Unemployment is among the major problems countries worldwide are having. While employment is vital for economic growth and societal development, youth unemployment remains higher, especially in unemployment-prone countries.
In today’s article, we will be discussing the underlying factors for unemployment among youth, but before that, let’s first define unemployment.
What is unemployment?
Unemployment can be defined as a situation in which a person is willing and capable of working but finds no job or work. This situation is just a state of looking for a job but finding no job or work at the end.
Unemployment is typically measured as the total number of people in the labor force who are unemployed. To measure the total number of unemployed individuals, one must first know the total number of people who are in the labor force. The labor force simply means working age. The accepted working ages are people aged 15 to 64.
Underlying factors for unemployment in youths
Here are some of the underlying factors for youth unemployment:
1) Lack of fund for startup business
The high rate of poverty in some undeveloped countries makes it very difficult for young people who want to establish their own business to succeed because of the lack of money to start that business. Sometimes, finding affordable loans seems to be hard for youths because of a lack of collateral.
2) Financial issues
The financial issues in the world have made unemployment worse. The recession impacted the quality and security of available jobs for young people, and temporary roles, part-time work, zero-hour contracts, and other precarious job routes are frequently the only way for young people to make money or get experience these days.
3) Unfamiliar skills
In some undeveloped countries, some graduates who finished university find it very hard to find a job that is related to what they studied, and because of this, they end up going for another unfamiliar skill just to survive.
4) Lack of good idea to start own business
Lack of knowledge to start a business is another common factor affecting youth unemployment today. If you are among the people facing this challenge, going for entrepreneurship and life-skills education can help you out.
5) Lack of degrees needed to secure some jobs
Some people find it difficult to secure jobs in some offices because the employers want some specific advanced degrees that the person seeking the job does not have. New graduates are bothered with companies that are not willing to invest in raw talent and skills that originally sprouted at a weak university with low student passing rates.
What are some solutions to youth unemployment?
1) Providing loan to youths
Lack of access to loans is a major issue facing young people who have no money but want to start their own businesses. Giving them access to loans will enable them to fund any business they want to go into.
2) Going for entrepreneurship education
Just like we listed above, some people do not have the knowledge needed to start their own business. So, going into entrepreneurship education will help such a person learn how to start up and manage any particular business he or she wants to start. Building an entrepreneurship school will help young people learn the skills they need to start their own business.
3) Infrastructure Projects
It is the duty of the government to focus on investing in infrastructure projects that generate job opportunities for young people in construction and related industries. By doing so, we will help reduce the rate of unemployment among youth in our society.