Youth Unemployment and the emergence of the discouraged job seeker

Young people remain particularly stricken by the global financial crisis. Currently, some 73.8 million young people are unemployed globally and the slowdown in economic activity is likely to push another half million into unemployment by 2014.

The youth unemployment rate – which had already increased to 12.6% in 2012 – is expected to increase to 12.9% by 2017. The crisis has dramatically diminished the labour market prospects for young people, and many experience long-term unemployment right from the start of their labour market entry, a situation that was never observed during previous cyclical downturns.

Currently, some 35% of all young unemployed have been out of a job for six months or longer in advanced economies. As a consequence, an increasing number of young people have become discouraged and have left the labour market. Long spells of unemployment and discouragement early on in a person’s career also damages their long-term prospects, as professional and social skills erode and valuable on-the-job experience is not built up.

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Social Enterprise Profile: Getembe High Vision Youth Group

Getembe High Vision Youth Group based in Nyamira County in Kenya was formed in January 2006 as a merry-go-round youth club. It was later registered as a farming youth organization. Due to the high rates of poverty, food scarcity and unemployment, the members were stimulated to initiate this project to address food insecurity, the poor health status of children resulting from under nourishment, juvenile delinquency, child labor abuse and youth unemployment.

Read our interview with Jones Oyugi, Secretary of Getembe High Vision Youth Group »»

United Nations calls for urgent action to tackle rising youth unemployment

14 July 2010 – The United Nations labour agency is calling for urgent action to tackle the crisis of youth unemployment, which has increased significantly in the wake of the global economic slowdown and has repercussions for the economy as well as social cohesion.

Young people – those aged 15 to 24 – account for over 22 per cent of the increase in the number of unemployed since the beginning of 2007 and is now nearly three times the average level among adults aged 25 and over, according to the International Labour Organization (ILO).

“In nearly all countries, the increase in youth unemployment has outpaced that of adults,” the agency says in a new report entitled “Youth employment in crisis.”

Since the start of the crisis, the youth unemployment rate has risen over 7 percentage points – the sharpest two year increase on record – and now exceeds 21 per cent on average in the countries for which data are available, say Steven Tobin, ILO economist, and Raymond Torres, Director of the International Institute for Labour Studies, who are co-authors of the report.

The report points out that young people are entering the labour market at a time of limited job creation. Employed young people are also often engaged in precarious jobs, and are therefore more vulnerable to job losses than their adult counterparts.

Young people who lack general or vocational education are especially vulnerable to the crisis, it notes, adding that as job prospects remain weak, many young people might see little benefit of furthering education or training which would have negative socio-economic consequences.

In addition, the lack of decent work opportunities in developing countries had led to significant emigration by many skilled young people.

The authors stress that it is crucial to promote more and better jobs for youth and urges immediate action, noting that impact of long-term unemployment on youth can be “devastating and long-lasting.”

The longer young persons remain out of touch with the labour market, the more difficult – and costly – it is to return to productive employment, they state.

“There are also a number of important social implications related to exclusion, including susceptibility to anti-social behaviour, including juvenile delinquency, and social unrest,” they add.

According to the report, it will not be possible to improve youth employment prospects significantly in the absence of a global economic and labour market recovery. Therefore, it is crucial to carry out the Global Jobs Pact, adopted by ILO members in June 2009 in an effort to guide national and international policies to stimulate economic recovery, create jobs and protect working people and their families.

Source: UN News Service

Profile: HALCHA Youth & Community Development organization

HALCHA Youth and Community Development organization is based in Garbatulla, a small town in northern Kenya where the populace are faced with poor living standards, low literacy levels, unemployment, unpredictable weather patterns that adversely impact on food security.

The group was started as a self-help group in 2006 and officially upgraded to a community based organisation in March 2007. The objectives at formation were:

• To improve the socio-economic status of the youth and wider community
• Capacity building and mentorship development.
• The promotion of environmental and wildlife conservation, and
• HIV/AIDS Advocacy.

