All over the world, this week is dedicated to youth, as 12 August was International Youth Day, which sparked a series of discussions and debates about the needs and opportunities of this age group in the development of societies.
In order to better understand the role of young people in the national economy, the opportunities and their needs, DE spoke to some economists who are unanimous in saying that it is imperative that the government and other social and economic players promote initiatives that can improve education, especially technical vocational education, as well as the capacity of the labour market to absorb the large number of young graduates, whether by creating favourable conditions for the growth of the private sector, promoting youth entrepreneurship, or public policies that encourage the formalisation and training of the workforce.
For economist Estrela Charles, although the country has a larger number of young people, they are not contributing to the nation’s growth and development for various reasons, one of which is the issue of illiteracy or access to education. ‘Of the number of young people we have, more than a third, or more than 33 per cent, are illiterate, because they can’t read or write.
This is very important data and when we add the number of young people who only have a primary level education, which is 18 per cent, it means that we arrive at around 50 per cent of young people who can neither read nor write. This means that more than half of this population is automatically eliminated from the labour market precisely because of the issue of education,’ he described, adding: ’one of the factors that also leads to this issue is social inequality, because young people suffer the impacts of inequality in the distribution of income/wealth.’
Estrela Charles
Continuing her explanation, the economist emphasised: ‘We have a country that shows economic growth figures. Our Gross Domestic Product (GDP), our production is increasing, but this growth doesn’t benefit everyone, which means that there is great inequality.
We still have a very high number of poor people who are getting poorer, and rich people who are getting richer. So it’s the young people who are on the side of those who are getting richer who have access to quality education and then access to employment. But these are the minority.’
‘Access to housing is also a big challenge for young people. They don’t have the opportunity that those of the past generation had, which is access to land, whether for production, housing or any other activity. Young people find it very difficult to access these things.
Then there’s the big challenge of social and political participation, because young people don’t participate in drawing up public policies for their own benefit, nor in implementing them, and even less in monitoring these policies when they are implemented by the government,’ explained Estrela Charles.
“Of the number of young people we have, more than a third, or more than 33 per cent, are illiterate, because they can’t read or write.This is very important data and when we add the number of young people who only have a primary level education, which is 18 per cent, it means that we arrive at around 50 per cent of young people who can neither read nor write.This means that more than half of this population is automatically eliminated from the labour market precisely because of the issue of education“
Estrela Charles
For his part, Egas Daniel, a senior economist at the International Growth Centre (IGC) at the London School of Economics (LSE), citing data from the National Statistics Institute (INE) published in 2022, believes that the Economically Active Population (EAP) in Mozambique, which totals approximately 11.9 million people, has a very peculiar and challenging structure for the country’s economic development.
‘The majority of this population, around 52 per cent, is made up of young people who are self-employed, many of whom operate informally and face difficulties in accessing markets, capital and technical training. Another significant group, representing 33.7% of the EAP, is made up of unpaid workers who, despite their contribution to the domestic economy, have no income of their own and remain on the margins of formal labour dynamics,’ he said.
‘Only 11.1 per cent of the EAP is made up of salaried workers, reflecting the limited supply of formal jobs in the country. Within this restricted group, 4.1 per cent are employed by the government and public sector, which, despite being a stable employer, faces challenges in expanding and absorbing more workers due to fiscal limitations and the need for reforms in the public sector.
The private sector, meanwhile, absorbs 6.9 per cent of EAP, showing its still limited capacity to generate formal jobs. This scenario demonstrates the fragility of the labour market, which is predominantly informal and has a low capacity to absorb qualified labour,’ pointed out the IGC economist.
The Economically Active Population (EAP) in Mozambique, which totals approximately 11.9 million people, has a very peculiar and challenging structure for the country’s economic development.The majority of this population, around 52 per cent, is made up of young people who are self-employed, many of whom operate informally and face difficulties in accessing markets, capital and technical training.Another significant group, representing 33.7% of the EAP, is made up of unpaid workers who, despite their contribution to the domestic economy, have no income of their own and remain on the margins of formal labour dynamics
Egas Daniel
Data from the World Bank (2023) indicates that around 500,000 young people enter the labour market in Mozambique, while the market is only able to absorb around 30,000. ‘This continuous flow of new workers puts immense pressure on a market that is already characterised by an insufficient supply of formal jobs. With the labour market unable to generate enough jobs to absorb this growing workforce, many young people are forced to look for alternatives in the informal sector, where working conditions are often precarious and lack social security and other benefits,’ explained Egas Daniel.
Solutions…
Estrela Charles said that one of the ways ‘we can harness the power of young people for development and economic growth is through education and technical and professional training.
We have to teach young people how to do things. When we have a young person who knows how to do things, whether it’s carpentry, mechanics, or electricity, or any other technical and professional area, we’ll have a young person who can earn an income for their own sustainability. You can also take advantage of young people in terms of youth entrepreneurship and access to credit.’
Around 500,000 young people enter the labour market in Mozambique, while the market can only absorb around 30,000.
World Bank
The researcher and economist pointed out: ‘In this case, we can contribute so that more young people can have a greater say in terms of policy design and greater participation in society. We have to end the inequalities between young people, because some have more opportunities than others. There are young people who benefit more from public policies and there are young people who don’t.’
Egas Daniel
‘The National Statistics Institute did an analysis and came to the conclusion that 30 per cent of young people don’t study due to lack of interest. So we’re realising how serious our youth is in Mozambique. Maybe these young people have lost hope in terms of employment, because they know that even if they study they won’t have access to a job, that even if they study they won’t have access to the best income, that even if they study they will continue to have various difficulties,’ concluded Estrela Charles.
For Egas Daniel, ‘the empirical literature on economic development and youth suggests that the key to boosting the Mozambican labour market lies in increasing the productivity of these companies, promoting the training of young entrepreneurs and facilitating the connection between supply and demand for employment. Measures such as mapping current and future needs for qualified workers, in partnership with business associations, are crucial to diagnosing and filling the gaps in the labour market.’
The source believes that promoting technical and qualified training, aligned with the needs diagnosed by companies, can be a driving force for getting young people into the labour market. Partnerships with recognised international institutions can raise the level of quality of the training offered locally, preparing young people to face the challenges of the globalised labour market.
‘Evaluating and funding business plans is another effective strategy for fostering youth entrepreneurship. Organising business plan competitions, where the best proposals receive partial funding, can stimulate innovation and the creation of new jobs, especially if complemented with management training to ensure business sustainability,’ he suggested.
Nário Sixpene (DE)
