BOOSTING YOUTH EMPLOYMENT THROUGH PUBLIC WORKS: WHAT WORKS. The Youth Employment Challenge in Africa

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1 BOOSTING YOUTH EMPLOYMENT THROUGH PUBLIC WORKS: WHAT WORKS The Youth Employment Challenge in Africa 29 June 2015 Addis Ababa Oumar Diop, AUC Susana Puerto, ILO

2 Outline The Challenge A call for Action ILO and African Union 1

3 I. The Challenge 2

4 Youth Unemployment Rate (%) 14,0 Stagnated and worsening unemployment 13,9 13,5 13,0 12,5 12,0 11,5 11,0 12,0 11,4 11,7 13,5 13,4 12,6 12,9 13,0 13,2 12,8 12,8 Youth bears the severest impact e 2015p 2016p 2017p 2018p 2019p All youth Young men Young women 3

5 10,1 10,6 12,7 9,9 9,9 13,5 12,1 18,0 16,6 13,6 13,4 11,6 Youth unemployment rate (%) 17,4 17,2 27,6 28,2 29,7 30,5 by Region Developed Central and Economies and South-Eastern European Union Europe (non-eu) and CIS East Asia South-East Asia and the Pacific South Asia Latin America and the Caribbean Middle East North Africa Sub-Saharan Africa 4

6 Youth female-male gap in unemployment rates (PP) Gender Disadvantages p 25,0 20,0 20,9 15,0 14,8 10,0 5,0 0,0-5,0-0,1 0,7 World 0,3 0,0-2,0 0,8 Developed Central & Economies South Eastern Europe 0,6 1,8 0,4 0,8 5,7 5,7-3,1-3,7 East Asia South East South Asia Latin Asia and America & the Pacific the Caribbean Middle East and North Africa 2,4 1,8 Sub Saharan Africa 5 5

7 Disadvantages vis-à-vis adults Ratio of youth to adult unemployment rate in Africa is 3,1 0 1,2 Sub Saharan Africa Change in labour force participation rates of youth (15-24) and adults (25+), 1991 to ,7-12,7-9,6-8,2-6,9-3,9-4,4-3 -3,4-2,7-0,1-0,1 1,7 6,2 Middle east and North Africa The main factor in declining labour force participation rates among youth is educational attainment Latin america and the Caribbean South Asia South East Asia and the Pacific East Asia Central & South Eastern Europe Developed Economies -11,7-1,0 World Adult Youth 6

8 % % Large imbalances in educational attainment Low-income countries (10) Upper middle-income countries (7) ,1 6,5 2,1 0,9 2,2 3,7 2,0 1,8 10,7 1,2 70 In sub-saharan Africa nearly 60 two in three young workers do not have the level 31,7 of 30 21,7 21,2 education 17,2 20 expected to work 12,9 12,3 8,8 6,3 10 productively on the job. 0 7 Primary or less Secondary or higher Tertiary

9 % % Education acts as a principal determinant of youth employment outcomes Youth informal employment rate by level of completed education (average 28 countries) 94,6 88,3 86,5 70,6 55,6 51,0 100 Status in employment for young tertiary graduates (average 28 countries) ,6 83,4 24,9 75,1 89,4 88,8 10,6 11,2 0 Average (27) Low-income Lower middleincome Upper middleincome Vulnerable Non-vulnerable Type of job 8

10 Index (primary=100) Education acts as a principal determinant of youth employment outcomes Bangladesh Brazil Madagascar Nepal Russian Fed. Togo Uganda Primary Secondary Tertiary Wage prospects 9

11 Which brings us back to Quality of Employment 840 million working poor 375 million in extreme poverty And more than 220 million are youth 10

12 Youth are highly vulnerable to poor quality jobs

13 Job quality impacts on job satisfaction and productivity UGANDA: Employed youth who would like to change their job by reason (%) To have a higher rate of pay per hour To improve working conditions Other Present job is temporary To make better use of qualifications/skills To have more convenient working time, shorter commuting time

14 II. A Call for Action Employment and economic policies Education and training Labour market policies Entrepreneurship Labour rights 13

15 Addressing the Challenge How to achieve the AU Youth and Women Development Objectives in the Ouaga+10 process? RE-AFFIRM our determination to reduce unemployment in our countries, in particular of Youth and Women, by at least two (2%) percent annually over the next decade; and also to halve the huge underemployment rate over the next decade Declaration on Employment, Poverty Eradication and Inclusive Development, Assembly of Heads of State and Government, Addis Ababa, January

16 AU Policy Background Youth and Women Employment Pact (2011) Ouaga+10 Declaration and Plan of Action Key Priority Area 2: Youth and Women Employment 1 st Five Year Priority Programme on employment, poverty eradication and inclusive development KPA outcome 1: Youth and women employment mainstreamed and given appropriate prominence (e.g. through pro-women and pro-youth initiatives) in relevant AU policies and programmes Indicator 1.1: Women and youth employment concerns integrated in policies of AU, at least 3 RECs and minimum of 10 MS 15

17 African Union Commission OVERVIEW OF THE PROGRAMME FOR INFRASTRUCTURE DEVELOPMENT IN AFRICA (PIDA) 1 st ORDINARY SESSION OF THE SPECIALIZED TECHNICAL COMMITTEE ON SOCIAL, DEVELOPMENT, LABOUR AND EMPLOYMENT (STC-SDLE) Addis Ababa, Ethiopia, 22 April 2015 DEPARTMENT OF INFRASTRUCTURE AND ENERGY 16

18 PIDA Contribution to economic Development &Regional Integration PIDA 2040 Outcomes : Ensure economic and social development Africa's competitiveness will be established in niche markets and in a growing spectrum in agriculture and manufacturing areas notably Up to 15 million new jobs will be created for the construction, operation and maintenance of PIDA projects; Many millions jobs created indirectly through the increased economic activity they will enable Intra-African trade share will double from the current levels of 11-12% Access to electricity will be no less than 60% in any African country, providing access to an additional 800 million people. 17

19 CAADP- AGRICULTURE Rural infrastructures Agro-industry Rural Value Chain 18

20 PCRD Post-Conflict Reconstruction and Development Policy (Banjul 2006) AU Youth Employment in Post Conflict Countries PCRD Infrastructures development component Transport Water Electricity Education Health Rural Infrastructures 19

21 Recommendations Detailed assessment of PIDA direct and indirect impacts on employment (AUC and ILO), and design of PIDA Workforce plan Study on leveraging CAADP Public Works potential Promote Public Works in Post-Conflict Countries for youth employment, including through capacity building actions gathering all the concerned countries Joint AUC-ILO M&E on specific PWP for reporting to AU organs and projects intervention 20

22 Oumar Diop: Susana Puerto: