youth unemployment problem solution essay

Youth Unemployment and Policy Solutions Essay

Policy solutions, recommendations, works cited.

Nowadays, the problem of unemployment affects people in different age groups. Youth unemployment (YU) is especially problematic since for people aged 15-24, the lack of available jobs is associated with the inability to pay for education and start their own families. Despite significant economic differences between countries, the problem affects young people all over the world. As of 2018, the average YU rates ranged from 3.7% of the force aged 15-24 in Japan to 53% in South Africa and did not exceed 9% in the United States (“Youth Unemployment Rate (Indicator”). Importantly, YU is closely interconnected with minority discrimination. For instance, in the United States, the group with the largest unemployment rates is African-American young men and women between 16 and 19 years old (“Labor Force Statistics”). Minority groups can be affected by this problem due to a variety of factors, including potential employers’ biases, educational inequality, and the lack of necessary skills.

The growth of YU rates has a variety of negative consequences, impacting both economic development and people’s quality of life. The inability to address the problem of unemployment in the given age group may result in the growth of criminal activity, child poverty, and people’s negative perceptions of life (Kalleberg). The causes of YU are being thoroughly researched. The following factors may be the potential causes of the problem:

• Age-based discrimination in the job market;
• The lack of necessary qualifications;
• Short supply of jobs;
• Ethnic discrimination;
• Globalization and technological advancement (Kalleberg 36).

Apprenticeship Systems

A larger number of strategies expected to reduce YU rates has been proposed in different countries. Given that unemployment exists due to individuals’ limited opportunity to get necessary skills, the first potential solution is based on young people’s access to courses helping them to get any professional skills that are in demand. Such policies are widely used in both developed and developing countries to strengthen partnerships between educational institutions and key employers in some regions. As a potential solution, the creation of apprenticeship systems aimed at the development of skills is generally believed to be an effective practice (Riphahn and Zibrowius 33). Unlike older people, young citizens do not have networks that would make them aware of job opportunities matching their skill levels (Kalleberg 37). Taking this fact into consideration, apprenticeship programs are particularly important since they introduce future specialists to certain professional fields, at least helping them to understand their future employers’ expectations.

Being used in many countries with high GDPs, apprenticeship systems have a variety of advantages when it comes to the problem of unemployment. Some of the most significant benefits of such policies are listed below:

• Future employees get helpful experience and learn to solve real-life problems;
• Apprenticeship trainings help reduce dissatisfaction with the chosen jobs;
• Young people make their first professional contacts, which can be helpful in the future;
• Apprenticeship programs are focused on the development of practical skills that are in demand (Riphahn and Zibrowius 35).

Even though such policies can lead to positive changes in the situation with unemployment among young people, they should not be the only option to rely on due to their potential disadvantages. The weak points of apprenticeship programs include the following:

• Not all programs for young people are fee-free;
• There is no evidence that apprenticeship programs reduce race-based inequality in access to jobs.

Support of Youth Entrepreneurship

There are many policies that aim to reduce the problem of unemployment by implementing initiatives that support youth entrepreneurship. According to experts from the UN, to reduce YU, it is necessary to provide young people with more opportunities to start their own businesses and contribute to their countries’ economic development (UNCTAD 86). The proposed policies involve the simplification of procedures needed to start a business and the introduction of start-up incentives for new businesses led by young people (UNCTAD 86). Such programs should always be implemented with attention to the economic situation in particular countries and the presence of necessary resources.

Policies that promote financial and regulatory support of young entrepreneurs can positively impact the situation with unemployment and encourage more people to implement their ideas into practice. In general, the following advantages of such initiatives can be singled out:

• The growth of the small business sector (UNCTAD 86);
• Youth-led businesses can create new jobs for young people;
• Allowances can help young entrepreneurs to stay competitive;
• Youth entrepreneurship can positively change the labor market in disadvantaged areas.

However, this strategy has some disadvantages and involves certain unobvious risks. There is no doubt that more individuals will try to profit from their ideas if some regulatory barriers to starting a business are removed. At the same time, given that people aged 16-24 usually have no experience of being a business leader, the outcomes of increased entrepreneurial activity among youth present an open question. As for particular disadvantages, the following factors make the policy’s relevance to the discussed problem questionable:

• Young entrepreneurs may fail to manage business operations successfully;
• The policy does not guarantee equal opportunities for the representatives of different ethnicities;
• To achieve success, young entrepreneurs can prefer to collaborate with experienced specialists, which limits the initiative’s impact on YU.

The approaches to addressing the problem of YU vary greatly. Both the adoption of apprenticeship systems and measures helping to encourage entrepreneurship activity among young people. This initiative may help create more job options for young citizens with different educational levels because they focus on the development of practical skills and aim to remove barriers to business. Increased entrepreneurship activity, in its turn, leads to the creation of new jobs, which can be important to young people who cannot find jobs in large companies due to high competition.

Despite the advantages of policies that support youth-led businesses, the first option seems to be a more suitable solution. Apprenticeship systems and programs can prepare young people to fulfill different roles and work in a team, which is critical to success in career development. In contrast, overreliance on policies to increase the number of youth-led businesses will not help to prepare a diverse workforce. Moreover, although such policies are targeted at young people, it is not valid to say that entrepreneurs in this age group hire only inexperienced employees, and it reduces such programs’ relevance to the chosen problem. Taking these disadvantages into consideration, it can be recommended to solve the problem of YU by propelling the idea of apprenticeship programs to the next level. In particular, it is critical to design new measures to prevent organizations from discriminating against racial and ethnic minority applicants. Therefore, to increase young people’s chances to find good jobs and develop skills that are in demand, it can be necessary to introduce changes to some policies that are already in use.

Kalleberg, Arne L. “Precarious Work and Young Workers in the United States.” Youth, Jobs, and the Future: Problems and Prospects , edited by Lynn S. Chancer et al., Oxford University Press, 2019, pp. 35-52.

“Labor Force Statistics from the Current Population Survey.” United States Department of Labor . 2019, Web.

Riphahn, Regina T., and Michael Zibrowius. “Apprenticeship, Vocational Training, and Early Labor Market Outcomes – Evidence from East and West Germany.” Education Economics , vol. 24, no. 1, 2016, pp. 33-57.

