Unemployed youth has been called “a lost generation”: not
only because of productivity loss but also because of the long-term direct and
indirect impact unemployment has on young people and their families.
Unemployment has been said to affect earnings for about 20 years. Because they
aren't able to build up skills or experience during their first years in the
workforce, unemployed youth see a decrease in lifetime earnings when compared
to those who had steady work or those who were unemployed as an adult. A lower
salary can persist for 20 years following the unemployed period before the
individual begins earning competitively to their peers. Widespread youth
unemployment also leads to a socially excluded generation at great risk for
poverty. For example, Spain saw an 18% increase in income inequality.
The lost generation effect impacts also their families.
Youth in many countries now live with their parents into their
late twenties. This
contributes to what is called the”full-nest syndrome”. In 2008, 46% of 18- to
34-year-old in the European Union lived with at least one parent; in most
countries the stay-at-homes were more likely to be unemployed than those who
had moved out. In families, it is common that when one person becomes
unemployed, other members of the family begin looking for or securing
employment. This is called the added worker effect. This can sometimes take the
form of employment in the informal sector when necessary. Alongside the shift
in youth living situations, the impact of returning to live with parents as
well as difficulty finding a fulfilling job lead to mental health risks. Being
unemployed for a long period of time in youth have been correlated to decreased
happiness, job satisfaction and other mental health issues. Unemployed youth
also report more isolation from their community. Youth who are neither working
nor studying do not have the opportunity to learn and improve their skills.
They are progressively marginalized from the labour market and in turn can
develop an anti-social behaviour.
Causes
Political unrest and increased public
spending: The rise of
political unrest and anti-social behaviour in the world has been recently
attributed to youth unemployment
A lack of innovation:
The economic crisis has led to a global decrease in competitiveness. “There
is a risk of loss of talent and skills since a great amount of university
graduates are unable to find a job and to put their knowledge and capabilities
into producing innovation and contributing to economic growth”
Training not
supplemented with loans and not targeted appropriately: This strategy has
not yielded the desired results because the training is often not accompanied
by soft loans, which graduating trainees could use as start-up capital in order
to facilitate their quick integration into the labor market. Targeting has also
presented a challenge. Often, all categories of unemployed youth are lumped
together as if they are homogeneous (in terms of education, skill,
capabilities, etc.)
Weak management,
complex structures and inadequate funding hinder success: When you run a
multiplicity of programs at the same time under a weak management structure and
practice, with inadequate funding, and with several layers of authorities that
sometimes bicker among themselves, there is the risk of not being focused and
effective.
Possible Solutions
Entrepreneurship: an
answer to youth unemployment? When taking into consideration the need to
foster competitiveness through innovation and creativity, recent studies have
advocated for entrepreneurship as a viable a solution to youth
unemployment.[38] With the right structure and facilitated administrative
processes, young people could create enterprises as means to find and create
new jobs.[39] According to the OECD, Small and Medium Enterprises are today’s
main employers with 33% of jobs created over the last ten years.[40] It shows
that big companies no longer represent the main sources of employment and that
there is a necessity to prepare young people for an entrepreneurship culture
Assistance to youth
in the transition to the world of work: A number of studies have shown that
young people are not sufficiently advised on work related opportunities,
necessary skills and career pathways. Before they leave education, it appears
critical that they have access to this information to be better prepared for
what to expect and what is expected of them. Good quality career guidance along
with labour market prospects should help young people make better career
choices
Teach 21st century
skills: The education system plays a
central role in the debate about the youth labor market crisis. What has become
evident is that there need to be major changes in what we teach and in the way
we teach. One prominent approach taken by various educators is to shift
teaching from knowledge-centered teaching to skills-centered teaching.
(s:Wikipaedia & Tunji Akande, Professor of Agricultural Economics)
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