: the incessant high level of unemployment that for ... unemployment which has long been above 30%. Needless to say, the country has been putting much effort in the past years on solving this issue, ensuing in some positive results that can be statistically registered with June 2017 unemployment recorded at 22.6. Nevertheless, this is still a very high rate, especially if one takes into account the uneven dispersion of unemployment throughout the country as well as the high level of inactivity. Macedonia’s economy faces significant challenges to spur higher economic Deleted: . growth, which would stimulate labour demand for a skilled, modern workforce. Deleted: Macroeconomic realities and failures of labor market adjustments have resulted in low Deleted: as a country is facing …aces significant challenges to ... job creation and high unemployment. Deleted: -economic realities and the …ailures of labor market ...

In this context, promotion of sustainable and inclusive local economic development can Deleted: As the economic situation in the country is still unfavorable, in order to reduce the unemployment rate the be considered as part of the solution. Labor force development plays a big part to this. country’s development plan focuses on p Namely, across the country, industry groups and educational institutions have revealed that skill gaps undermine competitiveness and economic growth, especially skills mismatches and lack of capacity among governments (central and local) and business entities to collaborate effectively in pursuing better employment outcomes in terms of quantity, quality (more productive) and inclusivity of jobs.”

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As a result, Macedonia’s employers and employees face a workforce dilemma. Analyses by the Center of Labor Market Analysis reflected in their workforce survey of 2012 and Deleted: 0 interviews the consultant had with multiple representatives from the private sector indicate that while the labor pool is growing (supply side), it does not provide the skills needed by employers (demand side) to be competitive and to grow in today’s market (country’s competitive position). Employers are nearly unified in their criticism of the education system Deleted: an that produces graduates with limited practical experience and no soft skills transferable to the workplace. This is largely due to a lack of experiential education, competency based curricula, pragmatic guidance, which fails to meet the needs of the business community. The burden falls most often on employers to provide practical training, usually on the job. While in- company training is good practice, the scale of the skill gap requires a cost and internal training capability that many enterprises cannot afford, creating a disincentive for businesses to hire new employees.

The dilemma has impacted job seekers and contributed to lower overall economic growth. It is especially problematic for micro and small enterprises (MSEs), which make up a large proportion of employment in Macedonia. MSEs’ size and limited capacity make Deleted: s their workers’ skills, experience and multitasking capabilities much more critical for Deleted: that growth. Additionally, MSEs often lack necessary resources to effectively train and Deleted: the maximize the productivity of their staff. As a result, sustained employment growth within Deleted: necessary Macedonia must include the development of a pipeline of skilled workers for microenterprises, including bolstering the capacity of small businesses to organize and train their workers. Matched with micro-finance mechanisms to help support the growth of small businesses makes it feasible for the companies not only to increase the number of employees but also to improve the quality of jobs provided.

As one of the most important regions in Macedonia, Pollog region, has not been exempt Deleted: As consequence, Pollog region is not an exception from the general rule. from the mentioned “unemployment plague”. In fact, according to the EU, Pollog has an Commented [BS10]: Source? unemployment rate of 40%. Additionally, the region consists of 9 municipalities spread on an area of 4.700km2 and inhabited by 238.000 people, or 11.8% of the country’s population, according to the census of 2002. Despite low population density (50 Deleted: the inhabitants/km2), there is a high concentration of population in two major centers, Tetovo and Gostivar and a small number of other municipalities. In fact, Tetovo and Gostivar account for 150.000 of the regions’ inhabitants, characterizing Pollog region with high population density in urban centers and large uninhabited agricultural and natural land.

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METHODOLOGY A comprehensive methodology was adopted in identifying and evaluating the Formatted: English (United States) deficiencies of having an inclusive labor market: supply, demand and intermediaries Deleted: is working as facilitators/catalyzers in the labor market equation. On the supply side, the Deleted: model analysis looked at formal and non-formal education providers, assessing the quality of Deleted: the Deleted: the education and quantity of profiles registered and number of graduates from these the Deleted: institutions. On the demand side, the approach was to evaluate the growth potential and Deleted: the job-creation potentials of companies in Gostivar’s major sectors. The intermediaries, Formatted: English (United States) “training companies, consultancy companies and other non-formal education providers, Formatted: English (United States) are a very important part of the equation in providing quick solutions to companies in Formatted: English (United States) finding employee candidates from all groups of people including marginalized groups-- Deleted: report such as ethnic Roma, people with disabilities (PWDs), women from all ethnic grups and Deleted: middle-aged citizens who are out of labor market due to obsolete skills and Formatted: English (United States) competencies were also part of this assessment. Numbers and capacities of major Deleted: that come out of groups were quantified during this assessment. As it can be seen from the picture below, Deleted: Deleted: main sectors of the methodology implemented in order to do the analysis and provide recommendations Deleted: for future action was divided in five phases: Deleted: region Commented [BS11]: Quotation needs to end somewhere. Deleted: looking for Deleted: employment Deleted: of Deleted: W Deleted: Deleted: that Deleted: becuase Deleted: of Deleted: lack of new Deleted: demanded by companies-- Deleted: a Deleted: Their Deleted: n Picture 1. The process of labor market assessment Deleted: valuated Deleted: form • Labor market assessment: It includes the stockpiling of all related Deleted: l documents/reports/analysis available on the topic. Once it was identified and allocated, the consultant studied the data and information and pinpointed main areas for further investigation. The relevance of the materials available and the period of the Deleted: Of course publications were the main criteria in developing a database of available material. It Deleted: t was important before embarking in the field and meeting stakeholders in each side of Deleted: Deleted: the equation to have a solid understanding of the economic outlook and very characteristics of labor market dynamics for Gostivar region.

