The International Organization of Employers (IOE), the Business and Industry Advisory Committee (BIAC) to the OECD, and USCIB member Deloitte have joined forces to take stock of labor market policies impacting employment opportunities for young people across the G20 and beyond.
The IOE hosted an event in Ankara, Turkey on September 2 to highlight joint work with BIAC and Deloitte on cataloging and assessing youth employment policies. Turkey currently holds the presidency of the G20. The B20 Conference is being held in Ankara, Turkey from September 3 to 5, 2015. Ronnie Goldberg, USCIB’s senior counsel, attended the conference.
Initial findings of the joint report identify four main challenges to hiring and retaining younger workers. Nearly 30 IOE member federations contributed their diverse country experiences of youth unemployment-related issues, which include lack of appropriate training in job readiness and skills; a shortage of job opportunities and entrepreneurial companies; high costs of hiring, coupled with diminishing subsidies for employers and the expectations of young people themselves.
While feedback suggests that different policies need to be developed according to national circumstances, employer organizations called for holistic and coherent policy approaches within and between countries.
“Understanding the drivers behind policy successes around the world and decisively acting on that information in future policy making is the best way to inject more dynamism into the labor market, strengthen links between education and employment, and remove barriers to hiring young people,” said IOE President Daniel Funes de Rioja, “The IOE and its partners, thanks to the expertise and experiences within our global network of 155 members around the world, are well placed to input future policy development in the G20 and beyond.”
Also at the B20 Conference, Funes presented five key recommendations on September 4 to the Joint Consultation of G20 Labor and Finance Ministers. The consultation provided a rare opportunity to discuss employment issues with fiscal policy makers.
Funes presented five key measures for creating jobs by stimulating private sector-led growth:
- pursue sound macro-economic policies such as price stability and fiscal prudence
- develop infrastructure strategies at the country level linked to G20 growth aspirations
- encourage open and competitive markets, and resistance to protectionism in all its forms
- put in place labor market policies that promote flexible work arrangements
- support small businesses by improving access to financing for small- and medium-sized businesses
Rioja pointed out the dearth of skills in the labor market. If education and training were better matched with the needs of employers, it would allow existing job vacancies to be filled. He will also highlight the general lack of jobs in many countries and draw attention to the barriers to business in creating employment, such as unfavorable regulatory frameworks.