World Bank Report Highlights the Dominican Republic Youth and Employment Program

World Bank Report Highlights the Dominican Republic Youth and Employment Program
Santo Domingo, Dominican Republic, 12/12/2013

A program oriented to the NEET youth of the Dominican Republic, which combined classroom and workplace training through an internship program, proved to have an impact in reducing teen pregnancy, gang membership, violence, and other risk behaviors. This information is according to the World Bank 2013 World Development Report entitled EMPLOYMENT, which was presented today in the Dominican Republic by the Ministry of Labor, with support from the World Bank

According to the World Bank report, young women who received vocational training and life skills through the JyP program experienced greater chances of finding jobs, receiving better wages, and experiencing greater job satisfaction.

Since 2008 the Youth and Employment Program (JyP – Programa de Juventud y Empleo) of the Ministry of Labor, funded through a World Bank project, has included more than 41,000 at-risk youth throughout the country. Also in the framework of the same project, the Ministry of Labor implemented a temporary employment program called ‘Santiago Works’ which employed and trained 4,000 poor people in the Cibao region, which is located in the north part of the country. These programs are being implemented in coordination with the National Institute of Technical Training (INFOTEP – Instituto Nacional de Formación Técnico Profesional), private training centers, and civil society organizations.

According to the World Bank report, young women who received vocational training and life skills through the JyP program experienced greater chances of finding jobs, receiving better wages, and experiencing greater job satisfaction.

The Minister of Labor, Maritza Hernández, informed that during the first year of program implementation 70 percent of young people were able to enter the job market and that 30 percent of program graduates returned to the formal education system through basic adult education.

“The reduction of pregnancies by 36 percent in the young beneficiaries of the program, in relation to the control group of non-beneficiaries, is in itself an achievement. It represents the greatest precedent of this kind in the country, even surpassing the preventive public health programs in this area,” Hernández said.

Another sign of the success of the project is that the country displaced Brazil as the largest exporter of handmade shoes to the United States, due to the training received by a group of 399 young people who were placed in free trade zones and industrial parks located in the cities of Santiago, Navarrete, and La Vega.

The global report, which takes into account the experiences of almost all countries, also highlights that employment reveals the role played by the strong economic growth associated with development in job creation. The report also describes how the jobs that contribute more to development can stimulate a virtuous circle.

“The report shows that poverty decreases as people work to escape poverty and as jobs empower women to invest more in their children. Efficiency increases as workers get better at what they do, as more productive jobs are created and the less productive jobs disappear. Societies thrive when jobs foster diversity and provide alternatives to conflicts,” according to Jesko Hentschel, who is one of the main authors of the report and who was responsible for its presentation.

Unemployment in the Dominican Republic appears to be in a slight but steady increase since 2010 (14.3% broad rate; 5% open rate). The broad unemployment rate (which includes hidden unemployment, those that are discouraged and no longer look for employment) appears to be relatively stable during this period; the open unemployment (those who are currently not working but are actively looking for employment), increased by 2 percentage points in 2013 (from 5 to 7%).

In this regard, McDonald Benjamin, World Bank representative in the Dominican Republic, reaffirmed the commitment of the cooperation agency to continue supporting the Dominican Government in training and employment programs, so that the country has a safety net in case of an unemployment crisis. “We will support the Government in expanding these training and employment programs in cities across the country, so that this mechanism can be broaden to benefit the 7 percent who are unemployed but actively seeking work,” Benjamin said.

The Ministry of Labor and the World Bank are preparing a new project to expand the temporary employment program throughout the country.

Representatives of the Government, civil society, and the private sector attended the event.

Contact information: Alejandra De La Paz (World Bank); (809) 566-6815, ext. 256; adelapaz@worldbank.org

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