$ Report No: RES00190 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Promoting Better Jobs through Integrated Labor and Skills Programs APPROVED ON 24-Feb-2022 TO THE Argentine Republic Social Protection & Jobs Latin America And Caribbean Regional Vice President: Carlos Felipe Jaramillo Regional Director: Jaime Saavedra Country Director: Marianne Fay Practice Manager: William David Wiseman Task Team Leader(s): Marcela Ines Salvador, Harry Edmund Moroz The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) ABBREVIATIONS AND ACRONYMS ALMPs Active Labor Market Programs Environment and Social Incident Response Toolkit for ESIRT World Bank Staff GRM Grievance Redress Mechanism Ministerio de Trabajo, Empleo y Seguridad Social MTESS (Ministry of Labor, Employment and Social Security) NIPP National Indigenous Peoples Plan Oficinas de Empleo Municipales (Local Employment OEM Offices) Observatorio de Ocupaciones de Argentina OOA (Occupations Observatory of Argentina) PBC Performance-based Condition PDO Project Development Objective SEP Stakeholder Engagement Plan SOE Statement of Expenditures VAT Volver a Trabajo (Return to Work) program The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name Promoting Better Jobs through Integrated Labor and P176781 Skills Programs Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Argentina Approval Date Current Closing Date 24-Feb-2022 30-Apr-2026 Environmental and Social Risk Classification (ESRC) Moderate Organizations Borrower Responsible Agency Argentine Republic Ministry of Labor, Employment and Social Security @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective Improve the employment of targeted groups and strengthen the quality and availability of training and employment services in Argentina. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Balance % Disbursed IBRD 250.00 131.69 118.31 52.68 i The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) IDA -- -- -- 0 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................3 III. PROPOSED CHANGES ................................................................................................................................................6 IV. DETAILED CHANGE(S) ...............................................................................................................................................6 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) project was approved by the Board of Directors in February 2022 and was restructured once in November 2023. The current closing date is April 30, 2026. As of June 2024, the overall Project has disbursed 53 percent of the total US$250 million loan, mainly through Component 2, which provides stipends for beneficiaries of employment services financed under Component 1. 2. The project supports the delivery of training and employment services to a subset of beneficiaries of the government’s Fomentar program. Fomentar targets training and employment services (labor market orientation, apprenticeships, and vocational training plus an employment subsidy that works via a reduction in employer-based contributions) to all workers 18 and older who are unemployed or informally employed. Project financing is targeted to young people between 18 and 24 years of age with less than tertiary education, women between 25 and 59 years of age, and men between 45 and 64 years of age. Fomentar beneficiaries inside and outside of this target group receive the same set of services, but only the target group is eligible for stipends and only the training and employment services provided to the target group are financed by the project. 3. Progress towards the achievement of the Project Development Objective (PDO) is rated Satisfactory. The Government successfully launched the Fomentar program, under which the key project activities lie, in May 2022. The project is already demonstrating impact. Most significantly, preliminary results of an impact evaluation of Fomentar show positive impacts of the program’s interventions on formal employment outcomes, one of the project’s PDO indicators (Component 4). Progress has been made in several other key areas. First, as of May 2024 more than 1.2 million people have registered on the Employment Portal (Portal Empleo) and more than 7,000 firms have registered vacancies, which demonstrates the utility of this new tool. The Employment Portal is significantly changing how employment programs are managed in Argentina both at the central and local level and has the potential to increase the efficiency and effectiveness of the delivery of employment services. Improvements continue to be made in how the