THE 2018 Report on THE NEO Initiative

neo
turns a problem
into an opportunity

Addressing the gap between unemployed youth and the demand for qualified personnel, NEO is a groundbreaking initiative in which businesses, governments, and civil society collaborate to drive youth employment solutions in Latin America and the Caribbean.

380,000

That is the number of young people’s lives transformed by opportunities afforded by the New Employment Opportunities (NEO) Initiative, as of December 2018.

In a region plagued by precarious rates of youth unemployment, NEO has succeeded in closing the skills gap of vulnerable youth and the demand for qualified personnel by companies in Latin America and the Caribbean.

Led by the Inter-American Development Bank, through its Multilateral Investment Fund (MIF, now IDB Lab) and its Labor Markets Division (LMK), the International Youth Foundation (IYF) and partners: Arcos Dorados, Caterpillar Foundation, CEMEX, Fondation Forge, Microsoft, SESI, and Walmart, NEO is launched in 2012 as a pioneering initiative in Latin America and the Caribbean, in which regional actors partner to tackle the old problem of youth employability through an innovative equation of pooling resources, knowledge and skills in order to ensure youth self-fulfillment through dignified employment.

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40%

of the working age population in Latin America is between 15-29 years old, approximately 163 million youth in total

66%

of the youth lives in poverty, often in precarious and vulnerable conditions

20%

of them do not work or study, and their unemployment rate could be 3 times as high as the rate for the adult population

50%

of the youth that does work, does so informally, as candidates do not have the required technical skills for the formal sector or lack life skills such as responsibility and teamwork

41%

of the companies in the region are struggling to find qualified workers, especially for technical and trade jobs

neo Closes the gap

Dire structural problems affect Latin America and the Caribbean’s youth employability system, including a disconnect between key players and ineffective training programs, often leading to isolated efforts with little impact, wasting valuable resources already scarce in the region.

Low quality and relevance of job training, lack of access to specialized services, and lack of information on the labor market itself, generate risks of losing human capital across Latin America and the Caribbean. Young people face multiple challenges in their journey to a fulfilling future.

For more information, please visit www.youthneo.org

With the investment of over US$137 Million by NEO partners and the support of Australian Aid, Catholic Release Services, Pepsi Foundation and United States Agency for International Development, NEO has made great strides in closing the gap between youth skills and the needs of employers in the Latin America and Caribbean region over the past 6 years.

00
Multi-sectoral NEO alliances developed with businesses, governments, and civil society
00
Countries where youth employment projects have been implemented through NEO alliances and NEO associated projects
00
Effective and sustainable solutions leveraged through multi-sectoral alliances
100
Public, private and civil society institutions brought together to develop scalable and sustainable youth employment solutions
100
Training and employment institutions improved services through NEO’s Quality Assurance System
1000
Teachers, trainers, facilitators professionalized in career guidance, job placement and life skills program services
1300
Additional teachers trained with innovative teaching methodologies aligned with work environments
3000
Businesses mobilized to offer internships and jobs for youth
380,000+

Youth equipped by the NEO Initiative, receiving career guidance, skills training, internships and job placement services.

neo Brings Numbers to Life

Beyond numbers, NEO is improving lives and generating transformational changes in young people. The youth being touched by NEO’s reach are vulnerable, at high risk of returning to poverty, with limited opportunities to access education and decent job wages.

 
Pictogram showing 5 out of 10 people

5 out of 10 youth equipped by the NEO Initiative for the world of work are women.

Pictogram showing 4 out of 10 people

Over 4 of 10 NEO youth participating in skills training services continue their studies within 6 to 9 months after the initiative.

Pictogram showing 6 out of 10 people

Over 6 out 10 participants are employed within 6 to 9 months after initiative.

Pictogram showing 7 out of 10 people

7 out of 10 NEO youth report earning an income equal to or higher than the minimum wage.

Pictogram showing 7 out of 10 people

5 out of 10 NEO youth reported being working in a formal job receiving social security, vacation and retirement benefits.

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The impact of NEO’s programs are astonishing. But NEO is much more than just numbers ...

 
 
 

neo Creates new ways of collaborating

 
 

The alliance model fostered by NEO is a rather novel concept, one in which collaboration is a means to solving social problems. NEO’s vision of “A million youth, a million opportunities” addresses the issue of youth unemployment in the region by implementing an innovative formula at the global level.

