Understanding youth, unemployment and skills in Africa

by Denielle Sachs
McKinsey Social Sector Office

For those working on employment issues, one thing is clear: the tense imbalance between the demands of the labor market and the supply of appropriately skilled workers is reaching its breaking point. Last week, the McKinsey Global Institute launched, The world at work: jobs and skills for 3.5 billion people. The report found that by 2020 there could be as many as 40 million too few high-skill workers and up to 95 million too many low-skill workers out in the job market.
Avoiding such massive imbalances will require a radical approach to accelerate education and skills building, and to boost job creation for less-skilled workers. Anything less and we will see a growing shortage of high-skill workers, persistent joblessness for many low- and middle-skill workers, rising income inequality, and distressingly high rates of youth unemployment. The numbers are clear: by 2030, the world will have as many as 1 billion workers without even secondary education, and most of them will be living in India, South Asia and Africa.

A lot of institutions are looking at these issues , including OECD and their recently launched Skills Strategy. As part of our ongoing research on youth unemployment and the skills-jobs mismatch, we asked a few experts what a solution might look like for young people in Africa where the under 25 represent three-fifths of sub-Saharan Africa’s unemployed population, and 72 percent of the youth population lives on less than $2 a day.

First, we have to understand who we mean when we talk about the young and out-of-work in Africa. Fred Swaniker, Founder and CEO of the African Leadership Academy, tells us that, on average, she is an 18-year-old girl, living in a rural area, literate but not attending school. To his mind, entrepreneurship – both the technical skills and the mindset — is the answer. It should be an integral part of every child’s education whether that schooling be formal or informal.

 For the Chief Economist for the World Bank’s Africa Region Shantayanan Devarajan, the answer lies in productivity. “The challenge of youth employment in Africa is not just to create more wage and salary jobs but to increase the productivity, and hence earnings, of the majority of young people.” This can only happen by “first, increasing their basic skills, which they can take with them when they move to new enterprises; and second, creating jobs in the formal sector by improving the economy’s competitiveness, so that this sector can absorb more qualified workers into a productive workforce.”

In South Africa, a very specific socio-political context post-apartheid, Thero Setiloane, CEO of the Business Leadership South Africa, explains that access to education and the quality of that education (“Only 35 percent of the children in third grade are able to pass the literacy and numeracy tests.”) are major stumbling blocks. His preference is for a joint government-business solution. “Business must work with government to adapt the school curriculum… so that young people leave school ready for work. Training programs must be tailored to demand…We also need to build in incentives for businesses to address the social-capital deficit in poor communities.”

Moataz Al Alfi, CEO of the Egypt Kuwait Holding Company could not agree more. Coming from the Middle East where the “paradox of the labour markets”, as he calls it, is perhaps at its worst, he calls for “a solution that requires a strong partnership between business, with its urgent need for skilled workers, and government, which is charged with educating young people.” The region currently has the highest youth unemployment rate in the world, at 25 percent. And, on the heels of the Arab Spring, and in the midst of the lingering economic crisis, it is only expected to rise.  He too returns to the issue of a failing education system that does not prepare young people for the jobs that the market desperately needs to fill.

Links:
Join the debate and register for our online panel event on June 26th at 8am EDT //2pm CEST , featuring experts from the OECD and IFC
See also: OECD Skills Strategy

Visit our interactive portal on skills: http://skills.oecd.org
OECD Development Centre

Photo credit: African youth / Shutterstock

Urban studies

by Marilyn Achiron
Editor, Directorate for Education

To many people, the phrase “inner-city schools” is synonymous with crumbling buildings, frustrated teachers, disengaged students, truancy and violence. In some urban areas, though, city schools and the students who attend them flourish. In fact, three of the top five performers in reading in the PISA 2009 survey—Shanghai, Hong Kong and Singapore—are large cities. So are big cities a boon or a bane for education?

The latest edition of PISA in Focus presents new analyses suggesting that, in some countries, students in large cities—defined as those with over one million inhabitants—score on a par with their top-performing peers in PISA. For instance, students in urban areas in countries like Portugal and Israel, countries that tend to perform around the OECD average in PISA, compare favourably with students in Singapore; and the performance of students in Poland’s urban areas compares easily with that of students in Hong Kong.

But in Belgium, the United Kingdom and the United States, the performance of students in large urban areas drags down overall country scores in PISA. This might be because, in these countries, not all students can enjoy the advantages—including a rich cultural environment, more school choice and good job prospects after leaving school—that large urban centres offer. Some of these students may come from socio-economically disadvantaged backgrounds, speak a different language at home than the one spoken at school, or have only one parent to turn to for support and assistance.

