Reports indicate that around 62 million young people in 2023 were neither involved in employment, education or training (NEET) equating to 25.9% of the youth population, up from 22.2% in 2013.
These findings are from the World Employment and Social Outlook report by the International Labour Organization (ILO) which provides a comprehensive assessment of the latest labour market trends, including unemployment, job creation, labour force participation and hours worked.
The report on a number of youths who are neither in employment, education or training may not be unconnected to other findings which indicates that they are particularly at risk of disillusionment and labour market detachment as a result of being unable to secure decent and productive work on entry into the labour market.
Furthermore, it indicates that although job creation is keeping pace with the rising labour force, it is not necessarily making improvements in the quality of jobs.
Sub-Saharan Africa’s labour force
Sub-Saharan Africa’s labour force continues to be driven by population growth.
The size of the labour force increased by 3.3 per cent in 2023. This translates into an additional 53 million people of working age in the labour force in 2023 compared with 2019.
Here are other findings which the report indicates:
- Labour Force Participation Rate: The labour force participation rate in sub-Saharan Africa has remained stable at around 67%, slightly lower than the average of 68% between 2010 and 2019.
- Expected Increase in Labour Force: The labour force is projected to increase by 14 million people in 2024.
- Unemployment: Unemployment has remained elevated post-pandemic, with youth particularly at risk. The overall unemployment rate in 2023 was 5.8%, compared to 5.9% in 2019, equating to 27 million people. The youth unemployment rate is higher at 8.9%, accounting for 9.4 million people.
- Total Hours Worked: The total hours worked increased by 3.4% in 2023, up from 2.8% growth in 2019. However, mean hours worked per person employed remained at 38.2 hours per week, indicating potential underemployment.
- Job Quality: Many employed individuals are not in decent and productive jobs. Informal employment accounted for 86.5% of total employment in 2023, nearly the same as in 2013 (87.2%).
- Around 75.5% of the employed population were own-account workers or contributing family workers in 2022, statuses associated with less job security and irregular income.
Recommendations for Governments of Sub-Saharan African Countries:
- Promote Job Creation: Implement policies to stimulate economic growth and create jobs, particularly for the youth. Additionally, supports entrepreneurship and small and medium enterprises (SMEs) through access to finance, training, and market opportunities.
- Enhance Job Quality: Focus on creating decent and productive jobs to address underemployment and improve working conditions and labour rights to ensure job security and fair wages.
- Invest in Education and Skills Development: Enhance vocational and technical training programs to equip the workforce with relevant skills and promote STEM (Science, Technology, Engineering, and Mathematics) education to meet the demands of modern economies.
- Strengthen Social Protection Systems: Expand social security coverage to include informal workers and those in precarious employment and implement policies to provide unemployment benefits and support during economic downturns.
- Foster Inclusive Economic Policies: Address gender disparities in the labour market by promoting equal opportunities and reducing barriers for women and ensure economic policies are inclusive and benefit all segments of the population.
- Formalize Informal Employment: Create incentives for informal businesses to transition to the formal economy simplify regulatory processes and reduce bureaucratic hurdles for small businesses.
- Enhance Labor Market Data Collection: Improve labour market information systems to gather accurate data on employment trends and utilize this data to inform policy decisions and monitor the impact of interventions.
By implementing these recommendations, sub-Saharan African governments can address the challenges of unemployment, underemployment, and informal employment, to foster a more resilient and inclusive labour market.