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During this phase, the consultants also identified relevant stakeholders assessing their willingness to meet and discuss the labor market challenges and opportunities, gauging the level of activity across the economic sectors that were the subject of this assessment. • Field visit: this includes developing semi-structured questionnaire that assisted the Deleted: the consultant in conducting the meetings with selected number of participants from all three parts of the equation. The consultant carefully selected the organizations, Deleted: companies and individuals to meet so that it has the best view on how the functions of labor market in Gostivar. During the next phase, the consultant conducted face to face interviews with more than 20 representatives of all stakeholders in Gostivar. The full list of the meetings is annexed at the end of this report (annex 2). In addition, a partnership with Municipality of Gostivar was established which served as liaison organization between the local community and the consultant. After the field visits and data gathering, the task was, through data analysis to identify Deleted: em the bottlencks and inefficiencies that prohibit certain number of groups to fully access Deleted: a the employment opportunities as well as to understand if there are defficiencies to Deleted: that currently exist inclusiveness of all groups in the labor market. It followed by the recommended list of Deleted: as well as project activities that would re-establish some of the broken links in the labor market Deleted: KNOW-HOW and provide some examples of know-how and best practice initiatives that could Deleted: initiatvies upscale the integration of marginalized groups in the labor market. Deleted: After Deleted: analysis of • Events: Following secondary data analysis, information collection, and interviews with Deleted: and stakeholders, the project conducted presentations to companies, organizations and Deleted: gathered institutions concerning the first round of findings and recommendations of potential Deleted: conducted activities/initiatives that could help remove some of the labor market barriers that are Deleted: will organize under the local government’s domain. Facilitated group discussions aimed at jointly Deleted: a developing recommendations for future actions. The goal has been to propose actions Deleted: with that could be divided in two groups: transactional (quick fix) activities that can be Deleted: to present the Deleted: draft implemented in the short term, and transformational activities (scalable and replicable Deleted: the across the sectors). The members of UNDP and Municipality of Gostivar would Deleted: and undertake these activities in the future in order to improve the inclusiveness of the Deleted: lead local labor market and meet the private sector’s workforce demand. Deleted: to • Territorial Employment Plan: Soon after the event, all of the ideas and initiatives Deleted: control of would be noted and inserted in the final version of the territorial employment plan Deleted: work that would be developed in a detailed manner including the action plan of project Deleted: will follow the event activities, budget for each initiative as well as stakeholders involved in the project. Deleted: is After the finalization of territorial employment plan, a MoU will be signed among Deleted: marginalized groups in Deleted: Municipality of Gostivar, the UNDP office in Skopje and relevant organizations to the Deleted: for talented people. ensure commitment and ownership for the project activities and their implementation Deleted: s in due period. Deleted: version Deleted: is developed

MAIN FINDINGS Deleted: will be signed

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Based on the assessment of the data and information and meeting with main stakeholders it is evident that there are many barriers for job seekers in the labor market. However, it is clear that certain groups are more vulnerable in accessing labor market Deleted: P opportunities compared to the rest of the society. Thus, ethnic Roma, persons with Deleted: disabilities (PWDs), vulnerable women and middle-aged people with no skills and education have more difficulties in finding the right equilibrium in the labor market and are traditionally being more excluded from the career and job opportunities. • Limited absorption capacity of private sector companies: Specifically, in Gostivar, according to the 2002 census, the economically active population was 19,631 (40%), of which 9,450 (48%) were unemployed. Women are the majority in the economically inactive (65%) population and it is interesting that mostly unemployed women have Masters degree (30 out of 45%) which leads to a conclusion that there are no sufficient jobs matching the need for this profile. However, another reason could be that with the Ohrid Framework agreement there are many employment opportunities in the public sectors, which became very attractive for employment especially of young women in the recent year. The majority (54%) of these unemployed are without education or primary education. From all job seekers the data had registered 96 persons with disabilities as unemployed, most of who (58%) were without education or with primary education and 486 are ethnic Roma. However, even though there is no clear number of jobs announced in the Municipality of Gostivar most of the companies are family owned with limited growth capacity, and as a consequence the number of jobs announced by them is very small. Therefore, the number of applicants surpasses the number of jobs published in Gostivar through various communication channels making it more difficult for vulnerable groups accessing information on job opportunities.

