[Challenge:Future] Challenge accepted
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This document summarizes the challenges facing youth employment in Croatia, including an inflexible workforce, corruption and nepotism among employers, and economic and education policy issues. It outlines solutions such as increasing coordination between education and the labor market, offering retraining programs, and providing subsidies for youth entrepreneurship and employers' creative centers. The goal is to increase youth employment and combat rising social costs, demographic impacts, and psycho-social consequences of unemployment.
[Challenge:Future] Challenge accepted
- 1. TEAM NAME: MINA CROATIA UNIVERSITY OF ZAGREB: FACULTY OF ECONOMICS AND BUSINESS
- 2. INFLEXIBILITY CORUPTION OF AND WORKFORCE EDUCATION ECONOMIC NEPOTISM INACCESSIBILIT PROBLEM CRISIS POLICY OF OF THE EMPLOYERS INFORMATION YOUTH UNEMPLOYMENT • DECREASE OF THE BIGGER BIRTHRATE SOCIAL • UNSUSTAINABILITY SPENDINGS IMPACT ON THE OF THE PENSION DEMOGRAPHY SYSTEM OPPORTUNITY • DECREASING OF THE COSTS PSYCHOSOCIAL COMPETITIVENESS CONSEQUENCES
- 3. THE CAUSES • the incompatibility of the education system with the needs of the labor market EDUCATION • the education system which does not encourage creativity in young people • the weak incentives for exports and innovation ECONOMIC POLICY • the growth in consumption was based on borrowing for years INFLEXIBILITY OF YOUTH • geographic mobility of youth is low WORKFORCE • the willingness to accept any job is low THE PROBLEM OF THE • they don’t recognize youth potential,youth inovation and capability of fast learning EMPLOYERS • they set high barriers for young people entering the labor market CORUPTION AND • it leads to inefficiency and lower employment rate NEPOTISM • young people are discouraged because they feel that the job gets through the links • Okun’s law CRISIS • too many unemployed leads to fewer chances of youth employment INACCESSIBILTY OF • Information about the incentives for employment, selfemployment, retraining opportunities, labor market needs, etc. the Bureaucracy problems INFORMATION
- 4. THE CONSEQUENCES BIGGER SOCIAL OPPORTUNITY IMPACT ON THE PSYCHOSOCIAL SPENDINGS COSTS DEMOGRAPHY CONSEQUENCES • unemployment • Opportunity • the growing • Anxiety, benefits cost of lost poverty depression, production, • The higher the tension, and income etc unemployment even revolt, can rate for women lead to crime, due to crisis violence, resorting to alcohol, drugs, etc. IN CASE OF NOT REACTING, IN LONG RUN CONSEQUENCES ARE: UNSUSTAINABILITY DECREASING OF DECREASE OF THE OF THE PENSION THE BIRTHRATE SYSTEM COMPETITIVENESS
- 5. THE SOLUTIONS EDUCATION • Introducing obligatory practice at university • Online classes o Decrease obligatory courses and introducing elective online courses in order to encourage children to specialize what they are good at o Groups are formed based on difficulty level, and they are easy to form, since there is possibility to connect different part of country online o Networking of this project leads to lower costs of education but also possibility for easier access to education
- 6. THE SOLUTIONS EDUCATION • RETRAINING AND ADDITIONAL TRAINING OF YOUTH o Taking in consideration that that changes in education system affects labor market in medium and long run, in short run there should be quality programs of retraining and additional training • BETTER COORDINATION BETWEEN EDUCATION SYSTEM AND LABOR MARKET o Our example: Increase tuition fee for professions in surplus, and that money transfer as sholarships for proffesions in deficit
- 7. THE SOLUTIONS YOUTH SUBVENTIONS • ENTERPRENEURSHIP o To encrease subventions for young entrepreneurs o Provide them proffesional help in establishing the first company o Entrepreneurial incubators • INFORMATION o Lectures and workshops for young people to introduce them to advantages of government incentives o Gathering all solved examples of documentation (forms, projects) for incentives in one place on the Internet
- 8. THE SOLUTIONS EMPLOYERS SUBVENTIONS • CREATIVE CENTRES o The Government gives grants to companies based on the project to open the creative centers within the company o The goal of crative centers is to make inovations within the company o Conditions to recieve the funds would be: in creative centers have to be at least 75% employed people under 27 years, funds can be used onla for the operations of the center, young working on these projects would be payed but on the other hand-employers would be exempt from state levies, etc. o The result would be to increase employment of young people, to encourage their creativity and use their full potential, to encourage innovation by the private sector through joint investment by the private sector and the state, to increase the competitiveness of enterprises and exports etc
- 9. THE SOLUTIONS INVESTMENTS • PROJECT BONDS o The Goals: to encourage optimism in all markets, to encourage consumption and investments o How? some projects, such as housing for young people, would be declared of strategic national interest and are financed by issuing bonds that the central bank will buy o These bonds would be at a very low interest rate or indexed because the goal would not be earning a central bank but boost employment o This is possible because central banks are solvent, and they have big reserves that are not being used and by financing this kind of projects (e.g.financing building 1000 besides bigger cities) would not influence inflation, but it would encourage the construction sector and therefore that would increase unemploymentpositive economic trends in countryincresing youth employment rate
- 10. PLANNED RESULTES AND OUTCOMES • Some of our solutions are implemented in short run and others in long run • An unlimited number of young people will be reached • To work oun our project solutions, we need only 6 young people in team + external collaborators like state institutions, governments etc