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Youth unemployment has been on the agenda of International Labour Organization (ILO) since 1935 and one of the Sustainable Development Goals’ targets is to “promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all” (United Nations, 2018). According to the ILO, young people under the age of 25 are less likely to find work than adults. The global youth unemployment rate stands at 13%, which is three times higher than the figure for adults. The focus on youth unemployment is driven by the fact that young people are the biggest cohort of new job seekers and are therefore the most vulnerable group with regards to unemployment. Young adults are more likely to be looking for work because they have just graduated from a learning institution and entered the labour market, or because they are changing jobs, being more mobile at the early stages of their work life.
Youths of today face increasing uncertainty in their hopes of undergoing a smooth transition in the labour market, and this ambiguity and disenchantment can, in turn, have harmful effects on individuals, communities, economies and society at large. Unemployed or underemployed youth are less able to contribute effectively to national development and have fewer opportunities to exercise their rights as citizens. They have less to spend as consumers, less to invest as savers and often have no “voice” to bring about change in their lives and communities. Prevalent youth unemployment also inhibits companies and countries from innovating and developing competitive advantages based on human capital investment, thus undermining future prospects.
Much research (ILO, 2013; Bell & Blanchflower, 2011) has shown the negative personal impacts of youth unemployment notably feelings of worthlessness and potential idleness that may lead to increased crime rates, mental health problems, violence, conflicts and drug taking (ILO, 2010). The combined effect of an increasing youth population and high and increasing levels of youth unemployment are often associated with insecurity, urban social unrest and political instability. For example, countries in Africa refer to the problem of youth unemployment as a matter of national security, which could be a threat to a country’s stability if it remains unresolved (Lintelo, 2011). Therefore, youth unemployment is a deeply-rooted and highly detrimental problem for the economy – one that will linger regardless of how buoyant the economy become. The problem is not exclusively cyclical: it also has deep structural reasons.