By GETACHEW MINAS
Over the next decade, World Bank estimates that over one billion young people will try to enter the job market, but less than half of them will find formal jobs. This will leave the majority of young people, many in minority and marginalized groups, unemployed or experiencing working poverty. The predicted rise in economic inequality and inadequate job opportunities has the potential to negatively impact a generation of young people around the world, including Ethiopia.
Having a significant amount of young people out of work can negatively impact a community’s economic growth and development. If left unchecked, youth unemployment can have serious social repercussions because unemployed youth tend to feel left out, leading to social exclusion, anxiety and a lack of hope for the future.
In Ethiopia, unemployment is a serious problem that should be tackled through the designing proper economic development. According to the ILO report, unemployment rate in the country has been projected to reach 3.23 percent and 3.26 percent in 2019 and 2020 respectively. Given that more than half of the population is young, living with low-income families, the youth flounder in poverty and frustration, bringing fragile societies down with them.
Global youth unemployment rates
Globally, unemployment affects millions of young people. The global youth unemployment rate currently stands at 13.6 percent, but the number varies drastically by region. Youth unemployment is highest in Northern Africa at an alarming rate of 30 percent, or more than twice the global rate. Even sub-Saharan Africa and Northern America faced youth unemployment rates of almost 9 percent in 2019.
These numbers show that there is a need to help young people enter into, and remain in, employment. The ongoing COVID-19 pandemic and the resulting global economic challenges further complicate this need. Ethiopia, like any sub-Saharan Africa, faces the same problem, though the government is trying to control the pandemic.
There are reasons for high youth unemployment at the global level. According to a 2020 report from the ILO, the global youth unemployment rate stands at 13.6 percent. The contributing factors to this high rate of global youth unemployment are largely lack of job opportunities, and “barriers” to entering the labor market.
These barriers are limited work experience and the increasing size of the population itself worldwide.In regions like Africa, young people make up more than one fifth of the population and 95 percent of their work is considered “informal.” By definition, this means work that is “without” legal or social protections. In practice, this typically means work that comes with low pay, erratic hours, uncertain employment status, and hazardous working conditions.
In Africa and Latin America, many young people run into barriers to employment they cannot escape. They cannot rise above the challenges of poverty and instability without opportunities of education or a good job. They cannot access opportunity without the income or safety to pursue it.
Young people living in neighborhoods known for being hot spots of drug- and gang-related violence face even more dismal prospects. In the perception of employersthey are “untrustworthy” because of their exposure to hooliganism. Such barriers keep young people from seeking employment opportunities to advance their futures.
In Ethiopia every youth seeking job must be registered with the Ministry of Labor and Social Affairs, and its branch offices. They should hold the official registration card, showing the date of registration and residence. Job vacancies are notified on the official newspapers, showing the requirements of vacant posts.
Those qualified appear before a selection committee as required by the law. To be considered unemployed, one must be jobless, actively seeking work and available to take a job. So while there are millionsof young people who make up the “potential labor force” not all of them are considered employed.
Many are available for work but “not” actively seeking a job, often a result of discouragement. This group of young people, combined with unemployed youth makes up a group commonly referred to as NEET – “not in employment, education or training.” This means they are not gaining experience in the labor market, not receiving an income from work, and not enhancing their education and skills. Globally, one in five young people have NEET status.
While some of them may be contributing to the economy through unpaid work, which is particularly true of young women, one thing remains true for all of these young people. It is obvious that their full potential is not being realized, lead to a number of damaging effects, including lower employment and income later in life.
Another group of young people not included in youth unemployment rates are those who are “underemployed.” In poor communities, people may not afford to be unemployed. They take any work that is available and this normally results in underemployment, low wage and poverty. While these people are “not” considered unemployed, they are more likely to suffer from poverty than many of their unemployed peers.
Normally,the rural young are involved in seasonal agriculture, which is important to overcoming youth unemployment and boosting long-term global food security. Effect of COVID‑19 on youth unemployment
In times of crises, young people tend to be among the first to lose their jobs. With so many in the informal economy, and working in areas like tourism, transportation, and hospitality, young people are being especially hard hit by COVID‑19.A report by the AU estimates that due to the COVID‑19 pandemic, nearly “20 million jobs,” both in the formal and informal sectors, are threatened with death. The resulting potential for social unrest in Africa is largely due to the disproportionately-affected youth. Moreover, the unemployment of the youth who comprise the majority of the population is twice that of older adults.
In other areas of the world, the impact of COVID‑19impact on access to education and employment is setting an entire generation up for a potentially devastating employment trajectory. Being unemployed at a young age can have long-lasting, negative effects in terms of career paths and future earnings.
Young people with a “history” of the pandemic and unemployment face fewer career development opportunities. This causes lower wage levels, poorer prospects for better jobs, and ultimately lower pensions. Young people also tend to have less money saved for emergencies, putting those living in economically vulnerable households at an increased risk of falling below the poverty line. The potential effects of COVID‑19 on low income people are almost unimaginable.
Working youth but poor
Today, the world is younger than ever before, representing the majority of the population. Several countries are experiencing similar demographic trends. Partnering with young people is one way of securing a brighter future for themselves and their families.
The young people may protect themselves from the rampant pandemic if they are married and closely tied to their families supported by sufficient income. Earning income is preceded by employment, entrepreneurship and other income-generating opportunities. These provide the youth with more than economic benefits such as a purpose and a sense of status and belonging.
The choices young people make today, which are influenced by the people and events around them, contribute to peace, stability and progress in their communities. The entry of a young personinto the labor market has life-long implication for his career opportunities and maturation.
Yet, almost half of all young people in the labor force are either “working but poor” or are unemployed. Employers have the unique ability to workwith these young people to address the specific problems they are faced with. They may help them connect to new clients and opportunities to have access to career development. This is done through technical education and training. It helps them to access jobs through apprenticeships and internships.
Conclusion
There are multiple and complex causes behind youth unemployment. Among them are low quality and irrelevance of education and training that do not reflect the skill needs of the economy. Yet, high quality of education does not guarantee decent job, negatively affecting highly educated young persons, females in particular.
In Africa, including Ethiopia, university graduates are not able to find jobs nor are they trained to create jobs for themselves. Addressing the labor market needs should be the objective of lower, middle and higher level education and training that enable the Ethiopian youth to access employable skills. The curricula should, therefore, be designed to meet the human resources need of the “current” Ethiopian economy to avoid unemployment of educated people, including females.
The Ethiopian herald December 24/2020