UNCTAD. Policy Guide on Youth Entrepreneurship . United Nations, 2015.

“Youth Unemployment Rate (Indicator).” OECD , 2019, Web.

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Youth Unemployment Causes and Solutions

With the post-2015 development agenda calling for decent work for all, understanding youth unemployment causes and solutions is key.

Globally, 73 million youth are registered unemployed . Considering how many aren’t registered, this number is actually much higher. 620 million are currently not in employment, education or training (NEET), according to the World Bank.

Meanwhile, with 600 million young slated to enter the job market in the next decade – with only 200 million jobs awaiting them – the youth unemployment crisis is not projected to improve anytime soon.

The post-2015 development agenda is prioritising decent work and economic growth in its Sustainable Development Goal 8 , but “promoting inclusive and sustainable economic growth, employment and decent work for all” requires targeted solutions.

Youth unemployment causes

1. Financial crisis

Though the current youth unemployment crisis was not caused by the financial crisis alone, the recession just made existing problems in labour markets, education systems and other structures worse.

Greece and Spain, for example, were experiencing high youth unemployment years before the financial downturn, and a sudden surging of economies wouldn’t be enough to put the 74 million unemployed young people to work. Furthermore, the youth unemployment rate is two to three times higher than the adult rate no matter the economic climate.

The recession did, however, affect the quality and security of jobs available to young people. Temporary positions, part-time work, zero-hour contracts and other precarious job paths are often the only way young people can earn money or gain experience these days.

2. Skills mismatch

The skills mismatch is a youth unemployment cause that affects young people everywhere. There are millions of young people out of school and ready to work, but businesses needs skills these young people never got. Young people end up experiencing a difficult school-to-work transition, and businesses are unable to find suitable candidates for their positions.

Similarly, young people who have advanced degrees find themselves overqualified for their jobs, and many young people are also underemployed, meaning they work fewer hours than they would prefer. There is an economic as well as a personal cost here: young people are not being allowed to work to their full potential.

3. Lack of entrepreneurship and lifeskills education

While the exact cause of the skills mismatch is difficult to pin down, it’s a combination of school curriculums neglecting vocational, entrepreneurial and employability training in favour of more traditional academics, poor connections between the private sector and schools to promote training and work experience and a lack of instruction in how to harness lifeskills most students already have .

4. Lack of access to capital

Young people who want to make their own jobs by starting businesses often struggle to find access to affordable loans, or loans in general. This is partially due to a lack of collateral. High interest rates also make it difficult for young people to repay their loans on time. The World Bank notes that <1% of loan portfolios of loan providers are directed at those under the age of 30.

5. A digital divide

In some low-income countries, the skills mismatch is compounded by a lack of access to technology or the internet. If schools are unable to afford the tools to educate young people in the digital sector, these young people are at a disadvantage in the job market.

Youth unemployment solutions

1. Education and training programmes

Initiatives or extracurricular instruction that target the skills gap can focus on anything from employability skills to job hunting and interviewing to entrepreneurship to vocational education (including opportunities in the green economy ). Ideally, in the future, these kinds of education will be embedded into national curricula, tackling the skills gap.

Examples of training programmes include our Work the Change initiative and Be the Change Academies , which provide young people with the skills they need to succeed in their careers.

2. Youth access to capital

For young people keen to get start-ups funded, they don’t have to rely on banks alone. Crowdfunding sites like Kiva.org and networks like Youth Business International  give young people all over the world the chance to get the support they need to build their enterprises and increase their incomes. With more programmes like these being created every day, the future is getting brighter for aspiring entrepreneurs.

3. Universal internet access and greater availability of cheap tech

With programmes like Facebook’s Internet.org working towards free internet access to key sites and Computer Aid providing IT education across 32 countries, this solution to the digital divide is coming along. However, infrastructure development (electrical grids, etc.) is obviously key to this goal. As lower-income nations develop these sectors, the digital divide will continue to be bridged.

4. Skills matching

The private sector, government and education systems need to start collaborating to determine what knowledge and skills young people should be taught in order to find rewarding work. Considering businesses are suffering from the skills mismatch, too, they need to take a more active role in promoting appropriate education and skill-building for young people from an early age.

Representatives from HR can provide career advice and give advice on job hunting, too. Social enterprise initiatives and non-profits are helping facilitate these connections, as are schools individually. However, wider efforts to involve the private sector in education are needed.

Achieving Sustainable Development Goal 8 and ensuring everyone is able to secure decent work means ending the youth unemployment crisis, working with young people and giving them the chance to maximise their potential.

Sources: The World Bank, IMF, Eurostat, ILO, The Guardian, The Work Foundation, European Commission

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5 Ways to Tackle Youth Unemployment

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Sean C. Rush

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Stay up to date:, future of work.

Persistent jobless growth has reached crisis proportions, especially among the world’s young. The numbers are stark: in 2012, six out of 10 workers aged 15-29 lacked stable employment and earned below-average wages, according to the International Labour Organization. The global youth employment rate has reached 13.1% – almost three times that of adults.

But, while substantive intervention is necessary to tackle a problem of such massive proportions, there’s no silver bullet solution. My NGO, JA Worldwide, recently produced a report, Generation Jobless , detailing both causes of and potential answers to the problem.

Our conclusions: a toxic mix of factors has contributed to the crisis, from mushrooming youth populations in developing regions to a growing mismatch between the skills people have and those that employers need. Addressing the world’s youth unemployment challenge requires a multipronged, long-term effort involving multiple stakeholders, such as governments, employers, educational institutions and civil-society organizations – as well as families, communities and peer groups.

There are five basic strategies that could be pursued globally:

• Boosting job creation and labour demand
• Better preparing young people for the job market
• Illuminating pathways to productive work
• Improving financial well-being, both current and long-term
• Fostering entrepreneurship

Governments, for example, should develop national action plans targeting youth employment. They should establish enterprise incubation programmes and infrastructure projects that hire and train young people. They should also incentivize education institutions and private operators to do the same.

