The OECD Employment Outlook 2015 emphatically states that Chile must develop public and private employment services to achieve inclusion.

The publication of the last OECD’s Employment Outlook provides Chile five highlights to analyse:

• The labour market situation of Chile’s youth is particular difficult. Youth unemployment remains high at 14.9% in Q1 2015, slightly above the OECD average of 14.2%.
• The percentage of youth not in employment, education or training (NEETs) in Chile (19%) is among the highest in the OECD.
• Chile and Mexico are the countries that spend the least on active labour market policies (ALMPs) in the OECD. In 2013, Chile spent 0.11% of GDP on ALMPs, well below the OECD average of 0.56%.
• There is potential in Chile to develop ALMPs. Doing so will improve support for the unemployed and promote greater participation of women and youth in the labour force.
•  This includes developing public and private employment services that provide job-search assistance and counselling, employment subsidies, training, direct job creation and entrepreneurship support.

Promoting public-private articulation to work on employability and employment creation seems to have become an urgent must for Chile.

The development of private employment services demands the ratification of ILO’s Convention 181 on Private Employment Agencies. This Convention provides the keys to achieve well-functioning private employment agencies. There are several cases of success of active policies based on the articulation of private and public employment services with a strong impact on employability, training based on demand during transitions and employment creation.

To read the full report, download the attached file.

Employment-Outlook-Chile-EN