Youth Employment crisis 2013A generation at risk – Time for Action

Marta MakhoulInternational Labour Office for the EU and the Benelux countries

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A lost generation?

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In 2012…

75 million young people are unemployed worldwide Globally young people are on average nearly three times more likely than adults

to be unemployed Four out of every ten unemployed worldwide is a young women or man Over 1.2 billion people in the world between 15 and 24 years of age 40 % of the world's unemployed are young people…. BUT…

But…

Facts on youth employment crisis

An unprecedented youth employment crisis…

Facts on youth employment crisis 4

Inequalities, insecurity and vulnerability are rising

Quality of jobs available for youth is declining

Underemployment and poverty for youth is on the rise

Young workers are disproportionately represented

in low-paid work

Most young workers in developing countries are in the

informal economy.

Temporary employment and lack of permanent employment for youth is rising

More insecure and slower transition from school to work

Risk of SOCIAL UNREST

Youth are increasingly discouraged than other age groups.

….Unemployment is only the tip of the iceberg

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Global youth unemployment and unemployment rate, 1991-2013

Source: ILO, Trends Econometric Models, February 2013.

Global and regional youth unemployment

Global youth and adult unemployment rate 6

Global youth and adult unemployment from 1991-2013

7Youth unemployment rates in the EU

European Union Youth unemployment rates (%), from 2000 2013

8Young people not in employment and not in any education or training

NEET rates in the EU

9Consequences of youth unemployment

Consequences of youth unemployment

Effects more severe for youth entering the workforce with education level below tertiary levelConsequences

of youth unemployment

Youth are increasingly employed in non-standard jobs, including temporary employment and part-time work

Raise risk of future unemployment and/or protracted period of unstable employment

Valuable work experience is not acquired and professional skills may erode

Is likely to result in wage scars that continue to depress employment and earnings prospects

Is likely to become more serious the longer youth unemployment crisis continues

Youth labour markets in developing economies 10

Youth labour markets in developing economies

Developing regions face major youth employment challenges and large variations in extent and development of youth unemployment

Large numbers of young people not achieving full economic potential Unemployed In irregular employment (informal sector) Neither in labour force nor in education/training

quality of workIn countries with high poverty levels and high shares of vulnerable employment, youth employment challenge is as much a problem of poor employment quality as one of unemployment

Young workers often receive below average wages and are engaged in work for which either overqualified or underqualified

Youth labour markets in developing economies 11

• Labour markets in developing economies do not look like those in developed economies

• Abundance of labour

• Scarcity of capital

• Duality between dominant traditional economies and “modern” economies

• Irregular nature of employment

• Leave education early

• Lack of social protection

• Different type of measurement needed

Youth labour markets in developing economies

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The Call for action focuses on five policy areas:

1. employment and economic policies to increase aggregate demand and improve access to finance;

2. education and training to ease the school-to-work transition; 3. labour market policies to target employment of disadvantaged

youth; 4. entrepreneurship and self-employment to assist potential young

entrepreneurs; and 5. labour rights that are based on international labour standards to

ensure that young people receive equal treatment.

ILO’s response to the youth employment crisis: 2012 ILC Resolution

ILO’s response to the youth employment crisis: The 2012 ILC Resolution “The Youth Employment Crisis: A call for action” and its follow-up plan

ILO youth employment programme 13

Knowledge building Advocacy and promotion of decent work for youth Technical assistance

The ILO youth employment programme

Policies for youth employment 14

• Policy measures should be balanced and adapted to country-specific needs

ILO Active Labour Market Policies: What works for youth?

Comprehensive packages of labour market measures targeting specific

groups of young peopleBalanced strategies for growth and job creation

Bipartite and tripartite cooperation

Multiple services for entrepreneurship, social enterprises

and cooperatives development

Platforms for exchanging knowledge and lessons of what works

Employment services

Apprenticeships, skills training and other work-training programmes

Targeted youth employment action through tripartite consensus and time-bound action plans

Policiy measures

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Sweden tackles youth unemployment through jobs guarantees

It's not easy being a young jobseeker today. With nearly 74 million young people worldwide unemployed, youth guarantees programmes help keep youth connected

to the labour market by boosting skills and giving them support to find jobs.

http://www.ilo.org/global/about-the-ilo/multimedia/video/video-news-releases/WCMS_212957/lang--

en/index.htm

Best-practice example

Best-practice example: youth guarantee in Sweden

Thank you for your attention

http://www.ilo.org/global/topics/youth-employment/lang--en/index.htm http://www.ilo.org/ilc/ILCSessions/101stSession/texts-adopted/WCMS_185950/lang--en/index.htm

More info:http://ilo.org/global/research/global-reports/global-employment-trends/youth/2013/lang--en/index.htm