portal functions, including for both internal and external users (Component 4). Second, more than 388,000 people have participated in one of the employment services financed under the project – labor market orientation, apprenticeships, or vocational training – and received a stipend (Components 1 and 2). The population that can benefit from these services was expanded to include all young people (with or without children), which has broadened the impact of these services. The project supported activities to strengthen the capacity of the employment services providing training to 2,090 staff of the Municipal Employment Offices (Component 3). Finally, progress has been made on analytical and monitoring and evaluation activities, including the creation of the Observatorio de Ocupaciones de Argentina (OOA), which provides detailed information about skills demand in key occupations to labor market stakeholders (Component 4). 4. Implementation Progress is rated Satisfactory, and all other Key Project Ratings are rated Moderately Satisfactory or Satisfactory. Progress has been made towards nearly all intermediate indicators. There has also been some progress in procuring services needed to deliver activities financed by the project. Despite continued low disbursements on all components except Component 2, the implementing agency was able to progress on implementation using local funds. Page 1 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) The following three ratings, however, were downgraded from Satisfactory to Moderately Satisfactory in June 2023 due to delays in achieving indicators related to Components 1 (Expansion and Strengthening of a Labor Competency-Based Training and Certification System), 3 (Strengthening the Network of OEM), and 5 (Project Management and Monitoring); and the slow disbursement of funds. 5. The Project has been restructured once to address implementation delays related to two factors. First, changing conditions after project approval including strong devaluation and persistent high inflation posed a challenge to update unit costs and forecast disbursements, particularly the training fees for Component 1. Second, higher-than-expected participation in virtual training and labor market orientation courses, instead of face-to-face courses, lowered costs and thus associated disbursements (Component 1). Meanwhile, these participants are eligible for stipends (Component 2). To address these issues, funds were reallocated from Component 1 to Component 2 and the Disbursement Letter was adjusted to allow for advances to free up local resources in the context of fiscal restrictions. Additionally, the reallocation covered the higher disbursements under Component 2 associated with the decision of the Government to expand the eligible population to all young people regardless of whether they have children. 6. There are no overdue audits or unresolved fiduciary issues for the Project. B. Rationale for Restructuring 7. The government of Argentina is seeking to move from income support to employment programs and to build on evidence of what works to improve income generation outcomes for vulnerable groups. Argentina is currently undergoing a significant period of fiscal adjustment with strong devaluation, persistent high inflation, and increasing poverty. In this context, the government is seeking to upgrade the effectiveness of programs to enhance employment prospects while supporting incomes during this transition. Faced with fiscal pressures, the government is seeking to do this while at the same time consolidating programs that focus on vulnerable groups who receive different support to develop their employability prospects. To this end, the government created a new program Volver al Trabajo to supersede the underperforming program Potenciar Trabajo1 and shift its management from the former Ministerio de Desarrollo Social to the Secretaría de Trabajo, Empleo y Seguridad Social in the Ministerio de Capital Humano. Potenciar Trabajo, which targeted at-risk and vulnerable individuals, had high numbers of ineligible claimants2 and low transition rates into formal employment, in addition to other concerns about program effectiveness3. 