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

Outline

• The Challenge

• A call for Action

– ILO and African Union

1

I.

The Challenge

2

11,7

12,913,0

13,2

11,4

12,612,8 12,8

12,0

13,5 13,4

13,9

11,0

11,5

12,0

12,5

13,0

13,5

14,0

2007 2008 2009 2010 2011 2012 2013 2014e 2015p 2016p 2017p 2018p 2019p

Yo

uth

Un

emp

loym

en

t R

ate

(%)

All youth Young men Young women

Stagnated and worsening

unemployment

Youth bears the

severest impact

3

… by Region

4

18,0

17,4

10,1

12,7

9,9 13

,5

27,6

29,7

12,1

16,6

17,2

10,6

13,6

9,9

13,4

28,2

30,5

11,6

0

5

10

15

20

25

30

35

DevelopedEconomies andEuropean Union

Central andSouth-Eastern

Europe (non-EU)and CIS

East Asia South-East Asiaand the Pacific

South Asia Latin Americaand the

Caribbean

Middle East North Africa Sub-SaharanAfrica

Yo

uth

un

emp

loym

ent

rate

(%

)

2012 2014 1995 2005

Gender Disadvantages

5

-0,1

0,3 0,0

-3,1

0,61,8

5,7

14,8

2,40,7

-2,0

0,8

-3,7

0,4 0,8

5,7

20,9

1,8

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

World DevelopedEconomies

Central &South

EasternEurope

East Asia South EastAsia and

the Pacific

South Asia LatinAmerica &

theCaribbean

MiddleEast and

NorthAfrica

SubSaharan

Africa

Yo

uth

fe

mal

e-m

ale

gap

in u

ne

mp

loym

en

t ra

tes

(PP

)

1991 2000 2010 2015p

5

-11,7

-8,2

-9,6

-20,7

-6,9

-12,7

-3

-3,9

0

-1,0

-0,1

-2,7

-4,4

-0,1

-3,4

6,2

1,7

1,2

World

Developed Economies

Central & South Eastern Europe

East Asia

South East Asia and the Pacific

South Asia

Latin america and the Caribbean

Middle east and North Africa

Sub Saharan Africa

Adult Youth6

Change in labour force participation rates of youth (15-24) and adults (25+), 1991 to 2014

Disadvantages vis-à-vis adults Ratio of youth to adult unemployment rate in Africa is 3,1

The main factor in

declining labour

force participation

rates among youth

is educational

attainment

1,1 6,5

2,1 0,9 2,2 3,7 2,0 1,8

10,7

1,2 0

10

20

30

40

50

60

70

80

90

100

%

Low-income countries (10)

21,7

17,2

6,3

21,2

8,8

31,7

12,9 12,3

0

10

20

30

40

50

60

70

80

90

100

%

Upper middle-income countries (7)

Primary or less Secondary or higher Tertiary7

Large imbalances in

educational attainment

In sub-Saharan Africa nearly two in three young workers do not have the level of education expected to work productively on the job.

16,6 24,9

10,6 11,2

83,4 75,1

89,4 88,8

0

20

40

60

80

100

Average (27) Low-income Lower middle-income

Upper middle-income

%

Status in employment for young tertiary graduates (average 28 countries)

Vulnerable Non-vulnerable

8

94,6 88,3 86,5

70,6

55,6 51,0

0

10

20

30

40

50

60

70

80

90

100

%

Youth informal employment rate by level of completed education (average 28 countries)

Education acts as a principal

determinant of youth

employment outcomes

Type of job

9

Education acts as a principal

determinant of youth

employment outcomes

Wage prospects

118 141

204

123

88 110

95

276 262

453

203

114

296

213

0

50

100

150

200

250

300

350

400

450

500

Bangladesh Brazil Madagascar Nepal Russian Fed. Togo Uganda

Ind

ex (

pri

mar

y=10

0)

Primary Secondary Tertiary

840 million working poor • 375 million in

extreme poverty

• And more than 220 million are youth

10

Which brings us back to Quality of Employment

Youth are highly vulnerable to

poor quality jobs

12

Job quality impacts on job

satisfaction and productivity

0 10 20 30 40 50 60

To have more convenient working time,shorter commuting time

To make better use of qualifications/skills

Present job is temporary

Other

To improve working conditions

To have a higher rate of pay per hour

UGANDA: Employed youth who would like to change their job by reason (%)

II. A Call for Action

• Employment and

economic policies

• Education and training

• Labour market policies

• Entrepreneurship

• Labour rights

13

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 2015

14

AU Policy Background

• Youth and Women Employment Pact (2011)

• Ouaga+10 Declaration and Plan of Action

• Key Priority Area 2: Youth and Women Employment

• 1st 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

DEPARTMENT OF INFRASTRUCTURE AND ENERGY

www.au-pida.org

OVERVIEW OF THE PROGRAMME FOR INFRASTRUCTURE DEVELOPMENT IN AFRICA (PIDA)

1st ORDINARY SESSION OF THE SPECIALIZED TECHNICAL COMMITTEE ON SOCIAL,

DEVELOPMENT, LABOUR AND EMPLOYMENT (STC-SDLE)

Addis Ababa, Ethiopia, 22 April 2015

African Union Commission

16

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

CAADP-

AGRICULTURE

• Rural infrastructures

• Agro-industry

• Rural Value Chain

18

PCRD

Post-Conflict Reconstruction and Development Policy (Banjul 2006)

AU Youth Employment in Post Conflict Countries

PCRD Infrastructures development component • Transport

• Water

• Electricity

19

• Education

• Health

• Rural Infrastructures

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

Oumar Diop: Diopo@africa-union.org

Susana Puerto: Puerto-gonzalez@ilo.org