From Education to Employment: Bridging the Job Market Gap

Solutions to Youth Unemployment by Bridging the Job Market Gap

(Assistant Professor University of St. Gallen)

Peter Vogel Strategy [email protected]

Prof. Dr. Peter Vogel

From Education to Employment

3© Prof. Dr. Peter VogelAugust 11th, 2015

Some more facts

In developing economies, close to 80% of young workers work in informality

Most statistics ignore the NEETs In the US, 15% of youths are NEETs In the EU, the NEET rate increased by 2%

over crisis

ILO: “The youth unemployment rate (12.6% in 2013) would be a full percentage point higher if it included the NEETs”

e

10million

unemployed youths

Snapshot Latin America (total youth: 106 million)

million youth that

neither work nor study

million youth work in informality

Youth (15-24) Unemployment Indicators

1.2 billion youth worldwide = 17% of total population75 million are unemployed = 40% of total unemployed

Data Sources: ILO, OECD, Eurostat, World Population Prospects

30

22

Youth-to-Adult Unemployment Ratio


Data: OECD, 2013

Youth-to-Adult Unemployment Ratio


Data: OECD

Drivers of the Youth Unemployment Crisis


Demand Side Low aggregate demand

Inflexible labor markets / temporary jobs

Informal recruiting inaccessible to youth

False expectations of employers

retirement age keeps older workers

Supply Side Lack of preparedness for work Lack of adequate skills and experiences Academic inflation Characteristics / attitude towards work Rise of youth population in some regions False expectations of young people

Mismatches Skills / capabilities mismatch

Over-qualification

Under-qualification

Regional differences (developed vs. developing)

Expectations mismatch

Digital Natives: A Generational Snapshot


Digital Natives: A Generational Snapshot


Speed & convenience

Shift of basic skills

Little online privacy

Virtual life replaces real life

Over-exposure to information

Education is regarded as less valuable

Need for confirmation and mentoring

What if We Don’t Find Adequate Solutions?


Individual Consequences Scarring effect on the person’s human-

and social capital Negative life-long effects on earnings Negatively influences psychosocial

development and overall well-being Prevents young people from developing

adequate work ethics Difficulty of young people to become

independent from parents Forces young people to accept part-time

or temporary employment Increases chances of subsequent

unemployment

Societal & Economic Consequences Waste of economic potential Threat of an undermined social stability Brain drain towards countries with better

job opportunities Loss of tax earnings for countries Increased criminality rate and anti-social

behavior, requiring more security

It is estimated that joblessness in the United States alone will account for a total of $20 billion in lost earnings over the next ten years Jacobs, 2014

Solutions – Multi-Stakeholder Efforts


Intersection Education System – Labor Market


“I always thought that by graduating from a renowned university I would easily find a job within a few months time. But I was wrong. Now it is over a year and things just won’t get any better. Neither for me nor for my peers…” (Hanna, 25, recent graduate from a leading business school)

75% of European universities provide little or no career guidance (Futurework Forum)

No, and I would not use it anyway

Yes, and it is useful

Yes, but it isnot useful

No, but I wouldfind it useful

Necessity to Bridge the Job Market Gap


Supply-Side

In the EU-28 there are 6 million

unemployed youth that are

employable but cannot find a job (Eurostat)

Demand-Side

In the EU-28 there are 4 million jobs

that could not be filled because the

employers couldn’t find the

individuals with the right skills (G. Hultin,

2010)

Addressing the Mismatch

“It is imperative that we find solutions to bridge the job market gap & connect the

right talents with the available jobs, no matter where they are!” (FutureWork Forum)

Panelists


Michelle BlanchetFounder & Director

Educators’ Lab

Carsten SudhoffFounder & CEO

CircularSociety AG

Panel Questions


What changes are needed from both the education system and the

labor market to bridge the job market gap?

Which role does dual education / vocational training play in solving

youth unemployment?

What are some of the responsibilities of educators and employers?

What are some of the best-practices we know?

Thank you for your attention!


(Assistant Professor University of St. Gallen)

Peter Vogel Strategy [email protected]

Prof. Dr. Peter Vogel

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