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•Calls for urgent action
By Chinenye Anuforo, Saudi Arabia
World Bank in collaboration with the Global Labor Market Conference (GLMC) on Thursday released a new joint approach paper which warned about a looming crisis of youth inactivity in the Global South, projecting a dramatic surge to 295 million individuals not in education, employment, or training (NEET) by 2033.
This figure, equivalent to the population of Indonesia, is highlighted in a new paper “Making Labor Markets Work for the Youth,” and underscored the urgent need for targeted interventions to avert the devastating consequences of widespread youth unemployment.
The World Bank report revealed a stark disparity between the Global South and North, where the projected NEET population is expected to remain stable at around 20 million.
The burden of inactivity disproportionately falls on young women, who comprise two-thirds of the global NEET population in 2023. In many low- and middle-income countries, early marriage, childbirth, and unpaid care work within family structures contribute significantly to their NEET status.
“Global labor markets are currently unprepared to absorb the large and growing influx of young people seeking employment,” the report cautioned, emphasising the far-reaching socio-economic impacts of youth inactivity. These include diminished lifelong opportunities, reduced earnings and mobility, negative impacts on mental health, hindered productivity and human capital development, and the potential for social unrest.
The report identified critical constraints hindering youth transitions into the workforce: a scarcity of job opportunities, inadequate skills and education, and labor market frictions. While macroeconomic conditions play a key role, the World Bank emphasised the potential of well-designed training and employment programs.
These programs should focus on enhancing employment opportunities (e.g., small business grants, youth hiring incentives), bridging skills gaps through targeted training, and facilitating youth integration into the workforce.
“A strong start is key for the future of young workers,” the report emphasised, suggesting that even temporary employment programs can be beneficial when job opportunities are scarce.
“Proper program design and implementation are crucial for success,” the report stressed advocating for context-specific interventions tailored to the diverse needs of young people.
“One-size-fits-all solutions are often ineffective.” Multi-faceted programs that combine training with job search assistance or grants are considered particularly impactful.
The report also underscored the critical role of the private sector, which extends beyond job creation. World Bank urges private sector involvement in policy decisions to ensure programs align with employer needs and encourages collaboration with the public sector in providing quality training and employment services. It also recognized the importance of self-employment and entrepreneurship as pathways for youth labour market access, particularly where wage employment is limited.
The “Making Labuor Markets Work for the Youth” paper was launched at the GLMC, a collaborative event partnering with the International Labour Organization, World Bank, Misk Foundation, and United Nations Development Program. The conference, bringing together over 5,000 attendees and featuring more than 200 international speakers, including labour ministers and CEOs, aims to develop practical strategies for addressing global labor market challenges.
