The youth unemployment challenge in Africa: What are the drivers?

Abstract

Youth unemployment remains a major political and socioeconomic challenge in Africa despite the recent strong growth performance of many African countries. The study undertakes an empirical assessment of the main sources of youth unemployment in Africa. Based on panel data of 41 African countries covering the period 2000-2010, the study finds a demographic youth bulge and poor economic growth from both supply and demand sides of the market to be key drivers of youth unemployment in Africa. Employment-to-population ratio as a measure of country's job creation ability and vulnerable employment as a proxy for informality are observed to have had a decreasing effect on youth unemployment. The empirical findings also suggest higher youth employment rates among females than males and a higher concentration in urban than rural areas. Investment in the high labour absorption sectors of agriculture and manufacturing is advocated as job creation strategies, along with population control measures to slow the growing youth population in Africa. High growth in the low employment sectors of mining and extractive industries could serve as resource generating avenues to promote investment in education and skill training, along with infrastructure to facilitate growth in high labour absorption sectors.JEL Codes: J 13, N37, N57, N67, O17, O55

Impact of labour attributes and probability of employability in Indian labour market: A sectoral analysis

“…The study used fourth and fifth EUS data to estimate multiple logit models to identify the employment probabilities of the individuals working in the primary, secondary, and tertiary sectors. The findings are partially similar with the findings of Baah‐Boateng () who says that education, gender, race, technical skills, and individuals' location have significant impact on finding jobs in African nations. However, our study finds location as the most important factor whereas gender as the least dominating factor affecting the employment probability of the individuals.…”

A Systematic Literature Review and Analysis of Unemployment Problem and Potential Solutions

“…Moreover, gender is another cause of unemployment [8] [20]. It contributes to 39.5% of unemployment in educated females, compared to only 25.8% of educated males in Iran [8].…”

“…It contributes to 39.5% of unemployment in educated females, compared to only 25.8% of educated males in Iran [8]. Unemployment among females is also higher in urban than in rural areas [20]. In addition, the study of [19] pointed out that single people are more unemployed than married, because married people often accept lower wages to do their liabilities after marriage.…”

“…In addition, the study of [19] pointed out that single people are more unemployed than married, because married people often accept lower wages to do their liabilities after marriage. Furthermore, demographic youth bulges and housing discrimination have played roles in unemployment, especially among blacks in the central cities [20] [21]. Additionally, a lack of confidence and poor English communication skills are considered other factors that lead to unemployment, especially in countries that do not use English as a native language [2].…”

“…Regarding the economic dimension, there are a few studies, such as [20] pointed out that poor economic growth is one of the causes of unemployment, and the gross domestic product (GDP) is related to the unemployment rate, which results in an increase in poverty and low foreign investment [26].…”