Project site access 

Employment-Intensive Investment Programmes (EIIP) work is performed in areas that are impacted by both climate and conflict. Because EIIP responds to infrastructure needs, it is relevant as part of a crisis response and in locations where there is instability. This poses difficulties in terms of consistent access to projects which is necessary to monitor progress and adherence to building standards. This was the case in both Sudan and Iraq, where Local Economic Development Committees (LEDCs) in Sudan and young engineers in Iraq were engaged to help monitor EIIP progress as part of the innovative solutions to the challenge.  

Formalization processes

A key challenge for refugee participation within EIIPs relates to its nature as formal employment. This means refugees participating in EIIP work require work permits and must comply with social security conditions. The success of an EIIP therefore t relies on national frameworks and processes in place for business registration and ownership of refugee groups, so they can bid for/get construction work. It is crucial to explain these processes and procedures clearly to refugee workers, especially if it is their first experience in the formal labour market. Establishing communication channels with the relevant government ministries and social security institutions can also help direct questions and follow-up.

Potential delays when contracting and sourcing locally

While mechanized processes can save time, the aim of using a labour-based approach is to provide a maximum number of work days for members of the local community. Moreover, locally recruited workers are often new to the area of work, so they might not be highly efficient, particularly at the outset of the work. This is even more evident when EIIP sites are used to allow training-course participants to apply their skills in practice, as was the case in Iraq. When EIIP work is performed in a sector or location where seasonality is a factor, time considerations and accounting for delays are also necessary. For instance, in Ethiopia, the construction of a storage facility for milk was completed after the milk production season had ended. This meant that the productivity gains of the storage facility could not be realized until the following season. Delays in implementation are not solely due to worker efficiency. Because contracts are awarded locally, it can take time for contractors and local partners to submit technical and financial proposals that align with ILO requirements. The contracts may also have to go through government processes, which introduce further delays. 

Fluctuations in building-material prices

Delays introduce risk of having the value of local currency and the price of construction materials change. This happened in Sudan and Ethiopia, which both experienced hyperinflation and devaluation of their currency. As a result, financial proposals had to be renegotiated. In Sudan, it took 12 months for the contract with the implementing partner to be approved. By that time, the price of building materials had skyrocketed, highlighting the importance of agility and speed when contracting locally. The availability and quality of local materials can also introduce challenges. In more remote areas, local suppliers may not have the cash flow to provide the volume of building materials required by an EIIP. Sourcing materials from the closest urban or peri-urban area will increase costs. This could also cause delays or compromise build quality. Sometimes, materials can be sourced locally without having to go through a supplier – such as the do-nou gunny bags in Ethiopia and cobblestone production in Ethiopia and Kenya – in other instances, materials will have to be brought into the locality and may also have to meet certain standards set by the government. 
 

Labour market constraints 

The impact of employment services on employment is constrained by whether the area of operation provides employment opportunities for refugee and host community jobseekers.
 

Tips: Some country teams navigated challenging labour markets by targeting opportunities within MSMEs, as well as through skills training and apprenticeship opportunities that would better prepare job seekers for the labour market. For example, in Iraq, the work with an INGO early on in the PROSPECTS programme illustrates how the limited number of jobs available rendered the extension of employment services ineffective. In Uganda, rural employment services engaged local MSMEs to identify job vacancies and worked with local crafts persons to place apprentices.

Limited human resources

Even in countries where governments have frameworks or existing public employment services, it’s still difficult to find successful ways to build capacity and transfer knowledge within national institutions when civil servants and national actors have no incentive to take on the extra training. Early in the project, PROSPECTS hired employment service consultants to receive refugee job-seekers in the offices of Ministry of Labour directorates. The theory was that Ministry career officers would also benefit from capacity-building and exchange knowledge with the consultants. However, knowledge transfer was not evident, as the extent to which public officials had time and resources to dedicate to additional work was overestimated. Ministry officers were reluctant to take on work outside of their job description (serving national job-seekers). If civil servants and national actors have no incentive and if the work is viewed as additional to their existing job, it is less likely to be well received. 
 

Tips: If capacity-building is framed as supporting functions that are already in the job descriptions of civil servants or national actors and is associated with career advancement, this might make investment in capacity-building more impactful.

Lack of trust on the part of  private sector employers

When the quality of services is weak, this can perpetuate a poor image of employment services. In Iraq and Kenya, there was an overall lack of trust among private sector employers in the quality of public employment services. As a result, they were underutilized. Furthermore, several players in the job-matching sector provide more agile and responsive employment services. Many of these are online platforms that are quick to make referrals. While this is not a comprehensive approach to job matching, job-seekers and employers are sometimes more eager to get a match quickly, rather than wait for a suitable match. 