1 The Programa Nacional de Inclusión Socioproductiva y Desarrollo Local or Potenciar Trabajo, which was launched in March 2020, sought to improve employment opportunities in particular through community works projects. The program grouped beneficiaries of Hacemos Futuro (formerly Argentina Trabaja), Proyectos Productivos Comunitarios, and Salario Social Complementario. The program functioned through the creation of Management Units (Unidades de Gestión or UG), which were partnerships of provincial and municipal governments, universities, and civil society organizations. The program offered two main types of benefits: 1) a transfer to individuals (Salario Social Complementario); and 2) subsidies to the UGs to provide community works projects, education and training, and other projects benefiting the community (e.g., cultural projects, health promotion activities). Beneficiaries were required participate in one of the UG-managed projects or in a program to complete primary or secondary education. As of the second quarter of 2023, there were 1,270,028 individuals enrolled in Potenciar Trabajo. 2 IMF. 2023. “Fourth Review under the Extended Arrangement under the Extended Fund Facility, Request For Modification Of Performance Criteria, Waiver for Nonobservance of Performance Criteria, and Financing Assurances Review.” IMF Country Report Number 23/133. IMF, Washington, D.C. 3 Less than three percent of beneficiaries of Hacemos Futuro and Proyectos Productivos Comunitarios, the programs that were unified to create Potenciar Trabajo, left the program to take a formal job. Beneficiaries remained enrolled in the programs for long periods but did not receive substantial skills development or intermediation support. Monitoring was limited. Salvador, Marcela and Evelyn Vezza. 2020. “Employment as the Lead Component of Employment Programs.” World Bank, Washington, D.C. Page 2 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) 8. The objective, interventions, and target population of Volver a Trabajo are aligned with the ongoing World Bank- supported Fomentar program. Similar to Fomentar, the objective of Volver a Trabajo is to improve the ability of beneficiaries to obtain formal employment. Building on lessons learned from Fomentar, Volver al Trabajo is seeking to improve formal employment prospects through employment and training services rather than through community- based projects. The benefits provided by both Programs include the labor market orientation, apprenticeships, and vocational training. Volver al Trabajo also includes several services not available under Fomentar, not financed under the project, and a larger stipend. Like Fomentar, registration for Volver a Trabajo and access to program benefits are managed via the Employment Portal. There is substantial overlap between the characteristics of the target population of Volver a Trabajo and Fomentar. There are currently 1,012,356 Volver a Trabajo beneficiaries. Of the 621,911 with data available (that is, those who have registered with the Employment Portal), at least 43 percent have the same characteristics as Fomentar beneficiaries who are the ones eligible for the project in Components 1 and 2. Volver a Trabajo is designed to be a transitional program, shifting former Potenciar Trabajo beneficiaries to interventions better aligned with improving employment prospects while maintaining the original program’s larger stipend. In the first phase of this transition, participation in services is not mandatory for VAT participants. No new beneficiaries will be enrolled in Volver a Trabajo, no adjustments will be made to the amount transferred, and the program will end in April of 2026. In the future, VAT will converge under a unique program with the same program characteristics as Fomentar. 9. The proposed restructuring will incorporate Volver a Trabajo beneficiaries into the project to support the transition to a more integrated approach to employment services. The restructuring is designed to take advantage of the Fomentar services to cover the population under VAT. In this spirit, the restructuring also includes several adjustments to the project to streamline how employment services are delivered. Results indicators will be updated to reflect the addition of Volver a Trabajo beneficiaries to project activities. 10. The PDO remains relevant as vulnerable individuals have been particularly affected by the deterioration of the Argentine economy and the subsequent lack of access to formal jobs. The economic deterioration has resulted in an urban poverty rate of 41.7 percent in the second semester 2023. The unemployment and underemployment rates were 7.7 and 10.2 percent in the first quarter 2024; and young people and women are at higher risk of unemployment. Both Volver a Trabajo and Fomentar aim to increase the formal employment opportunities of beneficiaries. Benefits seen from the ongoing impact evaluation of Fomentar would thus be expanded to Volver a Trabajo participants, to increase the probability of finding a formal job, including for women. II. DESCRIPTION OF PROPOSED