Employers can create entry-level job opportunities, implement school-to-work apprenticeships and on-the-job training programmes, as well as support young entrepreneurs through mentoring.  Educational institutions can incorporate entrepreneurship into the curriculum and work with employers to ensure they offer students the appropriate training.

At JA, our own approach rests on a heavy dose of collaboration. We work in more than 120 countries through over 450,000 volunteer teachers and mentors, who provide experiential learning to young people between the ages of five and 25. Some 3,000 JA employees work closely with educators, policy-makers and corporations to design programmes for young people in their countries. Most of these efforts are aimed at providing youth with hands-on experiences in entrepreneurship, financial literacy and workplace readiness.

A case in point is the innovative ITS TYME (Immersion Training Strategy: Targeting Young Marginalized Entrepreneurs) initiative in sub-Saharan Africa. Working with corporations, government agencies, other local and international NGOs and individual philanthropists, the programme takes entrepreneurship training out of the classroom and into African marketplaces, motor parks, slums and other centres of youth activity. It‘s all focused on equipping underprivileged young people with the practical, strategic and tactical tools they need to become financially self-sufficient and contribute to the social, economic and political life of their communities. In 2013, ITS TYME facilitated over 500 start-ups and 300 mentoring relationships, with notable improvement in incomes across all four project communities.

Consider Tanzania, where, as in other communities, JA’s partners provide technical and vocational training, as well as seed capital, to people trying to start businesses. Through a partnership with Asylum Access and UNHCR/Tanzania, for example, a group of young urban refugees successfully raised capital to start a poultry production company. They found their initial financing of $82 over a period of four months – a major feat for young people whose average daily income is less than 35 cents.

In Latin America and the Caribbean, another noteworthy programme, called Women for Development , was co-developed with the Citi Foundation. It links entrepreneurship education and access to finance through local microfinance institutions, helping participants to improve their financial lives and, in turn, strengthen their communities. Since 2011, more than 5,000 women have benefited.

Mery Mercedes, who lives in the Dominican Republic, is one of those success stories. Unemployed when she started the programme, by the end she was able to launch her own business selling perishable goods. A year and a half later, the enterprise continues to grow steadily. What’s more, she recently qualified for a bank loan after being turned away before.

These experiences carry a clear lesson: that only through the concerted efforts of several parties – and a willingness to stick with it over the long-term – can we address the world’s youth unemployment challenge and achieve lasting change.

Author: Sean Rush is President and CEO of JA Worldwide

Image: Applicants fill out forms during a job fair at the Southeast LA-Crenshaw WorkSource Center in Los Angeles November 20, 2009. REUTERS/Mario Anzuoni

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Causes, Effects and Solutions to Youth Unemployment Problems in Nigeria

2013, Journal of Emerging Trends in Economics and Management Sciences

The purpose of this paper is to look into the causes, effects and solutions to youth unemployment problems in Nigeria. The rate at which unemployed graduates roam the street after the National Youth Service constitutes social malice to the country as a whole. The data for this paper was collected from secondary sources using descriptive approach of previous researches and analysis of scholars to gather empirical data. The findings revealed that unemployment in Nigeria among youths are caused by six major problems and six major effects which has created tension and hatred between the haves and have not, leading to communal clashes and the rise of such groups such as Boko Haram, Niger Delta Militant, armed robbery, prostitution and child trafficking constituting hiccups to security of lives and properties. Also, the findings revealed that unemployment in Nigeria increased from 21.1% in 2010 to 23.9% in 2011 with youth unemployment at over 50%. From 2011 to 2013 there is an increase of 16% unemployment growth rate in Nigeria. Significantly, the impact of this paper is that government should create labour market that work better for the youths employment and recommends that the government should invest heavily on education to enable the youth become self reliance instead of job seekers through skills development and training.

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THE IMPACT OF YOUTH UNEMPLOYMENT ON SOCIO-ECONOMIC DEVELOPMENT IN BENUE STATE, NIGERIA

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The Challenge of Youth Employment: New Findings and Approaches

• Published: 12 June 2023
• Volume 66 , pages 421–437, ( 2023 )

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• Sher Singh Verick 1  

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The challenge of youth employment is not new. Even in good economic times, young people experience unemployment rates that are 3–4 times higher than adults. More than three out of four of the world’s young workers have informal jobs, while young people are overrepresented in working poverty and less protected forms of work, such as temporary and gig employment. During economic crises, the situation for young people in the labour market deteriorates much faster than for adults and persists for longer periods. The scarring effects for youth were clear after the global financial crisis (GFC) of 2008–09. Beyond these negative trends, it is important to recognise where countries have done much better in getting young people into decent and productive employment, including in the wake of crises. The success of European countries in tackling youth unemployment and inactivity has led to many attempts to replicate the policy approach, which involves integrated programmes such as the EU Youth Guarantee. However, there are major constraints to applying such an approach in developing countries and emerging economies. Against this background, the paper reviews the longer run trends in youth employment, along with the impact of crises on young people, focusing on the COVID-19 pandemic, in both advanced and developing countries. Next, it explores the lessons learned on how best to deal with youth employment challenges drawing from recent global meta-analyses. While the paper highlights that not all lessons can be extrapolated, it is important that countries develop integrated youth employment strategies that address job creation, quality of jobs, and inclusion.

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Source : ILO modelled estimates (November 2022), ilostat.ilo.org

Source : ILO modelled estimates (November 2022), ilostat.ilo.org. Notes : Other NEET = young people who are neither in employment, education or training, excluding the unemployed. OLF Other out-of-the-labour force, excluding those covered by Other NEET (i.e., excluding the potential labour force)

Source : ILO modelled estimates (November 2022), ilostat.ilo.org; author’s calculations

Source : ILO modelled estimates, ilostat.ilo.org; author’s calculations.

Source : Approved applications to job retention schemes as a share of dependent employees – OECD ( 2020 ); youth employment growth rate – authors’ calculations, labour force surveys, ilostat.ilo.org

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Verick, S.S. The Challenge of Youth Employment: New Findings and Approaches. Ind. J. Labour Econ. 66 , 421–437 (2023). https://doi.org/10.1007/s41027-023-00438-5

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Youth Unemployment in Sub-Saharan Africa: Varying Solutions to Complex Challenges

Subscribe to africa in focus, brandon routman and br brandon routman former research analyst john w. mcarthur john w. mcarthur director - center for sustainable development , senior fellow - global economy and development @mcarthur.

