Promoting DecentEmployment for Africa’s Youth · Promoting DecentEmployment for Africa’s Youth The Role of Education and Training Sher Verick Economic and Social Policy Division

Promoting DecentPromoting Decent Employment Employment for Africafor Africa’’s Youths Youth

The Role of Education andThe Role of Education and TrainingTraining

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

Economic Commission for Africa

OverviewOverview

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

nn Unemployment is highUnemployment is highnn Underemployment is commonUnderemployment is commonnn Few job opportunities in the formal Few job opportunities in the formal

economyeconomy


OverviewOverview (cont)(cont)

ll Reasons for this employment situationReasons for this employment situation

nn Inadequate economic growth and lack of Inadequate economic growth and lack of growth in labourgrowth in labour--absorbing sectorsabsorbing sectors

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

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


Why is education important?Why is education important?

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

ll MacroMacro--level level -- HC is a key driver of HC is a key driver of economic growth, development and economic growth, development and wellwell--beingbeing

ll MicroMicro--level 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

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

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

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


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

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

(lower) and 29% (upper)(lower) and 29% (upper)

ll Another problem is the quality of educationAnother problem is the quality of educationnn PupilPupil--teacher ratio reaches 68:1 in Chad (65 in teacher ratio reaches 68:1 in Chad (65 in

Ethiopia)Ethiopia)nn 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


SchoolSchool--toto--work transitionwork transition

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

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

outcomesoutcomesnn Employment (in different forms), Employment (in different forms),

unemployment, inactivityunemployment, inactivity


STW (cont)STW (cont)

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

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

employmentemployment


Youth in the African labour Youth in the African labour market market -- unemploymentunemployment

05

10152025

30

World South Asia MENA SSA

1994 2000 2004


Youth unemployment (cont)Youth unemployment (cont)

ll Considerable regional diversityConsiderable regional diversitynn 55.8% in South Africa55.8% in South Africann 10.9% in Namibia10.9% in Namibia

ll UrbanUrban unemployment rates are higher unemployment rates are higher than in rural areasthan in rural areas

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



ll 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)

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

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

mismatchmismatch



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

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

agriculture and the urban informal sectoragriculture and the urban informal sector


Consequences ofConsequences of unemployment unemployment and underemploymentand underemployment

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

ll Crime, prostitution and violenceCrime, prostitution and violencell ConflictConflictll Poor healthPoor healthll Inability to further invest in human capitalInability to further invest in human capitalll Social exclusionSocial exclusionll But there are also coping strategies But there are also coping strategies ––

entrepreneurial spiritentrepreneurial spirit


Summary of the situationSummary of the situation

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

inadequateinadequatell 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

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

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


Policy responsePolicy response

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

llWhat 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)

ll Job creation requires economic growthJob creation requires economic growthnn Increase domestic and foreign investment, Increase domestic and foreign investment,

improveimprove infrastructuralinfrastructural capacity, develop capacity, develop private sector, remove regulation barriersprivate sector, remove regulation barriers

ll But growth per se is not enoughBut growth per se is not enoughnn Encourage labourEncourage labour--intensive sectors intensive sectors ––

structural transformationstructural transformation


Policy response (cont)Policy response (cont)

ll 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

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

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

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

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


Active labour market policiesActive labour market policies

ll ALMPs ALMPs includeincludenn 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

nn Measures to encourage selfMeasures to encourage self--employment 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 Public works programme programme in in SenegalSenegalllWith WB and ADB, Senegal govt. set up With WB and ADB, Senegal govt. set up

a public worksa public works programmeprogramme to target to target unemployed youthunemployed youth

ll Aim: provide shortAim: provide short--term employment term employment throughthrough labourlabour--intensive public works 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 Public works programme programme in in Senegal (cont)Senegal (cont)ll During the 1st phase of theDuring the 1st phase of the programmeprogramme, ,

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

ll 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.

ll 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 Public works programmes programmes (cont)(cont)

ll But do suchBut do such programmesprogrammes really provide really provide any longany long--term opportunities for young term opportunities for young people?people?

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

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


YouthYouth--led initiativesled initiatives

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

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

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

ll Please share such experiencesPlease share such experiences……


THANK YOUTHANK YOU

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Promoting DecentEmployment for Africa’s Youth · Promoting DecentEmployment for Africa’s Youth The Role of Education and Training Sher Verick Economic and Social Policy Division