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youth employment

The long run effects of job training

Markus Goldstein's picture
I am always on the lookout for impact evaluations that give us the long term effects of interventions.   I recently came across a paper by Pablo Ibarraran, Jochen Kluve, Laura Ripani and David Rosas Shady looking at the effects of a youth training program in the Dominican Republic.    While we have some evidence on the long term effects of these kind of programs from developed countries, this is quite possibly the first in a developing context.   

How coding bootcamps are helping to tackle youth unemployment

Cecilia Paradi-Guilford's picture
 
Photo Credit:  RutaN


The International Labour Organization estimates that 73.4 million people aged 15-24 do not have a job (43% of global youth), and three times as many young people are underemployed. At the same time, 40% of employers report skills shortage for entry level vacancies, according to McKinsey (Social Initiative 2015). Hence, skill gaps have become an issue to both employers and the unemployed.  This trend is exacerbated by technological advancements which are rapidly replacing manual jobs, leaving millions of young people unprepared to participate in the 21st-century knowledge economy.  

Three aspects of the skills gap problem need to be addressed in order to find a sustainable solution: urgency, proficiency in technology, and job market readiness. The 2016 World Development Report finds that returns to education are particularly high for ICT-intensive occupations. The wage premium for working in ICT-intensive occupations is around 5% for both men and women in developing countries (WDR 2016). This suggests a tremendous potential of technology education for reducing poverty and boosting prosperity in the developing world.

Results-based financing links masses of youth with employment in Nepal

HELVETAS Swiss Intercooperation's picture

Building electrician training, NepalBettina Jenny and Sonja Hofstetter of Helvetas Swiss Intercooperation, Switzerland and Gisela Keller of Helvetas USA explain how a skills development program in Nepal has trained over 100,000 youth— with more than 75,000 of them gainfully employed.

In Nepal, about 500,000 young people enter the Nepalese labor market every year. Most of them are unskilled and have not completed formal education. Moreover, the private sector in Nepal is weak, and a ten-year-long civil war (1996-2006) and subsequent ongoing political instability have contributed to the worsening economic and social situation. In short, getting a job is a huge challenge for many young people in Nepal.

Good intentions are not enough. Future employment and earning outcomes are the key indicator to measure the success of skills training. Many development actors provide skills training with the goal of making personal and economic perspectives available to youth in countries with high unemployment. Such programs tend to focus more on training delivery than on employment, and graduates of these kinds of youth skills programs often discover that their newly acquired skills do not meet market demands.

We do things differently. In 2007, the Swiss Agency for Development and Cooperation (SDC) joined with HELVETAS Swiss Intercooperation to establish the Employment Fund to create new and effective ways to scale up approaches addressing the alarming scope of youth unemployment in Nepal. Funded by the Swiss Agency for Development and Cooperation, the Department for International Development (DFID) and the World Bank, the Employment Fund began its operations in 2008. The Employment Fund offers training in about 80 occupations in construction, hospitality, garments and textile, agriculture, and electronics – to name a few -- in locations all over Nepal. The Employment Fund received a prize for good practice in youth employment awarded by the International Labour Organisation (ILO), and was among the ten finalists for the OECD DAC Prize for Taking Development Innovation to Scale.

Unlike many other skills training programs, the Employment Fund applies a results-based financing approach that has proven to effectively lead to gainful employment upon the completion of training. Training providers are paid based on their success in training youth and subsequently connecting them with the labor market. The key result is gainful employment.

Blog post of the month: What is your challenge? Creating Jobs and Livelihoods for the bottom 40%

Parmesh Shah's picture

Each month People, Spaces, Deliberation shares the blog post that generated the most interest and discussion. In February 2016, the featured blog post is "What is your challenge? Creating Jobs and Livelihoods for the bottom 40%" by Parmesh Shah.

A farmer harvests mung beans in Cambodia's northern province. Extreme poverty in the world has decreased considerably over the past three decades. In 1981, more than half of citizens in the developing world lived on less than $1.25 a day. This rate has dropped dramatically to 21% in 2010. Moreover, despite a 59% increase in the developing world’s population, there were significantly fewer people living on less than $1.25 a day in 2010 (1.2 billion) than there were three decades ago (1.9 billion). However, 1.2 billion people still live in extreme poverty—an extremely high figure, so the task ahead of us remains herculean.
 
