Introduction

Transcription

Introduction

Dubai International Academy United Nations 2015 | 18th March 2015 – 21st March 2015
Forum:
General Assembly 3 – Social, Cultural and Humanitarian
Issue:
Measures to secure a future of prosperity for youth by addressing
youth unemployment
Student Officer: Denver Quadros
Position:
Deputy Chair
Introduction
Unemployment is a major economic problem that plagues nations. It occurs when those who are
actively seeking working are unable to find work. As of 2014, there are 200 million people unemployed
according to the International Labor Organization’s Global Employment Trend Report, An increase of 1
Million from the 2013 Report. According to current trends, this figure is expected to increase by 13 Million
by 2018.
For overall economic development, Youth employment is necessary. Youth Employment provides
a source of income for the younger population in the country; these would then contribute to the overall
economic activity in both the short and long run. Unemployment also has major economic and social
costs; these include depression, welfare strain, loss of skill and increased crime.
As many countries suffer from economic turmoil, the ability for newly trained young workers to
obtain sufficient jobs becomes more difficult due the laws of demand and supply. Globalization and Free
trade has led Multinational Companies (MNC) to move to away from the host nation in search of cheaper
resources, particularly labor. Today youths aged between 18-25 represent almost 1 billion of the 7 billion
people on the planet. The birth rates in Asian and African countries are expected to push that number up
in the next 25 years.
Like other economic variables, adjusting a nation’s economic policy can solve unemployment;
however, with countries sharing a common currency such as Euro or in nations such as the Middle East
where youth unemployment is caused by social and cultural values, a better and more regional
framework is required to motivate and make it lucrative for the future generations. It is imperative that we
as the General Assembly come to unanimous solution to create better economic conditions to provide a
prosperous future for not only the current generation but also for the coming generations.
Research Report | Page 1 of 12
Definition of Key Terms
Unemployment
When those actively seeking working are unable to find or obtain work. Youth
Unemployment is specifically widespread unemployment in young adults ranging from
ages 16 to 23
Lost generation
A colloquial term for unfulfilled generation coming to maturity during periods of economic
and social downturn. These people are in danger of long-term unemployment because
during periods of unemployment in the short run, they lose their skills and thus find it
difficult to obtain work when the economy begins growing, as employers would prefer
employees who have a fresh skillset.
NEET
A NEET is a person who is ‘Not in Education, Employment or Training’. Usually used to
classify youths who are unable to find work or any form of training or education.
Labor Market
A place where employers and workers interact with each other. Employers look to hire
the most productive employees while employees look for a satisfying job at a desired
wage rate.
Page 2 of 12 | Research Report
Minimum Wage
A minimum amount of pay workers are entitled to per hour.
Labor Mobility
The ability of an individual to seek employment and ease of relocating to find work
Labor Flexibility
The ability to change jobs easily; this is usually achieved when workers have a diverse
skill set instead of specializing in one particular task.
Key Issues
Causes of Youth Unemployment
Youth unemployment is caused by various factors that lead it to being higher than adult
unemployment. This includes the under provision of a desired skillset. The education system in
many countries does not provide one with the adequate skill required in the job market.
Concentration of jobs also makes it discouraging for youth to enter the labor market; Jobs in
developing countries are concentrated in the major cities of the nation. This makes it difficult
and even motivating for youths living in ‘depressed’ areas to search for jobs. In developing
countries such as the United Kingdom, unemployment benefits (Job Seeker’s allowance) are
debated as too high to convince youths to work. The opportunity cost of search for employment
is higher than remaining unemployed and claiming benefits. With European borders open young
migrants are free to travel across the EU and claim benefits in other countries to make a living,
youths are discouraged from working and this makes them a liability to the government.
Youth Unemployment in Middle East and North Africa (MENA)
Youth Unemployment remains one of the highest in MENA countries. The large-scale
immigration and social prejudices play a role in the relatively high unemployment rates, even for
university graduates. For examples in Tunisia, 43% of University graduates are unemployed,
mainly women who are discouraged from entering the work force.
Immigrant based societies like the United Arab Emirates, Saudi Arabia and Qatar mean that
limited jobs are available for citizens who are unwilling to participate in low-skilled or low-income
jobs. The oversupply of migrants means that the migrants are willing to accept a much lower
pay package than many of the local youths, making them a more financially viable option for
employers in the region.
The European Financial Crisis
The ongoing European debt crisis began in wake of the 2007 Global Recession that sourced
from the United States Banking Crisis.
Spain’s unemployment rate peaked at 57.1% during January 2014. Spain’s current generation
are the most educated in the countries history with a literacy rate of 93% as of 2014. This led to
many youths seeking to leave the Republic of Spain to search work with some ready to accept
small part time work to meet ends. As of 2014, Spain is now a net emigrant country. The
Secretary for Unemployment stated that vocational training would be key to helping Spanish
youth secure job prospects, however government debt required austerity to be implemented and
therefore spending on education was an unfeasible situation.
Consequence of Youth Unemployment
Strain on the government budget
High Unemployment rates means there is human capital that is not utilized and thus the
economy is not operating at a point close to full capacity Unemployment also means that
government need to pay allowances to those unemployed and this can affect the government
budget. An employed workforce increase tax revenue for the government, which circulated
back into the Capital Cycle of the economy in the form of government expenditure. Youth
Unemployment may result in long term unemployment of a group people who are more likely to
contribute to society as over a prolonged period of time and educated workers lose their skills if
