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FIRST JOBS FOR GRADUATES OF THE USAID/EL SALVADOR COMMITTED YOUTH PROGRAM MONITORING AND EVALUATION DEPARTMENT OF THE USAID IMPROVING ACCESS TO EMPLOYMENT PROGRAM OCTOBER 2013


FIRST JOBS FOR GRADUATES OF THE COMMITTED YOUTH PROGRAM

CONTENTS 1. Context and Methodology 2. Overall Results 3. Geographic Results 4. Conclusions

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MONITORING AND EVALUATION DEPARTMENT OF THE USAID IMPROVING ACCESS TO EMPLOYMENT PROGRAM

CREDITS Preparation: Ms.c Guillermo Gómez, Monitoreo y Evaluación Graphics: José Luis Guzmán, Pedro López Design: Lucía Bonilla Cover Page:Youth from the Program who have been hired after completing the training course. EXEMPT FROM RESPONSIBILITY THIS REPORT HAS BEEN MADE POSSIBLE THANKS TO THE PEOPLE OF THE UNITED STATES O OF AMERICA THROUGH THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID). THE OPINIONS AND VIEWS EXPRESSED IN THIS REPORT ARE THOSE OF THE AUTHOR AND CARANA CORPORATION, AND DO NOT NECESSARILY REFLECT THOSE OF USAID OR THE UNITED STATES GOVERNMENT.


Committed Youth - I Make The Difference

1. PROGRAM CONTEXT The USAID/El Salvador Improving Access to Employment Program is a 4-year, $7.6 million program, initiated in December 2009 and concluding in November 2013. It is being implemented by CARANA Corporation with RTI International. Its overall objective is to improve the functioning of the labor market to allow more Salvadorans to find employment The USAID Improving Access to Employment Program is a key component of the joint United States Government (USG)-Government of El Salvador (GOES) Partnership for Growth (PfG). It is tasked, as part of the PfG Objective 3, with improving the quality of human capital. The Program is using a multi-faceted and integrated approach toward improving access to employment. The core components of the Program are: 1. Create Alliances with the Private Sector. The core operating principle underlying the Program is linking the educational system with the needs of the business community. The principal operational mechanism the Program has piloted and proven in El Salvador is building alliances with the private sector. By means of these alliances, businesses identify and share their occupational competency requirements and job candidate profiles with educational institutions, and co-invest in crafting and offering pre-training and training programs to prepare the target groups listed above to get jobs. 2. Promote Occupational Skills Standards and Competency Certification. In close conjunction with employers, the Program has identified gaps in occupational skills and competencies, and has developed more than 50 competency-based training and certification programs to close the gaps in a sustainable manner. 3. Expand Consumer-Based Employment Reporting and Career Counseling/ Placement Services. True to its name, the Program has supported new pathways to employment by using technology to disseminate information on how to be successful in preparing for employment, and significantly strengthening career counseling and job placement skills and processes throughout the public and private sector that make up the workforce development ecosystem. 4. Improve Labor Market Information System. With the goal of transforming the workforce development ecosystem into a dynamic web of connected stakeholders providing youth, women, persons with disabilities, the unemployed, and workers with the information they need, when and where they need it, the Program is improving labor market information collection and dissemination through technology and vocational counseling. 5. Build Local Capacity. The Program is assisting key 1


Committed Youth - I Make The Difference stakeholders in the workforce development ecosystem to strengthen their technical and administrative performance management systems in preparation for becoming potential implementers of USAID programs. In summary, through its alliances, the Program has built sustainable relationships among the business community, educational institutions, and non-governmental organizations to select, orient, train, certify and employ youth and other target populations; improve curriculae; train trainers; and launch innovative new pathways to employment in El Salvador. Through September 2013, the Program had achieved in total 14,622 new or improved jobs – 13,531 new jobs (93%) and 1,091 improved jobs (7%). As part of this effort, and perhaps its most recognized initiative, the Youth with Commitment – I Make A Difference Program (CY Program) was created in 2011. It is a job training program focused on specific entry-level positions, 15 in all, which combines a rigorous selection process, curriculum development and training implementation in concert with anchor firms, targeting vacancies pre-identified with hiring decisions scheduled immediately following training. The CY Program`s objective to prepare “disconnected youth” for immediate employment, i.e., young people, ages 18-26, who are neither studying nor working, and due to their situation of unemployment, importantly, are vulnerable to recruitment into gang and criminal activities. Importantly, due to much delayed employment, these disconnected youth can represent a significant financial and programmatic burden for the Government of El Salvador (GOES). In summary, the Job Placement Model of the Committed Youth Program is a mixture of innovative and traditional elements integrated creatively into the process of training outstanding potential employees. The results and impacts have been multiple, all based on the principal accomplishment of high school graduates, and to some extent high school dropouts, being hired to occupy specific entry-level positions, thus breaking the traditional cycle of informal work of low-income parents and youths in the family and giving youth the opportunity to develop a career path that allows them to grow in a professional way and, often, begin university studies. Overall the principal impacts of the JC Program have been impressive 1) Partner employers have experienced an improvement in the quality of the personnel hired, less resignations, and lower in-house training costs. 2) All youth hired have formal jobs with social benefits, and 3) USAID is meeting its employment objectives, that is, immediate hiring of more than 1,900 youth graduated from the CY Program. However, most significantly, through September 30, 2013, in all 151 occupations supported by the program, 1,955 Committed Youth had obtained formal employment (77% of the 2,529 participants in different types of entry-level occupations). The objective of this assessment is to determine how many of the 1,955 employed Committed Youth obtained their first job through the CY Program.

