Wednesday, 15 October 2025

Youth Unemployment and Informal Labor: Challenges and Opportunities for Young People

By Alfina Jimmy


Introduction


Imagine you're a young person looking for a job, but there aren't enough opportunities available. This is a big problem worldwide, especially in countries that are still developing. The International Labour Organisation (ILO) says that young people are three times more likely to be unemployed than adults. Another issue is informal labour, where people work without proper contracts or benefits. Let's explore these challenges and see if we can find some solutions.


Challenges of Youth Unemployment


1. Lack of Work Experience: Many young people can't find jobs because they don't have enough experience. It's like a chicken-and-egg problem – you need experience to get a job, but you need a job to get experience!


2. Skills Mismatch: Sometimes, schools don't teach the right skills that employers are looking for. It's like having a toolbox with the wrong tools for the job!


3. Economic Instability: When many young people are unemployed, it can affect the whole economy and even lead to social problems.


Challenges of Informal Labour


1. No Social Protections: Informal workers don't get benefits like health insurance or paid leave. They're like ships without anchors – vulnerable and unprotected!


2. Tough Working Conditions: Informal workers might face long hours, low pay, and unsafe working conditions. It's like working in a storm without an umbrella!


3. Limited Opportunities: Informal workers might find it hard to improve their skills or get better jobs. It's like being stuck in a traffic jam – you can't move forward!


Opportunities for Addressing Youth Unemployment and Informal Labour


1. Vocational Training: Special training programs can teach young people the skills they need to get hired. It's like getting the right tools for the job!


2. Entrepreneurship: Encouraging young people to start their own businesses can create new jobs and opportunities. It's like planting a seed that can grow into a tree!


3. Formalising Informal Labour: Giving informal workers contracts and benefits can protect them and help the economy grow. It's like putting a safety net under the tightrope walker!


What Can We Do?

- Governments can create programs to help young people find jobs or start their own businesses.

- Schools can teach skills that employers need.

- Employers can provide training and good working conditions.


Conclusion


Youth unemployment and informal labour are big challenges, but there are ways to address them. By working together, we can create a better future for young people and the economy.


References


- Chen, M. A. (2019). Informal employment: Trends, challenges, and policy responses. Journal of Economic Perspectives, 33(2), 115-134.


- Global Entrepreneurship Monitor (GEM). (2020). Global Entrepreneurship Monitor 2020/2021 Global Report.


- International Labour Organisation (ILO). (2022). Global Employment Trends for Youth 2022.


- International Labour Organisation (ILO). (2018). Women and Men in the Informal Economy: A Statistical Picture.


- O'Higgins, N. (2017). Rising to the youth employment challenge: New evidence on key policy issues. ILO.


- World Bank. (2020). World Development Report 2020: Global Value Chains in a Post-COVID-19 world.


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