YOUth EcOnOmic SOLUtiOnS prOgram

EL SaLvadOr

Plan El Salvador

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1. Executive Summary

Background

Youth in El Salvador, especially in rural and sub-urban marginal areas are

some of the most excluded groups, both from the national economy and from

society. 52% of Salvadoran youths are under 24 years old, 53% of them do

not work or attend school, and 71% out of this group, are young women.

The global unemployment rate in El Salvador is 7.2% while for young people

aged 15-29, this rate is 12%. Underemployment rate (income lower than

minimum wage) for youth is 43%, and only 2 youths out of 10 willing to

work, get a decent job with fair remuneration and social protection.

Many young people are forced to abandon school at an early stage of their

learning process, and therefore become more vulnerable when they want to

seek employment in an increasingly demanding labor market, and given the

limited number of available jobs. A young person with low educational level

has less possibilities of getting a “decent job”.

Young men and women, especially those from rural and sub-urban marginal

areas, are some of the most excluded groups in society. Youths in El

Salvador also have the highest risk levels to be involved either as victims or

perpetrators, in acts of violence, and they are stigmatized and discriminated

based on their appearance, where they live, and what school they have

attended, especially when they seek employment in formal companies.

The challenges, even though they are big, also present unique opportunities

to find innovative solutions. That is why, in 2010, Plan International, the

World Bank’s Global Public Private Partnership for Youth Investment (GPYI),

and the Imagine Nations Group, made a commitment for the development

and implementation of a global program to promote youth employment.

That same year, Plan El Salvador started a pilot program for youth economic

empowerment based on consultations with youth and businesses to respond

to their needs, undertaking studies and research on the labor market and

business opportunities, strategic public-private partnerships and alliances,

among others.

52%

of Salvadoran youths

are under 24 years old.

53%

of them do not work

or attend school.

Plan El Salvador

Youth Economic Solutions program

Plan El Salvador has integrated the Youth Employment Solution Program in

the Country Strategic Plan 2012-2016. This program was selected as a pilot

for Plan International and it has been supported by the World Bank.

Through the Youth Economic Empowerment Program in El Salvador, Plan

is playing a very important role to develop and provide directly, or in

partnership with other specialized entities, innovative services to facilitate

youth capacity building and empowerment process to find a job or start a

business.

Based on this logic, Plan is working with different actors, especially with

schools and professional training centers, to guarantee that youths go back

to school and complete their secondary education successfully. A scholarship

program is proposed considering that this is the most cost efficient way to

build the required capacities in youth. After completing their training, it

is expected that youths have some work experience through strengthened

internship and social hour programs, so that they build new technical and

human capacities through complementary courses promoted by

the program.

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general Objective

Create capacities and economic opportunities for young people, especially

women, to integrate them into the labor market and/or start business

that may allow them to exercise their right to economic security in the

departments of San Salvador, La Libertad, Cabañas, and Cuscatlán.

components

• Youth development component:

The component facilitates the access of youth to career counseling,

information about the labor market and business opportunities,

acquisition of life planning skills and for employment, career counseling

and insertion into the labor force and productive opportunities for decent

2. Program’s Objectives and its Components

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work that enable young people to create life plans that are congruent

with their potential and personal aspirations. Those young people who

want to pursue the micro enterprise development path will be supported

by helping them identify business opportunities, provision of training

in management, use of seed capital, technical assistance and support in

their market development efforts.

• private sector component:

Participation of the private business sector is promoted so that they may

be encouraged to adopt measures that improve the employability of

the young people, through implementation of employment contracts,

internships, tutorials, scholarships and inclusive business development.

• political advocacy component:

The effort focuses on the creation of environments that are favorable

to economic growth by encouragement of social dialogue and

implementation of public policy and greater investment in efforts

to facilitate the entry of young people into the labor force in decent

employment opportunities or to carry out small entrepreneurial

development activities, both of which will enable them to achieve decent

and sustainable means of livelihood.

Create capacities

and economic

opportunities

for young people,

especially

women...

Empowermentfor work and life planningskills

Careerinformationand informedchoices

Corporativealliances:• Internships• Contracting• Mentorships• Productive chains• Financing

Training for insertion into job opportunities (as necessary)

Linkages to a job

Training to start a business

Entrepreneurialdevelopment, associativity and linkages to markets

Follow-up(six mon-ths)

Possiblesecondchances

Direct placement of youth trained for employment

Support for successful development of businesses or employment Relationship with mentors (mentors and apprentices or mentees)

Access to financial services

Plan El Salvador

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Daelim quia sim Dolor maio

sit inimil ex et volupta quia.

4. Testimonies Videos

Juventina Rodas, 24 years-old.

DUENSAL company, products “La Mocita”

(sauces, pickles, and typical candies).

… “Learning how to lead and manage a business is also learning to manage

your family, because at home you have to plan a budget of what you will

spend in a month. In that way, with the trainings I have learned to manage

my business and my family.

Right now, I am providing a job to 6 young women who are in 8th and 9th

grade and 2 are in high school. This is very important for me because I feel

that I am helping not only for my future but also for the future of other girls

like me who want to have a better life.”

