The world faces a tsunami of youth unemployment as economies fail to produce jobs for youth. We risk loosing an entire generation of taxpayers, consumers and confident citizens. Opportunities for job creation are urgently needed.
Conventional thinking sees entrepreneurship as an alternative to the conventional corporate world, but bringing the two worlds together through corporate incubators is an opportunity to generate jobs and futurepreneurs.
Opportunity and talent are not evenly distributed. Digital labour market can bring jobs to marginalized youths in remote corners of the world.
The fast-changing market has resulted in a gap between the demand and supply of skills. Education for this changing labour market needs to be flexible, giving youth the ability to learn skills in general or learn how to learn more when needed. It is closing the skills gap.
Full description Youth all over the world are joining the ranks of the unemployed. Almost a quarter of the planet’s youth are neither working nor studying. Jobless growth is now a global reality for the next generation.
The worst career choice is to enter the labour market during a recession. It locks youth into lifelong low earnings. Many young people lost their first job in the financial recession due to first-in, first-out policies, and others never landed their first job before the economy collapsed. Each day without work is a day without income; it’s a loss of self-confidence and social networks.
Youths between 15 and 24 are three times more likely to be unemployed than adults. Globally, around 75 million youthare looking for work; some have already given up hope they will ever find a job. In the next decade, a further billion people will come of working age. High youth unemployment means slower economic growth and lower tax receipts. Furthermore, countries with prolonged high levels of youth unemployment are more prone to social instability.
The causes of youth unemployment are much more profound than the recent global economic recession. It’s about a new world of work. Constant uncertainty, the rise of robots, rapid job switching, self-employment, mobile work, and the individual as a brand are all characteristics of the world today. The rise of robots means factories are running but not hiring. The middle layer of the labour market is diminishing, while low-end jobs and high-end jobs are still in demand.
Self-employment is a part of this new workforce reality. The Internet is making competition over assignments globally, with outsourcing of work online instead of hiring in-house. In 2014, more people in the UK were self-employed than at any point over the past four decades. Being your own boss requires an entrepreneurial spirit to stay in the work game and comes with much more uncertainty than a salaried job. The new world of work is open to the educated, adaptable, and technologically well-connected. If the trend continues, the future will hold fewer jobs but much work. Here “job” is defined as a set of clear responsibilities towards an employer, whereas work is any kind of activity.
The new world of work is also marked by jobless growth, with unemployment remaining stubbornly high even as economies grow. Technological innovation explains part of this trend, but not all. Researchers point to a mismatch between supply and demand of skills, where the types of skills
demanded change rapidly and educational institutions find it difficult to adapt. In addition, in some low HDI countries, growth is based on resource extraction, creating few jobs. On the African continent, 60 percent of the unemployed are aged 15 to 24.