Young and Disconnected from Work

IMF Blog, March 26, 2019

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Young people face tough labor markets and job shortages globally.
About 20 percent of 15- to 24-year-olds in the average emerging market and developing economy are neither in work nor in school; this group includes countries such as Brazil, Ghana, and Malaysia.
This share is double the share in the average advanced economy.

About 20 percent of 15- to 24-year-olds in the average emerging market and developing economy are neither in work nor in school.
On average, nearly 30 percent of young women in emerging market and developing economies are not working or learning.
The rate for young women (nearly 30 percent) is almost twice the rate for young men in a similar position.
Among emerging market and developing economy regional groups, gaps are largest in Latin America and South and East Asia on average.
If sub-Saharan Africa strengthened its legal protections for women to the average in emerging Europe and Central Asia, the study estimates that young women’s employment and participation rates could be 10–15 percentage points higher.

Large and persistent gender gaps in workforce participation are a major component of youth disconnection from work.
Some—but not all—of the discrepancy between young women and men can be explained by the economic and social consequences of having children.
Legal protections against employment discrimination affect women’s employment and participation.

The IMF staff study highlights three policies to improve job prospects, especially for young people not in school:
- Greater gender equality in the workplace.
- Better functioning labor markets.
- More open and competitive product markets.
Legal reforms that protect women from employment discrimination are associated with improved employment and participation rates for women without hurting men’s chances.
The policy proposals that help young people do not require a trade-off between younger and older workers; they benefit everyone and help grow a country’s economy in a strong, sustainable way.

Source: Young and Disconnected from Work (The Editors), March 26, 2019