• Inequalities among specific groups in Labor Force Participation: Labor force Commented [BS12]: Extremely valuable findings! Can you also indicate which labor force survey you take into account and its date? participation is particularly low among Roma women and ethnic Albanian women: Commented [VA13]: It is series of document I consulted. This approximately two thirds of Roma women of working age do not participate in the is a summary of all documents. Sommary includes documents from: 1. Socialna Inkluzija A EU project “Fostering Social Incusion” 2016 labor force, and this is 86 percent among ethnic Albanian women. However, when 2. LABOR MARKET INEQUALITIES IN FYR MACEDONIA: NEW EVIDENCE ON GENDER AND ETHNICITY. World Bank June 2015 controlling for background characteristics, Roma women are more likely to participate 3. Looking for Skills in the former Yugoslav Republic Macedonia . World Bank publication in the labour force than their female non-Roma neighbors. This indicates that the low engagement of Roma women in the labor market is likely to be related mostly to labor

market entrance barriers explained by observable factors such as age, family structure Commented [BS14R13]: Perfect. Then you can mention these and education: inequalities in these correlates of participation (especially education) in the footnotes. generate vast differences in access to labor markets, when comparing Roma to non- Roma. At the same time, among Roma, the gender effect on participation is stronger than among non-Roma neighbors. Regardless of marital status, Roma women are 33 percentage points less likely to participate in the labor force than Roma men. Among non-Roma neighbors, this is only 30 percentage points. Critical for policy, education Commented [VD15]: In fact the difference is not as big as one would have expected

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levels start to have a correlation with labor force participation among Roma earlier than they do among non-Roma neighbors. • Political influence and social norms: it is very evident that Gostivar as most of the cities in Macedonia faces a huge political pressure when it comes to employment of vulnerable groups. The huge influence that politics has over the decision makers in the Deleted: these labor market leads to discouragement and inactivity of these people. Lack of personal Deleted: Moreover, l connections and nepotism are cited as a reason for inactivity as well. On the other hand, for women in particular, social norms play an important role in for example regarding women as “not cut out for business” form an additional constraint. For the poor, who include, for example, many Roma, financial constraints present a significant barrier to inclusion in the labor market in general, through their impact on education. The negative political influence thus leads to discriminatory policies, no trust to institutions, and labor market dynamics. Because of these influences that the politics plays in the labor market it results in creation of many deficiencies and market distortion outcomes, the main being obstruction of employment of vulnerable groups (especially ethnic Roma and PWDs). • Quality of Education: Skills and level of education are key determinants of labor market participation. One reason for underperformance in this arena may be that the education systems in the region continue to place too much emphasis on conveying facts and knowledge, instead of teaching problem solving and critical thinking. Yet it is exactly these latter skills that more and more firms seem to be seeking. A weakness of the WB education systems that is most often emphasized is a clear disconnect between ‘school’ and ‘work’, which leads to lack of practical skills. Those who complete secondary education, for example, are 20 percentage points more likely to participate in the labor force than those who do not complete any education at all. However, most women, a total of 51 percent never goes beyond primary education. Among certain ethnic minorities, the pattern is similar: for example, among Roma, 47 percent of women and 34 percent of men never completes secondary education. The most prominent reason for Roma to leave school before completion of secondary education is that costs are too high. Moreover, among young Roma aged 15-19, many who are not enrolled in school also do not have jobs: only 50 percent is either in school or has a job. The remaining half is either unemployed (8 percent) or inactive (42 percent). Among non-Roma neighbors of the same age, as much as 76 percent are in school or working. In fact, 15 to 19 year old Roma in Macedonia show the second highest level of inactivity, excluding those enrolled in school, among Eastern European countries surveyed. Eventhough there is no information about this situation in Gostivar according to the management of “Mesecina” an NGO that works in the field of promotion of ethnic Roma rights approximately the same situation is in Gostivar as well. Gostivar on the other hand also has very large number of people that don't have national IDs and passports, Deleted: ’

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which further complicates their registration in the formal education institution in the Deleted: d town. Approximately 20% of the population is without any documentation, which Deleted: even more makes them invisible neither in the education system nor in the labor market. • Information about the job prospects: The lack of data about what skills exist and what skills will be needed in the future has been a long-standing concern not only in Macedonia but in Europe as well. In the short term, information on emerging skills needs in Gostivar is crucial, especially as several sectors already face skill shortages (agriculture, food processing, construction), while in the long term the information about the future development of skills and competences is even more important for future job entrants. • No career orientation programs: there is hardly any information about job trends and information therefore the Municiplaity needs to provide career orientation program, either at the education institutions or at the Municipality itself. The limited amount of labor market information is provided by the Employment agency but accessing it is very difficult especially for PWDs and Roma without primary education. • Lack of employability skills trainings: According to employers in Gostivar employability skills such as writing your CV and Motivation letter, how to bahave in job interview, communication with employers are considered very important when applying for a job. Similarly, according to Occupation and skills survey,conducted by MyCareer (an NGO that works in the field of career counseling) as part of the EU funded Cross Border project the most dominant were soft skills pupils are not taught Deleted: personal characteristics in school. Therefore, it is very important that trainings on career portfolio is provided to job entrants. • Work related skills are missing: In addition to formal education levels, a lack of foundational and job-specific skills can hinder labor market entrance. According to majority of company representatives met by the consultant revealed that many employees in Gostivar lack responsibility, reliability and commitment. Indeed, obtaining a diploma does not always guarantee to employers that all the needed skills for the job have been obtained. Moreover, especially among women, the types of study programs chosen do not reflect what is most in demand on the labor market. Long-term joblessness further aggravates the skills disadvantage, since work experience often forms an important component of what employers take into account in hiring decisions. Although training programs are often available, awareness on the existence of such programs is low. Recent policy-measures on a state level have improved access to tertiary education, but important steps remain to be taken to complete the transition to an “access for all” model, especially at lower levels of education.