NEO’s success can be attributed to establishing a sustainable system where key stakeholders connect to each other in multi-sector alliances and coordinate to provide high-quality services through best tools and practices, but ultimately to influence public policy. More efficient private-public policies mean national governments can better invest and allocate resources for maximum impact in creating a pool of young talent to meet the demand of national labor markets.

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neo has 5 action areas

Create partnerships among companies, governments and civil society to improve youth job opportunities.

Improve quality in training and employment services following NEO quality standards.

Produce employment solutions to co-finance innovative projects that reach the greatest possible number of youth.

Mobilize employers to offer more jobs and internships.

Share lessons learned through studies and publications.

neo promotes a vision for Latin America and the Caribbean

Click on the map to learn about the NEO initiative in each country.

neo Mexico

After finishing the first phase of NEO 1.0 in May 2018, with an initial investment of $11M with $8.7M from local resources, the Alliance NEO Mexico renewed its commitment and keeps working together on youth employability matters in Nuevo Leon with new members such as Nacional Monte Piedad in a NEO 2.0 project.

Under the leadership of CEMEX, FEMSA and CONALEP Nuevo Leon, the Alliance NEO Mexico in Nuevo Leon helped training institutions to understand the labor market dynamic and disengaged youth to acquire vocational skills for better job placement. The alliance has been an agent of innovation, transforming the work culture through the development of a rapid assessment methodology to aid training institutions to adapt their programs to the most promising local sectors, and the creation of the Model of Comprehensive Services and Care for Youth – MAS Joven– in which public and private institutions are coordinated to reach detached youth with comprehensive services of career guidance, scholarships, internships, social services, and connection to employment opportunities, otherwise unavailable to them.

Although Mexico has made significant investments to modernize its technical education systems and labor market with IDB support, and NEO Mexico deepened the implementation of those federal policies and programs in the state of Nuevo Leon, while also developing and implementing more innovative components.

As of December 2018:
  • Almost 40,000 youth have advanced their future thanks to NEO Mexico.
  • 78% of youth graduates from technical and job training courses are employed.
  • Those who work, 85% earn equal or more of the minimum salary, with an important percentage who triple it.
  • Nearly 20% of these graduates continue their studies.

neo El Salvador

As of December 2018, almost 20,000 youth have advanced their future thanks to NEO El Salvador. NEO El Salvador is still in its first phase of NEO 1.0 until August 2019. With an initial investment of $5.8M with $4.4M from local resources, the alliance has already surpassed its initial goals.

The Alliance NEO El Salvador was created to coordinate the services of public, private, international and civil society organizations focused principally on detached and at-risk youth, in a country where 1 out of 4 of its youth neither works nor studies.

With the support of the Chamber of Commerce of El Salvador – CAMARASAL – and the collaboration of the Ministry of Labor, NEO has developed a job fair model where youth receive information about the labor market, public and private resources for training, scholarships and employment.

The collaboration between public and private sectors have resulted in important public policies such as: the first National Policy for Decent Employment; the strengthening of the recently created Labor Market Observatory; and the first Territorial Employment Councils in San Juan Opico, Chalatenango and Santa Tecla municipalities to align training offerings with needs of local labor market and strategic sectors of the country. It is expected that the Ministry of Labor expands this territorial employment councils’ model from 3 to 7 municipalities by 2019.

By introducing innovative solutions such as the quality standards assessment tool, and life skills curriculum - Passport to Success -, NEO has helped motivate new partners such as the Ministry of Education to adopt these best practices, initially implemented in 25 job training centers, and expand it to 22 additional technical and academic high schools by 2019.

neo Jamaica

Still in its first phase of NEO 1.0 until July 2019 with an initial investment of $9.3M with $8.1M from local resources, the Alliance NEO Jamaica has made great strides in influencing current national public policy.

The Alliance NEO Jamaica focused its initial efforts on creating a taskforce to analyze the youth employability ecosystem in order to provide authorities with public policy recommendations to better coordinate institutional roles and programs, and help transform national employment and training systems to be more effective for the 1 out of 3 Jamaican youth unemployed in the island.

Thanks to close collaboration between NEO Jamaica and the Ministry of Labor, on January 2019, the national employment portal or ELE (Electronic Labour Exchange) will be launched as a youth friendly tool to access to information on labor market demands, on job skills needs, and to provide youth with better information about the world of work.

