I Need Employment Advice?!

The problems associated with aging in developed countries have been widely discussed. Some governments have rolled out cash and tax incentives for their citizens to have more children; others have encouraged in-migrants. Many more have put in place mandatory pension schemes to reduce the state’s financial burden on old-age-related public services. Policy makers may be reminiscent of the “youthful” economy, when the working population was large and economic activities were active.

On the contrary, in Cambodia, I have seen the problems of a “youthful” nation. Although the economy grew at above 10 percent between 2004 and 2007, the increase of job opportunities remained sluggish. In effect, almost 300,000 youth flood into the market each year. But less than 40 percent of them can find employment.

Coming on the heels of the global economic crisis, these unemployed young people are experiencing more severe hardships.

These labour market conditions contributed to an initiative from the Royal Government to strengthen employment services through the establishment of Job Centres. Ideally, these public employment services will serve as the basic steps to full employment of individuals at various skills levels. However, the extent and the variety of services these Centres can offer likely depend on the different countries’ market environment and the availability of financial resources, political commitment and capable personnel.

According to the International Labour Organization (ILO), an efficient and functioning labour market should comprise a wide array of employment services:

• Employment counselling: information on job search techniques, advice on small and medium enterprise (SME) development and linkage to job fairs/clubs, etc.
• Vocational counselling: information on skills requirements and training institutions, referral to universities, apprenticeships and on-the-job training, linkage to entrepreneurship and financial literacy training, etc.
• Career counselling: information on current and projected jobs in demand, assessment of interests, aptitude and abilities, information on occupation and work conditions, introduction to employment networks, linkage to volunteer work, summer job, part-time work, internships, etc.
• Labour market adjustment programmes: registration of individuals for unemployment insurance, collection of unemployment insurance claims, advice from trained social worker and counsellor on other personal issues
• Labour market exchange: participation from employers for regularly updated job postings

In Cambodia, although the demand for these services has especially intensified, experiences from the Job Centres highlight the limitations to deliver job placement services, manage labour market information and analyze data and trends. For instance, some employers would have few incentives to use employment services for finding suitable job candidates. They also have little immediate motivation to contribute to setting up a labour market information system. As an example, the garment industry employs mostly young women with little education and few vocational skills. Thousands of low-skilled women in Phnom Penh and other provinces would desire factory work for stable incomes. Since factories can readily replenish worker losses, investing extra time and resources in employment services may become an unnecessary nuisance.

However, Job Centres would not succeed unless employers also participate and provide precious information on job openings and future skills needs. This dilemma hence suggests the need for an assertive and confident team of Job Centre staff. These staff members should proactively liaise with employers and make every attempt to solicit needed information from the private sector.

Noting the vast supply of low-skilled and undereducated workers, Job Centres would likely be overwhelmed by job-seekers who have few employable skills. In effect, one must bear in mind that even the best employment services may not help all unemployed people to seek jobs immediately.

What, then, can the Job Centres offer clients who are not matched to any job or training opportunities? In the Cambodian context, Job Centre staff members would likely be the unemployed people’s only source of information about the labour market. At the least, these trained counsellors and analysts should offer timely advice on jobs and skills in high demand and encourage the jobless to consider an alternative career path. In cases where the jobseeker is committed to certain types of employment, the Job Centre should provide information on the skills needed for the desired job and the availability of relevant training opportunities. More crucially, counsellors should encourage their clients to be realistic about their wishes and their actual skills levels. In the end, every client should leave the Job Centre with better knowledge about the job market, their own skills and next steps to be taken.

Surely, there would also be a group of jobseekers who are relatively qualified and more motivated. The Job Centres should have a clear line of services to help those who are more likely to succeed. For instance, would the Job Centre help to arrange for interviews with potential employers? Would these candidates be referred to entrepreneurship or other vocational skills training? And at what point should clients be advised on microfinance opportunities? In short, the Job Centre team should ponder on these questions and take concrete steps to create solid linkages between workers, employers and training providers.

In addition to concerns about market data collection and service delivery, knowledge management would also likely be a challenge. To match the information of thousands of unemployed people with the specific skills demanded by hundreds of employers, the Job Centres require an efficient data processing system. As some examples, electronic forms, data analysis software and other programmes for inputting, collating and comparing information would be most helpful. In the longer run, as more and more Job Centres become operational within the country, networked computers may be needed for exchanging labour market information at various localities.

Most recently, on 24 November 2009, the Ministry of Labour and Vocational Training and the ILO launched the first Job Centre in Phnom Penh. On 1 December, the second pilot Job Centre was opened in Battambang Province. The challenges elaborated in the previous paragraphs will likely become more and more real. Will the unemployed flood the Job Centres? Or will there be no clients? Will the employers buy into employment services? Will training providers be willing to take advice from the Job Centres? How many jobless persons will be directly linked to jobs or training courses? And how many more will be indirectly benefited, such as through obtaining a better understanding of labour market conditions? These questions may be answered in the next few months.

References:

“Employment Services: International Perspectives and ILO Experience,” PowerPoint Presentation for the Employment Services Workshop in Vientiane, Lao PDR, 13 November 2009

“First of 11 Job Centres Opened in Capital City,” Phnom Penh Post, 25 November 2009, http://www.phnompenhpost.com/index.php/2009112529759/Business/first-of-11-job-centres-opened-in-capital-city.html