August 12, 2014

As we celebrate International Youth Day today, it is important to turn attention to sub-Saharan Africa since its youth population is enormous and on course to grow dramatically in the coming years. Roughly 10 to 12 million sub-Saharan African youth enter the labor market every single year. While this growth provides the opportunity for a demographic dividend—where the number of working-age people outweighs the number of dependents—it also presents the risk for soaring rates of youth unemployment.

In an effort to contribute ideas and create policy recommendations towards addressing this major issue, five of the Brookings Africa Growth Initiative’s (AGI) partner think tanks studied their respective country experiences in tackling youth unemployment. These essays survey key policies that their governments have implemented—some that worked well, others less so—and offer lessons to local, regional and global policymakers. Over the coming weeks we will be publishing these examinations of youth unemployment in the unique contexts of Ghana, Kenya, Nigeria, South Africa and Uganda.

South Africa’s Skills Training and Employment Subsidies

South Africa is facing a massive youth unemployment problem. In its essay, the Development Policy Research Unit (DPRU) at the University of Cape Town writes about a number of issues and programs including employment subsidies, which transfer part of the cost of worker’s wages from employers to the government. DPRU finds evidence that individuals who receive subsidies stayed at their jobs long after their subsidies had ended. DPRU also examines the National Rural Youth Service Corps —a program that teaches skills to young people over a two-year time period and then hires these individuals to work on rural community projects that utilize their newfound skills. The general assessment of the program is that while it increased the skills of the participants, it underestimated the amount of training that students required. Finally, DPRU discusses publically funded institutions that teach vocational skills to young people and critiques these establishments for a number of reasons—for being inaccessible geographically; for not teaching the skills the private sector and students demand; and for not doing enough to place students into jobs following graduation.  

Ghanaian Women Are the Entrepreneurs

Ghana is a unique case when it comes to employment, according to the Global Entrepreneurship Monitoring study: The country’s entrepreneurs are more likely to be women than men, a situation not found in the other 60 countries in the survey. The University of Ghana’s Institute of Statistical, Social and Economic Research (ISSER) centers its essay on this interesting trend. ISSER argues that this fact is even more remarkable given the many factors in Ghanaian society that discourage female entrepreneurship. For instance, women often do not have the same level of access to credit as men, constraining them from starting a business. They are also subject to discrimination in land ownership and must overcome cultural attitudes that still see women primarily as homemakers and caretakers.

The Kenyan Voucher System’s Successes and Gaps

In response to its youth employment challenge, Kenya implemented the Jua Kali Voucher Program , which subsidizes 90 percent of job-training expenses at specialized training centers for eligible, unemployed individuals, many of whom are youth. According to the Kenya Institute for Public Policy Research and Analysis (KIPPRA) , the program’s 37,000 vouchers issued between 1997 and 2001 ultimately helped many beneficiaries find employment. Furthermore, since the job-training facilities that were part of the program specialized in developing different skills, participants were given a degree of choice in what they learned. Thus, participants could be trained in the fields in which they were most interested, which may have contributed to the high effectiveness of the trainings. In addition, since the program increased the demand for job-training services, it also increased competition between facilities, improving the quality of the training. However, KIPPRA researchers find that the program was by no means perfect. The subsidy is considered “a source of distortion of the training market,” and policymakers are advised to consider an “exit strategy” for its future. 

Uganda’s Challenges with Lending and Investment

Uganda has looked to tackle youth unemployment through increased educational quality, micro-finance loans and increased investment. In its essay, the Economic Policy Research Centre (EPRC) reviews the efforts of the country’s educational system to ensure that Ugandan students are learning job-relevant skills. The government examined and revised school curricula; created more and better science labs; and increased the number of openings in universities for science students. Despite these efforts, the level of unemployment remains high. The essay also discusses the Youth Entrepreneurial Scheme (YES), a program implemented in the 1990s that aimed to provide micro-finance loans for newly established small- and medium-size enterprises (SMEs). The authors argue that this program has largely not succeeded, since the loans the program disbursed were not well-targeted and, consequently, were not repaid. However, alternate micro-finance models have since arisen. Implemented by the private sector, these approaches have much stricter criteria regarding loan eligibility and have had more success in repayment rates. Finally, the piece investigates the efforts of the Ugandan Investment Authority, a government agency tasked with boosting employment in the country by increasing private investment. EPRC argues that the agency has not been very successful: The number of jobs it has produced is far less than the number of the individuals entering Uganda’s labor market every year. Part of its problem is described as an inability to attract local investment and a tendency to concentrate efforts in urban areas, ignoring the highly rural nature of Uganda’s economy.  

Nigeria’s Policies Falling Short

Nigeria has used a number of programs that teach vocational skills, deliver micro-credit finance to entrepreneurs and provide work internships in a wide range of sectors. In its piece, the Nigerian Institute for Social and Economic Research (NISER) argues that some of these programs have been ineffective because they have not done enough to disaggregate their intended beneficiaries on the basis of skill set. NISER finds they ultimately treat college graduates as if they have the same abilities as individuals who have not finished primary school. Programs are also hindered by missing and inadequate data. A second challenge described is that the programs are not coordinated: They are administered by a multitude of government agencies and actors that are often unaware of each other’s work. The researchers find that the government’s initiatives are embedded in an overlapping organizational patchwork that too often results in misallocated resources. 

Crosscutting Lessons

A number of lessons can be drawn from these country-focused studies. The first is the downside when programs do not adequately target the beneficiaries they intend to assist. Across these five countries, many programs focused on youth unemployment appear to cast too wide of a net. For example, some did not distinguish between individuals in the formal and informal sectors; did not differentiate between “survivalist” and “growth-oriented” enterprises; or neglected to take adequate account for the diversity of educational backgrounds of their recipients. 

A second lesson is that government-sponsored vouchers and subsidies can help resolve the targeting problem by preserving a degree of enterprise and individual choice. These tools are especially worthy of consideration in situations where government services have the potential to be misdirected, either by going to recipients who should not receive them or by not reaching recipients who should.    

