Youth employment and job creation loom high on development agendas in West Africa. The issue is also a priority at the continental and international levels: decent work and youth empowerment are priority areas within the African Union’s Agenda 2063, and ‘youth and jobs in the Sahel’ will figure prominently amongst talks at the G7 Summit which begins this Saturday in Biarritz.
Such policy focus is necessary in view of the demographic realities in the region. Although unemployment is low overall, informality remains prevalent, and growing numbers of young people struggle to access attractive training or sources of income. West African economies need to create more and better jobs. Yet, from a policy perspective, how to support decent and inclusive job creation is not always clear. Trade-offs in public resource allocations across sectors and information gaps abound.
In this context, what and where are the opportunities for policymakers willing to address the challenge of decent job creation?
Rural youth constitute the majority of the youth population today in most developing countries, and their number keeps growing. Most of them are low educated, engaged in low-value added farming, and struggle to find better jobs to escape poverty and hardworking conditions. Only a tiny proportion of rural youth want to keep their jobs, and few work in high-skilled occupations. What is becoming increasingly clear is that rural youth are turning their backs on subsistence agriculture; they have high expectations, do not want to farm like their parents and are lured by the thought of better jobs in urban areas or abroad. As a result, many rural youth end up working in urban areas in low-productive informal activities.
What could break this cycle is growing local and regional demand for processed food from a rising urban middle class in many parts of the developing world. This represents an untapped opportunity to achieve the triple objectives of decent job creation for rural youth, food security and sustainable production. In Africa alone, domestic demand for processed food is growing fast, more than 1.5 times faster than the global average between 2005 and 2015. These trends offer huge opportunities for developing food systems geared toward local and regional markets, much larger than for global markets.
The launch this week in Addis Ababa of the new flagship joint report Africa’s Development Dynamics 2018 alongside the African Union Commission reflects a fundamental commitment to an ongoing conversation on Africa, with Africa and for Africa. Thus, we did more than unveil a report on paper about the challenges of growth, jobs and inequalities. What we are also doing is strengthening an inclusive platform for policy dialogue on how best to turn Africa’s own vision and strategy for its development as captured in the African Union’s ambitious Agenda 2063 into reality and practice. And it is a platform in which we envision engaging with and involving more and more diverse actors to tap their expertise and add their perspectives to drafting future editions of our joint analysis.
At the beginning of 2017, Lavazza launched ‘’Goal Zero’’ – a call to collective action amongst our many stakeholders to pursue the 17 Global Goals of Agenda 2030 for Sustainable Development. The company decided that co-operation, instead of going it alone, is fundamental for any significant results. Still, we faced the question of how to engage different stakeholders in one all-encompassing plan. For Lavazza, answering this means engaging our different stakeholders – employees, youth, suppliers and the surrounding community – using tailored communications tools. We believe that only a strong commitment originating from within Lavazza can, in turn, fuel external communications. So, here’s how we are proceeding: Continue reading “Turning a commitment into actions”
For young people, successful entry into the world of work – that is, successful transition from education to employment – means more than simply finding a job. Successful transition occurs only when young people find decent work. What is actually meant by this has been the subject of much debate for a number of years; but its essence is encapsulated in the ILO’s notion of freely chosen and productive employment.
While it can be hard to define precisely what ‘decent work’ looks like, it is fairly clear what it is not. It is not informal employment. It is not work that provides insufficient income to meet basic needs. It does not involve excessive working time or any form of compulsion. Typically, it does involve some degree of job security, protection from arbitrary dismissal, access to social protection, such as health insurance and pension schemes, and freedom of association. Continue reading “What youth need: A greater focus on job quality”
The pervasive issue of unpaid care and domestic work in the global fight against gender inequality presents itself in many different contexts and guises. Yet, the one constant thread is the impact of unpaid care and domestic work on time availability. The disproportionate workload borne by women –that hinders their full engagement as economic actors in paid employment, their participation in education and training, and their overall quality of life – is widely recognised. Solutions are diverse. They include technological ones to improve water supplies and save time and labour. They embrace policies and practical ways of providing childcare facilities and paternal leave. And they call for addressing cultural norms underlying the unequal gender division of labour for unpaid work.
“Before going to Thailand, I already had sewing skills but I did not have the money to open a store. Instead, I had to work as an employee and earned a small income. When I got back to my hometown, I had some savings and was able to open a tailor shop.1”
– Female migrant worker from Viet Nam
Contrary to popular belief, migrants have a limited impact on labour market outcomes in low- and middle income countries.2 They are unlikely to take jobs from native-born workers. In some countries, including South Africa, immigration may even create jobs and raise the incomes of the native-born population.
One reason why migrants do not take away jobs is that they are often in jobs that do not appeal to native-born workers. These include so-called non-standard forms of employment such as temporary work, agency work, and dirty or dangerous work. This is not surprising since for many people migration is a necessity and not a choice. Poverty or lack of opportunity encourages people to look for prosperity abroad. While regular channels of migration exist, they are often bureaucratic and expensive. Migrants who use cheaper options may end up in situations of exploitation and abuse. Continue reading “Feeding the Global Compact on Migration: How do immigrants contribute to developing countries’ economies?”
One contention is that balanced development and policy action that lifts the financial, technological, institutional and human capital constraints to productivity will also enable higher productivity in informal firms and thereby formalisation. A growth-inducing productivity agenda is a necessity, but growth alone is not enough to reduce informality. Continue reading “Policy pathways for addressing informality”
Par Victor Harison, commissaire aux affaires économiques de la Commission de l’UA. et Mario Pezzini, l’ancien directeur du Centre de développement de l’OCDE et conseiller spécial auprès du secrétaire général de l’OCDE chargé du développement.
Le « made in Africa » fait son grand retour parmi les priorités des décideurs en Afrique. Ainsi de l’Agenda 2063 de l’Union africaine (UA), qui vise à transformer les économies du continent pour créer une croissance partagée, des emplois décents et des opportunités économiques pour tous. Pourtant il faudra bien davantage que des rêves ambitieux d’industrialisation pour que ce label et cet objectif prennent corps.
ByWim Naudé, Professor in Business and Entrepreneurship in Emerging Markets, Maastricht University, Dean of the Maastricht School of Management, The Netherlands, and Research Fellow at the IZA Institute for Labor Economics, Bonn, Germany
Africa has failed to industrialise. At the same time, millions of young people are seeking jobs. Put one-and-one together and the answer seems to be that if these labour market entrants become entrepreneurs in industry then they can in one stroke create jobs and help Africa industrialise. Yet, optimising the nexus between entrepreneurship and industrialisation requires overcoming some vexing policy biases. These can be categorised as biases of over-estimation and biases of under-estimation.
First, industrialisation’s job-creation potential is often over-estimated. The world is in a Fourth Industrial Revolution (4IR) driven by technologies such as the Internet of Things, automation, additive manufacturing and big data analytics (see Naudé, 2017). These technologies are causing the loss of low-skilled routine jobs, of which Africa has a disproportionate share. It’s estimated that up to 66% of all jobs in developing countries are at risk. Relatively poor African countries such as Ethiopia are at a particular risk of having around 44% of current jobs susceptible to automation. The 4IR is furthermore leading to a ‘re-shoring’ of manufacturing back to advanced economies. This is to the detriment of low-wage labor in African and other developing countries. As Culey (2012) points out: How important is low-cost labor when you don’t actually need labor? Continue reading “Biases in entrepreneurship and industrial policy in Africa”