• Outdated curricula in Vocational Schools: At the secondary level, the collapse of vocational schools may have been too abrupt, stripping students of a viable option to

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obtain technical skills that are in strong demand, especially now when the FDI’s are on the raise in each of the countries. Recent evaluation shows that foreign investors, such as a British company investing in Gostivare, are looking more for candidates with technical skills and not with University diploma. The FDIs provide their own management and many times these positions are likely to be filled from the home Deleted: practices country, while deficiencies continuously arise for positions requiring technical skills. On the other hand, young people are abandoning vocational schools because these schools failed to adjust to the new realities. Nevertheless, there is evidence to suggest that domestic firms still seem to want vocational and technical skills. It seems easier for students who have technical or vocational training to transition into a job than for those who have only a general education. • Mobility: The in-country mobility and flexibility among vulnerable groups is very low. They are unwilling to consider a job outside their hometown because wages and compensation packages are not so attractive taking into the consideration the nature of jobs they are performing. Moreover, restricted mobility, especially among women, forms an important constraint.

• Immigration: There is a growing concern over the young people leaving Gostivar to Deleted: However t find work mainly Germany, Switzerland, Italy and other W. European countries is growing rapidly. Gostivar traditionally has had a very strong diaspora and ties with them are strong even nowdays especially when it comes to employemnt of young people. According to a research conducted by PRIZMA, Gostivar has highest immigration after Ohrid. The number of high school students from 2005 to 2015 according to PRIZMA has been reduced by twice (from 5.900 in 2005 to 3.200 in 2015) which is concering when it comes to designing the long term labor market strategies.

• Talent management is not an integral part of the company values: The human capital Deleted: M and related investments in education and training are emphasized as important policy levers to foster growth, employment and competitiveness. However, in Macedonia in general and Gostivar in particular, companies still consider training for skills development of their workforce a cost and not an investment. All firms, but particularly SMEs, need to overcome various obstacles to investing in employee training. These obstacles include lack of time, workload pressures, resources and cost; complicated paperwork/red tape; lack of enterprise/managers’ skills, experience, data and support; an operational culture that does not include training; learning needs that are not met by the training offered; lack of awareness; and market position. • Capacity of Training providers and consultancy companies: During the field visits it is confirmed that one of the greatest obstacles to SMEs participating in skills development and training activities is the lack of customized trainings. The companies indicate that available training is often generic, and the more

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sophisticated management and technical training they require is either not available or too expensive. Policies could thus focus on offering incentives for formal training organizations and providers to recognize informal skills development with appropriate qualifications or diplomas. • Labor market laws and regulations: In addition to inequalities in incentives and skills, various barriers to participation exist among women and ethnic minorities, including social norms and discrimination, limited childcare and elderly care provisions, a lack of flexible work arrangements, and limited mobility and access to networks and productive inputs. For example, a very large group of women leave the labor force due to household and family care responsibilities. Women from ethnic minorities often face stronger pressures from their family to become housewives than ethnic Macedonian women. Moreover, social norms often determine what types of jobs are deemed appropriate for women. Ethnic minorities, as well as women in general, may also face outright discrimination on the labor market. Child and elderly care options remain scarce and preschool enrollment rates are low, standing at only 26 percent among girls and 25 percent among boys, as compared to an ECA average of 75 percent and 76 percent for girls and boys, respectively. In addition, flexible and part-time work arrangements are largely lacking in Macedonia, affecting women in particular.

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Commented [BS16]: One important structural revision could be CONCLUSIONS AND RECOMMENDATIONS the following: creating a summary table which connects impediments/bottlenecks (as indicated in “main findings”) and recommendations. Would be crucial to see which recommendation In this section will be providing recommendations and suggestions on which activities (either transactional or transformational) has potential to address should be considered by donor community and Municipality of Gostivar in creating more which impediment(s). Establishing these structural linkages would be a great contribution to this already-good assessment report. inclusive labor market model. For this reason an evaluation grid was designed including the following factors: a) Impact: This criterion is addressing questions like: What is the impact that the activity would have? Who would benefit from this impact? What is the short-term impact? Would the impact improve the labor market efficiency? Is the activity creating skills that are deficient in the market? b) Inclusiveness: Activities and initiatives that have been proven as good practice in terms of incusivness will be given priority. c) Scalability: scalable activities providing solutions to vulberable groups will be highly valued. In addition, the suggested interventions must be easy replicated accross economic sectors. d) Time: The idea is to have structural changes in creating a more efficient labor market equation, thus creating a transformation model of how the labor market operates. However, the need of short term solutions is important as well in creating the fast- track talents for the immediate needs of the companies. Therefore time is very important factors in identifying solutions that will overcome current inclusive labor market barriers. e) Sustainability: are these activities/services sustainable? In other words would it be possible that the suggested activities/initiatives would exist without permanently pouring funds by the donors. Are the clients of the service willing to pay? After the field visit, each of the identified ideas or solutions was inserted in the grid and weighted properly. Once the evaluation was completed the ideas were then grouped into more programmatic based solutions. All of these recommendations / suggestions are explained bellow. The first column consists of bottlenecks/ impediments that prohibit having a labor market inclusive model. The following column contains ideas/suggestions of activities that could lead to overcoming these bottlenecks based on the assessment in the field. Of course there could be additional ideas to be included which will be discussed in the second round table with main stakeholders. The figure bellow shows only an illustrations of how these impediments interlink with activities that provide solutions and more detailed description of each activity is provided bellow the figure.

