Development Centre      Arusha     May, 2012
Special theme:Promoting Youth Employment         Mario Pezzini    OECD Development Centre                              2
Which country has the highest share ofyoung people out of work; which has      the most young workers?   – Country A: GDP ...
Outline• Why an AEO on Youth Employment?• What is the employment situation of young  Africans?• What can be done to promot...
Young (15-24) People, Million                                     50                                            100       ...
The employment situation of young           Africans
Unemployment is only one of many bad labour market situations for young people          Youth time use by Country Income G...
Many youth in work are poor,                                                     some youth in unemployment aren’t.       ...
What can be done to promote   youth employment?                              9
Demand for labour is the biggest challenge100%                                                                     Source:...
Firms and farms need support to      create jobs, but needs differ                   Access to                            ...
Many young Africans have the wrong skills.                                            60%Share of countries where a major ...
African universities do not educate for African                        needs                  Social                      ...
Firms must be more involved in          training and education                Percent of firms offering formal training pr...
Mismatches also exist between youth       expectations and what’s on offer  Need for                    better informatio...
Conclusion•Young people in Africa suffer from short term labourmarket challenges. Especially following the crisis.•Adjustm...
www.africaneconomicoutlook.org                                 19
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AEO 2012 Presentation Arusha

  1. 1. Development Centre Arusha May, 2012
  2. 2. Special theme:Promoting Youth Employment Mario Pezzini OECD Development Centre 2
  3. 3. Which country has the highest share ofyoung people out of work; which has the most young workers? – Country A: GDP per capita USD 13,000; population 2 million – Country B: GDP per capita USD 10,000; population 48 million – Country C: GDP per capita USD 1,600; population 40 million – Country E: GDP per capita USD 1,200; population 42million 3
  4. 4. Outline• Why an AEO on Youth Employment?• What is the employment situation of young Africans?• What can be done to promote youth employment? 4
  5. 5. Young (15-24) People, Million 50 100 150 200 250 0 1991 1992 1993 1994 1995 1996 Youth Population 1997 1998 1999 2000 2001 2002 2003 2004 Youth Employment 2005 Employment? 2006 2007 2008 Why an AEO on Youth 2009 2010 GDP (right axis) 0 100 200 300 400 500 600 800 900 700 1,000 GDP, Billion (2005 PPP int. $)5
  6. 6. The employment situation of young Africans
  7. 7. Unemployment is only one of many bad labour market situations for young people Youth time use by Country Income Group (2010)100% 7% 10% 41% Working 24 % Part-time 9% 5% 1% 3%80% 5% 5% 10% Employee 8% Unemployed Self-employed 28 % 10% 10%60% Discouraged Unpaid workers 5% 10% Part-time NEET 25% 9% Inactive Underemployed40% 11% Unemployed 34% Students Discouraged 48% Student 48% Out of LF20% 34% Student 0% LIC MIC Source: Authors calculations based on Gallup World Poll (2010)
  8. 8. Many youth in work are poor, some youth in unemployment aren’t. LICS Food insecurity by employment status MICs 60% 57% 52% 52% 49% 50% 50% 47% 43% 43% 40% 36% 35% 35% 37% 37% 34% 34% 30% 27% 26% 21% 20% 10% LICs MICsSource: Authors calculations based on Gallup World Poll (2010)
  9. 9. What can be done to promote youth employment? 9
  10. 10. Demand for labour is the biggest challenge100% Source: AEO Country Survey; 37 countries90%80%70%60%50% 89%40%30% 47% 46%20% 40%10% 16% 0% Aggregate labour Skills mismatches Labour market Attitudes of Labour market demand information employers and regulation. youth 10
  11. 11. Firms and farms need support to create jobs, but needs differ Access to Access to NA Finance small firms Finance 60 large firms 60 SSA 45 45Labour Skill 30 Labour 30 15 Electricity Skill Level 15 Electricity 0 Level 0 Labour Labour Corruption Regulatio Corruptio Regulations ns n Source: Enterprise 11
  12. 12. Many young Africans have the wrong skills. 60%Share of countries where a major obstacle 50% for youth in labour markets 40% 30% 54% 20% 41% 10% 0% Many job seekers have advanced Most job seekers have little or no skills. qualifications but not in the skill sets required by employers. 14 Source: AEO Survey
  13. 13. African universities do not educate for African needs Social Engineering sciences, Agri- Science manufacturing Others business and culture and construction lawSub-SaharanAfrica 12% 44% 4% 2% 38% (3% ICT)North Africa 8% 51% 10% 1% 30% (1% ICT)Asia 30% 6% 20% 4% 40%LatinAmerica 38% 7% 9% 2% 44%OECD 10% 37% 11% 2% 41% (3% ICT)
  14. 14. Firms must be more involved in training and education Percent of firms offering formal training programs for its permanent, full-time employees605040302010 0 South Asia Middle East Sub-Saharan World OECD East Asia Latin & North Africa AmericaSource: Enterprise Surveys 2006-2010 Africa 16
  15. 15. Mismatches also exist between youth expectations and what’s on offer  Need for better information Where would you prefer to work? Egypt 53% 10% 18% 1% Tunisia 46% 15% 35% 2% Djibouti 45% 33% 16% 5%Mauritania 44% 17% 23% 4% Sudan 36% 32% 20% 6% Algeria 32% 15% 46% 3% Morocco 26% 20% 41% 4% 0% 20% 40% 60% 80% 100% Government Private business Self-employment Nonprofit organizationSource: Silatech (2009), based on Gallup World Poll data
  16. 16. Conclusion•Young people in Africa suffer from short term labourmarket challenges. Especially following the crisis.•Adjustments pose a problem too. As Africa embarks onmodern technologies, many young people lack the rightskills.•But the biggest challenge is that there is simply notenough economic activity. Africa needs more job creation.
  17. 17. www.africaneconomicoutlook.org 19

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