In a ‘post’-covid context, it is crucial to reconsider the role of the youth population in economic recovery and advancement. Particularly in the case of the MENA (Middle East & North Africa), which records among the highest levels of youth unemployment at 27.3% in 2021.
The MENA region disproportionally feels the effects of youth unemployment, well beyond the global rate (17.93% in 2021). Its rapidly growing population leads to a demographic spread consisting mainly of young people creating a peculiar economic and political landscape. While acknowledging that the standard analysis of youth unemployment tends to rely upon a simple demand/supply framework and cannot depict an accurate picture of the complex job markets across the MENA, it does indicate high levels of unemployment among the educated youth.
Critics often argue for the role of the current education system and its inability to provide students with the skills required in the workforce as a contributing factor to the underdevelopment of MENA, but the issue is far more complex. Specialized formal work is inaccessible for middle-class university graduates and educated youth struggle extensively to find employment matching their skill level. Across the MENA countries, the association between education and the labor market declines over time, and the returns to education are among the lowest.
Inaccessibility, instability and the lack of social benefits in the private sector are among the factors which contribute to the concerns, fear, and frustration of young educated individuals across the region. Indeed, young people often lack the connections necessary to transition from the education system into the formal workforce. Without possessing personal ties with someone within the workforce or coming from a family with the financial means to support them in their job search, it’s often a dead end. The reality is that their families often rely upon them to generate revenue and contribute financially, not the other way around. Moreover, accessing the formal job markets proves to be as difficult as maintaining the job obtained. These employment issues feed into the vicious cycles of generational poverty by making it increasingly difficult to navigate the social ladder, despite obtaining higher levels of education.
Without access to the formal public job market, the younger generation turns to the informal sector as a safety net. Despite its unsatisfying working conditions, instability and low wages, the informal sector provides easily accessible employment opportunities. However, it puts young people in a vulnerable position with high social and economic costs with a lack of social protection, unsafe conditions and long working hours. Furthermore, its prevalence within society disrupts existing state efforts to expand the country’s inclusive economic development or reduce poverty. Despite its benefits to the mass population, the informal economy represents a persistent obstacle to sustainable development for countries in the MENA region.
To address these issues and drift away from the previous recommendations of the IFIs (Inclusive Financial Institutions), some countries in the MENA have been introducing new policy plans and implementing changes in the education system. Such is the case of Morocco and its newly elected Head of Government, Aziz Akhannouch. Akhannouch has recently discussed the approach of a new phase for Morocco’s development; a phase focused on the construction of a social state through the allocation of larger budgets to the health sector and towards strengthening the public education system. Further, during the recent World Economic Forum, Akhannouch brought up issues surrounding the integration of Moroccan youth within the formal job market and the consolidation of the economic, social and ecological transitions awaiting the country.
Among the MENA countries, Morocco has recently observed an increase in school enrolment rates and completion, along with greater levels of adult literacy. A large portion of Moroccan youth (60.6%) holds at least a medium level diploma. Despite these numbers, the youth remains heavily affected by employment issues, and due to the recent pandemic, the pre-existing issues have been compounded. Around 29.7% of young Moroccans and a drastic 61.2% of young people with a higher education degree are currently jobless, according to the latest (2022) report of the High Commissioner for planning. Indeed, despite having an ‘accessible’ education system, the returns on education as an investment remain low similar to other MENA countries.
This is indicative of profound structural issues within Morocco as inequality appears to be politically salient in the country. While the youth bulge is used to represent the country’s growth and development potential, it also indicates the presence of a series of challenges. If opportunities remain limited and frustration grows among the youth, they may increasingly turn to emigration as a means to utilize their degrees.
The Moroccan case is peculiar because of its structural labor market disequilibrium where, despite the moderate GDP growth, the amount of unemployed workers in the job market is rapidly increasing. Some contributing factors include the advancing labor productivity observed in the dominating markets such as agriculture and the decline of Morocco’s manufacturing employment. While it holds a negative impact on employment opportunities, the improved labor productivity is also an indicator of investments in technology improvement and increased capital investments.
Overall, exogenous factors play an important role in the high levels of youth unemployment, but in many cases such as Morocco, the problem is structural which means that agency and policy hold important roles in the economic advancement. Economic diversification and the creation of further employment opportunities is a possible path of action, however it may further perpetuate the existing systems and inequalities.
While through this article the MENA region is addressed as a whole, different countries face varying challenges surrounding education, youth opportunities and employment. They may share a few common factors, such as relatively volatile GDP growth rates, the root causes of labor markets differ drastically between energy importers (i.e. Algeria, Morocco) and energy exporters (i.e. Saudi Arabia) whose economic markets and demography are constructed differently. This implies that one-size-fits all policy plans are not sustainable in the long term and their benefits won’t trickle down to the working class. Plans tailored to the country’s characteristics and needs, created with the help of youth, are adapted to the social and cultural setting and are beneficial in the long term.
Edited by Isaac Yong
Hajar is a third-year student in International Development Studies and Political Science. She is a first-time writer and her areas of interest include the long-term effects of climate change on migration and international security issues.