MONITORING AND EVALUATION DEPARTMENT OF THE USAID IMPROVING ACCESS TO EMPLOYMENT PROGRAM OCTOBER 2013

FIRST JOBS FOR GRADUATES OF THE USAID/EL SALVADOR

COMMITTED YOUTH PROGRAM

FIRST JOBS FOR GRADUATES OF THE COMMITTED YOUTH PROGRAM

CREDITS Preparation: Ms.c Guillermo Gómez, Monitoreo y EvaluaciónGraphics: José Luis Guzmán, Pedro LópezDesign: Lucía BonillaCover Page: Youth from the Program who have been hired after completing the training course.

EXEMPT FROM RESPONSIBILITYTHIS 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.

CONTENTS1. Context and Methodology 12. Overall Results 43. Geographic Results 74. Conclusions 9

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

1

Committed Youth - I Make The Difference

1. PROGRAM CONTEXTThe USAID/El Salvador Improving Access to Employment Pro-gram is a 4-year, $7.6 million program, initiated in December 2009 and concluding in November 2013. It is being implemen-ted by CARANA Corporation with RTI International. Its ove-rall 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 (US-G)-Government of El Salvador (GOES) Partnership for Grow-th (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 compo-nents of the Program are:1. Create Alliances with the Private Sector. The core operating principle underlying the Program is linking the edu-cational 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 Compe-tency Certification. In close conjunction with employers, the Program has identified gaps in occupational skills and compe-tencies, and has developed more than 50 competency-based training and certification programs to close the gaps in a sus-tainable 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 you-th, women, persons with disabilities, the unemployed, and wor-kers with the information they need, when and where they need it, the Program is improving labor market information collection and dissemination through technology and vocatio-nal counseling.5. Build Local Capacity. The Program is assisting key

stakeholders in the workforce development ecosystem to strengthen their technical and administrative performance ma-nagement 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, educa-tional 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 Pro-gram (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 mul-tiple, 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 profes-sional way and, often, begin university studies.

Overall the principal impacts of the JC Program have been impressive1) 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, and3) 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 Commi-tted 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.

Committed Youth - I Make The Difference

“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

1The 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 manag-ers in supermarkets. 2

Committed Youth - I Make The Difference

METHODOLOGY

For this analysis, information was taken from a sample of 401 employed Committed Youth Program graduates who res-ponded 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, Com-mitted Youth Program

Surveys conducted

% in the sample

1,955

401

20%

TOTAL MEN WOMEN

1,039

201 (50%)

20%

916

200 (50%)

22%

3

4

Committed Youth - I Make The Difference

RESULTS OF THE ANALYSISFIRST JOB: 38% OF GRADUATES WITH EMPLOYMENTOverall 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 SAMEThree 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 em-ployment 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

Responded “NO” it was not a first job

Total Responses

151

250

401

38%

62%

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

2

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 Pro-gram 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:

Committed Youth - I Make The Difference

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# first job /

% totalResponded “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)

EMPLOYED AS CASHIERS

Responded “YES” it was a first job

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

EMPLOYED IN RESTAURANT CUSTOMER SERVICE

Responded “YES” it was a first job

Responded “NO” it was not a first job

Total Responses(The sample represents 15% of all graduates who are em-ployed)

95

110

205

17

38

55

22

47

69

46%

54%

31%

69%

32%

68%

“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 Su-permarkets, MaxiDespensa

5

Committed Youth - I Make The Difference

Table 3: Number of graduates who obtained their first job through the Committed Youth Program, disaggregated by age, September 2013.

Youth under age 26

18

19

20

21

22

23

24

25

Totales

Youth over age 25

26 – 50 años

TOTAL

Total employed through CY

209

246

236

225

188

183

136

90

1,513

Total employed through CY

442

1,955

Sample Size

51

37

62

42

41

47

28

13

321

Sample size

80

401

Number in sample for

whom it is a first job

28

18

26

15

12

16

10

5

130

Sample size Number for whom it is a first

job21

151

% in sample for whom it is a first job

55%

49%

42%

36%

29%

34%

36%

38%

86%

% in sample for whom it is a first job

26%

38%

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.

6

“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.

Committed Youth - I Make The Difference

3. GEOGRAPHIC RESULTS

Map showing Geographic Distribution of Commit-ted 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 concen-trated 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%).

7

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

Committed Youth - I Make The Difference

TOTAL RESPONDENTS YES, FIRST EMPLOYENT

SAN SALVADOR

LA LIBERTAD

SANTA ANA

SAN MIGUEL

SONSONATE

CABAÑAS

LA PAZ

AHUACHAPAN

USULUTAN

CHALATENANGO

MORAZAN

CUSCATLAN

SAN VICENTE

211

62

31

27

28

11

10

6

4

3

3

3

1

400

53%

16%

8%

7%

7%

3%

3%

2%

1%

1%

1%

0.8%

0.2%

100%

63

41

19

10

6

2

2

4

0

1

2

0

1

151

30%

66%

61%

37%

21%

18%

20%

67%

0%

33%

67%

0%

0%

38%

8

DEPARTAMENT

Committed Youth - I Make The Difference

4. CONCLUSIONSFrom our analysis, based on a sample of 21% of graduates finding Jobs through the Committed Youth Program, it is es-timated 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.

9