they remain out of work; having a low Youth employment rate, coupled with an ageing
population, such as those in European Countries such as Greece and Italy, creates a large
number of ‘dependent’ citizens on the government and thus large amounts of tax revenue will
be spent on these people rather than more important areas such as Infrastructure and defense
spending.
Lost Generation
This occurs when one generation of a nations workforce is unable to obtain work during a
specific time period. This makes it difficult for these people to obtain work later on because
newer and younger labor will be preferred. This leafs to greater chances of poverty and
increases income inequality in a country. People who are unemployed also lose all the skills
they have accumulated due to insufficient practice of their training; As a result, the workforce
loses its productivity.
Many have touted the current youth of Greece, where the youth unemployment rate is at 64%
as of 2014, as a ‘lost generation’. Being unemployed for a prolonged period of time can affect
the mental health of the population as well. In families, unemployed youths tend to live with their
parents till their late twenties; when one person in the family is unemployed it puts extra
pressure on the other members to earn and many of them resort to the informal sector that is
not monitored or regulated by the government. Depression is also more likely as youths are
forced to accept low paying jobs leading to decreased happiness and low self-morale.
Public Unrest and Public Crime
During 2011 at the peak of the Eurozone crisis, riots broke out in the United Kingdom and
France as a result of an inactive and unemployed youth. Arab countries such as Egypt, Tunisia
and Morocco underwent riots against their respective regimes that were led by youth. The
inactivity as a result of being unemployed leads to public dissatisfaction and potentially unrest.
Crime rates also begin to increase as youths begin to resort to illicit means of securing income.
In 2010 Youth Crimes had cost the British Government £1.2 Billion with many citing the increase
of youth unemployment to 20% as a main reason for increased crimes in the country.
Major Parties Involved and Their Views
Spain
Over 50% of Spanish Youth remain unemployed and unable to find work. This has led to
large numbers leaving Spain to other countries in European Union for work. Crime Rates
have increased by 16% due to the large number of inactive youth’s. Prime Minster
Minister Mariano Rajoy announced schemes such as Tax Breaks for companies who
employ young workers within the age of 20-28. Other controversial measures such as
reduction in welfare were discussed in late 2013 but not implemented to prevent the
already depleted public confidence.
European Union and Eurozone:
The 2009 European Debt crisis negatively affected the Labor Market Europe and today,
the youth unemployment rate stands at 21.7%. The economic recession in the Eurozone
countries meant that those with budget deficits had to cut public sector investments and
as result many public sector workers were made redundant. The rigid nature of the Euro
as a common currency meant that nations such as Ireland and Greece could not devalue their currency in order to engage in more expansionary economic policy, due to
European Central Bank’s low inflation rate targets that required a much more stringent
monetary policy. As a result of limited efforts for youth employment, European countries
such as Spain have seen mass amount of emigration to other countries both inside the
European Union and across other continents in search of work. The EU has introduced
schemes to improve the productivity of labor for example the Youth Employment Initiative
in 2013. However, in some countries such as the United Kingdom, studies such as that
conducted by the Guardian in 2012 show that the monetary incentives to stay out of work
or seek employment in the illicit sector outweigh the need for youths to engage in formal
employment. The problem in Europe’s unemployment exist for both financial and
structural reasons
MENA (Middle East and North Africa)
Youth unemployment in Arab countries is one of the highest in the world; Tunisa and
Morocco, for example, have over 30% youth unemployment. MENA regions. Unlike other
regions in the world, MENA countries have high unemployment primarily due to
demographical issues and the attitudes of large and growing number of youth in Arab
countries have high population growth rates as well as high migrant population increasing
the competition for jobs. Arab Youth also prefer jobs that match their skill.
United States of America
An Important nation in the problem of youth unemployment because of the influence it
exerts on the global society. The United States holds significant power in controlling the
global financial system. The United States has current youth unemployment of 18% and
historically was known to have very high unemployment during the 1930’s Great
Depression. Despite the economic recovery, the situation amongst youth remains a key
issue and an annual report estimates that the American government could lose over
$20bn of tax money and state benefits over the next 10 years as result of inactive youth.
The United States policy is often mimicked by other nations into their own economy, and
the advocates of youth employment have urged the United States to implement a youth
guarantee plan like Europe has in order to provide guaranteed access to short term
employment and education to enhance the skills of the current work force.
International Labor Organization (ILO)
A United Nations Agency that seeks promotion of social justice and internationally
recognized labor rights1. The ILO remains actively seized on the matter of Youth
Unemployment. Along with the World Bank and the United Nations, the ILO helped form
the Youth Employment Network (YEN), an initiative dedicated specifically to solving the
question of prosperity for youth.
Youth Employment Network (YEN)
an initiative set up by the UN, World Bank and the ILO that seeks to engage, motivate
and provide improved employment opportunities for youth. Over the last 14 years of
operation, the YEN has published various works and trained representatives to advocate
the rights of youth workers. Their primary role is to assist other NGO and governmental
organizations on implementing and monitoring structures that will facilitate the process of
reducing overall youth unemployment.
Timeline of Events
Date
Description of Events
Outcome
1919
The International Labor Organization
(ILO) was established
The ILO has passed resolutions
that specifically address the issue of
unemployment amongst youth.
Most notably the resolution passed
in June 2012 at the 101st Labor
Conference in Geneva that aimed
to improve the rights and mobility of
youths in order to secure
employment in long term and make
it easier to access jobs in different
regions around the world.
1957
European Social Fund (ESF) was set up