A third lesson is that the underlying employment data are of generally poor quality. Some partners argue the relevant data are largely erroneous. And even when technically correct, the numbers can mask important truths, such as when the unemployment rate excludes individuals that have stopped looking for work. A sole focus on the unemployment level can also be a distraction: The quality of jobs is often just as important an issue as the number of jobs. Along these lines, some of the essays warn that working to reduce the unemployment level might swell the ranks of “vulnerable” workers, who are plagued by job insecurity and low pay. Economic strategies to minimize these risks remain a foremost priority across Africa.

Over the coming weeks, look here for more detailed research into the complex, unique and shared challenges each of these countries face.

Global Economy and Development

Sub-Saharan Africa

Africa Growth Initiative

Stephanie A. Bell, Anton Korinek

March 14, 2024

February 28, 2023

Kevin Kolben

Home — Essay Samples — Economics — Unemployment — Unemployment: Causes, Effects, and Solutions

Unemployment: Causes, Effects, and Solutions

• Categories: Unemployment

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Words: 685 |

Published: Jan 30, 2024

Words: 685 | Pages: 2 | 4 min read

Table of contents

Introduction, causes of unemployment, effects of unemployment, solutions to combat unemployment, a. economic factors.

• Global recession: During economic downturns, companies may reduce employment to cut costs and remain competitive.
• Automation and technological advancements: The use of machines and technology may replace human workers in some industries, leading to job losses.
• Outsourcing of jobs: Companies may choose to outsource jobs to other countries where labor costs are lower, leaving domestic workers unemployed.

B. Societal Factors

• Lack of education and skills: Individuals without proper education and job training may be ill-equipped to meet the demands of a constantly evolving job market.
• Discrimination in hiring processes: Certain groups, such as women, minorities, and older workers, may face barriers in securing employment due to discrimination.
• Dependency on welfare programs: Some individuals may choose to remain on welfare programs due to a lack of incentive to enter the workforce or because they cannot find suitable employment.

A. Economic Effects

• Reduction in consumer spending: Without a steady income, unemployed individuals may have less money to spend, resulting in a decline in consumer spending.
• Decline in government revenue: With fewer people working, the government may see a decline in tax revenue, which can impact its ability to provide necessary services and promote economic growth.
• Increase in social welfare expenses: The government may need to allocate more funds toward social welfare programs, such as unemployment benefits and food assistance, to support those who are unemployed.

B. Social Effects

• Increase in crime rates: Individuals who are unemployed may resort to criminal activities to make ends meet, leading to a rise in crime rates.
• Mental health issues: Unemployment can cause stress, anxiety, and depression, which can negatively impact an individual's mental health.
• Strained relationships and family instability: Unemployment may cause financial strain and tension within families, leading to relationship problems and instability.

A. Economic Solutions

• Encouraging entrepreneurship and small business development: Providing resources and support for individuals to start their own businesses can lead to job creation and economic growth.
• Promoting vocational training and skill development programs: Ensuring that individuals have access to education and training programs can increase their job readiness and competitiveness in the job market.
• Implementing balanced trade policies: Creating policies that promote fair trade and reduce job outsourcing can protect domestic jobs and promote job growth.

B. Social Solutions

• Addressing educational disparities and providing access to quality education: Providing quality education to disadvantaged communities can improve their job readiness and reduce unemployment rates.
• Combating discrimination in the workplace: Enforcing anti-discrimination laws and promoting diversity and inclusion in the workplace can reduce barriers to employment for certain groups.
• Strengthening social safety net programs: Ensuring that social welfare programs are designed to incentivize work and provide support to those in need can promote economic stability and reduce poverty.
• Bureau of Labor Statistics. (2021, October 8). Employment Situation Summary. https://www.bls.gov/news.release/empsit.nr0.htm

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Analysis: Africa’s Youth Unemployment Crisis Is a Global Problem

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Africa’s Youth Unemployment Crisis Is a Global Problem

Governments and donors must stop focusing solely on skills development and entrepreneurship—or risk more youth migration, unrest, and terrorism..

Africa has the world’s youngest population, with a median age of 19.7 years. Such a large youthful population might ordinarily symbolize an ample and energetic workforce, a boon for the development prospects of any region. But the dire employment situation for young people across Africa continues to snuff out their potential. According to the African Development Bank , in 2015, one-third of Africa’s then 420 million young people between 15 and 35 years old were unemployed, another third were vulnerably employed, and only 1 in 6 was in wage employment.

Although Africa has the lowest unemployment rate globally on paper among youth ages 15 to 24 (10.6 percent in 2021, according to the International Labor Organization), the majority of Africa’s youth work informally, and many are underemployed or remain in poverty despite working due to low wages and the lack of a social safety net, making it difficult to compare African countries to more advanced economies.

The African Development bank reports that while 10 million to 12 million youth enter the workforce in Africa each year, only 3 million formal jobs are created annually. African youth have no choice but to work, because most countries on the continent have little or no social protection. According to the African Development Bank, it is therefore common to see humanities and social sciences graduates driving taxis in Algiers and Cameroonian engineers ferrying passengers on commercial motorcycles in Douala.

Africa’s youth employment problem is a global problem. The world can’t achieve and sustain global development with a large segment of youth alienated and unprepared to lead their continent and the world. Hordes of struggling African youth will continue to migrate en masse to developed countries. And foreign investors can’t be assured of peaceful business climates in Africa, as poverty and inequality fuel looting, insurgencies, and terrorist activity on the continent.

Studies have highlighted mismatches between the skills African students obtain at school and those required by employers. African governments and development partners have therefore attempted to address the employment challenge, mainly by implementing skills development programs for employment in high-priority sectors such as agriculture and manufacturing, and promoting entrepreneurship in these areas. Youth enrolled in such programs learn technical and vocational skills, as well as other life skills to help them find employment and run their own businesses.

But focusing on these solutions alone excludes young people who are not inclined toward entrepreneurship, as well as those with other skills and capabilities that could be nurtured with alternative means of support. Indeed, it perpetuates the very cause of Africa’s youth employment problem by concentrating the talents of youth in a few professional areas to the exclusion of many others.

