By Denis Pennel for staffingamericalatina

While 2015 has seen a return to growth for many markets, the news on youth unemployment continues to cause concern in some regions. The ILO 2015 World Employment Social Outlook released earlier this year suggested that while many employment indicators looked more rosy, unemployment among 18-25 year olds was potentially on the rise in Latin America.

So what approaches do we need in order to reverse this trend and how can we drive up jobs and opportunities for young people over the longer term and into 2016?

Policies tailored to young people’s needs

It is important to understand that young people need specific approaches. Not only do they need to learn skills that are needed in the job market but they then need career guidance and advice in securing a job and then transitioning from one job to another. Keeping young people close to the labour market and in work – whether full-time or part-time – is crucial to maintaining their employability and keeping their skills up-to-date with the needs of employers.

If youngsters spend too long without being either in education or in work then they run the risk of being marginalised. Very quickly they can find themselves outside of the system and so weaken their chances of reintegrating into the labour market and into society. Last year an ILO report showed that of the 100+ million people under 25 in Latin America and the Caribbean, some 14% of them were unemployed. Unemployment among youngsters aged 15-24 was twice as high as the average rate and they face greater difficulties in securing a job. Of particular concern is the high number of young people known as NEETs – not in employment, education or training. Comparisons can be drawn on a global scale too with both Europe and the US experiencing youth unemployment levels that are significantly higher than among the general adult population.

There are a number of practical actions that can be taken to address this.

Leveraging the opportunity presented by Economic growth

Economic growth is an important factor in creating jobs for young people, and specific policy measures aimed at helping young people and providing them with the training they need to undertake the jobs available are a key requirement.  Today, not only are the Latin American economies growing, but the region has the best-educated young generation that it has ever had. We need to capitalise on this by matching training skill-sets with the demands of the labour market and let these young people get a foot on the employment ladder. The economic and social cost of ‘losing’ an entire generation of young people is too high to contemplate and we should set in place policies now to support their integration in the workforce and fight undeclared work.

Providing training and support in the world of work

The recruitment and employment industry provides an important stepping stone for young people to enter the world of work. Most are unemployed before they enter the labour market and the majority continue in employment for the following twelve months and also make transitions once in the labour market – from part time employment to full-time employment and from declining industrial sectors to growing sectors. Ciett data reveals that the majority of agency workers in Colombia and Mexico are under 30 – some 66%. This figure is even higher in Argentina and Brazil where over 75% of agency workers are less than 30 years of age. The training of agency workers through bi-partite funds set up by agencies and trade unions provide extensive skills training to young people in the Latin American markets – particularly in Brazil and Mexico.

Effective PPP in the labour market

Another initiative that is important for integrating young people into the labour market is a good cooperation between the public and private employment services. By working in tandem, the public and private sector can match people to jobs better and faster and train youngsters with the skills that they need. Both the US and Europe have seen successful PPP initiatives with the two services increasingly working together in addressing labour market challenges. This could offer an important opportunity for South American markets too.

Markets around the world that overhauled their labour markets have weathered the economic downturn more successfully than those who delayed and have been able to bounce back more quickly. Certainly when it comes to youth unemployment they have understood the policies that can make a difference and have acted quickly to set in place a legal framework that encourages employers to hire young people and to train them to do the jobs that are available. Countries around the world need to foster flexible, adaptable and inclusive labour markets that enable job creation. This will result in a reduction of undeclared work and a greater labour market participation for everyone – including our youngsters under the age of 25.

About Denis Pennel

Managing Director of Ciett and Eurociett, Denis Pennel is a labour market expert with deep knowledge and years of experience relating to employment at global and EU levels. He recently published “Travailler pour soi”, a book about the new realities of work.

Follow Denis on Twitter @PennelDenis

About CIETT

As the International Confederation of Private Employment Services, Ciett is the authoritative voice representing the interests of agency work businesses. Founded in 1967, Ciett consists of 51 national federations of private employment agencies and eight of the largest staffing companies worldwide. Its main objectives are twofold: to help its members conduct their businesses in a legal and regulatory environment that is positive and supportive; to gain recognition for the positive contribution the industry brings to better functioning labour markets.

Follow Ciett on Twitter @ciett_waytowork