Business
‘Youth Unemployment To Hit 75m In 2012’
The number of unemployed young people worldwide will reach nearly 75 million this year, according to new statistics released on Monday by the International Labour Organisation (ILO).
A statement, which was released in New York on Monday, said the figure was four million higher than in 2007 and the projected numbers were expected to drop by 2016.
It said that while the global economic crisis meant that youth in all regions had been affected but those in developed countries have been especially hit hard.
According to the statistics, the situation remains stable in sub-Saharan Africa where youth unemployment rate of 11.5 per cent has held since 2005.
It stated that large increases were experienced especially by the developed economies and European Union, Central and South-Eastern Europe (non-EU, Latin America and the Caribbean and South Asia.)
It said in the developed economies and European Union, as well as in South Asia, little progress had been made in rolling back the impact of the global economic crisis.
It said that in North Africa, the youth unemployment rate had increased sharply following the Arab Spring, rising by almost five per cent between 2010 and 2011 adding to an already very high level of youth unemployment in the region as well as the Middle East.
The statistics said large differences in regional youth unemployment rates remained, while all regions face major youth employment challenges.
“Even in East Asia, the youth unemployment rate in 2011 was 2.8 times higher than the adult rate.
“Apart from the immediate negative economic and social effects of high youth unemployment, it is important to consider its detrimental effects on future employment and wages,”it said.
On the economic crisis and youth labour force participation, the statistics noted that many young people are discouraged by high youth unemployment rate and have therefore given up the search for a job or postponed it to pursue their studies.
“If the unemployment rate is adjusted for the drop-out induced by the economic crisis, the global youth unemployment rate for 2011 would rise from 12.6 per cent to 13.6 per cent.
“The crisis-induced withdrawal from the labour force amounts to 6.4 million young people worldwide, and is particularly pronounced in the developed economies and European Union.
“Pressure on young job seekers will mount further when those young people that have been delaying their entry into the labour market will return to activity, and start searching for work,” the statement said.
It said in contrast, youth participation rate in Central and South-Eastern Europe (non-EU) was higher than expected on the basis of pre-crisis trends, which was likely to be partly poverty-driven.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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