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• Internship and Job placement program, • Externships, Apprenticeship and any other form of work related programs Limited capacity of private sector • Voluntary work • Entrepreneurship program

Labor market inequalities • Scholarship fun for persons coming from vulnerable groups

Political influence and social norms • Capacity building activities and incorporation of transparent model of operation

• Career Centre provides labor market information and career guidance to participants, Quality of education • Participation of education with private sector companies i.e. guest speakers, visits etc • Industry-education partnership programs

Lack of labor market data • Establishing Career Centre at Municipality level

• Mentorship program, Practical work related skills are missing • Skills based trainings • Incentives to start a business program, Mobility/Immigration • Financial incentives to companies operating in Gostivar, • Brain gain programs No career orientation and talent • Career Centre provides training on career orientation, career counseling and management program career guidance to students in the education, • On the job training, Lack of employability skills programs • Entrepreneurship program • Business accelerator Capacity of labor market intermediaries is • Capacity building activities of institutions weak

Labor market laws and regulation • Improved incentives for job seekers and companies

Commented [VA17]: PLEASE SEE THE M&A CONCEPT AT Short-term transactional activities THE END OF THE PAPER. THIS WILL RESOLVE THE INEQUALITIES IN THE LABOR MARKET • Internship and Job Placement Programs. Almost all of the respondents agreed that internships are an excellent activity for jobseekers and students get the practical skills not attained in the formal education system. The interviewees agreed that the internship program are a true benefit not only for students but, are also for companies which in this ways could build the much needed workforce. The main idea behind strengthening internships is to provide avenue to gain working experience, develop skills and social capital crucial when seeking employment. An internship is an excellent way to determine to find the future job especially for vulnerable groups. • Apprenticeships: are more structured dual-track approaches, combining part-time, workplace-based training in a company with classroom instruction in a vocational school, usually for members that are traditionally excluded from labor market which will promote the inclusivness model in Gostivar. Well-developed apprenticeship could be stimulated in partnership between the private sector and education institutions in Gostivar as one of the affrimative actions to promte the inclusivness of labor market. These companies than could be promted as champions of change in Gostivar and influence others to recruit more participants traditionally excluded from the labor market opportuniites.

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• Volunteer Service learning activities: All public institutions should incorporate a voluntary work designed to provide service while also offering for participants a learning opportunity. Besides public institutions a partnership with civil society could be established and supported with donnor funds as well. • Mentorship program: in order for these practical skills program to function successfully the companies must nominate a mentor that will guide the learning in the company setting of an intern or volunteer in the company. It is very important for the learning cycle that interns learn as much as they can from these experiences so they increase the work related skills once they look for the jobs. • Establishing Career Centre at the Municipality: the Career Centres are the main hub of industry-academic cooperation. The role of Career Centre is not only helping job seekers choose the right career matched with personal competencies and skills but, also maintain a permanent link with companies in making them integral part of the education process. This assessment suggests Municipality to establish a Career Centre as part of their department for Economic development serving for job counselling, career orientation and guidance of people having difficulty accessing and finding job opportunities. Another responsibility of Career Centre is to do a skill forecasts and anticipation systems to better inform professionals in career and education guidance services as well as school leavers and job seekers about job opportunities on the labor markets. Employer surveys to measure the demand for skills should be carried out in some, but rarely on a regular basis with exception of the regular surveys conducted by the public employment services in Macedonia. • Skills based training programs: If the Career Centre is established a partnership with training providers and civil society organization could be established in developing and delivering soft skills trainings. These have been shown to have an equalization effect among groups with lower formal educational attainment. • Provide financial Incentives: Incentivize work among married women and women with children, through awareness raising and provision of affordable care facilities outside the home. Additionally, tax exemptions and other forms of financial incentives could be used to encourage firms to train their labor force. However, policy could also focus on connecting employers and educational institutions better, by establishing coordination mechanisms and supporting industrial associations. Long-term Transformational Activities • Career Counseling Program: The career counseling should be incorporated in all levels of the education starting from the primary up to the tertiary level (available in Gostivar) making future entrants in the labor market aware of the employment trends and characteristics so, the decision of the career choice is taken by him/her and not by

