A156354
ACTRAV/ITC-ILO COURSE
Capacity Building for members of Youth Committees
on the Youth Employment Crisis in Africa
26 to 30 August 2013
Youth Employment Crisis:
Contributing Factors, Challenges and
Consequences for Inaction
Structure of the Presentation
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Glance at The Global Youth Population
An Unprecedented Global Youth Unemployment Crisis
Global Youth Unemployment & Unemployment Rate
Vulnerable Employment & Hazardous Work
Not a Homogenous Group
Note of Caution!
Today’s Youth: Perspectives of Africa
Some Realities About Youth Unemployment Crisis in Africa
Youth and Adults by Occupation
Labour Market Challenges Faced by Youth
Key Contributing Factors to the Global Youth Unemployment Crisis
Effects and Consequences for Inaction
Correlation between Youth Employment Crisis and Social Unrests
Glance at the Global Youth Population
2012

Nearly 17%, or 1.2 billion of the world’s population are
between 15 and 24 years old.

90% of them live in developing countries and mere 10%
live in developed countries.

At least 10% of the world’s youth are not in education,
employment or training (NEET).

By 2050 roughly ½ of the planet’s extra 2.3 billion people
will be in Africa.
Continues…
Continues…
An Unprecedented Youth Employment
Crisis…

Of the world’s estimated 202 million unemployed, about
75 million are youth, which is 4 million more than in
2007.

4 out every 10 unemployed worldwide is a young woman
or man.

With a 12.7% unemployment rate, young people are 3
times more likely than adults to be out of a job.

This high unemployment rate does not take count of the
at least 6 million youth, mostly in developed countries,
who had given up job search.
Global Youth Unemployment
Unemployment Rate – 2005 to 2012
and
Youth Unemployment Rate Forecasts
Youth unemployment rates forecasts
2012
2017
Global
12.7%
12.9%
Central and South Eastern Europe
16.9%
17%
Developed economies
17.5%
15.6%
East Asia
9.5%
10.4%
Latin America and The Caribbean
14.6%
14.7%
Middle East
26.4%
28.4%
North Africa
27.5%
26.7%
South Asia
9.6%
9.8%
South East Asia and The Pacific
13.1%
14.2%
Sub-Saharan Africa
12%
11.8%
Continues…
Developing Economies

Open unemployment and discouragement are important
but not the main issues.

The main concerns are:
-
Working poverty;
Educated but unemployed;
The NEET (Not in Employment, Education or Training).

The ILO estimates that more than 200 million young
people work but earn under US$ 2 a day, mostly in the
informal economy of developing countries.

The highly educated youth face longer job searches than
the less or not educated.
Developed Economies
Continues…
The concerns are not just about unemployment and
discouragement;
But also:
 The increased proportion of young people in temporary
employment and part-time work;


Serial internships for graduates;

In the EU, the number of young employees with
Temporary Contracts increased from 35% (2000) to 42.2%
(2011).

In most OECD countries, unemployment is higher among
the lesser educated youths.
Correlation between Youth and Adult
Unemployment Rates
Globally, young people are on average nearly 2 to 3
times more likely than adults to be unemployed
Vulnerable Employment & Hazardous
Work

Millions of young people are trapped in temporary,
involuntary part-time or casual work that offers few or no
benefits and limited prospects for advancement.

Many more young people are working long hours for low
pay, struggling to eke out a living in the informal
economy.

An estimated 59 million young people between 15 and
17 years old are engaged in hazardous forms of work.
Continues…
Continues…
Not a Homogenous Group

Youth are not a homogenous group: factors such as
gender, age, education, social background, origin,
disability, HIV & AIDS, or being a migrant, caused further
disadvantages.

The combination of these dimensions make transition to
Decent Work more difficult for youth.

Young women tend to have more difficulty finding work
than young men.
Continues…
A Note of Caution!

Unless immediate and vigorous action is taken, the
global community confronts the grim legacy of a lost
generation and this puts the future survival of trade
unions at stake.

Investing in youth is investing in the present and future of
our societies.

Firm political will, creativity and a commitment of
resources on a sustainable basis as well as the building
of partnerships at all levels are necessary to overturn the
youth unemployment crisis.
Today’s Youth: Perspectives of Africa

The average age of Africa’s population is 19 and about
70% of the continent’s population is below 30 years.

Around 60% of the continent’s unemployed are aged 15
to 24.

Most of the youth have grown-up in the midst of
numerous and big transformations in the world of work:
-

Globalisation, Free Market Economy and Neo-liberalism;
Massive migration;
Higher demand & use of information technologies + languages;
Significant labour market reforms in some countries.
Today’s youth of Africa are more educated than any
previous generations.
Continues…
Some Realities About Youth Unemployment
Crisis in Africa

72% of Africa’s youth population live on less than $2 a
day (with rates surpassing 80% in countries like Nigeria,
Ethiopia, Uganda, Zambia and Burundi).

38% of Africa’s working youth is presently working in
Agriculture.

Africa created 73 million jobs (2000 – 2008) but only 16
million youth aged between 15-24 years benefitted.

