Decent Employment for Youth in Cambodia (DEY)

A significant proportion (12.7%) of youth in Cambodia is currently not in education, employment or training. Vulnerability and marginalization characterize the employment experience of a large number of Cambodian young men and women, especially in rural areas. Approx. 88% of the total employed persons aged 15 or older are in informal employment and they lack relevant skills, knowledge and labour market information. Their income and employment status is highly susceptible to economic shocks. School drop-out levels are high, and a significant number of adolescents does not participate in formal or informal education at the required levels.

SMEs (60% of which are led by women) are regarded as the backbone of Cambodia’s economy, constituting some 90% of all enterprises and providing approx. 70% of overall employment. However, only 12% of these enterprises are formally registered, indicating the high level of informality of the Cambodian economy. SMEs face multiple challenges, including a low level of digital literacy, limited business support and training, and limited access to finance.

The capacity and resources of the government to implement strategies, such as the National Employment Policy (NEP) 2015-2025 and to effectively collaborate with the private sector are still insufficient.

This consolidation phase will focus on strengthening the institutional capacity of the government and private sector partners to scale up successful activities within existing government policies and programmes, incl. a progressive increase of public budget allocations and private sector contributions to sustain the work.

The project particularly targets low/under-skilled youth in the informal economy, school dropouts from levels 7-12, youth with disabilities, and indigenous and minority community youth.

The institutional capacities of the following key government entities shall be enhanced: MLVT, MoEYS, MoT, MISTI, MEF, and MoSVY.

Furthermore, the project will work with business and entrepreneurship associations as well as with other private sector representatives.

1. More youth in Cambodia have increased employability with demand-driven skills in line with current and future labour market needs
2. More youth have obtained employment and benefitted from improved working conditions in SMEs
3. More youth have improved access to labour market opportunities for decent and productive employment

Expected results:  

1.1 Strengthened TVET systems (incl. competency-based training packages) to enlarge and deliver quality and inclusive skills development for youth (incl. soft, digital and green skills)

1.2 Expanded accessibility of demand-led skills training for youth, including through promotional campaigns and flexible learning pathways

2.1 Increased capacity of SMEs to provide decent employment for youth as a result of improved working conditions

2.2 Increased SMEs productivity through skilling, reskilling and upskilling of employees

2.3 Improved capacities of business development services and national/sectoral business associations to promote inclusive and decent employment for youth among their networks/members

3.1 Increased access of youth to inclusive employment services, career counselling and labour market information

3.2 Increased capacities in results-based planning, implementation and M&E of NEP Committees and Secretariats at national and sub-national levels

Results from previous phases:  

• 6,200 young people (♀ 37%) participated in TVET training
• 150,600 young people (♀ 53%) accessed employment services (incl. job-matching, career and skills counselling) and pre-employment training
• 4,100 young people (♀ 54%) obtained employment; of these, 2,596 (♀ 57%) were officially employed
• 630 SMEs improved their business and 550 youth-owned businesses were established
• A total of 394,000 young people (♀ 53%) benefited from the project across different interventions
• The provincial action plan 2022-2023 for NEP implementation in Siem Reap was endorsed

• SDC-funded Skills Development Programme, 3Ei and ASTI Projects
• Skills Development Fund of the Ministry of Economy and Finance
• Loan projects of ADB/WB