According to a Brookings Institution report , such interventions do not have a good track record in developing countries. Just a small number of young entrepreneurs in sub-Saharan Africa find success, and they are rarely able to subsequently hire fellow young Africans. African labor markets are also not able to absorb the available skilled workers. Moreover, surveys in rural Ghana and Uganda showed that young people in these regions often struggle to get the funding they need to start a business or land to farm on, and they don’t benefit from government and donor initiatives—particularly concerning as two-thirds of new job seekers across Africa live in rural areas.

African societies have long valued professions like medicine, law, and business, while creative fields such as writing, art, music, drama, and fashion are regarded as hobbies.

Africa’s youth employment crisis has been a long time in the making. An adequate solution to this problem requires addressing its root cause: the lack of job creation in many professional fields. Africa’s slow pace of development is not the only reason for its limited range of jobs.

African societies have for a long time valued a few professional fields to the exclusion of many others and have therefore not created ample jobs in less popular fields. Fields such as medicine, law, business, and economics are highly regarded, so parents push bright children to pursue courses in these areas. Many students who do not initially get to study such subjects later pursue work in related areas, both for the prestige and because jobs are more abundant in these fields.

Creative fields such as writing, art, music, drama, and fashion are often regarded as hobbies. Many African parents discourage or prevent their children from pursuing careers in these fields. It’s little wonder that such renowned African writers as Chinua Achebe, Chimamanda Ngozi Adichie, and Tsitsi Dangarembga all initially studied medicine.

To reverse the continent’s employment woes, Africans would need to begin appreciating the utility of all careers. African governments must introduce policies that shift the educational focus from passing exams to exploring a degree’s actual applications to society. African governments, together with the private sector, must actively create jobs related to all professional fields. Development partners can advise African countries on creating jobs in less popular fields, because their countries have successfully employed their talent in such fields.

For instance, plenty of jobs could be created for students graduating with botany and urban planning degrees. African cities and rural areas need more botanical gardens and parks. The value they provide in developed countries is evident. Botanists and urban planners can beautify African streets and make them greener by lining them with trees and other plants. Botanists can also set up private practices to advise households and institutions on the ideal plants to grow in their gardens and compounds.

America’s Hollow Africa Policy

Washington’s focus on stability over human rights is alienating Africa’s youth.

Africa’s Disappointed Demographic

Young people across the continent have been hit hard by the pandemic, lockdowns, and economic stagnation—but their protests have largely been ignored by elderly elites.

Likewise, Africans have a greater need for psychologists than they realize. An estimated 100 million Africans have depression in what some have called a “silent epidemic.” Meanwhile, according to the Lancet , Africa has only 1.4 mental health workers per 100,000 people, while the global average is 9 per 100,000 people.

The large numbers of graduating psychology students should not feel compelled to find jobs in other fields. Governments can introduce policies that mandate hiring psychologists at all schools. Like their Western counterparts, young African children and older students can’t always turn to family members and friends in difficult moments. They need the emotional support of a trained professional at such times.

Even older adults in Africa appear to need the counseling services of psychologists. As a substitute for these services, they consult pastors and find solace in church services. The pastoring profession has proliferated across Africa as a result, but the consolation Africans receive from church is an inadequate substitute for the professional care trained mental health workers provide.

Archaeology doesn’t have to be seen as a useless course in much of Africa. Africans need archaeologists to preserve their rich cultural heritage and develop historical sites. Africans can reap huge tourism revenues by building world-renowned museums to house their treasured artifacts, including those repatriated from the museums of Western countries. And if coastal countries across Africa took oceanography and fisheries more seriously, Ghana would have discovered earlier than 2012 that it had coral reefs. Such reefs and aquariums could be huge tourist draws in these countries. Seismic oceanography could likewise lead to more discoveries of oil and gas in the waters off Africa.

Institutions like the World Bank and the International Labor Organization can introduce an index (similar to the defunct Doing Business ranking) to measure the extent to which countries develop and utilize the knowledge and skills of their youth. Such a ranking would compel African governments to concentrate on harnessing the varied skills, knowledge, and talents of young people.

Development partners, private foundations, and foreign companies (as part of their corporate social responsibility) can also help African nations create jobs in other professional fields by building public institutions such as libraries, art galleries, and music conservatories across the continent, and funding art workshops and music lessons. Libraries are scarce across Africa. Kenya, with a population of 55.3 million, has just 64 public libraries, while Nigeria, the continent’s most populous country with a population of 212.7 million, has an estimated 316 public libraries. By contrast, France with a population of 65.5 million has 16,500 public libraries.

With increased access to books, more Africans would develop interests in reading and writing, spawning higher numbers of writers and journalists. More Africans would be able to articulate themselves in writing, enabling them to document the continent’s history and contribute their perspectives to debates on public policy and foreign policy rather than letting the world write about Africa. More libraries would provide spaces for unemployed and self-employed youth to research and develop their ideas, work on independent projects, and hold meetings with others.

Nigeria, the continent’s most populous country with a population of 212.7 million, has an estimated 316 public libraries. By contrast, France with a population of 65.5 million has 16,500

In addition, students across Africa would perform better academically if they had dedicated spaces like libraries for studying; Africa’s youth employment debacle has been partly blamed on the continent’s low educational outcomes. Libraries could also go a long way toward curbing Africa’s astronomical population growth by providing teenage girls in rural areas (where there is a higher incidence of teenage pregnancies) both a refuge from the abusive men who prey on them and a more productive way of spending their time.

Similarly, Africa’s already significant share of the world’s renowned artists and musicians would multiply if young people were exposed early to art and musical instruments, and were given access to training facilities and quality instruction. Youth with training in art and music can also work with these skills on a part-time basis, as well as for supplementary income. Furthermore, the construction of libraries, art galleries, and music conservatories would provide work opportunities to architects, who are in short supply across Africa.

Young Africans lack access to grants to pursue professional ambitions such as language study abroad, internships abroad (as well as local ones), book-writing projects, and online classes. African governments and development partners must make grants available to people with varied interests, not just entrepreneurs. With these grants, African youth would gain the relevant skills and experiences to qualify for the jobs they seek. They would be able to pursue unconventional career paths and work independently. And they would have access to expert training online in areas as diverse as screenwriting, novel-writing, acting, cooking, and coding.