Cost barriers for various parties involved

WBL programmes, especially apprenticeships, can be expensive. Costs include subsidies and stipends for trainees, incentives for participating enterprises, registration fees at training institutions, and transport costs for trainees. Forcibly displaced job seekers may be unable to cover these costs, and may require additional support. Institutions rely on the fees paid by students and while it is possible for some apprentices to register for reduced fees, it is not possible to  offer this to all students. 

Tips

• Develop partnerships with private sector employers to share the financial burden of WBL.
• Integrate WBL into larger training institutions to spread costs and provide scholarships.
• Integrate WBL into a national system with government funding or national resources.

Misconceptions around WBL

Both workers and employers may have misconceptions about WBL. Young people might view apprenticeships as a less desirable alternative to formal employment, while employers might see trainees as free labour rather than learners.

Tips

• Clearly explain that WBL is a structured learning opportunity, not just a job, highlighting its benefits for skills development and employment.
• Emphasize the learning component of work placements and the fact that there is no guarantee of a job at the end for the trainees.
• Share case studies and data from other regions to demonstrate the value of WBL as a means to transition to employment.

Employer engagement barriers

In countries with high economic informality and a largely unstructured private sector, finding employers who are willing to engage in WBL takes effort.  The majority of businesses in PROSPECTS’ target locations are micro, small and informal. While these businesses might not be able to host a formal apprenticeship programme, they can offer opportunities for work-based learning that align with quality apprenticeships.  

Tips

• Consider WBL opportunities that MSMEs and craftspersons can support at a local level.
• Work with employers with a training mindset who are willing to devote time to develop the skills and knowledge of trainees, who may contribute to their business’ development in the future.
• Support productivity gains to incentivise local businesses to offer WBL opportunities. Different enterprises may have specific business development needs to which project funds can respond. For instance, among the hotels that participated in the apprenticeship programme in Uganda, several needed equipment to support production processes that would host apprentices. 
   

Cost and time intensity 

The cost and time intensity of supporting RPL is high, because it is a multi-stakeholder participatory process. 

• Establishing the institutional framework and guidelines required a series of training sessions, consultations and validation exercises.
• Building up human resources to support RPL processes requires qualifying assessors, administrators and facilitators, and delivering professional training on developing assessment tools and, in particular, how to gather and check evidence of skills and competencies.
• For training institutions and bodies, there is also the cost of setting up practical scenarios for the demonstration of skills, in addition to organizing classroom exams to test theoretical knowledge.
• There are costs involved, too, in sending assessors to conduct assessments in alternative venues, particularly where geographical access is a factor.

Tips

• Use digital platforms and self-assessment tools, where applicable.
• One possible solution to geographical and access challenges is to train and empower refugees to become assessors. However, without documentation and nationally recognized ID, or acceptance by national institutions that refugees can be trained and certified as assessors, this remains aspirational.
• There may be instances where requests for RPL come directly from the employers. These can be good opportunities for piloting and scaling up RPL.

Financial barrier for applicants 

The costs for RPL applicants, such as assessment fees and the cost of transport to examination centres, can be a barrier for refugees and host community members with limited financial resources.

Tips

• Offer scholarships or subsidies to support refugees and host community members taking up RPL assessment.
• Partner with employers to subsidise or cover RPL assessment costs for job applicants or employees.
• Coordinate with other donor-funded programmes to certify graduates from their training programmes using RPL.

Hands-on support for RPL applicants 

RPL assessments do not just involve written examinations, but also individual assessment and demonstration of skills. Depending on the sector, applicants may need to prepare a portfolio of work, evidence of credentials they may have and a resumé. The way these items are presented will also vary from sector to sector. The process can take several months to complete. In cases where the applicant’s portfolio is deemed below standard, they are typically given an option to rework and resubmit it, which prolongs the process and, potentially, the costs involved.

Language and literacy 

Language accuracy can be lost in translating technical terms from one country to another. While greater weight is given to observation of practical skills, in some countries, a written theory test must be completed before the practical assessment. This can be problematic for population groups with low literacy rates or poor language skills, thus impacting their successful certification.

Digital skill profiling tools are helpful but still require time investment 

While agile skills profiling tools can play a role in targeting career services, they are no substitute for national recognition processes. The fact that SkillLab is a digital tool was also somewhat problematic for the PROSPECTS target group. In Egypt, following the piloting of the tool, a survey among refugee and host community job-seekers revealed that, while the tool was useful in capturing skills, it required an investment of time. Users reported taking between three and six hours to complete their profiles independently. They also felt the tool was of limited use in their own job-search process, with less than a third of users reporting that it helped them find a job. More intensive support and follow-up were needed from career counsellors, particularly for people who were less digitally literate.

