Youth Employment Trends & the Impact of New Salaries on Employability

The global youth unemployment rate in 2023 presents a significant concern, particularly as the International Labour Organization (ILO) has released its report titled “Global Youth Employment Trends 2024,” showing a generally positive outlook for young people entering the job market.

According to the report, the employability of young individuals in Mauritius is on track to be influenced by recent changes in salary standards.

Four years after the onset of the COVID-19 pandemic, the employment prospects for young people aged 15 to 24 have shown improvement.

This positive shift is driven by global economic growth and a rebound in labor demand, as noted in the ILO report.

Last year, the worldwide youth unemployment rate stood at 13%, marking the lowest level in fifteen years, with a total of 64.9 million young people unemployed worldwide.

In Mauritius, Areff Salauroo, the president of the Association of Human Resource Professionals of Mauritius (MAHRP), indicated that local youth have found job opportunities due to a labor shortage in the country.

Data from Statistics Mauritius reveal that youth employment rose by 11,400, from 46,200 in 2022 to 57,600 in 2023.

Consequently, the youth unemployment rate has dropped significantly by 6.9 percentage points, from 25.1% to 18.2%.

Salauroo attributed these statistics to the current phase of adaptation that young individuals are undergoing, with many still searching for their career paths.

He is optimistic that the youth unemployment rate will continue to decline in the coming months.

Recent government measures regarding salary increases for graduates may also affect this trend.

The new minimum salary for a diploma holder is now Rs 23,000, while those holding a degree will receive Rs 25,000.

According to Salauroo, this adjustment in wage levels is expected to generate enthusiasm in the job market.

Global Challenge of NEET Youth

The report highlighted a troubling global trend regarding NEET (not in employment, education, or training) youth, where two-thirds of these individuals are women.

The NEET rates in 2023 stood at 28.1% for young women and 13.1% for young men.

The report also addressed rising anxiety levels among young people, driven by several factors:

• The fear of job loss
• Job stability
• Economic conditions
• Lack of social mobility between generations
• The challenge of achieving financial independence

In Mauritius, the unemployment rate among the lowest age groups remains the highest, gradually decreasing with age.

In 2023, the youth unemployment rate was 18.2% for those under 25, compared to 2% for those aged 50 and over.

As of the first quarter of 2024, the number of unemployed youth aged 16 to 24 was estimated at 13,400 (6,200 males and 7,200 females), compared to 12,200 (5,900 males and 6,300 females) in the previous quarter and 13,800 (7,000 males and 6,800 females) in the first quarter of 2023.

The youth unemployment rate also decreased from 20% in the first quarter of 2023 to 18.9% in the same period of 2024.

During this timeframe, the male youth unemployment rate dropped by 1.6 percentage points to 16.5%, while the female rate decreased by 0.7 percentage points to 21.6%.

Year-on-Year Developments from 2013 to 2023

Over the past decade, the youth unemployment rate has exhibited a clear downward trend, falling from 23.2% in 2013 to 18.2% in 2023.

Initially, the rate climbed to 26.3% in 2015 before decreasing to 22.8% in 2019, and then rising again to 27.7% in 2021.

A notable drop to 18.2% has been recorded in 2023, with the total number of young unemployed individuals at 12,800, comprising 6,200 men and 6,600 women, a decrease from 7,900 men and 9,700 women in 2013.

As the world continues to navigate the complexities of the post-pandemic labor market, the evolving conditions for youth employment will remain an essential focus for policymakers and stakeholders alike.

Source: Defi Media