At the same time, NEO’s Passport to Success has been implemented and tested by the Ministry of Labor and NEO Jamaica partners during NEO implementation timeline. It is expected to be scaled to all Ministry of Labor’s employment centers in the country and to as many schools, attached to the Ministry of Education, as possible by 2019 -2020 period.

neo Dominican Republic

After finishing the first phase of NEO in May 2018, with an initial investment of $11.5M with $9.4M from local resources, the Alliance NEO Dominican Republic members renewed its commitment to continue coordinating efforts through an intersectoral committee.

The Alliance NEO Dominican Republic has been quintessential in bridging relationships between various ministries within the government and the private sector to improve the quality and relevance of technical education, internships system and labor intermediation services in the country, and moreover having great impact in public policy.

With the support of the Ministry of Education and the private sector, NEO developed and implemented 1 virtual and 28 physical Job Placement and Internship Offices (OILP) in 28 technical high schools across the country, improving the internships systems and labor intermediation services for youth.Through the IDB and Government of DR’s new operation, the OILP model will be expanded to a total of 38 OILP for 2019-2020 period, providing internships and counseling services to youth from over 76 technical high schools nationally.

Moreover, public-private partnerships have improved the quality and relevance of technical education centers by implementing innovative teaching methodologies such as REACT strategy (Relating, Experiencing, Applying, Cooperating, and Transferring) in 28 technical high schools centers and the development of the first Diploma in Labor Intermediation and Management of Internships, moving towards the professionalization of employment and internships management services with a first generation of 30 Dominican professionals graduated from OILP and Territorial Employment Offices (OTE), thanks to partners EDUCA and Sur Futuro Foundation.

As of May 2018:

  • More than 53,000 youth have advanced their future thanks to NEO Dominican Republic.
  • 38% of youth graduates from technical and vocational courses are employed.
  • 57% of these graduates continue their studies.

neo Panama

After finishing the first phase of NEO 1.0 in June 2018 with an initial investment of $7.7M with $6.2M from local resources, the Alliance NEO Panama renewed its commitment and keeps working together on youth employability matters in the country in a NEO 2.0 project.

The impact of the Alliance NEO Panama in training and education in the country has been impressive. NEO Panamá achieved strengthening the role of productive sectorial associations to identify and support the Ministry of Labor and Ministry of Education in reviewing and developing job training programs including life skills to improve relevance of the job training programs.

Understanding the deficiencies in the national technical education system, NEO Panama instituted a quality standards assessment pilot, tested in 8 technical high schools to allow technical education centers to evaluate themselves against a validated regional standard and developing annual improvement plans to create an improvement science culture.

NEO Panama additionally launched the digital platform MarcaTuRumbo.com.pa, creating greater access to guidance and employment services, but also connecting youth to career counselors, mentors, employers and with opportunities in the labor market. Now, NEO Panama innovations achieved scaling through the IDB and Government of Panama’s new operation in a NEO 2.0 phase. The Passport to Success curriculum and quality standards assessment culture are going to be implemented in 88 schools during 2019-2020 period, and MarcatuRumbo.com.pa will be able to expand its services and provide more quality services to youth.

As of May 2018:

  • More than 33,400 youth have advanced their future thanks to NEO Panama.
  • 34% of youth graduates from technical and vocational courses are employed.
  • 41% of these graduates continue their studies.

neo Colombia

After finishing the first phase of NEO 1.0 in May 2018 with an initial investment of $6.6M with $5.8M from local resources, almost 18,250 youth have advanced their future thanks to NEO Colombia. 64% of youth graduates from technical and vocational courses are employed and 39% of these graduates continue their studies.

Seizing the opportunity of substantial public and private investment in the development and access of one of the largest port infrastructures, the Alliance NEO Colombia coordinates public-private organizations to reach disadvantaged youth in the Uraba region in Antioquia department, a region long afflicted by conflict and poverty.

In a new post-conflict period, it was critical to include vulnerable youth in economic growth, while avoiding an increase in human displacements, similar to those caused by Colombia’s civil war and narco activities.

The impact of the Alliance NEO Colombia in local, regional and national public policy has been important in a very difficult rural context. The Colombian International Cooperation Presidential Agency (APC) recognized NEO Colombia as one of the most innovative experiences in Colombia and the model for public-private partnerships for local economic development was transferred to other regions through the initiative COL-COL where successful models are expended within the country among different regions.

neo Peru

Still in its first phase of NEO 1.0 until June 2019 with an initial investment of $14M with $12.5M from local resources, the Alliance NEO Peru has become a critical partner for public policy coordination.