The informal economy employs about 90% of the
working age population in Africa’s poorest countries.
Vulnerable Employment and Unemployment Rates
in Africa
Youth and Adults by Occupation
Continues…

9 out of 10 top countries with the youngest populations in
the world are in Africa (Benin, Burkina Faso, Chad, DRC,
Ethiopia, Mali, Niger, Uganda, and Soa Tome &
Principe).

Whereas the proportion of young people is projected to
decline worldwide, it is expected to stay at the same
level in Africa for the foreseeable future.

Combined with population growth, this means that the
number of young people in Africa will double by 2045.

By 2040, Africa will have the largest workforce (1 billion)
in the world, surpassing both China and India.
Continues…

All of the African countries analysed demonstrated
higher youth than adult unemployment rates, with most
experiencing youth unemployment rates more than twice
the adult rate.

The problem is particularly acute in North Africa, where
27.1% of the young were unemployed in 2011; and

The ratio of youth-to-adult unemployment rates
estimated at 3.9% – compared to 2.0% in Sub-Saharan
Africa and 2.5% worldwide.
Continues…
Youth unemployment in North Africa is the highest in the world
Sub-Saharan Africa
12.8%
North Africa
27.1%
Middle East
26.2%
Latin America and the Caribbean
South Asia
13.3%
9.9%
South-East Asia and the Pacific
East Asia
13.4%
8.8%
Central and South-Easter Europe and CIS
17.7%
Developed Economies and EU
World
17.9%
12.7%
Source: AfDB computations
29
Continues…
And labour force participation rates in North Africa are among the lowest in the
world.
Sub-Saharan Africa
54%
North Africa
Middle East
34%
30%
Latin America and the Caribbean
South Asia
53%
41%
South-East Asia and the Pacific
52%
East Asia
Central and South-Easter Europe and CIS
Developed Economies and EU
World
60%
42%
48%
49%
Source: AfDB computations
30
Continues…
Although the young constitute around two fifths of the continent’s working age
population, they make up three fifths of the total unemployed.
Youth unemployment rate
Adult Unemployment Rate
60.0
50.0
40.0
% 30.0
20.0
10.0
0.0
Source: AfDB computations
31
Continues…
Young people in Africa have very low educational attainment compared to other regions in
the world.
Secondary and tertiary enrolment ratios, by region
Gross Secondary Enrolment Ratio
Gross Tertiary Enrolment Ratio
120%
100%
77%
80%
20%
35%
95%
81%
58%
26%
6%
96%
74%
55%
60%
40%
89%
28%
38%
11%
0%
Source: Authors’ calculations based on World Development Indicators 2011.
32
Labour Market Challenges Faced by
Youth
Key Contributing Factors for the Global Youth
Unemployment Crisis

Low aggregate demand for labour due to the poor state of
the economies.

Low productivity and, slow structural transformation and
little or no expansion of the industrial sector.

Non-conducive environment for investment especially for
SMEs to flourish.

Mismatch of skills between supply and labour markets
needs.

25% of youth in Africa are at a disadvantage in the labour
market because they are illiterate.
Continues…

Decline in the quality of education, as expenditure per
student has been decreasing throughout Africa.

HIV & AIDS as breadwinners die early, thus depriving the
youth of opportunity for further education and training.

Lack of access to land, credit and other productive
assets.

Inadequacy and poor status of existing infrastructure.

Informal employment dominates the labour market and
accounts for 72% of non-agricultural employment in SSA.
Effects and Consequences for Inaction

Persistent youth employment crisis carries very high
social and economic costs and threatens the fabric of
societies by:
-
Fuelling social unrests, political instability and insecurity;
-
Lowering growth and development potentials;
Diminishing innovation and creativity in the economy;
Threatening sustainability of inter-generational solidarity and pensions
schemes;
Undermining young people’s faith in the current policy paradigms and the
possibility of a better future.

A whole generation of youth now faces much bleaker life
prospects than any previous one.

Youth unemployment and poor jobs contribute to high
levels of poverty.
Correlation between Youth Employment
Crisis & Social Unrests
Continues…

Youth unemployment results in waste of scarce and
valuable human capital – capacity underutilization.

There is an intricate link between youth joblessness and
social problems like drug abuse, petty crime and single
parent families.

Unemployed youth are much more likely to engage in
risky behaviour which could increase their vulnerability to
contract HIV.

Youth unemployment can result in a long-lasting
“scarring” effect on young people, particularly from
disadvantaged backgrounds.
Continues…

Jobless youth are often marginalized and excluded from
the larger society.

Social exclusion can lead to:

-
Alienation of youth from society and the democratic political process;
-
Subscription of youth into radical and even terrorist ideologies and activities.
Unless immediate action is taken, the trade union
movement worldwide confronts a bleak future:
Young people will continue to loose faith in the
TUM
Too many working poor joining the TUM will not
guarantee the Movement’s sustainability.
Continues…

Unless immediate action is taken, the
global community and the TUM confront
the grim legacy of a lost generation.

There are young people at risk; but youth is,
undoubtedly, a reason for hope, for the cause of
freedom & development in Africa, especially if they
can attain productive jobs & Decent Work
The End!
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