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Consultancy to support the Government of Jordan to increase employability opportunities for youth in Jordan.

Background

The rising tide of unemployment in the Arab region of youth (the highest in the world and highest among women) and its long-term nature have created a sense of frustration and discontent in the region and Jordan is not immune. Revitalizing the Jordan economy must be a prime and immediate concern because nothing will undermine democracy more than economic inequity, especially in a region where youth represent the largest demographic group. During recent events, youth in the Arab region have proven to be more than a “bulge” and a problem of unemployment; they are a force for positive social transformation. This is now the opportunity to move with this wave of thinking.

Jordan’s economy remains challenged by its limited natural resources and its inherent inability to become either agriculturally developed or highly industrialized. Human resources are its most valuable asset. More than 70% of the population is under 30 years of age, which suggests that an investment in youth can be an instrument for national development. Those between the ages of 15 and 24 comprises 22% of the population; 48% of this number being women. According to figures provided by UNESCO, 84 % of girls and 83% of boys are in secondary school, while 38% of the population of tertiary age is in education. Overall the Government spends 20.6 % of the national budget on education.

Given the fact that Jordan’s population is growing at the rate of about five per cent per year, that the economy over the past three or four years has been somewhat stagnant compared to the period preceding, and that the rise of popular disaffection in the region constitutes even more of a threat to economic and political stability than heretofore, it is essential that steps be taken to address the issue of unemployment, especially among the young relatively well educated classes.

Employment-to-population (15 years+) ratio was slightly more than one third of the population during 1991-2009 – quite a low ratio when compared to the international rates. One of the characteristics of the Jordanian labour market is the low-averaged economic activity of the total population (employed and unemployed to total population). The 2010 MDGs report shows that the average of economic activity rate (MDG indicator) ranged between 38.2% and 41.5% during 1991-2009. In other words two quintiles of the population aged 15 years and more either work or are ready to join the workforce, while the remaining three quintiles neither work nor are ready for employment. Achievement on this indicator is thus very low even when it is compared to the country’s counterparts in the Arab world. Lower economic participation of women in the Jordanian labour market is one of the underlying causes behind such a lack of involvement.

Employment by Sector: The public sector and the services sector constitute the largest sectors of employment in Jordan. The evolution of employment by sector reveals very interesting trends, with significant implications for understanding unemployment in Jordan. The agricultural and construction sectors declined by almost 50% between 1987 and 2003. The majority of people working in those sectors are non- Jordanian workers. Another significant decline over the same period has taken place in the public sector. This trend can be attributed to cuts in public spending and the privatization of large state enterprises. The implications here are far-reaching, especially for college and university graduates. On the other hand, the services sector has witnessed the highest growth and accounts today for more than a third of the labor force. Trade is an increasing sector, accounting for nearly 20% of workers in 2003. In spite of high unemployment there is a significant number of non-Jordanian workers in the Jordanian labor market.

Unemployment: A major problem is that 12.7 % of the labor force is unemployed while, for women, the rate is over 24 percent. Unemployment rate ranged between 17.1% and 12.9% during 1991-2009, which represents a high rate when compared to other countries. The number of the unemployed was estimated at approximately 180,000 males and females in 2009; the majority of these unemployed men and women hold high school certificates or lesser qualification. In contrast, about 335,000 non-national workers are employed in the Jordanian labor market – the majority of these non-nationals come from Egypt, and also have lower academic qualifications.

Education: All social classes and segments of the Jordanian society are distinguished by their members’ strong desire to enroll in education, particularly in university education. Very high engagement in education has been noted over recent years, where female enrolment rates have become either equal to or even greater than their male peers across the various educational levels. Although females outmatch males in terms of academic qualifications, data indicates that unemployment among women is twice as high as the national average unemployment rate (24.1% for women versus 10.3% for men in 2009). It is worth mentioning that more than 78% of unemployed females are educated (holding an intermediate college diploma or higher) vis-à-vis only 23% of unemployed males who hold the same university certificates.

