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 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! Any Questions?