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someone else. To succeed a priority should be given to increasing investments in early childhood career education, among members of vulnerable groups. • Scholarship fund: A special scholarship fund in partnership with private sector could be established for talented people to continue the education as a motivation for the others to continue education leading so that the number of participants from vulnerable groups attending educations increases. • Entrepreneurship as a job creation activity: Countries can foster the creation of new jobs and increase the demand for skills by encouraging entrepreneurship. Municipality could play a very important role in promoting the entrepreneurship as an activity among youth especially social entrepreneurship as a very modern concept in Europe as well. Municipality could support the innovative ideas to resolve long-standing issues such as collection of medical waste, PET, garbage or environmental actions for citizens of Gostivar. This partnership could lead to more efficient and effective solutions to issues and problems that citizens of Gostivar have. • Business Accelerator: Business Accelerators are very important support to new entrepreneurs. The accelerator is a business toolbox designed to help future entrepreneurs build and grow their businesses. BA members typically get some free space with access to professional business advice, interviews and live business workshops catered to meet their ongoing business needs. The Municipality of Gostivar should provide such facility in forms of cubical to future entrepreneurs that have a business idea and would like to test it in the market. Of course, such support should be limited in time so that more entrepreneurs participate in the program. • Industry-Education partnership programs: the local government should adopt a relevant methodology on VET and Adult Education based on the needs of the private sector. This would allow for better-informed and more relevant planning of the VET system provision by the key stakeholders. The changes of curricula could be done in partnership with strategic company that possess a KNOW HOW or partially through introduction of new elective courses traditionally not available in the vocational schools. According to the law on education these curricula could be changed in amount of 30% without permission of the Ministry of Education. The development and delivery of these courses could be done in partnership with experts from the companies in Gostivar. Policy and legal reforms • Improved work incentives for individuals and employers: it is an impediment that work incentives for individuals and companies are provided so that integration of vulnerable groups in the labor market is improved, such incentives could include: - Rationalize existing schemes aimed at subsidizing employment of vulnerable groups,

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- Increase the level of progressivity of labor taxation, either directly (through the elimination of the reference wage, for example) or indirectly (through the introduction of a negative income tax). - Equalize the retirement age for men and women. - Reduce the costs associated with hiring and firing, especially those that affect youth who have a longer working live ahead of them, - Introduce stricter enforcement of discrimination laws and regulations on labor conditions, particularly in the private sector. • “Brain Gain”: Immigrants returning home can bring back knowledge and experience of use to their home country. Gostivar has a strong community living abroad that Deleted: o could play an important role for new economic development model if right incentive is provided. For example, Poland provides financial support to municipalities that invite returnees and provide them with housing; Estonia has developed a specialized website aimed at connecting Estonians living abroad with possible employers in Estonia; and several countries in Asia have developed training and business-counseling services offered to return migrants who want to set up businesses. Finland, Italy, New Zealand, Portugal and Spain provide income-tax concessions to highly skilled nationals returning to their home country. • Capacity building of institutions: the capacity building of institutions supporting the labor market inclusivness is crucial. Many of these institutions are either understaffed with limited capacity to support the labor market dynamics or are the instrument in the hand of politics. Capacity buiding activities could be provided to LED office to promote human capital as a main asset to attract foreign and domestic investment in additon to promotion of natural resources traditioanlly promoted by Municipalities. The best example is NALED program in Serbia focuses on 12 criteria to support the Municipalities attract more of the FDIs. Other important institutions are professional associations/clusters especially in training them how to create the market intelligence reports on what are the future trends in products/services in each sector. Lastly, a capacity building of recruitment agencies and portals providing job match making services.

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Monitoring and Evaluation System A monitoring and evaluation (M&E) system with sound measurement of project outcomes is critical to ensuring that activities have demonstrable impacts on labor market interventions, which are used as a tool to guide project management. Performance monitoring will allow UNDP and Municipality of Gostivar management to continuously assess results and focus resources in the most cost-effective areas, making tactical adjustments as needed. During the initial phase of launching the project activities owners of activity together with its partners should begin deploying M&E systems to effectively collect, evaluate and disseminate information on project activities and outcomes. The M&E system shouldl use the following elements: • Sharing information and M&E Database: All appropriate information, including a database for aggregating and reporting on project data, technical reports, grant and subcontract information, and project deliverables should be available to UNDP and licensed project counterparts. • Working with partners. Engaging partners in M&E efforts is an effective way to build counterpart capacity and collect data in a cost effective manner. All partners engaged in affiliated activities are expected to contribute to M&E efforts. M&E requirements will be written into all grants, sub-contracts will receive guidance, and training, to carry out M&E activities. • Integrating data collection into project activities: While M&E activities will focus on quarterly reporting, the collection of data will be an ongoing task for the implementers and its partners. • Inclusive model into the PMP: Inclusiveness is a critical factor in efforts to promote growth of employment and broad based economic development. The PMP will monitor the extent that 1) women, PWDs, ethnic minorities are able to access and benefit from activities; and 2) all activities effectively provide vulnerable groups with the information, knowledge and skills needed to access project opportunities. • Indicators and Monitoring. The project will develop PMP indicators measuring results of specific activities. The proposed indicators and targets in the proposal shall be further reviewed and approved by UNDP and Gostivar Municipality representatives at the beginning of project implementation, with sub-indicators targets based on respective project implementers network strategies. • Mid-Term Program Evaluation: An external evaluation will be conducted at the mid-point of the project, providing an independent review of: i) progress toward achieving desired results; ii) relevance and effectiveness of interventions; iii) indicators and results measurement; iv) partners; v) monitoring, reporting & record-keeping; and vi) project management. Recommendations for feed-back into the project implementation and future designs will be included for each section, as well as any specific recommendations for the final evaluation. • Ongoing Information Management: The project implementers should maintain an ongoing database of program results and activities, tracking and updating all program indicators on a quarterly basis. The database should be modified as necessary.