Women: Women’s participation ratio remained unchanged for many years. The 2010 MDG report highlights that these ratios stand at no more than 14.9%. Despite the increase in women’s economic participation during 2008 and 2009, such involvement remained at very low rates. Women are at a greater risk of becoming unemployed in comparison to their male counterparts and in addition, the former stay unemployed for longer periods than the latter.

Youth: Jordan’s population is young, with the under-15 age group making up some 38% of the population. Unemployment is the most striking challenge young people face; plaguing large numbers of the labor market potential entrants regardless of their academic qualifications, gender or age. Unemployment rate among youth reached high levels – up to 27% in 2008 and 2009. Unemployment among young people is more than twice the national unemployment rate. This leaves youth vulnerable to poverty, late marriages or failing to provide for their families. Factors disposing toward unemployment among young people include a serious discontinuity between the type of education available and the needs of the labor market. Unfortunately, young people in society find obstacles that hinder their access to appropriate funding and their ability to provide needed collaterals to fund and set up small-size enterprises. Such businesses, moreover, encounter problems of marketing and selling their products at a convenient price. These factors increase the risks involved in setting up a private business/ enterprise and limit the inclination of both young men and women towards setting up their own private businesses/enterprises. Higher unemployment rates among young people call for more proactive action in offering effective solutions.

Government Policies and Programmes: Despite the active policies the GoJ has followed to reduce unemployment and invigorate the labor market, unemployment rates remain high by all measures. According to predictions appearing in Jordan’s National Agenda, under current conditions by the year 2015 unemployment could reach the alarming rate of 20 percent.

On the Government side, Jordan’s National Agenda 2006-2015 advocates for “workforce development” and increasing employability . It also emphasizes the urgency of increasing women’s participation in work and production through training, and providing support to help overcoming obstacles that impede it. In a related vein, the Ministry of Planning and International Cooperation’s Executive Development Programme 2011-2013 identifies key priorities as the “promotion of economic and social productivity for citizens as well as local organizations and NGOs.” Major projects are to include those for “productivity improvement”. Policies include “raising institutional capacities of local development institutions and departments; promotion of individuals’ and local institutions’ economic and social productivity; promotion by the private sector and civil society organizations of setting up development and production investment projects...; [and] raising the capacities of non-governmental organizations and the private sector to contribute to the provision of social welfare for targeted groups.”

Assisting micro and small enterprise owners (male and female) to access business support services and funding, and utilizing IT tools to enhance business processes. Matching the outputs of the higher education system to the labor market is recognized as a major challenge, one that calls for curricula improvement and strengthening.

The major objectives of the national policies in relation to employment can be summarized as follows :
  • Increase the ratio of the economically active population, particularly women’s economic involvement;
  • Decrease unemployment rates and increase employment among Jordanians;
  • Increase the number of job opportunities offered to people with special needs;
  • Improve the vocational training system’s efficiency and effectiveness in line with the requirements of the labor market and international standards, through matching the supply and demand sides in the marketplace;
  • Prompt decent job opportunity generating investments to absorb the increasing inflow of people entering in the labor market;
  • Increase engagement by Jordanians in vocational and technical careers; and
  • Encourage entrepreneurship and privately owned businesses.
Directed by King Abdullah’s, a "social safety net" to provide universal social protection and support for poor families and the unemployed was created in February 2009. In the same year, the government also passed a temporary law which included the extension of social security coverage to informal workers and an increase in the monthly minimum wage from US dollar (USD) 155 to USD211 in 2009. Though modest in scale, the government remains committed to universal social security, spending over 14 per cent of GDP on social protection and health in 2007 alone – considerably higher than some developed countries.
In October 2009, the government began accepting applications under the "Support Programme for the Unemployed and Agriculture Workers", which aimed to increase job opportunities for low-skilled workers through the provision of social security matching schemes with employers. This programme is especially beneficial to women who are overrepresented in the agricultural sector. The National Vocational and Training Programme also targets women in remote areas to provide training for self-employed females in the hospitality and service sectors. The Ministry of Labour claimed credit for 8,000 jobs created during 2009 as a result of its employment initiatives, e.g. more than 3,000 trainees had participated in the National Company for Training and Employment initiative run by the Jordanian Armed Forces, designed to provide skilled labor for the construction sector (Jordan Ministry of Labour, 2010).

