Youth is a stage of life full of dreams, projects, expectations and great job opportunities. However, for many young people in Latin America, access to the labour market is presented as an obstacle to achieving their goals and developing their potential. In this publication, we will analyze the situation of youth employment in the region, the challenges and perspectives that open up to the new work scenario, and some possible solutions to improve opportunities for young people.
The problem of youth unemployment and informality
According to data from the International Labour Organization (ILO), in Latin America and the Caribbean there are 108 million young people between the ages of 15 and 24, of whom 13.9 per cent (15 million) suffer from unemployment without job opportunities, and 55.6 per cent of those employed are in informal conditions. These figures are alarming, as they reveal that most young people do not have access to job opportunities or decent, productive and protected work, which will enable them to generate sufficient income, gain experience and training, and contribute to the economic and social development of their countries.
Youth unemployment and informality have multiple causes and consequences, which relate to structural, conjunctural and individual factors that damage job opportunities. Structural factors include the low demand for skilled labour, rigid labour standards, lack of coordination between the education system and the labour market, and social and gender inequality. Conjunctural factors include the economic crisis, the COVID-19 pandemic, and technological and productive changes. Individual factors include low schooling, lack of experience, discrimination, and preferences and attitudes of young people.
Youth unemployment and informality have negative effects on both young people themselves and society as a whole. For young people, it implies a loss of employment, income, self-esteem, participation and citizenship opportunities. For society, it is a waste of talent, productivity, innovation, cohesion and democracy.
Challenges and perspectives in the face of the new labor scenario
The labour market in Latin America is undergoing profound transformations, which pose new challenges and job opportunities for young people. Among these transformations are digitization, automation, the green economy, the orange economy, the social and solidarity economy, and the economics of care. These trends involve changes in the forms of organization, production, consumption, and relationship between workers, employers, customers, and the State.
These changes represent a greater demand for technical, cognitive, socio-emotional and citizen skills, which young people must develop to adapt to the new work scenario and thus find job opportunities. At the same time, they offer new possibilities for job integration, entrepreneurship, innovation, and social participation, which young people can take advantage of to generate added value, differentiate themselves, and contribute to sustainable development.
To meet these challenges and take advantage of these opportunities, young people require comprehensive public policies, to articulate the educational, labor, social and environmental dimensions, and to involve relevant actors in the public, private, academic, and civil society sectors. These policies must take into account the diversity of situations, needs, interests and aspirations of young people, and promote their prominence, autonomy, and inclusion, only in this way will job opportunities be achieved.
Possible solutions to improve young people’s job opportunities
Here are some possible solutions to improve the job opportunities of young people in Latin America, based on good practices identified by ILO and ECLAC.
- Make youth employment a priority on the social dialogue agenda among key economic actors, and establish mechanisms for coordination, monitoring and evaluation of public policies.
- Support the entrepreneurial spirit of young people, to implement their own initiatives, through microcredit systems, business incubators, technical, legal and financial advice, and support networks.
- Improve the efficiency and coverage of employment services, which provide young people with information, guidance, intermediation, training, and certification of competencies, in line with demands and trends in the labour market.
- Strengthen the articulation between the education system and the labour market, to stimulate innovation, quality, relevance, and equity of the educational offer, and facilitate the transition from education to work.
- Increase internship systems, internships, and apprenticeships to consolidate vocational training for young people in businesses and the public sector, and promote their formal and quality employment integration.
- Expand young people’s access to an educational credit system, conditional monetary transfers, and salary scholarships, so that they can continue their training and requalification of work, and overcome the economic barriers that limit their educational trajectory.
- Facilitate that young women remain in the labour market, through child and older care services, and policies for reconciliation between working, family and personal life.
Conclusions
Youth is a valuable resource for Latin America’s development, but it is also a vulnerable and disadvantaged sector in the labour market. Youth unemployment and informality are serious problems, affecting the well-being, progress, and democracy in the region. To overcome these problems, a comprehensive, participatory and forward-looking vision is required, recognizing the diversity, potential, and rights of young people, and providing them with real opportunities for decent, productive, and sustainable job integration.
Bibliographical references
- ILO. (2023). Youth employment in Latin America and the Caribbean.
- ILO. (2023). Good practices in youth employment in Latin America and the Caribbean.
- ECLAC. (2006). Youth and employment in Latin America: challenges and perspectives in the face of the new job scenario.