“I appreciate the opportunity that USAID gave me; the training helped me learn to solve problems; perhaps most importantly, I understand that my attitude is the key to achieving positive results”, José Alonso Solís, Hotel Banquet Service, Hilton

The 15 occupations targeted by the Committed Youth Program are: cashiers, customer service in restaurants, customer service in supermarkets, fruit and vegetable handlers in supermarkets, microcredit advisors, hotel banquet personnel, hotel housekeeping personnel, aircraft maintenance personnel, counter sales, direct sales to households, motorcycle delivery personnel, accounting assistants, accounting assistants, assistant managers in restaurants, and assistant managers in supermarkets. 1

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Committed Youth - I Make The Difference

METHODOLOGY For this analysis, information was taken from a sample of 401 employed Committed Youth Program graduates who responded to phone calls from the total population of 1,955 employed Committed Youth. The 401 youths who responded represent 21% of all graduates who are currently employed; therefore, the following results are considered to have a 95% confidence level with a margin of error of +/- 5%. In overall terms, as seen in Table 1, 19% of employed male graduates responded, and 22% of employed female graduates responded; we therefore consider statistical inferences to be equally representative of employed male and female graduates.

Table 1: Number of employed graduates who obtained a first job through the Committed Youth Program, disaggregated by sex, September 2013.

Number of youth employed, Committed Youth Program

TOTAL

MEN

WOMEN

1,955

1,039

916

Surveys conducted

401

201 (50%)

200 (50%)

% in the sample

20%

20%

22%

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Committed Youth - I Make The Difference

RESULTS OF THE ANALYSIS FIRST JOB: 38% OF GRADUATES WITH EMPLOYMENT Overall 38% of graduates in all 15 occupations DID obtain their FIRST JOB through the Committed Youth Program. While slightly different for men and women graduates, those differences are not statistically significant. Therefore, in global terms 743 persons (38% of Committed Youth with jobs) are estimated to have obtained their first job as a direct result of their participation in the Committed Youth Program (364 men and 366 women). FIRST JOB % AMONG TOP 3 OCCUPATIONS IS ESSENTIALLY THE SAME Three entry-level occupations had the greatest job placement success; they were sales personnel, cashiers, and customer service personnel in restaurants. These three entry-level jobs represent 63% of the jobs for all youth who obtained employment from the Committed Youth Program, and 82% of those interviewed in this sample (n=329). The results indicate that 41% of those 329 respondents obtained their FIRST JOB through the Committed Youth Program, as seen in Graph I. This difference is not statistically significant from the average of total hires with first jobs (38%). Table 2: Number of graduates who obtained their first job through the Committed Youth Program, 2011-2013. September 2013

Responded “YES” it was a first job

151

38%

Responded “NO” it was not a first job

250

62%

Total Responses

401

Of the entry-level positions represented, 46% of youth in the Sales occupation, 31% of Cashiers and 32% of Customer Service obtained their first job. These differences are not statistically significant. In total, 134 or 41% of the 329 Program participants interviewed with these 3 occupations are considered to have obtained their first employment through the Committed Youth Program. Table 3 expands on those findings:

GRAPHIC 1 % of graduates who obtained their first job in the top three occupations in the Committed Youth Program 2011-2013. September 2013

Yes, it was their first job

No, it was not their first job

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Committed Youth - I Make The Difference Of the entry-level positions represented, 46% of youth in the Sales occupation, 31% of Cashiers and 32% of Customer Service obtained their first job. These differences are not statistically significant. In total, 134 or 41% of the 329 Program participants interviewed with these 3 occupations are considered to have obtained their first employment through the Committed Youth Program. Table 3 expands on those findings: Table 2: Number of graduates who found their first job in sales, cashier, or customer service occupations through the Committed Youth Program, 2011-2013. September 2013.

