www.adapt.it, 4 June 2012 Generating Jobs for the Youths: A Priority Agenda for Africa Mesele Araya Although the pace of its economic performance has been slowed down by the spill over of the global crisis and the Arab Spring influence, Africa as a continent has been enjoying some degree of economic growth over the last few years. New data just released by the African Economic Outlook, which administered its annual conference in Arusha (Tanzania) on May 28, 2012, in collaboration with the Africa Development Bank (AfDB), United Nations Economic Commission for Africa (UNECA), the United Nations Development Programme (UNDP) and the OECD Development Centre, indicates that Africa achieved 3.4% economic growth in 2011, but down 1.6% from 2010. Hoping that the North African economy will recover soon from the Arab Spring influence and sustained progress in all other regions, the continent is expected to register a growth rate of 4.5% in 2012 and 4.8% in 2013. Nevertheless, the Outlook cautioned that there are more challenges on the other side that may curve the expected growth (to end fruitlessly) unless a coordinated actions are taken in curbing the existing youth employment crisis in the continent. The disclosed data show that of these 40 million of young job seekers, 22 million have given up on finding a job, and many of them are young females. Youth currently in general constitutes 60 percent of the unemployed people in the continent (see Table 1, for some selected countries). Indeed, things are not ended here, but what makes them more demanding is that given the current trend, the number of youth in the continent is expected to double by 2045, implying that “the continent’s labour force will be 1 billion strong by 2040.” In view of that with the jobless growth at hand, youth unemployment can be an emerging threat for both the economic growth itself and social cohesion of the continent at large. To be more specific, it is vital to see the labour market outcomes of some selected countries. For instance, although Nigeria achieved a growth rate of 6.9 percent in 2011, it was not able to put its young workers in decent work, and ended the year with a jobless youth of 37.7%. Absence of job for the youth is also a knotty social problem in Sierra Leone with a rate of 60%, the highest rate in the West Africa sub-region. Additionally, in Congo Democratic Republic, more than 70% of the young have no jobs. Even it was specified that the country does not yet have a precise youth employment policy. As the consequences of this, of the 9000 university graduates each year, fewer than 100 find jobs in the Congolese labour market. The other Congo (Congo Republic) is not also unique on this regard as its 25% youths were jobless by the end of 2011. Unemployment remains a crucial problem in Senegal too, especially for the young people whose employment rate is 25% below that of adults. In the same fashion, in Benin there are too few jobs for the youth and employers are so much reluctant to hire new entrants to the labour market. In Burkina Faso where the private sector is very poorly developed and structurally unable to absorb job seekers, young people are hopeless and account for 80% of the jobless. It 1 was also added that it is very common to find about 40% of young first-time job-seekers have inadequate qualifications for the labour market in Niger and 30% in Gabon. In urban areas of Togo as well, unemployment affected 21.4% of young people in 2011. The same history is there in Guinea Bisssau, a country which is characterized by both political instability and a mismatch between trainings of the youth and the country's economic needs. Most east African countries are not also unique to this event. For instance, youth unemployment in Kenya constitutes 70% of total unemployment. In Tanzania too, the host of the annual conference, youth unemployment is almost twice the national unemployment rate and affects unequally urban youth and young women in particular. Ethiopia has also failed to generate satisfactory employment opportunities for the youth although it has shown a considerable progress towards some MDGs. It was also remarked that with an estimated 42% youth unemployment, skill deficit leads to working poverty for most young Rwandans. Noticeably, youth unemployment is also a major issue in the North African economies, and many believe that it was one of the driving forces of the 2010/11 revolution in the region. More particularly, youth unemployment is a very serious problem in Algeria, with a rate of 21.5%. In Egypt too, by the end of 2011, unemployment, especially among the young, had risen to a high level. Young people have also faced uncertain job prospects with unemployment rate higher than the national average in Morocco. In a nutshell, the region is currently suffering from 27.8% of youth unemployment, especially with high incidence on young women. With a rate of above 48%, South Africa has also failed to make effective use of its youth. In the same way, Mauritius, the continent’s richest nation in terms of social-and human-capital progress, has proved a 21.9% youth unemployment rate in 2011. In Comoros too, young people of working age are faced with widespread unemployment affecting about 45% of their age group. This kind of unemployment is especially said to be structural that affects all young people invariably, whether skill or not. Moreover, in Mozambique, the overall unemployment rate stands at 27% and many of the new entrants into the labour market are forced into marginal jobs in the informal economy, with little prospect of reliable employment. It is not also strange to see over 50% of the 15-24 age groups are jobless in the Swaziland economy while 63% of the urban young people are out of the world of work in Zambia. Regretfully, what makes matters much worse is that even some countries do not have youth employment policy and no efforts of making data available on how many of the youths are looking for a job (Say for example, Eritrea, São Tomé & Príncipe). In effect, if the situation continues with current trend, it will not be long for Africa to face a dysfunctional labour market and hopeless young citizens. It was based on these facts that in his speech in the AEO’s annual conference, Prof. Mthuli Ncube (Vice-President of AfDB) said, “The continent is experiencing jobless growth. That is an unacceptable reality on a continent with such an impressive pool of youth, talent and creativity." It was also pointed out that now is the right time that Africa has to “turn its human capital into economic opportunity”. To quote once again: "Without urgent action to modernise their economies, African countries risk wasting the tremendous potential offered by their youth”. In this respect, job creation for the youth is an urgent priority for the African countries. This implies that generating green jobs must be put at the forefront of any labour market consideration if the dream of Africa is really to promote 2 inclusive and efficiency-driven economies in line with current aspiration prevailing in the continent. Table 1. Recent rate of (Youth) unemployment for selected African Countries Country Youth unemployment rate (%) Unemployment rate (%) Nigeria South Africa Egypt Algeria Botswana Comoros Congo democratic republic Congo republic 37.7 48 Djibouti Gabon Ghana Gambia Guinea Besu Mali Mauritania Mauritius Mozambique 30 25 40 30 15.4 59.9 21.9 - 21.5 44.5 70 42 23.9 23.9 11.8 10 17.6 14.3 16 50 16 7.9 27 Namibia 51.2 Sierra Leone 60 Rwanda 42 Sudan 22 11 Swaziland 50 Source: Compiled from the African Economic Outlook report, May 2012 In considering as part of the solution, the Outlook suggested that as the public sector can no longer absorb new labour market entrants, African governments have to make a policy shift towards generating jobs in the private sector and promoting self-employability by “providing the right conditions for businesses of all sizes to grow and expand their workforce.” Many also believe that since in most countries failure of education to equip the young with the required skill has been blamed for the youth employment failure, revisiting the school-to-work transition path of the African youth could also be a fundamental approach in tackling the problem at its root. By hook or by crook, putting the youth at the hub, this is highest time that African governments must reset policy agenda towards generating decent jobs for the youths and inclusive growth for all. Or else, beyond the dysfunctional labour market, there is a risk of increased political instability and losing social cohesion that may cost the continent a lot, as has recently evidenced by the Arab Spring! Mesele Araya PhD Student in the International PhD school of Human Capital Formation and Labour Relations, University of Bergamo, ADAPT-CQIA 3
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