Development partners can also encourage their nationals to hire suitably qualified African youth in nonprofit and private organizations around the world. African youth lack opportunities to work abroad because their countries do not have development agencies operating abroad and relatively few African companies have subsidiaries outside their countries or the continent where their youth could travel to work. In addition, African countries have smaller diplomatic missions, and professional positions in these missions are usually restricted to foreign service officers, many of whom are older and more experienced.

Just a few African governments—including Egypt, Morocco, and South Africa—sponsor their youth to enter international organizations such as the United Nations as junior professional officers and volunteers. The weak passports of African countries are an additional impediment. Unemployed African youth aren’t able to travel abroad to network and search for opportunities the way a young French or American job seeker might.

If African governments and development partners implemented such varied solutions, they would succeed in harnessing the skills and knowledge of the vast majority of African youth. If young Africans could easily find jobs across diverse professional fields, fewer of them would choose to be nurses, and their countries wouldn’t have surplus unemployed nurses to export to developed countries. Parents would also be more accepting of their children pursuing less popular careers if their prospects of finding work in such fields were greater.

Adopting a holistic approach to the employment problem would enable African governments to better target entrepreneurship and skills training programs to those who would benefit most from them, especially youth from rural areas where the majority of agricultural and manufacturing activities take place. Targeting entrepreneurship and skills training there would also help to stem their migration to urban areas.

This approach would be more difficult than the current approach focused on entrepreneurship and skills training, but it stands a better chance of solving the employment problem.

African governments must do the difficult work of creating jobs for their youth, but donor countries and nongovernmental organizations can help them by thinking beyond the current development paradigm.

Audrey Elom Donkor is a writer and international affairs analyst from Ghana. Twitter:  @AudreyDonkor

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Unemployment Essay for Students and Children

500+ words essay on unemployment.

Unemployment is a very serious issue not only in India but in the whole world. There are hundreds and thousands of people out there who do not have employment . Besides, the problems of unemployment are very severe in India because of the growing population and demand for jobs. Moreover, if we neglect this problem then it will be going to become the reason for the doom of the nation.

What is Unemployment?

Unemployment refers to a situation in which a skilled and talented people wanted to do a job. But cannot find a proper job due to several reasons.

Types of Unemployment

Now we know what is unemployment but unemployment does not only mean that the person does not have a job. Likewise, unemployment also includes people working in areas out of their expertise.

The various types of unemployment include disguised unemployment, seasonal unemployment, open unemployment, technological unemployment, structural unemployment. Besides, some other unemployment is cyclic unemployment, educated unemployment, underemployment, frictional unemployment, chronic unemployment, and casual unemployment.

Above all, seasonal unemployment, under unemployment, and disguised unemployment are the most common unemployment that is found in India.

Reasons for Unemployment

In a country like India, there is much reason for a large section of the population for being unemployed. Some of these factors are population growth, slow economic growth , seasonal occupation, slow growth of the economic sector, and fall in the cottage industry.

Moreover, these are the major reason for unemployment in India. Also, the situation has become so drastic that highly educated people are ready to do the job of a sweeper. Besides, the government is not doing his work seriously.

Apart from all these, a large portion of the population is engaged in the agricultural sector and the sector only provides employment in harvest or plantation time.

In addition, the biggest reason of unemployment in India is its vast population which demands a large number of jobs every year which the government and authorities are unable to provide.

Consequences of Unemployment

If things will go on like the current scenario then unemployment will become a major issue. Apart from this, the following things happen in an economy which is an increase in poverty, an increase in crime rate, exploitation of labor, political instability, mental health, and loss of skills. As a result, all this will eventually lead to the demise of the nation.

Get the huge list of more than 500 Essay Topics and Ideas

Initiative by Government

The government has taken the problem very seriously and have taken measures to slowly reduce unemployment. Some of these schemes includes IRDP (Integrated Rural Development Programme), DPAP (Drought Prone Area Programme), Jawahar Rozgar Yojana, Employment Assurance Scheme, NRY (Nehru Rozgar Yojana), Training for self-Employment, PMIUPEP (Prime Minister’s Integrated Urban Poverty Eradication Program), employment exchange, Employment Guarantee Scheme, development of organized sector, small and cottage industries, employment in forging countries, and Jawahar Gram Samridhi Yojana and few more.

Besides, these schemes the government also make some rules flexible, so that employment can be created in the private sector also.

To conclude, we can say that the problem of unemployment in India has reached a critical stage. But, now the government and local authorities have taken the problem seriously and working on it to reduce unemployment. Also, to completely solve the issue of unemployment we have to tackle the main issue of unemployment that is the vast population of India.

FAQs about Unemployment

Q.1 Why there is a problem of unemployment in India? A.1 Due to overpopulation and lack of proper skills there is a problem of unemployment in India.

Q.2 Define Disguised unemployment? A.2 Disguised unemployment refers to a form of employment in which more than the required numbers of people work in industry or factory. And removing some employee will not affect productivity.

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8 Ways to Ease Youth Unemployment and Underemployment

Millions of school youth are currently unemployed or underemployed. This number increases per year for various reasons.

Some cannot follow an academic curriculum. Others do not have an interest in school work.

For many, families do not have the money to support them in schools, and they need to contribute to family revenue by helping with rice growing and animal care.

Perhaps, some find marginal jobs in the city in the hope of earning enough money to attend private training institutions to acquire language and computer skills for improved employment. But very few can do this.

In most countries, these school leavers find it difficult both socially and academically to re-enter. 

Typically, general education concentrates on those who can stay in school. 

Those who have completed their formal primary education and are excluded from any further recognized learning regardless of desire or intellect certainly have lost any chance of higher education within the public education system.

TVET public system, meanwhile, is failing to attract students to its certificate and diploma programs. Qualified applicants for higher education do not choose technology first but try for places in academic universities.

​Part of this is the tradition of academic learning that predominates in many countries, especially in Asia.