Participants in the YES program Women Men Total

Youth participating in YES program 1,092 403 1,495

Youth with technical and professional training

completed 798 332 1,040

Youth trained in life planning and work skills 540 295 835

Youth with career development counseling 321 187 508

Youth placed in positions of decent employment

positions 216 220 436

Youth with small businesses operating 149 86 235

Youth placed indirectly

(youth fairs with YES program support) 1,068 1,126 2,194

3. Achievements to date - Quantitative impact

Plan El Salvador

a. results

result 1:

360 young people have completed training and have developed key

personal and technical qualities.

activities:

• Updating and dissemination of the analysis of the job market and

business opportunities that focus on value chains;

• Sessions for promotion and dissemination of the YEE strategy to

youth, community organizations and CSOs;

• Provide information and career counseling to 500 young people;

• Training of trainers in life skills and gender (pre employment);

• Train 360 young people in life skills development

(Financial Education, Occupational Health and Gender, Economic and

Labor Rights, Entrepreneurship, techniques and tools for obtaining

employment, and Information and Communication Technologies

(ICTs));

• Develop program for internships;

• Technical training for 360 young people based on labor market

demand or business opportunities;

• Develop employment mediation a) register young people in the

Ministry of Labor employment networks, b) negotiate mediation

in companies, c) accompany beneficiaries for company selection

processes (including reimbursement of expenses for medical

examinations, solvency procedures and transportation costs for

interviews, etc.), and d) other employment mediation activities (such

as employment fairs);

5. Project’s Proposal

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• Provide access to financial services by means of seed capital and

venture capital;

• Provide market development support through participation in

fairs, business conferences, creation of marketing opportunities

(showrooms), brand development and packaging;

result 2: the business sector is sensitized on youth employment.

activities:

• Sessions for presentation of the YEE program to human resource

managers of multinational and local enterprises;

• Advocacy visits and meetings for sensitizing the business sector

regarding the recently passed First Employment Law; as well as

regarding co-financing contributions for the scholarship program,

internship opportunities, employment of young people, mentoring of

young entrepreneurs, inclusive business development and inclusive

value chains;

• Meetings for annual evaluation with business sector;

• Management and consolidation of public-private alliances and

partnerships.

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result 3: the local and national government actors, vocational training centers and financial institutions are sensitized on youth employment.

activities

• Workshops and talks for developing networks of organizations that

foment youth employment;

• Workshops and consultations for proposal of strategies and policies

for promotion of youth enterprises;

• Support for the formulation of policies and laws for support of youth

employment and entrepreneurship;

• Lobbying with the Ministry of Education to promote flexible

education programs enabling young people to work and finish school;

• Training of staff of the local governments for implementation of youth

labor promotion and/or local youth economical development policies

and laws;

• Design a financial product that responds to the financial needs of

youth (savings, micro credits and micro insurances).

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a. period

3 years

b. Sustanaibility

Up scaling of Plan’s Youth Economic Empowerment projects will be achieved

through collaboration with different partners providing different but

complementary services and opportunities with a gender focus for young

people. The replica of practices that were proven to be effective will be

propagated through local and national expansion by partners.

As part of this youth employment approach’s transfer and sustainability strategy,

great effort will be made in advocacy in order to create and maintain a high

level of ownership of this approach for decision-making levels in the Ministries

of Labor and Social Welfare, Education, Economy, Agriculture and Livestock,

and the INSAFORP (Professional Training Institute of El Salvador), as primary

educational agency, as well as business associations, and the International Labor

Organization.

c. Budget

a. Budget for proposals up to $500K

b. Percentajes (60% women 40% man).

6. Implementation

Plan El Salvador

7. YES Proposals’ video

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http://www.youtube.com watch?v=7cQfLg1kEmQ http://youtu.be/dt_gsp7QkzQ

Youth with opportunities is benefit for the families, community and country, that s the reason Plan El Salvador is working diligently on the YES (Youth Economic Solutions) program, in order to create economic opportunities that will have a huge impact in society in short, mid and long term. The program has two components, youth employment and self-employment, these are supported by three strategic lines: Integral Youth development, Job intermediation and political advocaacy. Youth expresses how they are already trained, employed, or have their own business and are hiring other youth, improving economy.

There s no better way to have an idea of the impact of a project, than to listen to the life experiences of youth who have improved their lives and helped others do the same. From zero opportunities we can see youth become leaders in their own businesses and replicate knowledge to others, who are also after a chance to have a better life by getting decent economic development options.

https://www.youtube.com/watch?v=iks6a1QBWEE&fea-ture=youtu.be

http://youtu.be/hdljLfrnijg

Dreams can be built out of clay and wood. This is a truth experienced by youth who have found a way of living by creating pieces of art with a market value.

It s amazing how they can transform prime matter into something unique, like their dreams to continue studying, support their families and stay out of trouble to grow as productive adults and give back to the community and society. Learning can change their lives forever, they just need a chance.

There are options youth can benefit from, they only need a little guide to help them identify their inborn capacities and exploit them into something positive. That s the source of Plan s insatiable search for opportunities for youth, betting on their full potential development with technical training, life skills and business training delivered by strategic partners that share the same vision with Plan. The greatest value is brought within by the youth, as an added value, Plan even provides scholarships and basic equipment for business startups.

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Contact person:carmen Elena alemán-grants manager: carmenelena.aleman@plan-international.orgclaudia López-grants coordinator: claudia.lopez@plan-international.org

YESwww.plan.org.sv

www.plan-international.org

@PlanElSalvadorPlan El Salvador

planelsalvadororg

EL SALVADORBulevar del Hipódromo No. 671, Col. San Benito,San Salvador. PBX (503) 2264-4460 FAX (503) 2252-9444