The participation of young people in the global labour market is on a sharp decline, particularly in low-income countries, according to the latest report from the International Labour Organization (ILO). This worrying trend highlights a growing challenge: a generation increasingly disconnected from education, employment, and training.
Key Insights
- Rising NEET Generation: The number of young men classified as part of the NEET generation—neither in education, employment, nor training—has surged, particularly in low-income nations. The ILO reports a 4 percentage point increase in NEET rates among young men in these countries compared to pre-pandemic levels, leaving many vulnerable to economic instability.
- Gender Disparities Persist: Despite the challenges young men face, their labour market participation still outpaces that of young women. In low-income countries, over 20% of young men are not working or studying, but this figure climbs to a staggering 37% for young women.
- Global Employment Trends: On a broader scale, the global unemployment rate remains steady at 5%, similar to 2023 levels. However, youth unemployment far exceeds this, sitting at 12.6%—underscoring the disproportionate burden on younger generations.
Structural Challenges
The ILO report also emphasises a troubling return to pre-pandemic levels of informal employment and “in-work poverty.” These issues, combined with wage growth that has yet to fully offset the erosion of incomes due to inflation, signal persistent vulnerabilities for workers worldwide.
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Economic And Social Risks
The ILO warns that while central banks have managed to reduce inflation without triggering severe contractions in labour markets, further fiscal tightening could lead to significant social unrest. Declining wages and stalled progress on worker protections only exacerbate these risks.
ILO Recommendations
To combat the exclusion of young people from the labour market and address broader workforce challenges, the ILO suggests:
- Investing in Education and Training: Expanding access to vocational education and upskilling opportunities to bridge the gap between education and employment.
- Boosting Social Protections: Enhancing safety nets in low-income countries to provide a buffer against economic shocks.
- Leveraging Diaspora Resources: Mobilising remittances and diaspora funding to spur local development.
- Developing Infrastructure: Creating job opportunities by investing in infrastructure projects, particularly in underdeveloped regions.
Looking Ahead
As youth unemployment and labour market exclusion continue to rise, the stakes are high for governments, organisations, and international institutions. The ILO’s call to action underscores the urgency of addressing these issues to secure a more inclusive and sustainable economic future.