CHANGES 11. The proposed restructuring would expand the project’s scope to include the VAT program by: a. Including participants of Volver a Trabajo (VAT) as eligible for Component 1 activities: (labor market orientation (orientación laboral), apprenticeships (entrenamiento para trabajo), and vocational training (formación profesional)). b. Creating a new subcomponent under Component 2. Component 2 “Stipends to promote participation in selected ALMPs” would be split into two subcomponents: (i) 2.1 “Stipends to promote participation in selected Page 3 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) ALMPs” to continue supporting Fomentar participants; and (ii) 2.2 “Stipends for VAT participants” to provide cash transfers for this vulnerable population. c. Creating new disbursement categories and reallocation of loan proceeds. A new disbursement Category 7 “Stipends for VAT participants” would be created and US$50 million would be reallocated from Category 1 (Component 1) “Training Fees” to Category 7 (Component 2.2). The Disbursement and Financial Information Letter will be adjusted to include a Customized SOE that will be required as supporting documentation for the new category which will be effective since May 1, 2024. d. Adjusting the Results Framework. The following revisions will be made to the Results Framework: i. PDO Indicators: 1. Add a new PDO indicator “Eligible participants of VAT program (number)” which will report the number of VAT participants with the same profile of the prioritized groups in Fomentar, who have also completed their full registration in the Portal, including the completion of their CV. 2. Adjust the wording4 of the indicator Fomentar participants receiving competency-based training out of total Fomentar participants trained (Percentage) to “Fomentar and VAT participants receiving competency-based training out of total Fomentar and VAT participants trained.”. Adjustment applies to all the indicator’s breakdowns. ii. Intermediate indicators: 1. Add a new intermediate indicator “% of eligible VAT participants who received at least one benefit from the program (orientation, vocational training / training / job placement).” 2. Include a new indicator linked to the Corporate Scorecard retrofitting. This indicator is “Millions of people benefitting from greater gender equality, of which (%) from actions that expand and enable economic opportunities.” 3. Include a new indicator linked to the Corporate Scorecard retrofitting. This indicator is “People using digitally enabled services” which will report participants receiving virtual training. 4. Adjust the wording of related indicators to include the VAT participants, as shown in the Result Framework annex. e. Implementation Arrangements: The implementing agency shifted its name from the former Ministerio de Trabajo, Empleo y Seguridad Social to the Secretaría de Trabajo, Empleo y Seguridad Social in the Ministerio de Capital Humano. Implementation arrangement remain the same. 12. Environmental & Social standards and Risks will remain the same as the restructuring does not change the original design of the Project. Summary of Performance of E&S Risk Compliance 4In the first phase of this transition, participation in services is not mandatory for VAT participants. For that reason, indicators targets will be revised in the Additional Financing that is being discussed. Page 4 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) Final versions of the Environmental and Social Assessment (ESA), the Stakeholder Engagement Plan (SEP), the National Indigenous Peoples Plan (NIPP) and the Labour Management Procedures (LMP) were published on the PIU's website and the WB external website in April 2023. The Dirección General de Programas y Proyectos Sectoriales y Especiales (DGPyPSyE) team is responsible for coordination between multiple areas within the Ministry for E&S instrument implementation. Given the new administration’s organizational restructuring that is still in progress at National level, the new institutional capacity for proper environmental and social management will be analyzed in accordance with the PCAS requirements and the E&S instruments. To date, the project has not generated e-waste. Nonetheless, proper arrangements are being considered for any future e-waste management. In 2023, the former MTESS had satisfactory implementation regarding the SEP, NIPP and work on the inclusion of the identified vulnerable groups (including afro descendants, people with disabilities, LGTBI+ people, GBV and forced labor survivors, and people previously imprisoned). Due to the organizational restructuring and