Page 20 - A Handbook for Academia, Industry and Policymakers: Reinforcing the Innovation-Employability Nexus in the Mediterranean

20 REINFORCING THE INNOVATION-EMPLOYABILITY NEXUS IN THE MEDITERRANEAN REINFORCING THE INNOVATION-EMPLOYABILITY NEXUS IN THE MEDITERRANEAN 21

Gender dimension and “waithood” THE GENDER GAP: RISING Demand-supply side bias in the macroeconomic context
EDUCATIONAL ATTAINMENT,
Youth unemployment in the region will continue to rise YET LOW LABOUR FORCE Youth unemployment in the Mediterranean region is nearly 50%1 above the EU average and the
if adequate solutions are not implemented, significantly PARTICIPATION Covid-19 crisis could potentially add to the existing challenges and leave long-lasting scars if
impacting economic growth. It is also important to note that not properly addressed. Policies and programmes addressing unemployment often focus on the
youth employment in the Southern and Eastern Mediterranean Despite the reversal of the gender supply side of the labour market, (i.e. skilled graduates) , however underlying reasons can be
5
has a gender dimension. Although the number of young women gap in education, labour force found both on the demand and the supply side .
6
attending tertiary education has increased significantly over the participation rates for women in the
past five decades, this has not translated into a corresponding MENA region have remained very On the demand side, young graduates are limited by a sluggish economy and limited job
increase in participation in the workforce. Currently, 39% of the low, a phenomenon that has come opportunities in industry. That is why they often prefer to ‘queue’ for the increasingly scarce
young women in the Southern and Eastern Mediterranean are to be known as the ‘MENA paradox’. positions in the public sector as these positions provide more job security, benefits, and a relatively
unemployed (see Table 1). These high unemployment rates for Participation in the labour force good salary. Formal private sector employment opportunities are rare since regional economies
among well educated women in North
young women are up to 90% higher than those among young Africa and the Eastern Mediterranean have yet to go through a process of structural transformation and create large scale formal
men, compared to an average gender differential of 13% is constrained by adverse structural private sector employment. Most of the region remains specialised in low added-value sectors
1
globally . Furthermore, young graduates often must wait years developments on the demand side and primary-commodity exports (e.g. agriculture, gas). Small and medium enterprises (SMEs)
before finding a job. This delayed transition into the professional such as lack of support for family account for approximately 80% of all private sector employment in the region, representing about
world is increasingly difficult as the half-life of knowledge in leave and childcare by employers . 40% of all jobs . Promoting SME growth has therefore been identified as key for both economic
18
7
today’s society has been decreasing rapidly. It is estimated to Reduced public sector employment growth and political stability . Yet, access to financing continues to be one of the greatest
8
be just five years – for software engineers, this number is even opportunities has not been challenges for the region’s SMEs. Private-sector development therefore is another critical part
4
counterbalanced by an increase in jobs
less at 12–18 months. The delay young people experience in in the formal private sector, leading to of the solution. Access to finance, increasing IT connectivity, and reducing regulatory burdens for
starting their professional life also negatively affects pathways a decrease in overall participation, and small businesses and support for entrepreneurs are significant enablers.
to adulthood, including life-partnerships, homeownership, and in particular, women’s participation in
participation in civil society. This postponement of adulthood the work force. On the supply side, there have been many factors at play, two that are closely linked to higher
has been coined ‘waithood’, reflecting the waste of potential and education:
youthful energy that typically drives innovation.
• The population increase in the region in the early 1990s and the 2000s, and the almost doubled
higher education participation that has now reached 40% across the Southern and Eastern
1
Mediterranean. This trend has been driven by the view that human capital is essential for
Unemployment rates in the Mediterranean Region compared with World and EU by sub-region and gender economic and social progress. However, the growth has also dramatically increased the number
Table 1 of job seekers competing for available jobs.

Total Youth Youth-Female Youth-Male
2019 Figures (World Bank ILO) 1 • Higher education institutions that struggle to prepare graduates with the employability skills
Unemployment Unemployment Unemployment Unemployment
expected by employers, in particular, by the private sector. This skills mismatch between
World 5% 15% 17% 15% university curricula and business requirements has been a constant issue on the policy agenda
EU 7% 17% 17% 17% in recent years.
Mediterranean Countries* 11% 25% 31% 24%
EU Mediterranean Countries 9% 21% 22% 20% Demographic and social change in the Mediterranean region 1
Southern and Eastern 13% 30% 39% 27%
Mediterranean Countries
The population
Source: World Development Indicators. The World Bank: Databank 1 The population
in North Africa of the population
in North Africa
40%
25
has doubled in 40% of the population
is under
has doubled in
is under
the past 20 years the age of 25
the age of
the past 20 years
70%
At 25%, 70% In certain areas of the region,
At 25%,
In certain areas of the region,
gender gaps
the labour market has significant
the youth more than the the labour market has significant
gender gaps
the youth
more than the
unemployment world average
unemployment world average