Youth Employment Programme Addressing Youth Unemployment: Issues and the Causes Romina Bandura Panel...

Youth Employment Programme

Addressing Youth Unemployment: Issues and the Causes

Romina BanduraPanel discussion: World Bank - Global Youth Conference

Washington, D.C., 7 March 2012

International Labour Office


OUTLINE

I. GET Youth Report

II. Youth Employment Trends

III. Disadvantages Faced by Youth in the Labor Market

IV. What Can Be Done? Policy Recommendations


I -Global Employment Trends for Youth (GET Youth)

• Youth in GET defined as the age group15-24 years old.

• Youth GET every 2 years by ILO’s Employment Trends Team (Geneva). Other reports: Global GET and GET Women

• Editions: 2004, 2006, 2008, 2010*, update in 2011 and forthcoming in 2012.

• World and regional labor market indicators for youth, analysis of trends and lessons learned.

• ILO’s Global Employment Trends Model used to produce estimates.

• Data: ILO specialists select only those observations deemed sufficiently comparable across countries – with criteria including: (1) type of data source; (2) geographic coverage; and (3) age group coverage.

* Special issue on the impact of global crisis on youth


II –Youth Employment Trends (1)

• Global youth unemployment rate stands at 12.6%, that is 75 million youth are unemployed (4.6m more than in 2007).

• Of the 200 million unemployed worldwide, 40% are youth.

• Globally, the youth unemployment rate is 2-3 x that of adults, increased over the crisis period.

• Regional differences – highest rate increase in developed economies and EU; highest rate in MENA.

• Unemployment among youth in many LICs is just a luxury for a few youth, while decent work deficits stemming from underemployment, informality and working poverty are the main factors characterizing the youth labour market.

• Youth labor force participation rates and E/P ratios are declining (education but also discouragement)


II –Youth Employment Trends (2)

Youth unemployment is but the tip of the iceberg in many regions. The challenge is to create decent work for youth.

• Lengthy period of search: LT unemployment rates for youth surpass those of adults in developed countries.

• Employment Status: part time employment rates increased for youth (often involuntary part time); employment in the informal economy; withdrawal altogether.

• Young Working Poor: If we add the 150 million young working poor (<1.25/day) to the 75 million youth unemployed then 225 million youth are in vulnerable situation.

• Globally, young women tend to have more difficulty finding work than young men (except during the crisis in developed economies and the EU). Ethnic groups and disabled as well.


High and Persistent Youth Unemployment…..

Youth unemployment rate by region, 1991 to 2011(p)

Source: ILO, Global Employment Trends for Youth, October 2011 (p = projection) (p=projection)


….especially in some regions

Source: ILO, Global Employment Trends for Youth, October 2011 (p = projection) (p=projection)

Youth unemployment rate by region, 1991 to 2011


….and countries

Youth unemployment rate in selected countries, 2007 and 2011

Source: ILO: Short-term indicators of the labour market (national statistics)


Japa

n

Ger

man

y

Austral

ia

Canad

a

Fran

ce

Unite

d St

ates

Unite

d Ki

ngdo

mIta

ly

Brazil

Spai

n

Mex

ico

Argen

tina

Indo

nesia

Sout

h Afr

ica

Turk

ey0

5

10

15

20

25

30

35

40

Inactive Long-term unemployed Short-term unemployed Unweighted average

b b

Unweighted average

b

a) Data for Indonesia refer to 2007; for Japan and South Africa to 2008.b) Data refer to total NEET rate.

Source: ILO and OECD, Giving youth a better start, A policy note for the G20 Meeting of Labour and Employment Ministers, September 2011

Increasing levels of youth discouragement and labour market withdrawal

Young people neither in education, employment or training (NEET), selected countries (% of youth aged 15-24)


Fewer jobs available to young people…..….and of lower quality (1)

Source: ILO database

Informal employment - Percentage of youth and adult employment (15-24; 25-64)


Fewer jobs available to young people…..….and of lower quality (2)

Source: EUROSTAT

Young people in temporary jobs in selected countries, 2007 and 2010

Belgi

um

Bulga

ria

Czech

Rep

ublic

Denm

ark

Germ

any

Irela

nd

Greec

e

Spai

n

Fran

ceIta

ly

Luxe

mbo

urg

Hunga

ry

Nethe

rland

s

Austri

a

Pola

nd

Portu

gal

Slov

enia

Slov

akia

Finla

nd

Swed

en

Unite

d Kin

gdom

Norway

Turk

ey0

10

20

30

40

50

60

70

80

90

20072010


… and meager earnings

Kaza

khstan

, 200

3

Guate

mala,

200

0

Colom

bia,

200

3

Pakis

tan,

200

4

Bolivi

a, 2

002

Camer

oon,

200

1

Tajik

istan

, 200

3

Cambo

dia,

200

3

India,

200

4

Tim

or Les

te, 2

001

Mali, 20

06

Sier

ra Leo

ne, 2

003

Niger

, 200

5

Moz

ambiqu

e, 2

002

Burun

di, 1

998

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Incidence of working poverty among youth and adult cohorts, selected countries

15-24 25+

Sh

are

of

wo

rkin

g p

oo

r in

to

tal

em

plo

ye

d (

%)

Source: ILO, GET Youth 2010


III- Factors Shaping Youth Employment

Level of aggregate demand and employment intensity of growth

Size of the youth cohort

Individual characteristics

Labour market regulations

Education and training outcomes

Work experience

Personal aspirations

Representation and voice


Develop an integrated strategy for growth and job creation

Establish broad-based partnerships on jobs for youth

Improve the quality of jobs and the competitiveness of enterprises.

Invest in the quality of education and training and improve its relevance to labour market needs

Enhance the design an increase funding of active labour market policies in support of national youth employment priorities

Employment services: standard services to all youth and more intensive assistance to disadvantaged youth

Reliable and timely information on the youth labour market. Monitoring and evaluation systems to assess effectiveness of programs

IV- What Can Be Done? Policy Recommendations


THANK YOU!

Youth Employment ProgrammeInternational Labour Office

Email: [email protected]: www.ilo.org/youth

Knowledge-sharing platform http://papyrus.ilo.org/YE

mailto:[email protected]

http://www.ilo.org/youth

http://papyrus.ilo.org/YE

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