The organization is not only committed to improving the living standards of the local community but also actively promotes the status of women in decision making by building confidence and raising self esteem so they can fully participate in their own affairs and make informed decisions.

Amongst it's development activities, HALCHA trains members in dressmaking and tailoring to promote self employment. The organization also emphasizes the preservation of local artisan culture.

HALCHA, which has 40 affiliate youth group members throughout the Garbatulla District has partnered with the Kenya Women’s Finance Trust Maua unit to reach more than 200 women, out of which 60 member beneficiaries have received loans. Another project in partnership with Kenya's Ministry of Youth Affairs has benefited more than 2,000 youth with capacity building and mentorship development, enabling 34 youth groups in the district to receive funding.

These milestones have been achieved in spite of the challenges the organization faces. These include financial constraints as well as the lack of working tools such as sewing machines for the tailoring project. Transport and logistic problems also affect the organization based in a remote rural area.

However HALCHA has the manpower and willingness to promote development and continues undaunted in it’s bid to help in the alleviate of poverty amongst the youth and wider population of Garbatulla District.

HALCHA Youth And Community Development (CBO)

Garbatulla District

Email: sirajroka@yahoo.com

P.O BOX 1 – 60300 Garbatulla

Telephone : 254 020 8015687 /0724700862

Source: Report by Ade Roga Hassan, Peacebuilding Mentor, Garbatulla District.

African youth declare that governments must foster entrepreneurship to eradicate poverty

The 1st World Youth Meeting at Bari, Italy ended yesterday where African delegates released a Declaration that recognised the challenges African youth face including unemployment, corruption,  poverty, lack of access to meaningful education, climate change effects, and civil wars among others.

The Declaration further demanded that African youth be included in decision making and that poverty eradication approaches focus on entrepreneurship development, specifically through the creation of youth funds.

Read the Declaration here

Entrepreneurship - Kenya's Economic Saviour

By Jeconia Omondi Olonde

The current economic condition for Kenya is on a down hill while the population growth rate is quite high. This implies there is an increase in unemployment as the new jobs created cannot match the increase in population. A situation is created where the youth are finishing university, college and secondary school expecting to be employed yet the economy cannot accommodate them. This will in the end bring social instability especially with the high cost of education.

But what can the government and the private sectors do to help alleviate the situation that may bring the country to its knees? An initiative such as the Kazi Kwa Vijana was started by the government and has ended as a failure, taking the country back to the maze. The Kazi Kwa Vijana could not have been sustained as we can say the jobs given to them “do not add value” to the economy and the government is spending a huge amount of money in paying recurrent expenses. Also some of the jobs given may seem demeaning to some of the unemployed graduates. Telling an engineering graduate to clean trenches shows that the government has no plans for its citizens who are meant to be assets.
 

Further, unemployment situations in Kenya have been increased by the high requirements by employers in order to get jobs. Requirement of years of professional experience for jobs in Kenya has made it difficult for the fresh graduates to get jobs and their Kenyan dream of finding that dream job after years of education.
 

For the country to be able to create employment, the government and the private sector should highly consider embracing entrepreneurship as a source of expanding the economy and reducing poverty. With the shift towards technology, the government can use the youth to enhance and come up with new technologies which will help accelerate growth and achieve Vision 2030.
 

Some of the ways in which the government can do to help youth embrace entrepreneurship are:

• Providing financial assistance and guidance. Many youth have good business ideas but translating these to actual jobs is hindered by lack of knowledge of transforming ideas into feasible and tangible work. Also financial guidance on how to spend the initial finance is necessary as the projected financial statements are is not enough, for example, purchasing of essential assets, marketing and branding, establishing of internal business controls, and book keeping.
• Providing mentors to the youth who come up with good business ideas or proposals. The mentors are used to guide the youth especially through the tough times as they have been in the business before and they know what to do best in such situations.
• Introducing entrepreneurship as a subject in schools so that the students are able to know early enough how to start their own businesses and succeed. Mentality of students has to be changed from them expecting employment for them to create employment. This should be done for both students in professional courses and those in vocational training. In the earlier years, it was preached in radio stations and songs that at the end of education one will get a good job and this mentality has stuck in the mind of the population. We should therefore start changing the minds of people with regards to this.
• Providing tax incentives for young entrepreneurs who provide employment to others. There are difficulties involved with business start ups and therefore the government should recognize this effort by giving the youth tax incentives. This has been done to Export Processing Zones (EPZs) to attract foreign direct investments. Local investments should also be considered important as this brings more stimulus to growth as there are no profit flights.
• Patenting of special business ideas created by the young people. This may reduce the chances of the ideas being stolen by other capable individuals or by corporations. Good ideas are known to have been submitted to “wrong” organizations which take advantage of the weak protection laws of ideas. These weak laws demoralize the young people with brilliant ideas who may opt to stay with the ideas for long until they are able to finance themselves. Developed countries are known to have proper laws protecting ideas created by its citizens and developing countries should follow suit.
  

These are only some of the things the government should take into consideration if it has to help the country become entrepreneurial. The effect of citizens creating job opportunities in the economy cannot be over emphasized and the government has to act fast to improve the livelihood of its citizens.

Kenya’s Education System: A leaning tower of Babel

Today's top news story of the Daily Nation went by the title “students with lower grades to join varsity”. The good news was that public universities agreed to admit high school graduates with lower marks compared to last year.

Of course this will improve the lot of students who because of grades would not be able to enter university. However, though this should be a harbinger of hope for Kenya’s youth, several questions emerge on the real effects of such a move.

The unemployment rate amongst Kenya’s 35 million people is approximately 40%. It is estimated that 64% of these are the youth. Out of these, only 1.5% of unemployed youth have formal education beyond secondary school level and the remaining over 92% have no vocational or professional skills training, at all. But does allowing these extra youth the opportunity to go to university make a real impact in their chances of getting a job?

Even though universities are the cradle of research and innovation which could be perceived as a step in the right direction of nurturing future entrepreneurs, the education system before tertiary level does not adequately impart the innovative and resilience skills required of entrepreneurs.

Annually more than 240,000 post-primary students enter the labour force. Additionally 143,000 students graduate from high schools. The Kenyan education system in its current form does not equip these school leavers with skills to start business. Rather the curriculum is founded on rote learning rather than creativity and innovation, further stifling entrepreneurial development.

Even in the universities the calibre of the teaching staff raises questions. The Commission for Higher Education recently proposed reforms where the lowest qualified lecturer would be a tutorial fellow holding a Masters degree. The eminent scholar and noted historian Prof. Bethwell Ogot has been in the forefront as an opponent of this measure. He was recently quoted in the media decrying such a move saying "some teachers with a Masters are even allowed to teach Masters students".

And though these new regulations should be commended as a move to regulate the amphitheatre football stadium scenario many university students have to face and hoarse throated lecturers’ rue, at the end of the day it’s really not what is heard in a lecture but the quality of the content and transfer of knowledge that counts.

Kenyan education reforms have not only been the preserve of academia. Politicians whilst campaigning have promised “new education systems” that increase the capabilities and capacity of the youth to “effectively operate in the knowledge economy”. Even Vision 2030 - Kenya's development plan has lofty claims founded on the education system that will by then make Kenya if not a newly industrialised economy then a middle class one. However government commitment to education has been compromised with a new Education Bill that at least is expected to enforce laws that will keep children in schools, where the Ministry of Education has been less than proactive in ensuring it passes through parliament.

A question of merit versus the feel good factor

Meritocracy is a situation where opportunities are extended based on demonstrated talent, competence and ability, rather than wealth, family background, socio-economic class and other historical determinants of social position.