Changing public attitude is a very long term process even if, in many countries, this extended process has already begun. So, if TVET is to play a role, it can serve this increasing unemployed and underemployed youth.

For many of these school leavers, mastering the skills and knowledge required for entry into higher education is possible if they can learn part-time and work with their families. 

Some of these young people may be among the most gifted learners in the country, and if given an opportunity, they could become exceptional technicians and engineers.

In many countries now, the population is so skewed towards the young that youth employment is now a significant concern. Recent figures from  ILO  placed youth unemployment numbers at 73.4 million, a 3.5 million increase from 2007. ILO also emphasized that over 53% of young workers are in vulnerable employment.

How do we deal with this problem?

1. Training in the workplace

Employers used to train entry-level employees, allowing them to gain experience and climb the career ladder. Today, employers favour outside hires with ready-to-go experience. This change has hurt young job-seekers. It is best to reward employers who invest in on-the-job training with tax credits. 

2. Youth employment services

Link skills training with an employer and industry needs. Involve business at the local level in the design of employment and training programs.

Businesses would commit to hiring graduates of training programs, and they would track outcomes to create a feedback loop to improve the program design. Strengthen the National Employment Agency with a youth services unit to do research and provide career counselling.

3. Developing entrepreneurship

Young entrepreneurs need coaching and networks to build job-creating businesses. Business leaders need to foster a culture of mentorship. ​Develop an Entrepreneurship Incubator in each college working with local successful business people and SMEs. Business mentoring is so crucial that ILO created, Know about Business, a training methodology for trainers and teachers to help young people become more entrepreneurial.

4. Apprenticeships

Current apprenticeship systems need fixing. There are still barriers to groups such as women. Though the number of young people entering apprenticeships has increased, too many never complete their training.

Not enough employers view hiring an apprentice as an attractive investment. National incentives grants for apprentices go unclaimed.

To increase the number of apprenticeships, educators need to sell students on career and skills education more than they do.

Some experts believe teachers don’t do this because working in the trades is outside their experience. Offer teachers and guidance counsellors short co-op placements in the trades so that they appreciate their value relative to college and university.

5. Career Education

Experience in the workplace is critical for students to make good choices about their careers. It also teaches the “soft skills” employers require.

Make co-op education a mandatory credit in high school, to be phased in over a few years. The government needs a program to help educators and employers develop experiential and workplace learning. 

There is no standard or certification for high school guidance counsellors working on career development with students. Few high school teachers know anything about private sector work or the needs of employers. To ensure quality, require some high school teachers to train and certify as career-development professionals.

Teenagers turn first to their parents for career advice. Parents need better information and more support from schools to help their offspring make the right decisions. Ministers of education should set targets for schools to deliver career education to parents.  ​ Career studies courses help teenagers consider their working future. Make career studies mandatory. Ensure well-trained teachers teach the classes.

Read more on this:  Why Career Coaching in TVET Insitutions Read this link on why a Career Coach is helpful: ​ 7 Key Benefits of Finding a Career Coach

6. Colleges and universities to offer co-op education

Co-ops lead to better outcomes in the labour market because they give students work experience and help them develop their networks. The government can create financial incentives for colleges and universities that offer co-op education as part of the course requirements. 

Countries that align colleges and vocational education with the labour market’s needs have lower youth unemployment rates. Ministries of education do track college graduates’ success in the labour market. Strengthen this process now.

Enforce a stricter correspondence between the level of admissions and the labour market’s demand for graduates. If that means limiting entries, so be it. University programs that are pathways to professions such as education and law must also move in this direction.

Evidence suggests that career-counselling after high school helps young people hone their job search skills and find work more quickly. Make consultations with a career professional who can coach you. ​

Graduates need to understand the transition from school to work and must learn to manage it: 10 Winning Attitudes for a Successful Career Kick-Start

7. Skills Bridging Program

In Cambodia, the Directorate of Technical and Vocational Education and Training has started skills bridging program where school leavers (out of school for at least two years) go through a curriculum of Math, Science and Language to meet the requirements for entry into the TVET certificate programs.

The Asian Development Bank, through its Japan Fund for Poverty Reduction, assisted this program.

​Over three years, about 700 graduated and of these, 63% enrolled in certificate programs while the others found better employment. Because the Provincial Training Centers in Cambodia go to the rural areas, this program serves mostly the rural youth population.

8. National TVET system that promotes youth employment.

There is a need to redirect the TVET system to serve industry needs better, so graduates from the system can find better employment. The system must also promote programs in rural areas to help the youth get into the career ladder system to avail themselves of better employment opportunities.

Discover more articles about national TVET systems here:

• Funding of TVET through levy grants; 2 models
• Skills bridging in TVET: Cambodia case study
• Reinventing the TVET colleges
• Why som TVET systems are failing
• 11 Effective steps to industry and education partnerships

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Russia Unemployment Rate

Russia's unemployment rate fell to a new record low of 2.8% in february 2024, down from 2.9% in the previous month and compared with market expectations of 2.9%. this is primarily due to labor shortages of skilled workers caused by the emigration and mobilization of men for the war in ukraine. the number of unemployed individuals declined by 41 thousand from the previous month to an all-time low of 2.109 million, but the officially registered unemployed increased to 0.481 million in february from 0.480 million the month before. in february 2023, the jobless rate was higher at 3.5%. source: federal state statistics service, unemployment rate in russia decreased to 2.70 percent in march from 2.80 percent in february of 2024. unemployment rate in russia averaged 6.96 percent from 1992 until 2024, reaching an all time high of 14.60 percent in february of 1999 and a record low of 2.70 percent in march of 2024. this page provides - russia unemployment rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. russia unemployment rate - data, historical chart, forecasts and calendar of releases - was last updated on may of 2024., unemployment rate in russia decreased to 2.70 percent in march from 2.80 percent in february of 2024. unemployment rate in russia is expected to be 3.20 percent by the end of this quarter, according to trading economics global macro models and analysts expectations. in the long-term, the russia unemployment rate is projected to trend around 3.10 percent in 2025 and 3.20 percent in 2026, according to our econometric models.,   markets,   gdp,   labour,   prices,   money,   trade,   government,   business,   consumer,   housing,   taxes,   climate.