Finding a good job is increasingly difficult – especially for young people. Globally, young people are up to four times more likely to be unemployed than adults. Furthermore, the lack of opportunity can have devastating consequences for their long-term employment outcomes. Youth often lack the skills and competencies that are in high demand from employers, but they also face information gaps about which relevant skills they should signal to prospective employers.
To better understand youth and skills trends in emerging markets, the Solutions for Youth Employment (S4YE) Coalition embarked on a research collaboration with LinkedIn to analyze demand and supply side data from 390,000 entry-level job postings and 6.4 million LinkedIn profiles of young people (aged 21-29) in four diverse middle-income countries. Using big data analytics, the recently released report The Skills Gap or Signaling Gap: Insights from LinkedIn in emerging markets of Brazil, India, Indonesia, and South Africa brings the following three insights on what skills employers in those countries are looking for in youth hires.
Exponential increases in automation, computerization and digitization is having a profound impact on many people’s jobs. Branko Milanovic’s recent work on global inequality has shown extent to which the lower-middle class jobs in developed countries are being replaced by technology. In particular, economists argue that middle-skilled, routine-intensive jobs are being hollowed-out. And indeed, in Western European countries and the US there has been a decrease in the intensity of routine tasks – both manual and cognitive. However, in Central and Eastern European (CEE) countries, the amount of routine cognitive work has been on the rise. And the pay for these workers has increased faster than for high skilled workers. Why is this happening, when in the most advanced economies the opposite is happening?