EMPLOYED IN EXTERNAL OR COUNTER SALES Responded “YES” it was a first job Responded “NO” it was not a first job Total Responses (The sample represents 39% of all graduates who are employed)

# first job / % total 95

46%

110

54%

205

EMPLOYED AS CASHIERS Responded “YES” it was a first job

17

31%

Responded “NO” it was not a first job Total Responses (The sample represents 27% of all graduates who are employed)

38

69%

55

EMPLOYED IN RESTAURANT CUSTOMER SERVICE Responded “YES” it was a first job

22

32%

Responded “NO” it was not a first job

47

68%

Total Responses (The sample represents 15% of all graduates who are employed)

69

“I learned a lot in the USAID course, and thanks to that I am a qualified person for any job I apply to”,

Samuel Humberto Martínez, Customer Service for Supermarkets, MaxiDespensa 2

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Committed Youth - I Make The Difference THE YOUNGER THE COMMITTED YOUTH,THE MORE PROBABLE IT IS HIS/ FIRST EMPLOYMENT In terms of relative success for different age groups, 40% of the total number of interviewed youth between the ages of 18 and 25 found their first job through the Committed Youth Program. Moreover, as is seen in Table 3, the younger the Committed Youth who were hired, the more probable it was to be his or her first employment. For example, 50% of the 18-year olds obtained their first job through the Committed Youth Program. This is a significant achievement, given that it has been extremely difficult for people under 20 years of age to find employment. But an equally definitive success is the impact the Committed Youth Program has had in the few participants over 25 years old who, given their age and lack of formal job experience, represent a higher risk for companies. Despite this fact, 26% of this age group also obtained their first job. Table 3: Number of graduates who obtained their first job through the Committed Youth Program, disaggregated by age, September 2013.

Youth under age 26

Total employed through CY

18

209

51

28

55%

19

246

37

18

49%

20

236

62

26

42%

21

225

42

15

36%

22

188

41

12

29%

23

183

47

16

34%

24

136

28

10

36%

25

90

13

5

38%

1,513

321

130

86%

Totales

Number in sample for Sample Size whom it is a first job

Sample size Number Sample size for whom it is a first job

% in sample for whom it is a first job

Youth over age 25

Total employed through CY

26 – 50 años

442

80

21

26%

1,955

401

151

38%

TOTAL

% in sample for whom it is a first job

“The USAID training course made a difference in my life by giving me a job opportunity and helping me to be a better person”, Vladimir Orellana, Accounting Assistant, Almacenes Bomba.

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Committed Youth - I Make The Difference

3. GEOGRAPHIC RESULTS

Map showing Geographic Distribution of Committed Youth respondents with a first job, September 2013

The youth responding that they had found a first job through the Committed Youth Program are residents of 37 different municipalities in 13 departments of the country (see Map). As shown in Table 4, the municipalities of San Salvador, La Libertad, Santa Ana, and San Miguel had the highest number of respondents (83% of the total). According to national data, it is estimated that 60% of the country’s population is concentrated in these departments. (See Multi-purposes Household Survey 2012 from DIGESTY at the following link: http://www. digestyc.gob.sv/EHPM2012/digestyc/resultado.pdf). In fact, 88% of the all CY Program graduates come from these localities. FIRST JOB IS MORE LIKELY IN LA LIBERTAD AND SANTA ANA MUNICIPALITIES The coverage and effectiveness for first time job placement for the youth trainees is significantly greater in the departments of La Libertad (66%) and Santa Ana (61%).

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Committed Youth - I Make The Difference

Table 6: Geographic distribution of graduates who obtained a first job through the Committed Youth Program, 2011-2013. September 2013.

DEPARTAMENT

TOTAL RESPONDENTS

YES, FIRST EMPLOYENT

SAN SALVADOR

211

53%

63

30%

LA LIBERTAD

62

16%

41

66%

SANTA ANA

31

8%

19

61%

SAN MIGUEL

27

7%

10

37%

SONSONATE

28

7%

6

21%

CABAÑAS

11

3%

2

18%

LA PAZ

10

3%

2

20%

AHUACHAPAN

6

2%

4

67%

USULUTAN

4

1%

0

0%

CHALATENANGO

3

1%

1

33%

MORAZAN

3

1%

2

67%

CUSCATLAN

3

0.8%

0

0%

SAN VICENTE

1

0.2%

1

0%

400

100%

151

38%

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Committed Youth - I Make The Difference

4. CONCLUSIONS From our analysis, based on a sample of 21% of graduates finding Jobs through the Committed Youth Program, it is estimated that approximately 38% of the Committed Youth graduates hired obtained their FIRST JOB. When considering only those finding jobs in the 3 occupations that represent the largest number of persons finding jobs (cashiers, sales, and restaurant customer service), approximately 41% of those persons obtained their first employment, a difference that is not statistically significant. Female graduates were equally likely as male graduates to find their first job. In terms of age-based results, 40% of youth between the ages of 18 and 25 found a first job. Among 18-year olds, 55% of graduates obtained their first employment through the Committed Youth Program. It is important to note that this assessment is based on a national sample, without stratifying the data for variables such as geographic area, age, or occupation; the inferred results for sub groups are thus susceptible to error. In conclusion, without having specifically sought to target young people without previous employment – and therefore as a positive externality - the Committed Youth Program has achieved a significant impact for youth participants, resulting in approximately 4 of every 10 youth graduates of the Committed Youth Program obtaining their First Job. That is, of 1,955 youth who obtained employment, it is estimated that 743 found their first job through the Committed Youth Program. Of these, 394 are women, 349 are men.

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