The vision of the Alliance NEO Peru is to be a model of innovation in youth employability connecting the public services with job training institutions in Metropolitan Lima and El Callao.

NEO Peru implemented a quality standards assessment pilot to allow employment centers, technical high schools, technological institutes and job training centers to evaluate themselves against a validated regional standard and developed annual improvement plans. But not only technical skills are needed in the jobs of the future, life skills have a huge role to play. NEO Peru partners understood the critical importance of having a systematized life skills curriculum that assures quality while scaling. For this reason, the National training service for the Construction Industry -SENCICO- adopted Passport to Success (life skills) curriculum to scale it nationally in more than 40 training programs that SENCICO offers in 11 regions in the country.

NEO Peru complements the work of the IDB and the Government of Peru under the Fortalece Peru program. NEO Peru tested new job intermediation models focused on detached and at-risk- youth and helps private institutions, such as Chamber of Commerce of Lima, establish new job placement offices in collaboration with the Ministry of Labor.

As of May 2018:
  • More than 12,400 youth have advanced their future thanks to NEO Peru.
  • 69% of youth graduates from technical and vocational courses are employed.
  • 21% of these graduates continue their studies.

neo Brazil

Still in its first phase of NEO 1.0 until June 2020. With an initial investment of $8.7M with $7.8M from local resources, the Alliance NEO Brazil has almost surpassed its initial goals.

In a country of 51 million youth, 1 out of 2 young people are at risk of unemployment and poverty. For this reason, the Alliance NEO Brazil focused its intervention on two fronts: articulation among actors, programs and public policies related to youth employment; and strengthening the quality and relevance of technical high schools and job training institutions in Pernambuco, as a pilot to be scaled nationally.

Although there are federal guidelines, the interface between the demands of the labor market and the supply of training is weak. NEO Brazil innovates on developing a digital methodology to identify the occupations for the industry 4.0 needed by private sector, describing the competency required by those occupations validated by productive sectors, and transforming those competencies needed in job training programs.

In order to better qualify the youth and increase their opportunities to meet the demands of today and tomorrow’s employment, NEO Brazil implemented an innovative methodology within the professional education schools of the State Education Secretariat, SENAI and the Federal Education Institute, Education 3.0, which brings learning in the classroom closer to the reality of the work environment. Special attention has been placed on gender in order to empower young women to reach their full potential in a world guided by science, technology, engineering and mathematics.

As the demand for skilled workers in the 21st century increasingly passes through socio-emotional competencies, NEO Brasil is also improving the curriculum of schools to offer better services of vocational guidance, professional and life choices to students, in 4 areas: Identity, Auto-Efficacy, Life Design and Career Design.

As of December 2018:
  • More than 35,000 youth from 104 technical high schools and job training centers in Pernambuco have advanced their future thanks to NEO Brazil.
  • 389 educators innovated their teaching methodologies based on the Education Paradigm 3.0
  • 99 educators from 47 schools improved the career guidance and life project services offered to students.

neo Paraguay

After finishing the first phase of NEO 1.0 in June 2018 with an initial investment of $5.1M with $3.8M from local resources, the Alliance NEO Paraguay renewed its commitment with the new incoming government and keeps working together on youth employability matters in the country in a NEO 2.0 project.

The Alliance NEO Paraguay made an emphasis in the quality and relevance that public and private services. In order to align better job training with productive sector demands, NEO Paraguay achieved strengthening the role of productive sectorial associations to identify and support the Ministry of Labor and Ministry of Education in reviewing and developing relevant job training programs. At the same time, the National System of Professional Qualifications (SNCP) was developed in the country.

NEO’s Quality Standards Assessments and Passport to Success curriculum will be scaled to almost 40 National Service of Professional Promotion (SNPP) centers nationally. SINAFOCAL, the National System of Labor Training, has updated their bidding rules to improve the quality of providers that access public funds to train youth, based on NEO Paraguay experience.

Furthermore, NEO Paraguay partners were able to introduce better practices in public and private sectors to guarantee youth with disabilities are able to enter in the labor market and pushing this topic into the national agenda.

As of December 2018:
  • More than 44,800 youth have advanced their future thanks to NEO Paraguay.
  • 62% of youth graduates from technical and vocational courses are employed.
  • 34% of these graduates continue their studies.

neo Chile

NEO Chile is still in its first phase of NEO 1.0 until December 2019. With an initial investment of $14.1M with $13.1M from local resources, the Alliance NEO Chile renewed its commitment with the new incoming government and keeps working together on youth employability matters in the country.