However, these new analyses of PISA data also show that an urban environment’s impact on learning is not just related to socio-economic advantage or disadvantage. Even when comparing students of similar backgrounds in OECD countries, those attending schools in urban areas in Chile, the Czech Republic, Germany, Italy, Mexico and Turkey scored more than 45 points higher—the equivalent of more than one year of formal schooling—than their peers in rural schools. In Hungary, the performance gap between the two groups of students was more than 70 score points wide.

What these analyses tell us is that in order to join the ranks of PISA best-performers, countries may have to provide targeted support to isolated rural communities to ensure that students attending schools in these areas reach their full potential, while those countries whose city-based students underperform will have to figure out how to both embrace a heterogeneous student population and enable these students to tap into the cultural and social advantages that large urban areas offer.

Links:
For more information:
on PISA: www.pisa.oecd.org
PISA in Focus: Are large cities educational assets or liabilities?
Photo credit: City student / Shutterstock

Skills revolution will come from the grassroots

Sanjit Bunker Roy figured out pretty early on that it does, indeed, take a village; in fact, it takes a village to keep a village. He founded the Barefoot College in India in 1972 on the premise that for any rural development activity to be successful and sustainable, it must be both based in the village and managed and owned by those whom it serves. The College, a non-governmental organisation, serves rural men and women of all ages, all of whom are barely literate (if at all) and have no hope of getting even the lowest government job, by providing training in such skills as solar engineering, water drilling, hand-pump engineering, masonry, architecture, and computing.

Marilyn Achiron, Editor of the Education Department caught up with Roy when he was in Paris to speak at the OECD Forum. He’s not one to mince his words:

“We are facing a disaster of monumental proportions,” says Roy. “We’re training people to leave the village, not to stay in the village. We’re encouraging migration at a colossal level from village to city. As a result, we’re losing all the traditional knowledge and skills that used to be in the village. Does anyone at the mover-and-shaker level have the courage and vision to turn this around? We’re already set in a pattern that we can’t break.”

According to Roy, whom Time magazine named one of the 100 most influential people in the world in 2010, the big international donors are part of the problem, and not enough of the solution. “People aren’t listening enough. The biggest problem with the big donors is that they don’t have the ability or the humility to listen to what’s happening on the ground. We need to respect traditional knowledge and skills; you cannot be educated at the expense of tradition. It’s a balance. There’s a real urgent situation out there and we’re not treating it with urgency.”

A dissatisfaction with policies designed in the relative comfort of developed-world capitals while more than one in five people in the world live on less than USD 1.25 a day comes across clearly. The OECD is not spared Roy’s frustration: “The OECD’s attitude towards education is outdated. In the non-organised, informal world, people have no access to water, electricity, formal education. The OECD’s attitude is dangerous. They have to revisit it and adapt it to the reality on the ground. They have lost touch.” Even the OECD Skills Strategy, released earlier this week already needs updating:  “There will be a skills revolution from the grassroots. The current thinking has to change. The question is: How do you recognise skills that people already have and apply them in the situation in which they live? The OECD is very backwards in its thinking.”

Between 2007 and 2011, the Barefoot College trained some 300 grandmothers, from 29 countries throughout Africa, in solar technologies. After their six-month training course—paid for, along with their air fare, by the Indian government—they went back to their villages and solar electrified some 15,000 houses. Says Roy, “These illiterate grandmothers know more about the repair and maintenance of solar lamps and installations than any graduate of any five-year university anywhere in the world. And if anyone wants to challenge me on it, I’d be delighted.”

Links:
Barefoot College
Watch the TED Talk: Bunker Roy: Learning from a barefoot movement
OECD Skills Strategy
Visit our interactive portal on skills: http://skills.oecd.org
OECD Forum 2012
Photo credit: Colourful feet / Shutterstock

Better skills and better policies lead to better lives for women

by Michelle Bachelet
United Nations Under-Secretary-General and Executive Director of UN Women

The global economic crisis, with high levels of unemployment, especially among youth, and rising inequality, with large wage gaps between high- and low-skilled workers, has added urgency to the need for better skills. This is especially important for women, who already face barriers to participating fully in the economy. Investing in their skills from early childhood, through compulsory education, and throughout their working life can transform women’s lives and drive economies. Equally important are better policies to promote equal rights and opportunities and women’s full participation in public life.

Investment in skills is particularly important during these tough economic times.  Skilled workers play a crucial role in generating future jobs and economic growth. Women’s entry into the labour market has been an important driver of European economic growth in the past decade. Research finds that closing the female-male employment gap would have positive economic implications for developed economies, boosting US GDP by as much as 9% and euro area GDP by as much as 13%. A 2011 report by the International Labor Organization and the Asia Development Bank revealed that a gender equality gap in employment rates for women cost Asia USD 47 billion annually – 45% of women remained outside the workplace compared to 19% of men.