the budgetary constraints, however, activities are being implemented at a slower pace than desired. A deeper assessment will be carried out. The Citizen Orientation Center (COC), that works as the main channel for grievances, was strengthened during 2023 with personnel and training, and continuous support was provided to the local and regional offices to help them resolve different beneficiary problems. A reporting guide has been developed in order to have unified reporting of grievances related to the Project within the 12 different participating areas. The development of a GRM system based on a CRM is delayed. The Project received three incident reports associated with sexual harassment (in accordance with the definitions in Annex 1 of the Environment and Social Incident Response Toolkit for World Bank Staff (ESIRT)) in the context of job trainings, which was handled in line with the provisions established for this type of case. These incidents occurred in July, October, and November of 2023 in Caleta Olivia, Ingeniero Jacobacci, and Córdoba. The 3 incidents Form D, including information about the program for tracking and monitoring the Corrective Action Plan associated with each incident, were completed and circulated internally. Most of the corrective actions were implemented and reported to the Bank and the team is following up with the client to complete Form E and close the cases. Describe any E&S issues and impacts associated with the change in project design. Identify and describe any potential large scale, significant and/or irreversible impacts. Describe any potential indirect and/or long-term impacts due to anticipated future activities in the project areas. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Describe measures taken by the borrower to address E&S policy issues. Provide an assessment of borrower capacity to plan and implement the measure described. Identify key stakeholders and describe the mechanism for consultation and disclosure on E&S policies, with an emphasis of potentially affected people. Page 5 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Summary Description Yes Reallocations Yes (Operation Abstract) Results Yes Institutional Arrangement Yes Implementation Modalities Yes Loan Closing Date Extension No Disbursements Estimates Yes Loan Cancellations No Components Yes Financial Management No Development Objective No Procurement No Legal Operational Policies No Implementation Schedule No MFD/PCE No Risks No Legal Covenants No Conditions No Disbursements Arrangements No DDO No Clients No Appraisal Summary No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) Summary Description Operation Abstract: Summary Description of Proposed Operation Page 6 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) The government of Argentina is seeking to move from income support to employment programs and to build on evidence of what works to improve the income generation outcomes for vulnerable groups. Argentina is currently undergoing a significant period of adjustment with strong devaluation, persistent high inflation, and increasing poverty. In this context, the government is seeking to upgrade the effectiveness of programs to enhance employment prospects while supporting incomes during this transition. Faced with fiscal pressures, the government is seeking to do this while at the same time consolidating programs that focus on vulnerable groups who receive different support to develop their employability prospects. To this end, the government created a new program Volver al Trabajo to supersede the underperforming program Potenciar Trabajo and shift its management from the former Ministerio de Desarrollo Social to the Secretaría de Trabajo, Empleo y Seguridad Social in the Ministerio de Capital Humano. Potenciar Trabajo, which targeted at-risk and vulnerable individuals, had high numbers of ineligible claimants and low transition rates into formal employment, in addition to other concerns about program effectiveness . The economic deterioration has resulted in an urban poverty rate of 41.7 percent in the second semester 2023. The unemployment and underemployment rates were 7.7 and 10.2 percent in the first quarter 2024; and young people and women are at higher risk of unemployment. Both Volver a Trabajo and Fomentar aim to increase the formal employment opportunities of beneficiaries. Benefits seen from the ongoing impact evaluation of Fomentar would thus be expanded to Volver a Trabajo participants, to increase the probability of finding a formal job, including for women. The Program provides an integrated approach by consolidating a set of interventions