When extending a helping hand to enable those who just by a few points missed entry into university, thought must also be given to both those already in public universities who worked hard to make the grade as well as those still in secondary school. With no ultimate reward (a decent job with a decent wage assured at the end), the message to those students in our campuses as well as high schools is that hard work in school no longer pays. After all, another meeting of university dons can be convened to lower the entry grade further at a later date.

So what balance can be accommodated?

First, as the first crop of standard one pupils of the 2003 universal primary education policy edge closer to entering secondary school, the policy of free primary and subsidized secondary schooling needs a committed review, with the ultimate objective of providing quality education, whether for all or for a few has to be debated, as well as the subject of another post.

Kenyan policy makers also have to be honest with themselves and the People of Kenya about the increasing rate of unemployment particularly amongst the youth. The education system has to provide financial literacy, personal and business management training as core subjects. The time when a job was assured even in the civil service is over – at Yipe.org we have even heard of Masters degree holders digging trenches as part of the ill-thought Kazi Kwa Vijana programme.

To accommodate both the university graduates and lower level school leavers estimated at 800,000 annually, business reforms that specifically target micro-enterprise startups also need to be implemented.

Ultimately, education has to be held sacred. Kenyans need to take ownership of education and never allow it to be politicized ever again.

Accountability at last!

After the tabling and debate of the report by the Joint Parliamentary Committee investigating discrepancies in the Supplementary Budget, Parliament moved that the Supplementary Budget should be withdrawn and a forensic audit to be conducted.

Below is a message from the Partnership for Change who assisted in exposing the said inconsistencies, which at last count totalled Kshs. 10.7 billion.

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The Partnership for Change Report on Phase 1 of the Budget 2009 Campaign to save Public Resources for Agenda 4 of the National Accord.

The Partnership for Change is asking you to help us to campaign and encourage Kenyans to demand austerity measures and savings to be made in the June 2009 National Budget, by Government and Parliament. Money saved will be directed to the Development Budget. The Outcome will be to save approximately 200 Billion shillings, which if allocated to the Development Budget, will contribute enormously to Agenda 4 issues of the National Accord, such as unemployment, underdevelopment, starvation, food insecurity and impunity.

The Campaign entered its first phase with scrutiny of the Supplementary Budget. It is envisaged that we will save at the very minimum 10.7 Billion that is concealed in the Supplementary Budget. Further we anticipate that a forensic audit into the Supplementary Budget will also identify waste. Yesterday 13th May 2009 the Report Of The Joint Committees On Finance Planning And Trade and The Budget Committee On The Inconsistencies Contained In The Supplementary Estimates Of The Financial Year 2008/2009 was tabled in Parliament and was adopted by the House.

The Joint Committee Recommended that:
1. Since there are inconsistencies in the Supplementary Estimates, they should be withdrawn and correct estimates resubmitted.
2. An independent forensic Audit be done
3. The fiscal Management Bill be approved and enacted as a matter of urgency

The Partnership for Change is grateful to Hon. Gitobu Imanyara, and Hon. Paul Muite SC who availed invaluable time, advise and support at no cost whatsoever to the Citizens of Kenya, and with no partisan interest, helped us focus Parliament on their duty to those they represent. Our gratitude also to the Speaker of the National Assembly Hon. Kenneth Marende, who has been fair and just.

Finally to those Members of Parliament who sat in the Joint Committee and promised Citizens that they would exercise their oversight role and do the just and right thing. We achieved all our recommendations to the Committee in our submission to Parliament including odious debt such as Ken Ren, which you will see in the report of the Committee. We did not manage to obtain an apology from the Minister Of Finance to patriotic Kenyans that were are only doing their duty, but the Partnership for Change has been commended by both Chairs of the Joint Committee. Either way we are grateful to Parliament for doing their duty and in particular to our request that this matter should not adopt a political nature as public resources are serious matters.

The campaign will now move into its second phase as we advocate for 60% development budget allocations in the National Budget to be brought to Parliament in June 2009.

Read Full Report at http://blog.marsgroupkenya.org/?p=814