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• Indicators & Targets: It is anticipated that indicators and targets will be selected and finalized in cooperation with UNDP and Municipality of Gostivar during the startup period. Indicators required for the purposes of standard and consolidated reporting will be included as necessary. Reporting

Annual Work Plan First year and each subsequent year

Annual Program Report Formal report outlining all program activities and achievements, performance against indicators, and

lessons learned.

Quarterly Program Within one month of the end of each three-month Performance Reports period

Quarterly Financial Reports Within 45 days of the end of each FY quarter.

Monthly Briefing Reports Reported performance against indicators, summary of achievements per month, and potential challenges to upcoming plans.

Interim (Mid-Term) Evaluation At such time as may be mutually agreed, but not later than 18 months after the project start Final Evaluation Within three months of end of award; not later than one year of the completion of the award Other: Assessments, As mutually agreed. Evaluations, Manuals, Training Plans & Materials

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Monitoring and Evaluation Matrix The table below presents project level output and impact indicators that will track progress. Indicators are categorized by activities. Activities Indicator and Source/Fr Target Year 1 Year 2 Year 3 End of Risk Measurement equency Project assumption 1.

2.

3.

4.

Information should be disaggregated by ethnic, group, gender and PWDs status

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ANNEXES: Annex 1: the Terms of References for consultant to develop a Territorial Employment Plan in Gostivar

The sub-regional Project Promoting Inclusive Labour Market Solutions in the Western Balkans aims to assist the Western Balkans economies (Albania, Bosnia and Herzegovina, former Yugoslav Republic of Macedonia, Kosovo, Montenegro and Serbia) in their efforts to enhance the inclusiveness of their labour markets. To achieve this, the project will pilot and promote an integrated approach to employment and social policies as well as collaborative practices in service provision between local employment and social welfare centres, business sector as well as the civil society organizations. All countries/territory have developed national employment strategies and local economic or other forms of area based development plans and this specific activity will contribute to further concretizing these strategies into pro-employment action plans as well as to foster multi-stakeholder local-level partnerships, embracing in a coordinated fashion the capacities and resources of all local agents i.e. PES, CSWs, private and public sector employers, educational institutions, civil society and jobseekers’ representatives. Under this action, the existing national and local level strategies of municipalities or a group of municipalities in which TEPs will be implemented will be reviewed, labour market challenges carefully analysed and context specific programmes and actions proposed. The project will facilitate establishment of territorial employment partnerships, underpinning a proactive role and engagement of the relevant local agents. The bottom-up approaches and local-level concertation for employment generation operationalized at municipal level through Territorial Employment Plans (TEPs) is an important segment of this 20-month project. As a demonstration, after reaching the consensus on the local employment plans, the project will provide seed funds for implementing small-scale projects in the priority areas identified in the TEPs, such as skills development programmes, micro-business startup, social entrepreneurship, green jobs initiatives or similar. Nonetheless, the main energy will be focused on mobilizing the relevant local actors, including the private sector to embed training or jobs creation programmes as part of their regular activities and budgets or set up local support system for accessing micro-lending or other forms of financing schemes thus ensuring sustainable sources of funding. Based on developed criteria (size, gravity of the unemployment challenge, economic potential, institutional capacities of ECs, CSWs, VETs, business sector, civil society etc.) during the inception phase, the Municipality of Gostivar was selected as a TEP location in the FYR of Macedonia. The methodology will follow similar models already piloted in Kosovo and Albania. As the project covers 6 Western Balkans economies, two international consultants shall be hired (each one covering 3 TEPs, in this case Gostivar, Tirana and Djakova) to set up methodology, develop guidelines and support local consultants in conducting territorial assessments, analysis of the jobs market and facilitating development of local employment solutions. Nonetheless, the international consultant shall be responsible for the final deliverables and the quality assurance of the process. At the end of the process, the international consultant shall conduct rapid assessment of the initiatives, collect lessons learned and develop a toolkit that can be used as a suite of recommendations and might be used to support replication of the experience in other municipalities. In addition, a local consultant will be hired, and her/his work will be instrumental in carrying out the field assessments, data gathering, and facilitation of the consultation process and formulation of TEP documents.

