3. Which country has the highest share of
young people out of work; which has
the most young workers?
– Country A: GDP per capita USD 13,000; population
2 million
– Country B: GDP per capita USD 10,000; population
48 million
– Country C: GDP per capita USD 1,600; population
40 million
– Country E: GDP per capita USD 1,200; population
42million
3
4. Outline
• Why an AEO on Youth Employment?
• What is the employment situation of young
Africans?
• What can be done to promote youth
employment?
4
7. Unemployment is only one of many bad
labour market situations for young people
Youth time use by Country Income Group (2010)
100%
7% 10%
41% Working
24 %
Part-time 9% 5%
1% 3%
80% 5%
5%
10% Employee
8%
Unemployed Self-employed
28 %
10% 10%
60% Discouraged Unpaid workers
5%
10% Part-time
NEET
25%
9%
Inactive
Underemployed
40% 11%
Unemployed
34% Students
Discouraged
48%
Student 48% Out of LF
20%
34% Student
0%
LIC MIC
Source: Authors' calculations based on Gallup World Poll (2010)
8. Many youth in work are poor,
some youth in unemployment aren’t.
LICS Food insecurity by employment status MICs
60% 57%
52% 52%
49% 50%
50% 47%
43% 43%
40% 36% 35% 35% 37% 37%
34% 34%
30% 27% 26%
21%
20%
10%
LICs MICs
Source: Authors' calculations based on Gallup World Poll (2010)
9. What can be done to promote
youth employment?
9
10. Demand for labour is the biggest challenge
100%
Source: AEO Country Survey; 37 countries
90%
80%
70%
60%
50%
89%
40%
30%
47% 46%
20% 40%
10% 16%
0%
Aggregate labour Skills mismatches Labour market Attitudes of Labour market
demand information employers and regulation.
youth
10
11. Firms and farms need support to
create jobs, but needs differ
Access to Access to NA
Finance small firms
Finance
60 large firms 60 SSA
45 45
Labour Skill 30 Labour 30
15 Electricity Skill
Level 15 Electricity
0 Level 0
Labour Labour
Corruption Regulatio Corruptio
Regulations
ns n
Source: Enterprise
11
12. Many young Africans have the wrong skills.
60%
Share of countries where a major obstacle
50%
for youth in labour markets
40%
30%
54%
20% 41%
10%
0%
Many job seekers have advanced Most job seekers have little or no skills.
qualifications but not in the skill sets
required by employers.
14
Source: AEO Survey
13. African universities do not educate for African
needs
Social
Engineering
sciences, Agri-
Science manufacturing Others
business and culture
and construction
law
Sub-Saharan
Africa 12%
44% 4% 2% 38%
(3% ICT)
North Africa
8%
51% 10% 1% 30%
(1% ICT)
Asia 30% 6% 20% 4% 40%
Latin
America 38% 7% 9% 2% 44%
OECD
10%
37% 11% 2% 41%
(3% ICT)
14. Firms must be more involved in
training and education
Percent of firms offering formal training programs for its
permanent, full-time employees
60
50
40
30
20
10
0
South Asia Middle East Sub-Saharan World OECD East Asia Latin
& North Africa America
Source: Enterprise Surveys 2006-2010
Africa
16
15. Mismatches also exist between youth
expectations and what’s on offer Need for
better information
Where would you prefer to work?
Egypt 53% 10% 18% 1%
Tunisia 46% 15% 35% 2%
Djibouti 45% 33% 16% 5%
Mauritania 44% 17% 23% 4%
Sudan 36% 32% 20% 6%
Algeria 32% 15% 46% 3%
Morocco 26% 20% 41% 4%
0% 20% 40% 60% 80% 100%
Government Private business Self-employment Nonprofit organization
Source: Silatech (2009), based on Gallup World Poll data
16. Conclusion
•Young people in Africa suffer from short term labour
market challenges. Especially following the crisis.
•Adjustments pose a problem too. As Africa embarks on
modern technologies, many young people lack the right
skills.
•But the biggest challenge is that there is simply not
enough economic activity. Africa needs more job creation.