the European Economic Community
Created by the EEC and currently in
use by the European Union, the
ESF aims to create employment
opportunities by providing funding
for programs that improve labor
mobility. Between 2014-2020, it was
agreed that €72bn would be
distributed to addresses the rising
youth unemployment in European
Countries.
2001
Youth Employment Network was
established
A partnership of the United Nations,
World Bank and The International
Labor Organization. The main
objective for this organization was
to provide employment
opportunities and platforms for
youth
2003
First YEN meeting is held in Lubeck,
Germany
Supported by the Dragger
Foundation. Topic of discussion
‘Youth Unemployment,
Empowerment and Participation’.
Attended by the initial 13 members
2009
Global Jobs Pact Initiative was adopted
by the ILO and endorsed by the United
Nations Economic and Social Committee
(ECOSOC)
Main aims of the pact were to
accelerate recovery in the
employment, mainly through
protecting employment rights and
increasing social protection. It is to
be implemented my member states
and offers crisis recovery
frameworks during periods of
economic uncertainty.
2012
European Alliance for Apprenticeship to
help reduce labor mobility obstacles for
In midst of the European Financial
Crisis, the EAfA was set up to
youth
create an apprenticeship and a
work-based study program for
youths to ease the transition
between education and
employment. As of October 2013,
22 Countries have signed and
expressed their commitment
towards this program this includes
nations such as but not limited to
Spain, Ireland, Greece and Cyprus.
June 2012
ILO publish a comprehensive youth
unemployment resolution at the 101st
Session of the International Labor
Conference in Geneva
This resolution called for urgent and
renewed action in the bid to combat
the rising youth unemployment. It
mentions the various resource
management and labor
management methods governments
can adopt to improve the quality of
labor and provide better
opportunities for youth. The
resolution also highlighted key fiscal
and economic policies that can be
used to increase the economic
output and investment for all
member states.
February
2013
European Union Announces a 7 year
Youth Training Scheme called the Youth
Employment Initiative
The 7 year plan is targeted at
regions that have youth
unemployment rates of 25% or
higher. The Training schemes aims
to increase entrepreneurship and
create employment in the long term
in these countries. Funding for this
program would come from the
European Social Fund in order to
assist countries that currently
monetary shortages.
January
2014
Spain’s Youth Unemployment peaks at
57.1%
The Republic of Spain youth
unemployment rate was the highest
in the European Union as of
January 2014, peaking at 57.1%
and overtaking Greece.
Previous Attempts to solve the Issue
UNESCO, ILO and IYF have attempted to solve this issue in the past. These organizations have
been committed to improving the training and skills of youth so they are better adjusted for the
current labor market. In June 2012, The ILO wrote and passed a resolution targeting the
situation of youth unemployment. The resolution included improving entrepreneurship, the labor
market structure as well fiscal conditions in nations to provide youth’s the correct environment to
seek work and employment. The European Union, in wake of the Debt Crisis that saw
European Youth Employment at nearly 25%, proposed a solution that would encourage an
increase of internships and work-related education for students still in school to give them the
necessary experience required in the job market.
Possible Solutions
Market Orientated Supply Side Policies
A Supply Side Policy is an attempt made by the government to increase the Aggregate Supply
in the Economy; this includes increasing the productivity and availability of all resources such as
human capital. Offering incentives for youth’s to search for work, theoretically, take them of
government welfare. Some measures could include, reducing unemployment benefits or
increasing the minimum wage. This increases the opportunity of cost of staying unemployed
and would make citizens more proactive in the job market. However lowering unemployment
benefits has ethical considerations and would cause public condemnation. Also increasing the
minimum wage would offer a more lucrative incentive for youth to enter the workforce, but this
would add the employers’ cost of production and using economics, they would demand less for
labor, limiting the number jobs available in the market.
Empowering Women
Many countries in Asia and Africa have high youth unemployment as well as a high disparity
between Male unemployment and Female Unemployment. This is because women are often a
suppressed group in that particular nation. This is a widespread issue in MENA countries such
as Saudi Arabia and Morocco. Educate a Man and you educate an individual, educate a women
and you educate a nation. Educating women would increase the supply of labor in the market;
Women can work part time or seasonal jobs, which can increase the average household income
and in long run contribute to increases in GDP. This would also improve the social equality
between males and females. The feasibility of implementing this in MENA countries may be
difficult in the short run due to rigid cultural and traditional beliefs that influence the legislative
decisions in these countries.
Preparing Youth for employment
Despite the large number of graduate students in developing countries, many students are
unemployed and unable to find work. This is primarily because they either have an oversupply
of a restricted field of study such as Business related degrees. One way of combating this would
be to promote study in wider areas and encourage citizen is pursue studies in subjects such as
Design, Mathematics and Sciences where the scope of study is much larger and job prospects
are more available. Work experience plays a role in the recruitment process for employers.
Many Youth graduate as bookworms with no practical experience of how a specific firm
operates; Increasing the amount of technical schools and vocational courses could help those
not interested in pursuing specialized fields of study to gain experience of a work environment.
Increasing Youth Training programs and introducing Work Based Education (WBE) into the
education curriculum. WBE provides youth with not only the necessary skills to operate in a
working environment but also the maturity required to handle various issues and stress in the
labor market.
Decreasing Youth Drop out rates
Students often drop out of school early due intolerant attitudes towards education, lack of
financial ability or desire to seek work and independence at a young age. Insufficient training
results in youths accepting low-skilled work temporary work. This can be solved by methods
such as but not limited too