With a half million youth population out from school and labor systems, NEO Chile focused its intervention in Valparaiso region by implementing digital technology solutions to improve job training and career guidance services.

There is little coordination with the productive sector in terms of its systematic involvement in setting curricula, establishing partnerships with educational institutions, and entering into internship agreements.

The Alliance NEO Chile developed a model of an education–employment-regional-counsel to connect employers and job training institutions to reinforce job training programs under a regional perspective. NEO mobilizes youth to improve public policies regarding training and job opportunities and innovates on developing an integrated information digital career guidance system to assist youth in making vocational choices during their training and work career development.

NEO is developing the first Diploma in Career Guidance and Labor Intermediation in the country, a systematized training program that professionalizes public officials and staff of private institutions in best practices of guidance and labor intermediation, management of internships, relationship with companies and collection of relevant information for decision making and continuous improvement.

As of December 2018:

  • More than 5,400 youth have advanced their future thanks to NEO Chile.
 

neo shares success through 8 areas of knowledge

 
 

NEO has generated a unique and innovative knowledge agenda, as well as a strategic communications plan at the regional level to disseminate lessons learned. NEO addresses questions that fill knowledge gaps in areas of interest left answered by academic literature and past attempts at employability models, such as:

  • What training and intermediation models are effective to reduce the gap between labor supply and demand?
  • Do vocational guidance and life skills curriculums have an impact on the rate of school dropouts, decision-making abilities and future incomes?
  • Are multi-stakeholder alliances effective in scaling models of youth employability?

How does NEO impart the knowledge and experiences gained since its inception?

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neo's 8 areas of knowledge

Strategies for public private partnerships in social development

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Models for the alignment between training entities and companies

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Calculation of the Return of Investment in Capacity-Building (ROI)

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Strategies for the development of socio-emotional skills

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Strategies to promote vocational orientation

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Strategies to promote labor intermediation.

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Strategies to promote quality standards for training and employment centers

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Podcasts

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neo innovates for 13 regional and local challenges

 
 

NEO alliances are strengthened by the collective relationships of 140 partners in the public, private, and civil society sectors. Working in alliances streamlines processes, frees resources, generates innovation and improves the ability to respond to new challenges.

Thanks to the coordinated work of its members, NEO alliances test, document and systematize innovations, cultivating a culture of trust and commitment between the public and private sectors that have translated into sustainable solutions, not only influencing but likewise improving public policy locally and regionally.

 
 

neo prepares the region for future challenges

 
 

By equating one youth to one employment, NEO has helped close the gap between the deficiencies in technical and personal skills and employer demand in a continuously changing and growing job market across Latin America and the Caribbean.

Through its innovative and scalable approach, the NEO experience demonstrates its model is cost-effective for companies, investors, and governments alike, creating a sustainable pipeline of highly-trained talent in the region.

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neo's 3 future challenges for Latin America and the Caribbean

1

The window of demographic opportunity in Latin America and the Caribbean is set to normalize soon.

Adult and senior populations in Latin America and the Caribbean are on the rise, allowing for new employment opportunities to emerge. If the window of opportunity is missed, there may be a lost generation of youth that will not generate wealth for their countries. The time for change in youth employability is now.

2

Innovation within the public sector and scale of innovation generated by multisectoral alliances, private institutions, and civil society.

Though NEO’s theory of change was largely based on the creation of public-private partnerships to implement projects and generate innovations in youth employability, there are important challenges to overcome. An indispensable effort is required to help identify current regulatory issues, processes in public bureaucracy, the chain of command in decision-making and processes in changes of government in order to help the public sector not only innovate, but adopt and scale up said innovations created by private partners.

3

The use of technology as a tool for scaling innovations.

The use of technology can standardize and scale innovation in a cost-effective and quality-controlled manner. However, the organizational culture, needs and realities of the diverse actors in the region must not be neglected. The development of both workforce and life skills in youth requires a personal component. The challenge is not to lose sight of the fact the creation and/or use of digital tools is not the final objective in itself, but rather a response to the short, medium and long-term needs of stakeholders.

neo's Partners

IDB Logo
IDB Lab logo
IYF logo
Arcos Dorados Logo
Caterpillar logo
Cemex Logo
Forge Foundation Logo
Microsoft logo
SESI Logo
Walmart logo
Australian Aid Logo
CRS logo
USAID logo
Pepsico Foundation logo