Description

Country
Focus area
HRDA contributes towards minimising the effects of the economic crisis on the Cyprus labour market by tackling unemployment among tertiary-education graduates. This programme does not directly target skills mismatch. However, in the individual training programmes set for each candidate, there is in-company practical training and acquisition of work experience and participation in selected seminars on various subjects.
Implementation level
At what level is the initiative implemented?
National
Starting period
TIMESPAN: In what year did the initiative commence?
2009-2012
Perspective
PERSPECTIVE: is the initiative based on evidence derived from skill forecasts or foresight activities?
No
Policy area
To which POLICY AREAS(s) does the initiative apply?
Funding
How it is funded?
Funded by national government
The Scheme is funded solely by the HRDA through its Human Resource Development Fund. The source of the Fund is a levy that is imposed by law on the payroll of all the employers in Cyprus, irrespective of size or sector of the economy.

Skill mismatch

Skill mismatch target
What type(s) of skills MISMATCH does the initiative aim to addresses?
Underqualification (individuals' qualifications/credentials are below their job's needs)
Skill gaps (worker's skills are below the level of proficiency required by their employers and jobs)
Skills obsolescence (some or all of an individual's skills are no longer relevant to the current employer or in the labour market generally)
Skills matching focus
How does  the initiative address skills mismatches?
Minimising the effects of the economic crisis on the Cyprus labour market by tackling the unemployment issue among tertiary-education graduates helping them match their skills to labour market demand
Design training programmes to activate unemployed
Through the job opportunities the program facilitates job and career transitions; Inform job-search decisions of unemployed
Evaluation and certification of skills/skills assessment
Inform decisions on course funding/provision
Skills delivered
What types of skill  does the initiative deliver?
General employability skills (team working, communication, etc.)
Career management skills

Methods

Methods
What methods of undertaking skills assessments and / or skills anticipation does the policy instrument utilise?
Employer surveys
the employers will monitor the progress of graduates to the labour market skills demands
Graduate tracing
The program is tracing graduates in order to find the suitable candidates to include them in the labour market and develop their skills
Use of skills intelligence
How is labour market information / skills intelligence used within the initiative?
HRDA, through its Research and Planning Directorate, studies the economy and the labour market needs and decides where to place emphasis for meeting the identified urgent needs. High unemployment among tertiary-education graduates was and still is a serious issue that requires HRDA to intervene with appropriate measures to combat it. Therefore the program designs training programs to activate the graduates
the program helps the unemployed/graduates to be informed on course/funding provision
the program helps the unemployed/graduates to be informed of job-search decisions

Stakeholders

Main responsible body
Main body or organisation with overall responsibility for the initiative.
National agency
THE HUMAN RESOURCE DEVELOPMENT AUTHORITY OF CYPRUS (HRDA)
Other involved organisations
Which other organisations have a role in the initiative?
National agency
THE HUMAN RESOURCE DEVELOPMENT AUTHORITY OF CYPRUS (HRDA)
Social partner: trade union
The Social Partners are actively involved in all the HRDA initiatives. Employers’ and workers’ organisations are directly involved in policy and strategy formulation through their representation on HRDA’s Board of Governors. In direct partnership, they also implement training activities that satisfy specialised needs, within the framework set by HRDA. As part of the Board, they receive reports about the scheme's progress and, if necessary, they carry out modifications to bring the scheme up-to-date. They also influence policy decisions.
Beneficiaries
Who are the intended beneficiaries?
Young people making the transition from education into work
young graduates can acquire a professional experience and develop their skills making their transition from education into work and labour market skills

Sustainability

Success factors
SUCCESS FACTORS in the implementation
Compulsory minimum salary for the graduates (€1,100 per month for the 6-month version and €1,150 per month for the 12-month version of the scheme).
Generous subsidy level for the employer (up to €1,600 per month) for the whole period of training (either 6 or 12 months). The subsidy took into account the graduate's salary and the employer's cost of providing the training. This provides the necessary resources to keep graduates in the programme.
Barriers
BARRIERS in the implementation
The basic barrier was the effects of the economic crisis, which caused businesses to shrink in overall numbers and size, and as a consequence the labour market to follow suit. Instead of recruiting more people, businesses were letting people go and the interest in the scheme diminished.
Monitoring and evaluation
MONITORING and EVALUATION: Is progress measured regularly? What are the indicators used to measure progress of the policy instrument? Have any evaluations been conducted?
HRDA carries out evaluation studies focusing on the impact on the participants of the scheme to whom a subsidy was granted with regular follow-ups. Within this policy, the HRDA developed an integrated evaluation system on the impacts in general on the national economy of HRDA’s social interventions and activities.
Updates
UPDATES: whether there have been any major updates of the initiative since it has been implemented?
No
Effectiveness
EVIDENCE ON EFFECTIVENESS: How effective is the policy instrument?
HRDA completed an evaluation study regarding the impact on the participants of the Scheme. Impact of the instrument is high. While the target for 2012 was to have 670 participants, the actual participants reached 709 persons. The success of this measure has led to its inclusion as an active labour market policy in the Special Prevention-Action Plan that was introduced by HRDA in close cooperation with the Ministry of Labour and Social Insurance in 2009, for combating unemployment. The scheme, over the years, has been well received by employers.
Sustainability
SUSTAINABILITY: How sustainable is the policy instrument? Do you expect the instrument to continue over the next few years and why?
Over the years, the specific scheme has proved to be very successful and very useful for both employers and tertiary-education graduates. The scheme, which is currently in use, has undergone over the years modifications to reflect the prevailing market and economic conditions. There are no plans of discontinuing it.

Other instruments in Cyprus