It is time to remove the barriers to women’s full participation in the economy. The OECD has found that the main reason 25-39-year-old women cite for choosing to work part-time is their care responsibilities. The same reason is given when inactive women are asked why they don’t participate in the labour market at all.  Globally, women are still responsible for 60% to 80% of household chores and childcare. Worldwide, women account for 58% of unpaid work.

Although 552 million women joined the global labor force between 1980 and 2008, and research shows that reducing the gender employment gap improves economic growth, millions of women remain marginalised from the formal economy. In Egypt, Jordan, Libya, Morocco and Tunisia, only about one-quarter of adult women were in the labour force in 2010, compared with 70% to 80% participation rates among adult men.

An agenda for equality is needed that includes better skills and better policies so that women can exercise their economic, social, cultural and civil rights and economies can be healthier and more inclusive. Policies are urgently needed to help women and men reconcile work and family responsibilities, through the provision of childcare and maternity and paternity leave, and flexible working hours. Tax and pension systems also need to be revisited and revised to encourage equality.

When it comes to promoting women’s economic empowerment, we are not starting from scratch. There are many important initiatives taking place in all regions, including in low- and middle-income countries, to ensure economic justice and security for women. These include flexible childcare that enables women to participate in the labour force, fair pensions to ensure that older women do not live in poverty, cash transfers to enable families to send their girls to school, and training that gives women skills in entrepreneurship and new technologies. Our challenge is to make the equality agenda universal. In 2013, UN Women will use our flagship report, Progress of the World’s Women, to present evidence on the policies that work, to enable countries to learn from one another and drive the change we want to see.

Links:
UN Women
For the OECD Skills Strategy go to: http://skills.oecd.org
See also OECD work on:

OECD Work on Gender via www.oecd.org/gender

Gender equality and women's empowerment
Early Childhood Education and Care
OECD Forum 2012
Photo credit: Girl with balloons /Shutterstock

Discussing education and skills with the 2012 OECD Global Youth Competition winners

The winners of the 2012 OECD Video Competition hail from no fewer than three continents and four very different countries: Uganda, India, South Korea and Australia. Yet despite this, the videos they made on education and skills all highlight the need for major change in education systems if they are to provide young people with the skills necessary to thrive in the 21st century.

Kato Jonan, 24, (Uganda) Rachit Sai Barak, 20 (India), Sharon Chan, 24 (Australia), and Young Bu Kwon, 25 (Korea), sat down with us to expand on their views on education and skills.

educationtoday: Your videos all touch on the inadequacies of formal education. In what ways can schools better equip young people with the skills they need to have successful careers and be engaged citizens?

Rachit: Schools are competitive and stressful in India. The government treats young people as a future resource rather than treating them as a stakeholder. The focus should be on providing youth with life skills.

Kato: Students see education as something they have to go through without thinking of what it can help them become or what jobs it can help them get. The government should put aside some funds to create institutions to teach young people practical skills when they're not in school.

Sharon: Schools focus too heavily on books and studying. They need to look at skills outside of the classroom and help students apply those skills and fine-tune them. They should create a strong relationship with the community to see what skills are required.

Young Bu: Many Koreans think education is the only way to get a job, but then when they get a job they are disappointed. They learn and learn but they don't know what their goals are.

Kato: What I think should be done is to provide mentors to young people so they can decide what they want to do.

 

educationtoday: Do you think focusing on providing young people with the right skills for the job market is a good approach? 

Sharon: I think you can talk to employers to see what they require and try to build that into students' education, but at the same time what students require should be considered. That could be achieved through mentoring programmes.

Rachit: Education is not just about skills and jobs, it's about knowledge. I think the Better Life Index is a great example to look at. It would be good to give that wide perspective to children.

Kato: If the government wants to encourage people to take up certain professions, they have to start from childhood. But students should not have to pay for their education, as is the case today in Africa.

Rachit: The focus should be on potential not skills.

educationtoday: In your opinion, what are the key skills young people should be taught? 

Sharon: Decision making, the ability to innovate, problem solving and critical thinking are all important.

Rachit: Government should focus on life skills and practical skills.

Kato: I think we need entrepreneurial skills and computer literacy.

Young Bu: The most important thing for young people is to know themselves.

 

educationtoday: The need for creativity and innovation is a common thread in your videos. How can schools encourage creativity and and ultimately foster entrepreneurship?

Sharon: My school had a lot of competitions and projects where I had to think for myself and solve different problems. In my opinion, it's something schools can't teach you; they can help you develop it.

Rachit: In India, you see almost no use of music or dance in school. They can be used to help children learn, but they're not considered important. Using these arts to teach can help young people think differently.

Kato: They need to put students in concrete situations. In Uganda, we have a subject called Entrepreneurship, but you don't acquire any practical skills, you simply memorise information to pass an exam.