Some possible causes: Jordanians give preference to employment with Government and will only shift to the non-government sector if there are no opportunities with government. Higher unemployment can be attributed to a battery of causes including inability of the economy to provide job opportunities for all new entrants, mismatch between the education outputs and job market requirements, and the shrinking number of available or newly created vacancies in the public sector. Other causes include a lack of social and health insurance in the informal sector, Jordanians’ apathy towards working in certain sectors and careers/professions, and the rise of business owners’ dependency on non-national workers. Unemployment is an economic problem as well as a psychological problem. The young generation is characterized by the desire for production and employment.

The Government and the United Nations Development Programme share the urgency of the need to enhance the education sector so as to respond better to the demands of the labor market. This includes recognition of the need for dialogue between government and the private sector. The UNDG MENA Region’s Strategic Action Plan on Young People 2010, makes a commitment “To mobilize the necessary technical and financial resources in support of the development and implementation of national policies and/or strategies on young people, as well as sectoral policies and strategies addressing [these] needs.”

Proposal should be submitted no later than 11th of September 2012 @ 15:00 PM.
Any request for clarification must be sent in writing, or by standard electronic communication to the e-mail Randa.taweel@undp.org . Ms. Randa Al-Taweel will respond in writing or by standard electronic mail and will send written copies of the response, including an explanation of the query without identifying the source of inquiry, to all consultants.

Interested candidates can find detailed information in Procurement Notice and TOR posted at the following link:
http://e-management.undp-jordan.org/vms/jobs.cfm

Duties and Responsibilities

Methodology:
The Consultant is expected to use a combination of desk research of relevant documents, and consultations with a wide range of stakeholders to complete this assignment. Stakeholders include government, private sector, SMEs. The assignment includes one in-country mission during which consultant will be located at UNDP and will work closely with the government and private sectors as needed.

Objectives and Activities:
The overarching Objective of the assignment is to develop a project proposal, to support the Government of Jordan to increase employability opportunities for youth in Jordan in target sectors with special focus on vulnerable groups such as people with special needs, and women in order to compete effectively in today's global knowledge economy and contribute to sustainable development.