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Duties and Responsibilities The specific objective of this assignment is to: undertake a territorial audit of the local economic potentials, skills development, in particular focusing on the vulnerable groups, to identify the institutional and individual barriers that prevent certain groups to join the labour market, which shall serve as inputs in designing diverse and innovative set of employment promotion measures for targeted individuals to increase opportunities for employment and self-employment in target municipalities. An experienced local consultant shall be engaged to support the development of a Territorial Employment Plan (TEP) in the Municipality of Gostivar. The local consultant will meet all relevant stakeholders from the public and business sector, civil society organisation, business centres and equivalent facilities, employment offices and municipality’s directorates relevant to the local socio- economic development, to design interventions under the TEP that meet the characteristics of the context. The local expert consultant will: • Meet virtually with the international TEP expert to receive guidance, learn and provide feedback about the approach which needs to be taken towards the Territorial Audit and Territorial Employment Plan development. • Ensure that applied methodology and format of TEP is customized to the local context and yet adhere to TEP standards and good practices from the region and EU member states. • Gather data and conduct a preliminary desk review of relevant documents for the municipality as well as the mapping of relevant issues related to the economic, business and employment potentials, skills levels and gaps of the local labour force, carry out an institutional, civil society and business map relevant for supporting labour supply and labour demand related activities. • A field visit in the municipality for conducting “territorial audit”. This will entail data gathering and/or organizing semi-structured interviews with local stakeholders and for organizing consultation process and sharing the preliminary findings from the desk research. • Draft the territorial audit report. • Support the International consultant in conducting the first workshop to present the preliminary findings of the Territorial Audit and identify priority actions. • Based on findings of the Territorial Audit, draft Territorial Employment Plan, including a capacity development plan and an M&E framework. • Support the International consultant in conducting the second workshop to present the draft Territorial Audit and Territorial Employment Plan to Local Action Groups or equivalent, UNDP and relevant stakeholders. • Consolidate inputs/recommendations received from the consultation process for review/integration in the final document by the International Consultant. Note: For the purpose of the TEP design and implementation, the project will support the municipality in establishing or strengthening existing local structures, responsible for social and economic issues (consisted of decision makers, influential business leaders, CSOs, and at least 1 business/private sector association representative). TEPs will be developed in a truly participatory manner. The local consultant will conduct a number of semi-structured interviews, but will also accompany the international consultant in meeting all relevant stakeholders from the public sector, business community, civil society organisation, business centres and equivalent, to design interventions under the TEP, which meet the characteristics of the context. The design of TEPs shall be unique to the selected municipality, and it shall aim to address the root causes of unemployment in a holistic manner embracing activities for skills development, business start-up support, self-employment and micro business upgrade, social entrepreneurship etc.

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The local consultant will be responsible to undertake the following tasks: Deliverables/ Outputs Estimated no of working days (w/d) Virtual meeting with international experts 1 w/day Gathering of data and relevant documents and 3 w/days initial screening/ desk review of relevant documents and information gathering Draft questions and conduct semi-structured 6 w/days interviews with local stakeholders and organize consultation process; Draft summary report on the findings of the desk research and semi-structured interviews Draft Territorial Audit Document in line with 7 w/days the methodology agreed with the international expert Facilitate organization of the first consultative 3 w/days workshop to present the preliminary findings of the Territorial Audit and identify priority actions Draft Territorial Employment Plan, Capacity 12 w/days Development and M&E Plan Facilitate organization of the second 3 w/days consultative workshop to present draft TEP, Capacity Development and M&E Plan Consolidate feedback and inputs received for 3 w/days finalization of the TE, CD and M&E Plan Review the process, pinpointing the lessons 2 w/days learned All deliverables are subject of review and approval by the UNDP Country Office. Milestone deliverables • A summary report from the stock taking analysis/desk research and feedback received from the semi structured interviews; • Draft Territorial Audit narrative report; • Draft TEP, Capacity Development Plan and M&E framework and submission of the inputs for the final TEP documents.

Annex II: List of meetings with organizations/institutions/individuals

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No Date Organization/ Institution Participants

1. 1 18 Sep. 2017 • Municipality of Gostivar, • Pajtim Saiti, Head of LER dept. . • Municipality of Gostivar of Municipality, • High Schools: Economy and VET, • Edit Azizi, Head of Education dept. of Municipality • ETIKA Gostivar, the Women based organization, • Directors of Both Schools,

• Sebajete Zenku, the Executive Director of ETIKA,

• Lulzim Haziri and Nino Sotiroski, • Association for Democratic ADI Gostivar Initiative ADI- Gostivar, • Muzafer Tairi, Director of ESA • Enterprise Support Agency (ESA) Gostivar 2. 219 Sep. 2017 Gostivar • Biljana Dabeska, Workers . • Workers University University • NGO Mesecina, promoting the • Muhamed Toci, Executive Direct rights of ethnic Roma in R. of Mesecina Macedonia

• Ivica Damjanoski, Employment • Employment Agency of R. Agency Gostivar Macedonia, • Tafe Ameti, professor providing • ITC Foundation, ICT courses for job seekers 3. • Youth Empowerment Platform of 20 Sep. 2017 • Sefer Selimi, founder of youth Gostivar organization, • Association of parents of children • Taip Xh, the member of with cerebral paralysis association • Dashmir Osmani, LER dept of • Municipality of Gostivar 4. 21 Sep. 2017 Municipality • FEJZI Co. • Nagip Fejzi, the Director of Fejzi • Vardar Dolomiti, • Repr. Of Vardar Dolomiti • Dino Production • Reps. Of Dino profiles

• USAID Internship and Job • Lidija Damceska, project 22 Sep. 2017 Placement program of PWDs manager 5. • Handimak, Tetovo, • Adem Idrizi, Director • Cigllana, Gostivar • Reps. Of Cigllana

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