in labor orientation, skills, internships, and support for finding employment. The target population is youth (men and women) from 18 to 24, women from 25 to 59, men from 45 to 64 and indigenous peoples, afro-descendants, people with disabilities, persons within the LGBTI community, and migrants, among others. Implementation of the Program will be supported by a recently launched Employment Portal and will provide monetary benefits, in the form of stipends to certain priority groups, as well as non-monetary benefits, through the provision of different orientation and training services. The proposed Project would improve the quality of training and intermediation services and increase their coverage, linked to the objective of improving employment outcomes for these groups. In order to achieve this, the Project would support the following: i) expansion and strengthening of a labor competency-based training and orientation system; ii) promotion of labor market insertion through participation in active labor market activities; iii) strengthening the training and intermediation services (Employment Offices network and its coordination with the Employment Portal) with special focus on small and medium enterprises; and, (iv) Strengthening evaluation and Information systems, including a new qualification database to systematize the skills demanded by the labor market. Page 7 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) COMPONENTS Current Current Proposed Proposed Cost Action Component Name Cost (USD) Component Name (USD) Expansion and Expansion and Strengthening Strengthening of a Labor of a Labor Competency-based 115,500,000.00 Revised 65,500,000.00 Competency-based Training Training and Certification and Certification System System Stipends to promote Stipends to promote participation in selected 87,500,000.00 Revised participation in selected 137,500,000.00 ALMPs ALMPs Strengthening the network Strengthening the network of 12,500,000.00 No Change 12,500,000.00 of OEM OEM Strengthening evaluation Strengthening evaluation and 30,000,000.00 No Change 30,000,000.00 and information systems information systems Project Management and Project Management and 3,870,000.00 Revised 3,875,000.00 Monitoring Monitoring TOTAL 249,370,000.00 249,375,000.00 COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Reallocations IBRD-93370-001 Cancellations (if any): New Allocation: Currency: USD 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 TRN Fees under Part 65,000,000.00 1,823,617.43 15,000,000.00 100.00 100.00 1.1; Page 8 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) 2 Stipends under Part 137,500,000.0 119,154,238.59 137,500,000.0 100.00 100.00 2; 0 0 3 GO,CS,NCS,TRN,OP- 43,775,000.00 1,367,867.67 43,775,000.00 100.00 100.00 Pt 1.2, 3.1, 4 & 5; 4 TRN Incentives under 3,100,000.00 324,284.70 3,100,000.00 100.00 100.00 Part 3.2; 6 PREMIUM FOR 0.00 0.00 0.00 0.00 0.00 CAPS/COLLARS; FRONT END FEE; 625,000.00 625,000.00 625,000.00 0.00 0.00 7 Stipends for VAT 0.00 0.00 50,000,000.00 0.00 100.00 participants; Total 250,000,000.0 250,000,000.0 0 0 DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Restructuring Implementation Start Date Operation Closing Date 24-Feb-2022 30-Apr-2026 Projected Date for Full Disbursement 16-Sept-2026 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 24 Feb 2022) FY2022 10,000,000.00 0.00 0.00 FY2023 59,000,000.00 0.00 50,599,406.80 FY2024 80,000,000.00 0.00 78,958,697.48 FY2025 68,000,000.00 78,000,000.00 1,506,959.53 FY2026 33,000,000.00 35,000,000.00 0.00 FY2027 0.00 7,441,895.80 0.00 ENVIRONMENTAL & SOCIAL Environmental & Social Assessment Page 9 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Page 10 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) RESULTS COUNTRY: Argentina Promoting Better Jobs through Integrated Labor and Skills Programs @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Improve the employment of targeted groups Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Participants of FOMENTAR and 0.00 Dec/2021 374,396 31-Mar-2024 388,316 28-Jun-2024 600,000.00 Apr/2026 VAT programs (Number) Revise Participants of 0.00 176,873 177,793 487,000.00 FOMENTAR and VAT programs - Youth 18-24 years (Number) Revise Participants of 0.00 141,415 149,627 101,250.00 FOMENTAR and VAT programs - Women 25-59 years (Number) Revise Participants of 0.00 9,404 10,032 11,750.00 FOMENTAR and VAT programs - Men 45-64 (Number) NewEligible participants of VAT 219,000 Jun/2024 219,000 24-Jul-2024 300,000 Apr/2026 program (Number) 0.00 Dec/2021 0.00 31-Mar-2024 2.76 31-May-2024 4.40 Apr/2026 Page 11 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) Increase