Among the poor, 78% live in rural areas, and 500 million of these are small farmers. Of these, 170 million are women farmers. Globally, 2.5 billion are dependent on small farms as a source of livelihood and employment.  Agriculture contributes one third of GDP in Africa and more than 65% of the workforce depends on this sector. There has been significant progress in increasing agricultural production and expansion of livelihood and economic opportunities in rural areas. There are about 40 million enterprises, from very small to medium-sized, involved in agribusiness. 
 
Nevertheless, they are too small in size and quality to make the kind of dent in jobs and employment that is needed.  Agriculture accounts for 32% of total employment globally, according to the ILO’s Global Employment Trends Report 2014.  In 2013, 74.5 million youth – aged 15-24 - were unemployed, an increase of more than 700,000 over the previous year. That same year, the global youth unemployment rate reached 13.1%, which was almost three times as high as the adult unemployment rate. One contributing factor in these rates is the lack of interest in agriculture among youth cohorts.  Simply put, agriculture is not a preferred job and livelihood option for young people.
 

What is your challenge? Creating Jobs and Livelihoods for the bottom 40%

Parmesh Shah's picture
A farmer harvests mung beans in Cambodia's northern province. Extreme poverty in the world has decreased considerably over the past three decades. In 1981, more than half of citizens in the developing world lived on less than $1.25 a day. This rate has dropped dramatically to 21% in 2010. Moreover, despite a 59% increase in the developing world’s population, there were significantly fewer people living on less than $1.25 a day in 2010 (1.2 billion) than there were three decades ago (1.9 billion). However, 1.2 billion people still live in extreme poverty—an extremely high figure, so the task ahead of us remains herculean.
 
Among the poor, 78% live in rural areas, and 500 million of these are small farmers. Of these, 170 million are women farmers. Globally, 2.5 billion are dependent on small farms as a source of livelihood and employment.  Agriculture contributes one third of GDP in Africa and more than 65% of the workforce depends on this sector. There has been significant progress in increasing agricultural production and expansion of livelihood and economic opportunities in rural areas. There are about 40 million enterprises, from very small to medium-sized, involved in agribusiness. 
 
Nevertheless, they are too small in size and quality to make the kind of dent in jobs and employment that is needed.  Agriculture accounts for 32% of total employment globally, according to the ILO’s Global Employment Trends Report 2014.  In 2013, 74.5 million youth – aged 15-24 - were unemployed, an increase of more than 700,000 over the previous year. That same year, the global youth unemployment rate reached 13.1%, which was almost three times as high as the adult unemployment rate. One contributing factor in these rates is the lack of interest in agriculture among youth cohorts.  Simply put, agriculture is not a preferred job and livelihood option for young people.
 

Jobs Crisis in the Middle East & North Africa

Nigel Twose's picture

From 14 – 24 January, I visited Lebanon, the Palestinian territories and Tunisia. It is a region that has some of the greatest challenges when it comes to creating jobs. Finding solutions to the jobs crisis in the MENA region is key to solving many of the other issues that are holding back the region’s development.

 A furniture factory near Gaza City. Photo: Arne Hoel / World Bank

New insights for Entra21 in Cordoba

Guillermo Cruces's picture

The past decade has wrought numerous studies on youth training programs, especially in Latin America and the Caribbean. However, little research exists on they operate and their effects beyond the labor market. We spoke with Guillermo Cruces, of the Center for Distributive, Labor and Social Studies (CEDLAS) at the Universidad Nacional de La Plata, Argentina, about the Center's efforts to fill this hole by studying the Entra21 program in Cordoba in 2011-12.

Students in rural Argentina. Photo: Flickr@WorldBank (Nahuel Berger)

The shape of future jobs

Nigel Twose's picture

Between now and 2030, countries all over the world will have to create about 600 million jobs just to absorb the expanding working age population – while simultaneously coping with a number of daunting challenges. Against this backdrop, the World Economic Forum’s Global Council on the Future of Jobs — in which I participate — is launching a survey of 2,000 firms to learn how they anticipate major trends will shape the labor market in their industry by 2020.

Nukua'lofa, Tonga. Photo: Flickr@WorldBank (Tom Perry)

The Importance of Good Governments for Youth Employment

Diane LuTran's picture
World Bank Group Youth Summit 2014
For more details on the World Bank Group
Youth Summit and how to apply, click here.
The role of government to address youth unemployment is crucial as they provide the "enabling environment" for youth to thrive. Governments operate as a nexus between policy and practice, and addressing the socio-economic problems impacting youth, such as unemployment and barriers to political participation is essential for youth progress and development [...]


The World Bank is providing a space to discuss these issues and more at the upcoming Youth Summit, which will be held Oct. 7 in Washington, D.C.


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