Promoting Decent Employment for Africa’s Youth

Promoting Decent Employment Promoting Decent Employment for Africa’s Youthfor Africa’s Youth

The Role of Education and TrainingThe Role of Education and Training

Sher VerickEconomic and Social Policy DivisionEconomic Commission for Africa (ECA)

Economic Commission for Africa

OverviewOverview

The situation for Africa’s youth in the The situation for Africa’s youth in the labour market is toughlabour market is tough

Unemployment is highUnemployment is high Underemployment is commonUnderemployment is common Few job opportunities in the formal Few job opportunities in the formal

economyeconomy


Overview (cont)Overview (cont)

Reasons for this employment situationReasons for this employment situation

Inadequate economic growth and lack of Inadequate economic growth and lack of growth in labour-absorbing sectorsgrowth in labour-absorbing sectors

Public sector downsizing and undeveloped Public sector downsizing and undeveloped formal private sectorformal private sector

Poor health (HIV/AIDS)Poor health (HIV/AIDS) Increasing youth populationIncreasing youth population Lack of education and inappropriate skillsLack of education and inappropriate skills


Why is education important?Why is education important?

Human capitalHuman capital - abilities, skills and - abilities, skills and knowledge embodied in a personknowledge embodied in a person

Macro-level Macro-level - HC is a key driver of - HC is a key driver of economic growth, development and economic growth, development and well-beingwell-being

Micro-level Micro-level - more HC leads to better - more HC leads to better employment chances and higher wagesemployment chances and higher wages


Education in AfricaEducation in Africa

Education levels in Africa are low, Education levels in Africa are low, though countries are making progressthough countries are making progress Average net primary school enrolment rate Average net primary school enrolment rate

is 67% is 67% Ranges from 28% in Niger to 99% in Cape Ranges from 28% in Niger to 99% in Cape

Verde and the SeychellesVerde and the Seychelles Significant gender disparitiesSignificant gender disparities


Education in Africa (cont)Education in Africa (cont)

But primary education is not enough to get a But primary education is not enough to get a reasonable jobreasonable job Secondary enrolment rates are much lower - 45% Secondary enrolment rates are much lower - 45%

(lower) and 29% (upper)(lower) and 29% (upper) Another problem is the quality of educationAnother problem is the quality of education

Pupil-teacher ratio reaches 68:1 in Chad (65 in Pupil-teacher ratio reaches 68:1 in Chad (65 in Ethiopia)Ethiopia)

Supply of teachers is also a major constraint Supply of teachers is also a major constraint particularly as the result of HIV/AIDSparticularly as the result of HIV/AIDS


School-to-work transitionSchool-to-work transition

The next step is the STW The next step is the STW When a young person leaves formal When a young person leaves formal

education to enter the labour marketeducation to enter the labour marketThe transition can result in three main The transition can result in three main

outcomesoutcomes Employment (in different forms), Employment (in different forms),

unemployment, inactivityunemployment, inactivity


STW (cont)STW (cont)

This process is dynamic This process is dynamic Unemployment -> employment Unemployment -> employment Longer duration in unemployment makes it Longer duration in unemployment makes it

more difficult to find a jobmore difficult to find a job Informal employment -> formal Informal employment -> formal

employmentemployment


Youth in the African labour Youth in the African labour market - unemploymentmarket - unemployment

0

5

10

15

20

25

30

World South Asia MENA SSA

1994 2000 2004


Youth unemployment (cont)Youth unemployment (cont)

Considerable regional diversityConsiderable regional diversity 55.8% in South Africa55.8% in South Africa 10.9% in Namibia10.9% in Namibia

Urban unemployment rates are higher Urban unemployment rates are higher than in rural areasthan in rural areas

Female rates are lower because of Female rates are lower because of lower participation in labour forcelower participation in labour force



We expect that the unemployment rate We expect that the unemployment rate decreases with the level of education (OECD decreases with the level of education (OECD countries)countries)

But this tends not to be the case in AfricaBut this tends not to be the case in Africa The better educated experience higher rates of The better educated experience higher rates of

unemploymentunemployment This is reflected in queuing for public sector jobsThis is reflected in queuing for public sector jobs University graduates also suffer from a skill University graduates also suffer from a skill

mismatchmismatch



But there are serious measurement But there are serious measurement problems with official unemployment problems with official unemployment figuresfigures

They also do not capture other They also do not capture other dimensions such as underemployment dimensions such as underemployment and working povertyand working poverty These are prevalent in subsistence These are prevalent in subsistence

agriculture and the urban informal sectoragriculture and the urban informal sector


Consequences of unemployment Consequences of unemployment and underemploymentand underemployment

Rural-urban migration – end up working in the Rural-urban migration – end up working in the informal sectorinformal sector

Crime, prostitution and violenceCrime, prostitution and violence ConflictConflict Poor healthPoor health Inability to further invest in human capitalInability to further invest in human capital Social exclusionSocial exclusion But there are also coping strategies – But there are also coping strategies –

entrepreneurial spiritentrepreneurial spirit


Summary of the situationSummary of the situation

Education and training are essentialEducation and training are essential But progress in this area in Africa is But progress in this area in Africa is

inadequateinadequate Youth have difficulties in the labour market as Youth have difficulties in the labour market as

reflected by unemployment and reflected by unemployment and underemploymentunderemployment

The economic, social and political costs are The economic, social and political costs are very high very high

The extent of the problem should be clear for The extent of the problem should be clear for all stakeholdersall stakeholders


Policy responsePolicy response

What should governments do to create What should governments do to create decent jobs for young people?decent jobs for young people?

What is a decent job in this context? What is a decent job in this context? What should be the objective?What should be the objective?


Policy response (cont)Policy response (cont)

Job creation requires economic growthJob creation requires economic growth Increase domestic and foreign investment, Increase domestic and foreign investment,

improve infrastructural capacity, develop improve infrastructural capacity, develop private sector, remove regulation barriersprivate sector, remove regulation barriers

But growth per se is not enoughBut growth per se is not enough Encourage labour-intensive sectors – Encourage labour-intensive sectors –

structural transformationstructural transformation


Policy response (cont)Policy response (cont)

Governments need to also focus on Governments need to also focus on strategies that promote human capital strategies that promote human capital developmentdevelopment

1.1. Improve access to and quality of formal Improve access to and quality of formal educationeducation

2.2. Provide training and other policies to Provide training and other policies to assist youth after finishing schoolassist youth after finishing school


Improving the skill match in Improving the skill match in EgyptEgypt

Combine formal education with Combine formal education with vocational training to tackle skill vocational training to tackle skill mismatchingmismatching

Egypt adopted the German approach in Egypt adopted the German approach in 19911991 Involved employers and enterprises to Involved employers and enterprises to

develop trainingdevelop training Since 1994 – over 14,500 young people Since 1994 – over 14,500 young people

have been trained in 29 trades have been trained in 29 trades


Active labour market policiesActive labour market policies

ALMPs includeALMPs include Policies to promote wage employment Policies to promote wage employment

through subsidised placement, through subsidised placement, employment assistance and vocational employment assistance and vocational trainingtraining

Measures to encourage self-employment Measures to encourage self-employment such as training, and facilitating access to such as training, and facilitating access to credit/grants and other business credit/grants and other business requirementsrequirements


Public works programme in Public works programme in SenegalSenegalWith WB and ADB, Senegal govt. set up With WB and ADB, Senegal govt. set up

a public works programme to target a public works programme to target unemployed youthunemployed youth

Aim: provide short-term employment Aim: provide short-term employment through labour-intensive public works through labour-intensive public works projects such as construction, projects such as construction, rehabilitation and maintenance of public rehabilitation and maintenance of public services, and provision of essential services, and provision of essential services. services.


Public works programme in Public works programme in Senegal (cont)Senegal (cont)During the 1st phase of the programme, During the 1st phase of the programme,

around 80,000 jobs were created for around 80,000 jobs were created for young people in 416 projects in small-young people in 416 projects in small-scale enterprises. scale enterprises.

Overall 3,226 projects have been Overall 3,226 projects have been implemented resulting in the creation of implemented resulting in the creation of 350,000 temporary jobs p.a.350,000 temporary jobs p.a.

The projects also led to the The projects also led to the establishment of 6,000 permanent jobs. establishment of 6,000 permanent jobs.


Public works programmes Public works programmes (cont)(cont)

But do such programmes really provide But do such programmes really provide any long-term opportunities for young any long-term opportunities for young people?people?

Or are they just a source of cheap Or are they just a source of cheap labour for the government to undertake labour for the government to undertake infrastructure projects?infrastructure projects?

Do they have a role in post-conflict Do they have a role in post-conflict countries?countries?


Youth-led initiativesYouth-led initiatives

It is not only the responsibility of the It is not only the responsibility of the government but also of youthgovernment but also of youth Governments are constrained in directly Governments are constrained in directly

creating jobscreating jobs Youth are more than capable of initiating Youth are more than capable of initiating

entrepreneurial activities and setting-up entrepreneurial activities and setting-up businessesbusinesses

Please share such experiences…Please share such experiences…


THANK YOUTHANK YOU

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Promoting Decent Employment for Africa’s Youth