in formal employment for Comments on achieving targets This indicator will be reported within 12 months after participants have completed a training FOMENTAR participants who have course or an on-the-job training assignment, relative to a comparison group. The comparison completed a training course or on- the-job training (Percentage) group will be defined in the POM. The indicator is likely to be ready in October 2023. Increase in formal 0.00 Dec/2021 0.00 31-Mar-2024 2.36 31-May-2024 5.00 Apr/2026 employment for FOMENTAR Comments on achieving targets This indicator measures the percentage points diference in the rate of formal employment between participants participants who have mesure within 12 months after completing a training course or an on-the-job training assignment, relative to a completed a training course or comparison group. The comparison group will be defined in the POM. on-the-job training – Female (Percentage) Strengthen the quality and availability of training and employment services Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise FOMENTAR and VAT 0.00 Dec/2021 37.30 31-Mar-2024 37.30 31-May-2024 60.00 Apr/2026 participants receiving competence- based training out of total FOMENTAR and VAT participants trained (Percentage) ReviseFOMENTAR and VAT 0.00 Dec/2021 36.60 31-Mar-2024 36.60 31-May-2024 64.00 Apr/2026 participants receiving competence based trained out of total FOMENTAR participants trained - Female (Percentage) 100.00 Dec/2021 6,779 31-Mar-2024 7,009 31-May-2024 19,200.00 Apr/2026 Employers registering vacancies in the Employment Portal (Number) Comments on achieving targets The indicator measures the number of employers that have registered at least one job vacancy in the Employment Portal in the last 12 months. Employment Offices (OEM) meeting 75.00 Dec/2021 314 31-Mar-2024 312 31-May-2024 200.00 Apr/2026 minimum service targets for job placements and on-the-job training placements (Number) PBC Page 12 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) Intermediate Results Indicators by Components Expansion and Strengthening of a Labor Competency-based Training and Certification System Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise FOMENTAR and VAT 0.00 Dec/2021 135,913 31-Mar-2024 137,912 31-May-2024 390,000.00 Apr/2026 participants that completed a Labor Orientation Workshop since effectiveness (Number) Revise FOMENTAR and VAT 0.00 Dec/2021 104,616 31-Mar-2024 106,379 31-May-2024 200,000.00 Apr/2026 participants that completed a Labor Orientation Wrokshop since effectiveness - Female (Number) ReviseFOMENTAR and VAT 0.00 Dec/2021 311,167 31-Mar-2024 321,894 31-May-2024 256,000.00 Apr/2026 participants who completed a training course since effectiveness (Number) ReviseFOMENTAR and VAT 0.00 Dec/2021 124,530 31-Mar-2024 210,322 31-May-2024 130,000.00 Apr/2026 participants who completed a training course since effectiveness - Female (Number) Revise FOMENTAR and VAT 0.00 159,785 161,854 75,500.00 participants who completed a virtual training course since effectiveness (Number) Revise FOMENTAR and VAT 0.00 Dec/2021 40,118 31-Mar-2024 41,998 31-May-2024 285,000.00 Apr/2026 participants in on-the-job training since effectiveness (Number) Revise FOMENTAR and VAT 0.00 Dec/2021 26,118 31-Mar-2024 27,323 31-May-2024 156,000.00 Dec/2022 participants in on-the-job Page 13 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) training since effectiveness - Female (Number) New People benefiting from actions to 388,316 Jul/2024 388,316 24-Jul-2024 600,000 Apr/2026 expand and enable economic opportunities (Number of people) CRI New People benefiting from 256,000 Jul/2024 256,000 24-Jul-2024 450,000 Apr/2026 actions to expand and enable economic opportunities - Female (Number of people) CRI New People benefiting from 107,000 Jul/2024 107,000 24-Jul-2024 243,000 Apr/2026 actions to expand and enable economic opportunities - Youth (Number of people) CRI New People using digitally enabled 167,749 Jul/2024 167,749 24-Jul-2024 200,000 Apr/2024 services (new services) (Number of people) CRI New People using digitally 100,000 Jul/2024 100,000 24-Jul-2024 130,000 Apr/2026 enabled services (new services) - Female (Number of people) CRI New People using digitally 80,000 Jul/2024 80,000 24-Jul-2024 100,000 Apr/2026 enabled services (new services) - Youth (Number of people) CRI ReviseFOMENTAR and VAT 0.00 Dec/2021 204,407 31-Mar-2024 208,341 31-May-2024 150,000.00 Apr/2026 participants that have received more than one program (orientation, professional training / on-the-job training / labor insertion) (Number) Page 14 