Young Bu: In Korea, students spend around 12 hours per day studying. We're not taught to discuss, to communicate; we're just taught to study. We learn by memorising, so there is little creativity. There should be free time at school where students can do what they want.

Sharon: There should be an environment that provides support and allows students to take risks.

Kato: Children who have non-academic skills should also be given a chance.

 

educationtoday: Your videos also touch on the power of co-operation to help children learn effectively. How do you think schools can be made more co-operative?

Sharon: Teamwork is the ideal scenario for encouraging co-operation.

Rachit: There should be collaboration among different fields, such as science, commerce and humanities.

Kato: It should be introduced in lower levels. It's often considered cheating when students work together, but that's what happens in companies.

Links:
OECD Video Competition
OECD Forum 2012
OECD Skills Strategy
OECD Better Life Index

Business in-a-box: a global skills solution

by John Hope Bryant 
Founder, Chairman and CEO of Operation HOPE and Bryant Group Companies, Chairman, Subcommittee on the Underserved and Community Empowerment for the U.S. President's Advisory Council on Financial Capability, bestselling Inc. Magazine/CEO READ business author for Love Leadership: The New Way to Lead in a Fear-Based World (Jossey-Bass)

OECD has just launched their OECD Skills Strategy, which I fully support. I call it the global-common-sense-plan-for-educational-relevancy.The OECD Skills Strategy seeks to powerfully re-connect the power of education with youth aspirations globally, maybe for the first time in a generation.  Quoting my friend Jim Clifton, Chairman and CEO of Gallup, in his breakthrough book The Coming Jobs War, "this is the playoff game for the rest of our lives."

The roots of the crisis now gripping Greece, and Europe in general, is not social it's economics and jobs. The main complaint of the Occupy Movement is is economic in nature. The youth led riots in the suburbs of both Paris and London were rooted in economics and jobs, or the powerful lack thereof. The crisis that sparked what many call the Arab Spring, with Mohammad setting himself ablaze in Tunisia, was rooted in local economics and his job. His financial dignity. Specifically, Mohammad had his cart business taken from him, which represented for him his human and financial dignity, the way he fed his children and kept a roof over his family's head.  His job, and thus his aspirations in life, was a large part of his identity.

A young HOPE Fellow at Operation HOPE told me recently that "you cannot have social justice unless you first have economic justice." I agree, and thus the movement today has to be more about silver rights empowerment than simply civil rights justice. Or quoting my friend Richard Cordray, head of the new U.S. Consumer Financial Protection Bureau, "as John Hope Bryant told me, and I believe, if we had more consumer empowerment we would need less consumer protection."

What every young person in school around the world wants is essentially the same thing; they want a shot at "a good job," or an authentic opportunity to exercise their economic energy in a way to connects their aspiration with real and sustainable opportunity.

What if we could reconnect the power of aspiration with the power of education in our children's lives? What if a child in elementary school could start a business for $50-100 (U.S.?)? A middle school student could do the same with up to $200, or up to $500 for a high school student?  What if they could get a financial literacy course and a course in dignity, connected with a primer course in entrepreneurship?

They could select from 25 businesses that can be started for $500 or less, pitch their idea for this business in front of a live audience of business role models from their community, get a Business-In-a-Box Youth Entrepreneurship Grant, a business role model, and even a bank account--how would that change their lives? How would that bring the power of aspiration and imagination, and hope back to their educational experience? We think it changes everything. HOPE Business in-a-box, formally launched this Fall in schools across America, will channel and transform a youth’s natural aspiration and state of hope into practical and life changing action steps.  Action steps that they can move on themselves, with a little help from HOPE and our influential friends.

Now imagine this as a global solution, to the sustained youth jobs desert in developed countries today, as well as the jobs crisis from Africa, to Asia, to Latin America, to the 100 million jobs estimated to be needed soon in the Middle East, just for the youth population there. Imagine what could happen if you could double the level of financial literacy in a specific school house, and then double the level of economic energy in that same school house, and then triple or quadruple the level of business role models in that same school house, over a 5-year period of time (it will happen much sooner than that by the way).  You simply change everything in that school, with those youth.  You crush the high school dropout rate crisis in developed countries, because all youth want is a "good job" or economic opportunity.  You also set your nation up for sustained future success, because you are defining your future based on the only real asset you have – the future aspirations of your youth, and their very real connection with local GDP growth in your town, township, city, state and country.

For America, that means the 30 million young people, grades 4-12th, aged 8-18, are the farm club and bench strength for the playoff game of the rest of our lives.  How we field and play that game will decide everything pin 2025.  We are starting now.

Links:
For more information on:
John Hope Bryant
Operation HOPE Business-in-a-box 
The OECD Skills Strategy: http://skills.oecd.org