Rim El Habibi, Senior Associate, Public Engagement; Tel.: +41 (0)22 869 3639, Rim.ELhabibi@weforum.org
Geneva, Switzerland, 14 October 2014 – The problem of chronic youth unemployment, which has persisted in resource-endowed economies of the Arab world even as they have enjoyed significant economic expansion, could be solved by putting in place conditions conducive to young people taking greater control of, and responsibility for, their own career paths, according to a new report, Rethinking Arab Employment, launched today by the World Economic Forum. With young people representing a demographic majority in the region, high youth unemployment, coupled with generally low labour force participation rates, represents the biggest drag on its economic prospects. It also poses a challenge to building on its success in developing world-class industries and urban centres.
The challenge is largely on account of the social contract established between the state and its citizens, which holds back a significant number of young people from becoming productively employed in the private sector. The current employment system makes the public labour market more attractive than the private one for young nationals, and renders the non-national labour force relatively more attractive than the national one for private employers.
This, in turn, has led to a saturation of the public labour market, as well as its closure to non-nationals. With stakeholders now aligned around the need to increase productive employment, not only employment, in the private sector, the challenge is for government, business and civil society, including young people, to find ways of working together to achieve this objective.
“By adapting the social contract to allow young people to become more independent, creative, motivated and responsible, the ground can be prepared to implement necessary interventions that address youth unemployment in an effective and sustainable manner,” said Kristel van der Elst, Head of Strategic Foresight, World Economic Forum.
“Acting today might incur short-term costs, but will enable these countries to fully capitalize on their ‘youth dividends’ and avoid greater risks down the road,” says Miroslav Dusek, Senior Director, Head of Middle East and North Africa, World Economic Forum.
The comprehensive analysis of the employment system in Gulf Cooperation Council economies outlined in the report is based on a consultation that engaged leaders from business, government, civil society and academia, between August 2013 and January 2014. It is aimed at helping stakeholders to reach a common understanding of the structural reasons for youth unemployment and to design effective interventions.
Notes to Editors
Full Report is available at : http://wef.ch/nvae
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