Increasing the mandatory school leaving age will increase the time youths spend in
academia. This would lead to a more productive and educated workforce that can then
seek out a variety of different jobs. A more educated workforce may also result in these
students educating the next generation and create an overall literate and skilled society

Subsidizing private schools and providing schemes for those unable to afford education.
This would make education more affordable to all

Creating public schools in depressed areas

Investing in the Education sector to provide highly trained teaching workforce to create
an overall productive society
Bibliography
Unemployment . Investopedia. 2005. 19 January 2015
<www.investopedia.com/terms/u/unemployment.asp>.
"About YEN." About YEN. International Labor Organisation, n.d. Web. 21 Feb. 2015.
Budig, Gene, and Alan Heaps. "Unemployment Crisis for Youths." USA Today. USA Today, 04
May 2014. Web. 02 Feb. 2015.
Pettinger, Tejvan. "European Unemployment Crisis." Economics Help. Economics Help, 12
Sept. 2014. Web. 19 Feb. 2015.
Sedghi, Ami. "Unemployment across the OECD." The Guardian. The Guardian, 16 May 2012.
Web. 21 Jan. 2015.
United Kingdom. Parliament UK. House of Lords. Parliament UK, n.d. Web. 17 Feb. 2015.
"What We Do." What We Do. International Labor Organization, n.d. Web. 21 Feb. 2015.
The Youth Employment Crisis: A Call for Action: Resolution and Conclusions of the 101st
Session of the International Labour Conference, Geneva, 2012. Geneva: ILO, 2012.
International Labor Organization Past Efforts. International Labor Organization, July 2012. Web.
14 Feb. 2015.
Youth Unemployment Around the World. Digital image. The Next Recession. The Next
Recession, 14 Jan. 2013. Web. 21 Feb. 2015.
International Labor Organization. International Labor Office. Working with Youth. Geneva: ILO,
2012. Print.

Introduction

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