Labour Markets & Youth Employment in the Arab States

Prepared by Tariq A. HaqEmployment Development and Strategies Officer

Presented by Simel EsimGender and Women Workers’ Specialist

ILO – Regional Office for Arab States, Beirut

UNDP/UNDESA Sub-Regional Workshop

Youth Policies & Strategies in the context of the MDGs

Sana’a, Yemen, 22-23 June, 2005

Outline

Youth employment trends and indicators– Global– Regional

Policy responses to youth employment challenge

Youth-specific difficulties in transition from education to employment Lack of employment experience of youth “Insider-outsider” effects related to labour market Wage and job expectations of graduates: mismatch

between aspirations & labour market realities Quality & relevance of education to labour market Constraints on self-employment &

entrepreneurship development Lack of organization and voice among young

women and men (where are young members of workers and employers associations?)

Youth statistics-- cross-country differences I Activity rates of:

– youth (15 – 24) declined from 70.1% in 1950 to 59.2% in 2000

– adults (25-64) increased from 72.5% to 78.5% Mainly a result of growing participation of youth

in education, so young people are expected to be better educated and potentially more productive than workers in other age groups

Activity rates of young men much higher than those of young females but converging (in 1950 the gender gap was 29.2 percent points, in 2000 14.9 percent points)

Youth statistics – cross-country differences II Activity rates of young people differ by region –

the lowest in Europe, followed by Latin America and Northern America, the highest in Asia, Africa and Oceania

Unemployment rates of youth consistently higher than the adult unemployment rates, in most countries between 2 and 4 times

In most countries in the world, young women have higher unemployment rates than young men

Country Year Youth UR in %

Youth UR to adult UR

Ratio of youth U in total U %

Austria 2001 5.5 1.7 20.1

Bangladesh 2000 10.7 11.9 79.4

Brazil 2001 17.9 3.7 48.6

Chile 2001 18.8 3.0 31.7

Czech Republic 2002 16.0 2.6 24.9

France 2002 20.2 2.6 19.8

Germany 2002 9.7 1.1 13.0

United States 2002 12.0 2.6 32.0

Algeria 1992 n.a. n.a. 65.7

Bahrain 2000 n.a. n.a. 60.7

Egypt 1999 20.4 4.9 59.5

Morocco 1999 15.4 1.6 38.2

UAE 2000 n.a. n.a. 47.0

West Bank and Gaza 2001 n.a. n.a. 35.1

Yemen 1999 n.a. n.a. 48.4

Arab Regional Economic Context

Variable, but generally sluggish economic growth Labour force growth is higher than both GDP

growth & jobs created Unemployment is acute amongst youth, especially

young women Creeping poverty across the region even beyond

the countries affected by conflict Nationalization of workforces in the Gulf with

implications for young migrant workers in region

High Unemployment for youth Around 12.5 million unemployed, coupled with

high underemployment Highest (and increasing) unemployment rates in

the world, especially for youth 2.5 million new youth entrants to the labour

market annually, expected to rise to 3 million during 2000- 2010 – need to create jobs for these new entrants just to maintain current unemployment levels

Youth unemployment rates are much higher than adult unemployment rates, averaging 25.6 % in 2003 (cf. 21.0% in Sub-Saharan Africa)

Gender Gap in Employment

Average female unemployment rate of 16.5 % was 5.9 % points higher than the male rate of 10.6 % in 2003

Unemployment for young women in MENA countries ranges from 13 % in Bahrain to almost 39 % in Algeria

Unemployed women are mainly:– young new labour force entrants (with primary &

secondary education)– laid off workers following restructuring and

privatization - in Jordan, Morocco, Tunisia and Egypt

Yemen

High population growth & fertility rates Of the 18.5 million, 42% live in poverty Estimated growth of civilian non-

institutional labour force is:– 3.8% total– 3.3% male– 5.3% female

Youth unemployment is double that of adults– 18.7% as compared to 8.4% in 1999– estimated between 27.7 % and 32.6% in 2005

A comprehensive employment policy that is inclusive of youth Such policy must be based on reliable economic and

labour market analysis identifying potentials and challenges for young people (requires LMIS)

Appropriate measures, on both the supply and demand side of the labour market, need to be applied & monitored

Policy and programs need to be better tailored toward:– enhancing employability– promoting employment– improving social security of young people

Employment policy and programs need to be undertaken in partnership between governments, social partners, youth organizations and other NGOs (with support where appropriate from international organizations)

Targeted Active Labour Market Policies for Young Women & Men Well functioning employment services Re-skilling of work force:

– bridging the skills gap to match labour supply with demand

– linking training programs with employment Entrepreneurship training in basic business

skills, especially for young women and men Employment subsidies for disadvantaged

youth (school drop outs, vulnerable youth, youth with disabilities, etc.)

Young Migrant Workers Admitting the reality of migration in receiving countries:

defining a clear and realistic strategy and policy for migration, shifting emphasis from quantity to quality of expatriates

Initiating and developing a consultative process between sending and receiving countries, based on mutual respect and benefit

More active role for workers’ organizations to defend migrant workers’ rights

Public and media awareness on migrant workers’ rights

Additional Policy Responses Promotion of intra-regional mobility Improving labour market information systems Policy integration (social, economic, poverty and

employment policies) Cooperation with private employment agencies

and training providers Incentives for employers to hire young people

(subsidies; annual recognition ceremonies) Promoting self-employment/entrepreneurship –

changing attitudes & creating an enabling legislative/regulatory environment

Engaging in meaningful dialogue with social partners

Critical factors for youth employment policies to work Sustainable economic growth through

diversification Fair wages, rights and decent conditions for young

people, particularly unskilled workers Improved quality of education and training Increased women’s economic participation Improved work organization; more proactive

involvement of social partners in policy develpmnt Promoting access to youth friendly reproductive

health policies, programs and services

THANK YOU!FOR MORE INFORMATION ON THIS PRESENTATION

CONTACT

Tariq A. Haq

Employment Development and Strategies Officer

ILO – Regional Office for Arab States, Beirut

haq@ilo.org

www.ilo.org

www.ilo.org/youth

www.ilo.org/yen