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) ReviseFOMENTAR and VAT 0.00 153,378 156,208 82,500.00 participants that have received more than one program (orientation, professional training / on-the- job training / labor insertion) Female (Number) 0.00 Nov/2021 0.00 31-Mar-2024 10 31-May-2024 50.00 Apr/2026 Professional Training Institutions Certified (Number) Comments on achieving targets The agreement with the Certification Institution of quality is still being negotiated. Revise FOMENTAR and VAT 0.00 Dec/2021 3,908 31-Mar-2024 3,981 31-May-2024 7,000.00 Apr/2026 participants with disabilities (Number) Stipends to promote participation in selected ALMPs Revised Indicator Name Baseline Actual (Current) Closing Period Result Month/Year Result Date Result Month/Year New Eligible VAT participants who 0 Jun/2024 0.03 24-Jul-2024 20 Apr/2026 received at least one benefit from the program (orientation, vocational training / training / job placement (Percentage) Strengthening the network of OEM Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Dec/2021 2,090 31-Mar-2024 2,090 31-May-2024 3,000.00 Dec/2023 Employment Offices staff trained Comments on achieving targets The indicator measures the number of OEMs staff who have completed all training modules (Number) (the modules will be described in the POM). Implementation is planned for July-October 2023 with results in November/December. 0.00 Dec/2021 1,587 31-Mar-2024 1,587 31-May-2024 1,800.00 Jun/2024 OEMs staff that have been assessed as satisfactory / Comments on achieving targets The indicator measures the number of OEMs staff who have received a satisfactory assessment (certified) in training. The assessment/certification procedure will be defined in the POM. Page 15 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) certified in training (Number) Strengthening evaluation and information systems Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 25,000.00 Dec/2021 1,132,426 31-Mar-2024 1,232,587 31-May-2024 1,070,000.00 Apr/2026 People registered in the Employment Portal (Number) Comments on achieving targets The indicator measures the number of people (excluding Employers) who are registered in the Employment Portal - Dec/2021 Yes 31-Mar-2024 Yes 31-May-2024 Main elements of Apr/2026 the Labor Market Occupations Methodological processes, Observatory institutional arrangements, and main published in a public informational outputs for users based official website of on the Labor Market Occupations the MTESS Observatory published in a public official website of the MTESS (Text) Comments on achieving targets The indicator measures the availability of essential background information on the Labor Mark Occupations Observatory to demonstrate that the system is operational. The minimum requirements will be described in the POM. A first version is expected in the coming months. Occupations surveyed and included 0.00 Dec/2021 26 31-Mar-2024 26 31-May-2024 250.00 Apr/2026 in the Labor Market Occupations Comments on achieving targets The indicator measures the number of occupations surveyed, processed and included in the Labor Market Observatory (Number) Occupations Observatory to demonstrate its coverage. Employment and Training programs’ No Nov/2021 No 31-Mar-2024 No 31-May-2024 Yes Dec/2024 impact evaluation published Comments on achieving targets The indicator measures the carrying out and completion of an impact evaluation for at least one employment (Yes/No) and training program. Grievances related to the project 0.00 Dec/2021 0.00 31-Mar-2024 0.00 31-May-2024 95.00 Apr/2026 recorded in the GRM system that are Comments on achieving targets This indicator measures grievances related to the project recorded in the GRM system that are processed and processed and communicated back to communicated back to the concerned stakeholder within the agreed timelines as described in the POM. the concerned stakeholder within the agreed timelines (Percentage) 0.00 Dec/2021 0.00 31-Mar-2024 0.00 31-May-2024 80.00 Apr/2026 FOMENTAR participants reporting satisfaction with training provided Comments on achieving targets The assessing process is still under implementation. Page 16 The World Bank Promoting Better Jobs through Integrated Labor and Skills Programs (P176781) through satisfaction surveys (Percentage) Performance-based Conditions (PBC) Actual (Previous) Actual (Current) PBC Name Baseline End Target Result Date Result Date 1 Employment Offices Value 75.00 150.00 (OEM) meeting minimum service targets for job placements and on-the- 174.00 30-Apr-2023 312 31-May-2023 Allocated job training placements 0.00 1.90 Amount (Number) Total Allocation:3.10 Page 17