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Addressing Youth Unemployment: Issues and the Causes

International Labour Office. Addressing Youth Unemployment: Issues and the Causes. Romina Bandura Panel discussion: World Bank - Global Youth Conference Washington, D.C., 7 March 2012 . OUTLINE. GET Youth Report Youth Employment Trends Disadvantages Faced by Youth in the Labor Market

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Addressing Youth Unemployment: Issues and the Causes

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  1. International Labour Office Addressing Youth Unemployment: Issues and the Causes RominaBandura Panel discussion: World Bank - Global Youth Conference Washington, D.C., 7 March 2012

  2. OUTLINE • GET Youth Report • Youth Employment Trends • Disadvantages Faced by Youth in the Labor Market • What Can Be Done? Policy Recommendations

  3. 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

  4. 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)

  5. 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.

  6. High and Persistent Youth Unemployment….. Youth unemployment rate by region, 1991 to 2011(p) Source: ILO, Global EmploymentTrendsforYouth, October 2011 (p = projection) (p=projection)

  7. ….especially in some regions Youth unemployment rate by region, 1991 to 2011 Source: ILO, Global EmploymentTrendsforYouth, October 2011 (p = projection) (p=projection)

  8. ….and countries Youth unemployment rate in selected countries, 2007 and 2011 Source: ILO: Short-term indicators of the labour market (national statistics)

  9. Increasing levels of youth discouragement and labour market withdrawal Unweighted average Young people neither in education, employment or training (NEET), selected countries (% of youth aged 15-24) b Source: ILO and OECD, Givingyouth a betterstart, A policy note forthe G20 Meeting of Labour and EmploymentMinisters, September 2011

  10. Fewer jobs available to young people…..….and of lower quality (1) Informal employment - Percentage of youth and adult employment (15-24; 25-64) Source: ILO database

  11. Fewer jobs available to young people…..….and of lower quality (2) Young people in temporary jobs in selected countries, 2007 and 2010 Source: EUROSTAT

  12. … and meager earnings Source: ILO, GET Youth 2010

  13. III- FactorsShaping 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

  14. IV- What Can Be Done? Policy Recommendations • 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

  15. THANK YOU! YouthEmploymentProgramme International Labour Office Email: youth@ilo.org Website: www.ilo.org/youth Knowledge-sharingplatformhttp://papyrus.ilo.org/YE

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