The Youth Time Bomb

Youth unemployment surged with the Covid crisis and remains stubbornly high in many countries

- Enda Curran

Carefully laid career paths that suddenly become dead ends, college degrees that no longer open doors, coveted overseas jobs gone in an instant. Whenever the acute phase of the pandemic eventually fades, the crisis will be far from over for young workers in emerging economies.

Worldwide, youth employment fell by 8.7% in 2020, vs. a 3.7% drop for adults, according a report the International Labour Organization published in June. Although labor markets continue to rebound in line with the global recovery, ILO’s researchers noted that unemployment data compiled by governments offer only a partial picture of the problems. Their report highlights a different metric, the share of young people not in employment, education, or training—the so-called NEET rate— which has yet to return to pre- crisis levels in most countries.

Niall O’Higgins, one of the authors of the ILO report, warns of the consequences of being shut out of the labor market for an extended time. “Clearly there is a serious danger that young people being out of work for a long period is likely to damage both the individual’s earnings prospects and the society’s productivity and long-term earnings potential.”

The damaging effects go beyond economics. In countries with relatively young populations, having a large number of out-of-work youth can contribute to criminality and political instability.