Low awareness of and trust in financial institutions

Both refugees and host community members may have a low level of trust in formal financial institutions, sometimes stemming from a history of bank collapses or loss of savings. Others may have limited exposure to formal financial services and low levels of financial literacy, which are essential for engaging productively with FSPs. They may rely on informal finance methods, like borrowing from friends and family.

Barriers to accessing financial services

Refugees and displaced persons often face difficulties in accessing formal financial systems owing to a lack of nationally recognized documentation, which is typically needed to open bank accounts. The robust documentation required for Know Your Customer (KYC) compliance acts as a significant barrier to accessing finance, especially when refugee IDs are not considered equivalent to national IDs.

Lack of tailored products and services

There is a gap in the availability of financial products and services tailored to the needs and financial realities of refugees, IDPs and host community members.

Operational challenges for FSPs

FSPs may lack experience in serving clients from forced-displacement backgrounds. FSPs frequently perceive refugees and individuals with limited capital as high-risk clients, fearing they lack the ability to repay loans or may pose a “flight risk”, owing to their temporary status. On top of that, they may not understand the practical barriers preventing refugees from accessing finance.

Access to refugee camps or settlements

FSPs often face difficulties in gaining authorization from governments to access refugee settlements and camps. Obtaining entry permits can be a time-consuming and complex process that limits their ability to offer services in these settings.

Sustainability of financial inclusion

There are concerns about the long-term profitability for FSPs of engaging in refugee and host community markets, as the transaction sizes may be small, even if the number of potential customers is large.

Mindset and dependence on aid

In post-conflict settings, populations may have become accustomed to grants and free services, which can create a culture in which individuals are seen as passive recipients of finance rather than active customers. This can make the transition to using investment, savings, loans and credit more challenging.  

Implementation challenges

There are a few challenges when it comes to implementing social protection systems for refugee and host communities: a lack of political buy-in and support, weak institutional capacities and systems, inefficient registration and payment mechanisms, complex procedures to acquire work or residency permits, lack of access to livelihoods and job opportunities for refugees, and limited domestic and external funding for social protection.

Narrow focus on formal social protection systems

It’s hard to look beyond the formal systems and to acknowledge the role of informal support by networks and community-based mechanisms providing social protection for refugees. Donors who traditionally funded humanitarian operations have shown increased appetite for channelling their funding through existing social protection systems to support the enrolment of refugees and other forcibly displaced people, particularly when it comes to social health protection and social assistance. While the ILO’s approach and value proposition have proven feasible and cost effective, supporting transitions and channelling humanitarian funds through social protection schemes remain challenging – operationally, financially and politically.

Long-term sustainability

While the approach of channelling humanitarian funding through social protection systems is increasingly being applied, this needs to be accompanied by support to strengthen national social protection systems and institutional capacity to transition recipients out of cash assistance and phase out subsidies that are covered by donors and external partners. When humanitarian organizations hand over operations, including social protection, to local authorities, refugees’ self-reliance should be emphasized. More work on social protection and livelihood interventions is needed to support sustainable access to contributory social protection schemes for refugees and to improve their income security, employability, health and well-being.
 

Resource-intensive support

JSC is a resource-intensive intervention given that a small cohort is guided for two weeks by two facilitators, with associated costs of venue hire, transport and materials.  National resources need to be allocated to run the methodology sustainably in the long term.

Tips:
Collaboration between academic, government and private sector actors is more viable for carrying out JSCs in the long run. 
Documenting the job placements of graduates and their employment trajectories after participation can help make a case for investing national resources in JSCs.

Limited job market for refugee youth

In PROSPECTS countries, there is generally a lack of sufficient formal sector jobs that match the skills and competencies of young people. In refugee camps and settlements in rural areas, livelihood pathways are more constrained owning to movement restrictions and closed camp economies

Tips:
Links to self-employment opportunities, business development services and apprenticeships  are relevant in these contexts 
Digital skills training can help improve employability for a wider selection of jobs that are web-based.

Long time horizon required  to change job-seeking behaviours

JSCs encourage young people to become active agents in their own career development, which can be a significant shift, especially for those raised in systems that – intentionally or unintentionally – have taught them to be passive. While initial outcomes vary depending on how the JSCs were rolled out, outcomes might be better in the medium and long term if the proactive behavioural change is given time to develop.

Tips:
Embedding the methodology in career guidance offices of universities and training institutions can support longer-term behavioural change, as the services stay with students and trainees over the years.