IMF Survey : Youth Unemployment Gap Can Be Bridged through Education, Inclusion

IMF News, October 8, 2015

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Publication type: IMF Survey
Date: October 8, 2015
Event: IMF’s Annual Meetings “Youth Dialogue” in Peru, featuring youth leaders from Africa, Asia, and Latin America discussing education’s role in addressing youth unemployment and bringing more youth into the formal sector.
Framing statistic: Youth make up about 40 percent of the world’s unemployed.

Regional statistic: In the Middle East and North Africa, one-third of young people cannot find work.
Skills mismatch emphasized: IMF Deputy Managing Director Carla Grasso noted an “apparent mismatch between the skills employers and businesses are looking for and what young people are learning at schools, universities, and vocational training centers.”
Access gaps identified: Limited access to technology, the internet, and online education constrains opportunities (example: “only a small percentage of Peruvians have access to technology,” cited by Mariel Renteria).

Main causes of unemployment (as expressed by panelists):
- Education systems not aligned to the job market (Iyinoluwa Aboyeji).
- Unequal access to employment opportunities and “brain drain” as young people seek opportunities abroad.
- Growing apathy toward the teaching profession and need for teacher skill updates (Amanda Putri Witdarmono: “Very few kids want to be teachers”).
Opportunity horizon: With the current influx of capital to Africa, youth “have a great opportunity to capitalize on new jobs over the next 20 years” (Iyinoluwa Aboyeji).
Vocational emphasis: Daniel Maurate highlighted vocational studies and matching skills to jobs as important for youth employment.

Core advice to job-seeking youth:
- Remain confident and optimistic.
- Seize opportunities, stay connected, and build experience (Joao Felipe Scarpelini: “You have to know what you are passionate about... So start; get experience.”).
- Build human capital and self-esteem (Daniel Maurate: “You need to respect yourself and where you came from.”).
Role of networks and inspiration: Access to networks and people who inspire was noted as a critical challenge and enabler (Mariel Renteria).

Panel consensus on government action:
- Consult and engage youth at an early stage of policymaking.
- Reduce red tape to improve youth access to opportunities.
- Improve technical infrastructure to expand access to technology and online education.
- Improve government communication and outreach to youth.
Institutional priorities implied by discussion:
- Align education and vocational training curricula with labor-market needs.
- Enhance teacher training and elevate the status of teaching to attract talent.
- Foster globally connected institutions that share best practices and facilitate networking.

Youth make up about 40 percent of the world’s unemployed.
In the Middle East and North Africa, one-third of young people cannot find work.
Global youth population referenced: 1.8 billion young people.
Opportunity timeframe cited for Africa: next 20 years.

IMF Survey : Youth Unemployment Gap Can Be Bridged through Education, Inclusion (October 8, 2015)