Youth and Employment in Africa: The Potential, the Problem, the Promise 1 Youth Y th and d Employment in Africa: The Potential Potential, the Problem, the Promise 2 Why youth? ? 62% of population in Africa is below 25 years Youth unemployment p y rate is 50% higher g than that of the general labor force Youth, especially females, face more obstacles than adults in establishing themselves in the labor market 3 The potential The demographic transition makes youth the most abundant asset, thus making it a window of opportunity to boost Africa’s economy 4 However, unemployment, underemployment and low paid jobs lead to poverty traps g yyouth among More than 70% of youth live under $2 per day Country Less than US$ 2 per day Burundi, 1998 85.7 Côte d'Ivoire, 1998 46.5 Cameroun, 2001 49.1 Ethiopia, 2000 70.7 Ghana, 1998 66.5 Kenya, 1997 54.4 Madagascar, 2001 81.7 Mozambique, 1996 75.4 Malawi, 1997 66.3 Ni Nigeria, i 1996 92 9 92.9 Sierra Leone, 2003 68.0 Uganda, 1999 93.8 Zambia, 1998 86.3 SSA-13 (mean) 72.1 SSA-13 (median) 70.7 5 The youth, youth especially girls girls, face several disadvantages Youth are more likely than adults to work in the informal sector, sector and less likely to be wage employed Young rural-urban migrants are less educated than their urban counterparts, and more likely to work in insecure jobs Women work more hours than men and are more likely to engage in non-market activities 6 Youth are employed primarily in agriculture, in which theyy account for 65% of total employment p y 100 90 80 70 60 50 40 30 20 10 zm b9 8 ug a9 9 05 tza 00 stp 3 sle 0 7 mw i9 mr t0 0 md g0 5 ke n9 7 94 gin gh a9 8 05 eth 01 cm r 8 civ 9 bd i9 8 0 Percent of employed youth working in agriculture 7 Urban Rural mo z9 6 mr t0 0 Most youth in rural areas are underemployed underemployed, working in subsistence agriculture or as unpaid family labor 70 60 50 40 30 20 10 05 tza sle 03 ng a9 6 97 mw i md g0 5 gin 94 gh a9 8 eth 05 cm r0 1 0 Percentage of youth underemployed 8 Unskilled youth are more vulnerable They are: ¾ Less L lik likely l tto fifind d work k ¾ More likely to be stuck in low quality jobs ¾ More vulnerable to economic shocks ¾ More vulnerable to early marriage and parenthood 9 The problem Poverty traps firms and farms in low low-scale scale production with low productivity, explaining the number and types of jobs created 10 The challenges Create jobs to meet the growing supply of young labor l b fforce Minimize the deleterious impacts of rapid urban migration, while preparing rural youth th ffor more rewarding di mobility bilit 11 Policy P li responses: lessons l learned In many countries interventions have focused on programs that are: ¾ Narrow in scope ¾ Limited in time ¾ Biased toward urban areas Investing mainly in urban programs may fuel migration, increasing unemployment and underemployment 12 The knowledge foundation for policy responses 70% of the youth population is in rural areas In the short term onlyy rural activities,, farm or non-farm, can create occupations for most new job seekers The informal sector will continue to p play y a key y role as a means of job opportunities for a long time to come Nontraditional farming 13 Policy response: need of an integrated approach that ¾ Balance the demand and supply sides of the labor market in rural and urban areas ¾ Take into account the youth mobility from rural to urban areas, combined with targeted interventions to help young people, especially girls, overcome disadvantages in entering and remaining in the labor market 14 Manage youth flows by delaying rural urban migration to ¾ Mitigate the growing urban youth unemployment pressure ¾ Prepare rural youth for a more successful migration ¾ Improve the well-being in already congested cities iti 15 Policy responses: Making agriculture an attractive job option by ¾ Introducing commercialization and productivity improvements infrastructure support and rural improvements, diversification ¾ Increasing investments in irrigation, water resources management, and research and extension t i ¾ Exploring E l i th the iimmense potential t ti l off th the non-farm f sector for job and wealth creation 16 Policy responses: Making rural areas an attractive living option by ¾ Increasing rural public services ¾ Investing g in human capital p in rural areas to fight poverty and to create opportunities for people to migrate more successfully 17 Policy responses: Improve access to education and skills by ¾ Synchronizing education and training policies with other policies and programs for productivity productivity, income growth, and job creation ¾ Providing more and better access to disadvantaged urban and rural youth, the less educated, and girls ¾ Developing second chance education programs ¾ Strengthening inter-ministerial coordination and collaboration among different stakeholders 18 Policy responses: Encourage and support entrepreneurship by ¾ Addressing the barriers of doing business, especially p y challenges g faced by y yyoung gp people p ¾ Nurturing and helping young entrepreneurs develop their businesses 19 Policy responses: Improving labor market conditions by ¾ Promoting active labor market policies and programs in rapidly growing urban areas where demand for skilled workers is on the rise ¾ Providing youth with vocational and labor market g information in order to facilitate them to select right training programs ¾ Recognizing the need of appropriate regulations to protect the youth, who are usually more vulnerable and d iinsecure, without ith t iinhibiting hibiti fifirms ffrom hi hiring i 20 Policy responses: Improve the investment and macroeconomic environment by ¾ Bettering investment climate to stimulate job creation: ti youth th are particularly ti l l attractive tt ti tto employers in new and growing sectors b because th they are more adaptable d t bl th than older ld workers to new production methods ¾ Avoiding g economic collapses, p , which impose p a particular burden on the youth 21 Policy responses: Support neglected groups and issues by ¾ Supporting young women entrepreneurs, especially in rural areas ¾ Supporting the informal economy to improve the quality of employment and increase productivity ¾ Promoting accessible and effective sexual and reproductive health programs ¾ Empowering women 22 Policy responses: Addressing youth in violent and post conflict settings by ¾ Designing programs that meet the needs of youth in conflict-affected countries ¾ Supporting essential services and educational opportunities t iti ¾ Promoting participation of youth in decision and policy-making ¾ Transfering T f i prior i skills kill tto civilian i ili use th through h certification and vocational training of ex-combatants with disabilities 23 Conclusions I Youth employment reflects economic, geographic, demographic, and other conditions, and d th the particularities ti l iti off each h country t Achieving productive and secure employment for young people entails long-term action covering i a wide id range off economic i and d social i l policies 24 Conclusions II A successful policy framework requires coherent and integrated responses, recognizing especially the very large share of rural youth, their demographic traits, and the severe labor market constraints Programs need to be part of an integrated development strategy for growth growth, including jobjob creation in both rural and urban areas, as well as targeted interventions to help young people, specially i ll girls, i l overcome the th specific ifi barriers b i they face in entering and remaining in the labor market 25 The promise: A peaceful and prosperous Africa 26 THANKS! 27