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Tag: Youth unemployment

  • Ghana’s youth unemployment hit 7.16% in 2023 – AfDB

    Ghana’s youth unemployment hit 7.16% in 2023 – AfDB

    The African Development Bank (AfDB) has reported that Ghana’s youth unemployment rate reached 7.16% in 2023, with the issue being particularly severe among those aged 15 to 24.

    This information comes from the AfDB’s updated 2024 Africa Economic Outlook, which underscores a significant gender disparity in youth unemployment rates.

    According to the report, unemployment is notably higher among young women than their male counterparts. Female youth unemployment reached 36.7%, while the rate for males was 29.3%.

    The report also highlights a slight increase in multidimensional poverty, rising from 46% in 2017 to 46.7% in 2022, a trend largely attributed to the lingering effects of the Covid-19 pandemic.

    Rising youth unemployment in Ghana has become a growing concern, leading to calls for intensified structural transformation.

    The AfDB report points out that productivity in the services sector, the largest employer in the country, has stagnated. Meanwhile, gains in industry and agriculture have remained modest.

    The report notes a significant shift in employment shares across sectors. Agriculture’s share of employment fell from 53.9% in 2007 to 29.8% in 2019. In contrast, industry’s share increased from 14.1% to 21.0%, and the services sector saw its share rise from 31.9% to 49.2%.

    To accelerate Ghana’s structural transformation, the AfDB suggests several measures. These include enhancing competitiveness by addressing infrastructure bottlenecks, accelerating agro-industrialization through skills development and value addition, and bolstering private sector growth.

    Additionally, the report emphasizes the need for a robust policy framework to support technology adoption and innovation.

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  • Youth unemployment in China hits  all-time high of 21.3%

    Youth unemployment in China hits  all-time high of 21.3%

    China’s youth unemployment rate has reached a new all-time high as the country’s post-pandemic economic recovery faces challenges.

    According to official data, the jobless rate for young people aged 16 to 24 in urban areas rose to 21.3% in the previous month.

    This increase comes as the world’s second-largest economy reported a modest growth rate of only 0.8% in the second quarter of the year.

    The sluggish pace of growth has led analysts to anticipate that the authorities may introduce fresh measures aimed at stimulating the economy.

    China’s National Bureau of Statistics said the data “showed a good momentum of recovery”.

    According to official figures released on Monday, the Chinese economy grew by 6.3% in the second quarter on an annual basis. It outstripped growth in the first quarter but missed analysts’ expectations.

    “The disappointment is particularly evident in retail sales and housing investment,” Qian Wang, Asia Pacific chief economist at investment firm Vanguard, told the BBC.

    “This, coupled with earlier trade, inflation and credit reports, reaffirmed our view that the underlying growth momentum is still very weak,” she added.

    Global demand for Chinese goods has fallen significantly. There are also concerns over ballooning local government debt and the housing market.

    Economists are closely monitoring youth employment in China, particularly as a significant number of university graduates, expected to reach a record 11.58 million, enter the job market this year.

    The unemployment rate among urban youth has been steadily increasing for several months. This can be attributed to various factors, including a mismatch between graduates’ skills and the available job opportunities.

    Authorities have acknowledged that youth unemployment is likely to continue rising in the coming months, with a peak anticipated around August.

    According to estimates by Dan Wang, the chief economist at Hang Seng Bank China, unemployed young people constitute just 1.4% of the potential workforce in China’s urban areas.

    Last month, China’s central bank cut interest rates for the first time in nearly a year to encourage more spending. But experts say the government still has more weapons in its arsenal to stimulate the economy should the situation fail to improve.