1 / 22

Youth Unemployment: Key Issues and Policy Challenges

Youth Unemployment: Key Issues and Policy Challenges. December 13, 2011 | 10:00 AM EST Speaker: Derek H. C. Chen Economist, World Bank Institute. Outline of Presentation. Why focus on youth unemployment? How to promote youth employment? - Stimulating labor demand

laurie
Download Presentation

Youth Unemployment: Key Issues and Policy Challenges

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Youth Unemployment:Key Issues and Policy Challenges December 13, 2011 | 10:00 AM EST Speaker: Derek H. C. Chen Economist, World Bank Institute

  2. Outline of Presentation • Why focus on youth unemployment? • How to promote youth employment? - Stimulating labor demand - Enhancing the quality of labor supply • Summing up

  3. Why focus on Youth Unemployment?

  4. Total Unemployment Rates Globally unemployment rate at 6.2 percent; 205 million unemployed Source: Constructed fromInternational Labour Organization (2011) data

  5. Youth Share of Total Unemployment (2009) Unemployed Youth (2010): 77.7 million Youth Share of Unemployed (2010): 38 percent Source: Constructed using data fromInternational Labour Organization website data

  6. Youth & Adult Unemployment Rates Source: Constructed fromInternational Labour Organization (2011) data

  7. Other Reasons for Intervention • Higher likelihood of youth being underemployed and among the working poor • Youth face special challenges when accessing the labor market - a higher chance of losing their jobs during economic downturns (“last in, first out”) - specific barriers to entry, often stemming from lack of experience - path dependence: early unemployment increases the likelihood of subsequent unemployment • Higher likelihood of social and political unrest

  8. Promoting Youth Employment- Stimulating Labor Demand

  9. Promoting Youth Employment - Stimulating Labor Demand • Overall Labor Demand • Importance of flexible labor regulations • Channels of Labor Demand • Public sector labor demand • Private sector labor demand • Self employment and entrepreneurship • Public Sector Labor Demand • Regular salaried civil servant positions • - possible distortionary effects • Short-term public works

  10. Redundancy Cost Indicator(in weeks of salary, 2010) Source: Reproduced from World Bank (2011)

  11. Compensation of Govt Employees (% of Govt Expense) Source: Constructed from World Bank World Development Indicators data

  12. Promoting Youth Employment - Stimulating Labor Demand • Private Sector Labor Demand • The private sector should be the main driver for growth and job creation • Private investment and overall private sector growth need good investment climate • Sectoral policies toward youth friendly sectors • Employment friendly development strategies

  13. Export Revenue by Type of Exports (% of GDP, 2008) Source: Reproduced from Ianchovichina (2011).

  14. World Bank Knowledge Economy Framework

  15. Promoting Youth Employment - Stimulating Labor Demand • Self employment and entrepreneurship • Self employment only alternative when jobs are lacking • Youths face more obstacles because of lack of skills, experience, less credit-worthiness • Youth targeted programs and strategies that address the barriers to doing business.

  16. Promoting Youth Employment- Enhancing Labor Supply

  17. Low Labor Skill – Major Constraint to Business CreationShare of reporting firms, various countries & years Source: Reproduced from Fox and Gaal (2008) Source: Reproduced from World Bank (2011)

  18. University Students by Fields Source: Reproduced from World Bank (2009)

  19. Promoting Youth Employment - Enhancing Labor Supply • Critical to have a well-linked educational and training system • Close cooperation between education system and private sector • Current and industrially relevant curriculum • Work-based training and apprenticeship to acquire industrially relevant skills, hands-on experience • Soft skills are also important

  20. Summing Up

  21. References • Fox, Louise and Melissa SekkelGaal (2008). Working Out of Poverty: Job Creation and the Quality of Growth in Africa. The World Bank. Washington D.C. • Ianchovichina, Elena (2011). “MENA’s Non-Oil Export Performance in the Last Decade.” MENA Knowledge and Learning Quick Notes Series. No. 39, World Bank, April. • International Labor Organization (2011). Global Economic Trends 2011: The challenge of a jobs recovery. International Labor Office, Geneva. • World Bank (2009). Shaping the Future: A Long-Term Perspective of People and Job Mobility for the Middle East and North Africa. Washington DC. • World Bank (2011). “The Challenge of Youth Employability in MENA.” Memo.

  22. dchen2@worldbank.orgwww.developmentdebates.org

More Related