The proposal is expected to include four major components as follows:
  • Component One: Identification of possible gaps in the policy, legal and regulatory frameworks, market structures related to youth employment opportunities in Jordan and outline the necessary activities that can be taken to overcome these gaps.
  • Component Two: The identification of obstacles facing the different sectors of the economy, with specific focus on Tourism, Trade, and ICT in supplying jobs for youth especially for the new graduates. Outline possible activities that can be taken to overcome these gaps in collaboration with Small, Medium Enterprises, (SMEs).
  • Component Three: Identification skill gaps needed by the Tourism, Trade, and ICT sectors, and identifying training programmes to provide such skills in collaboration with Small, Medium Enterprises, (SMEs).
  • Component Four: Identification of potential new job opportunities, and possible geographical locations, for youth with special focus on vulnerable groups such as people with special needs, and women.
Tasks:
The proposed Project Document should include the following:
  • Define the guiding principles of the support programme.
  • Define and analyze clearly and extensively the problems (situation analysis, guided by the four components listed above) that need to be addressed with detailed justification of why these issues should be supported.
  • Define clearly the institutions/organizations that will be supported.
  • Design a proposal (project document) of support which includes the main outputs of the project of support for the period 2011- 2014.
  • Design work plans for the new project’s 3 years duration including a results framework that would identify objectives and results, linked with clear outputs and activities with realistic and measurable indicators and clear baseline and targets for the overall project as well as for each year based on UNDP’s formats. This framework should also identify inputs and budget necessary to deliver the activities defined so that the outputs and results of the project could be achieved.
  • Identify inter-linkages with other UNDP-supported projects and with other donor-supported projects.
  • Develop a monitoring and evaluation framework with key milestones and deliverables to allow the project team and its partners to regularly review and evaluate the project its objectives, intended outcomes and outputs, implementation structure, work plans and emerging issues.
  • Identify risks and issues that could emerge during implementation with possible suggestions to reduce the risks identified.
  • Design an exit strategy including a clear plan for sustainability of the project for the period following the end of the project.
  • Define possible options for funding.
Deliverables:
The consultancy will be for a total of 20 working days including an in-country mission with a minimum of 12 working days, starting as soon as possible. The consultancy duration of contract is 7 weeks of signing contract. Based on the above objectives and deliverables:
  • A draft summary of the situation analysis: Within 5 working days of starting in country mission
  • A draft Results and Resources Framework, (RRF) using UNDP format: Within 12 working days of starting in country mission
  • A draft project document (as per the UNDP standard format), with specific outcomes, outputs, and detailed activities to fulfill the objectives of the assignment: Within 10 days of approval by UNDP of the RRF
  • A final project document (as per the UNDP standard format), with specific outcomes, outputs, and detailed activities to fulfill the objectives of the assignment: Within 5 working days of receipts of UNDP’s written comments on draft
Management Arrangements:
UNDP will be responsible for the recruitment of the consultant and management of the assignment.
Once these Terms of Reference are signed, they are considering binding and will be annexed to the Special Service Agreement signed by the consultant. UNDP and the consultant may agree to amend the Terms of Reference, in which case the amended version will be signed accordingly.

Evaluation:
Individual consultants will be evaluated based on the following methodologies:
Cumulative analysis
When using this weighted scoring method, the award of the contract should be made to the individual consultant whose offer has been evaluated and determined as:
  • Responsive/compliant/acceptable, and
  • Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.
  • Technical Criteria weight; [70%]
  • Financial Criteria weight; [30%]
Only candidates obtaining a minimum of 60 point will be considered for the Financial Evaluation

Documents to be included when submitting the proposals:

Interested individual consultants must submit the following documents/information to demonstrate their qualifications:
  • 2-3 page proposal explaining why they are the most suitable for the work and providing a brief methodology on how they will approach and conduct the work (if applicable).
  • Financial proposal (which includes a breakdown of consultancy fees, travel cost, per diem)
  • Personal CV including past experience in similar projects and at least 3 references. Noting that, only applications which include the above, will be considered.

Competencies

  • Excellent analytical skills
  • Displays ability to synthesize research and reach empirically based conclusions on related subject
  • Strong writing skills
  • Proven capacity to produce reports
  • Displays capacity to provide experienced advice on best practices
  • Good communication, coordination and facilitation skills
  • Consistently ensures timeliness and quality of work
  • Treats all people fairly without favourism
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability
  • Demonstrates integrity by modeling ethical standards

Required Skills and Experience

Education:
  • Master’s degree (or equivalent) preferably in Business Administration, Economics, Development Studies or any other related field.
Required Skills and Experience:
  • Minimum of 10 years of relevant experience in conducting labor market assessments in Middle income Countries.
  • Previous experience working in and good understanding of the literature on labor market in and possible growth sectors.
  • Required expertise in the area of Sustainable Livelihoods, employment creation particularly for women and youth, value chain analysis, inclusive markets, preferably with recent experience in local economic development.
  • Ability to facilitate meetings and workshops (in English and/or Arabic) with multi-sector stakeholders.
  • Experience working with multiple and different partners in a participatory manner (i.e. United Nations, Governments and Ministries, NGOs, Companies, etc.).
  • Familiarity with internationally renowned tools in this field such as ‘Value Chain Development and the Private Sector Engagement’ analysis and the terminology defined by UNDP, and others such as inclusive markets, inclusive business, pro-poor growth and making markets work for the poor (M4P).
  • Strong interpersonal and communication skills.
  • Strong analytical, organizational, reporting and writing abilities.