Support local business to create jobs for 12m youths entering labour market yearly, it says
By Jeph Ajobaju, Chief Copy Editor
Nigeria and other Sub-Saharan Africa (SSA) countries have been counselled by the World to implement cost-effective private sector reforms, uniform company policy enforcement, and alignment of regulations to encourage the growth of local business and create jobs.
The World Bank implored governments in SSA to help identify and support early-stage growth of businesses through more inclusive procurement practices and promotion of local businesses abroad to enhance human capital.
It gave the counsel in its latest Africa’s Pulse report, in which it equally sought investment in education to boost semi-skilled occupations.
The report also
- Reiterated the poorest and most vulnerable individuals continue to bear the brunt of economic slowdown, as weak growth translates into slow poverty reduction and poor jobs growth.
- Said Africa contributes 12 per cent of the global working-age population and SSA owns only 2 per cent of global capital stock.
- The development of labour-intensive manufacturing seems to be missing in Africa and limiting further effects of indirect job creation in support services and international trade.
- This could be partly due to the lack of capital which continues to hamper the structural transformation required for quality jobs.
__________________________________________________________________
Related articles:
World Bank reminds Tinubu, Nigeria needs urgent structural reforms to attract investment
World Bank counsels Abuja to slash CBN borrowing
World Bank warns, Nigeria’s economy too weak to tackle poverty
__________________________________________________________________
12m young Africans enter labour market yearly
World Bank Chief Economist for Africa Andrew Dabalen stressed that with up to 12 million young Africans entering the labour market each year, it has never been more urgent for policymakers to transform their economies and deliver growth through better jobs, per The Guardian.
He said the current growth rates in the region are inadequate to create enough high-quality jobs to meet increases in the working-age population.
Dabalen, who contributed to the report, noted current growth patterns generate only three million formal jobs yearly, leaving many young people underemployed and engaged in casual, piecemeal, and unstable work that does not make full use of their skills.
He said creating job opportunities for the youth would drive inclusive growth and turn the continent’s demographic wealth into an economic dividend.
Another contributor to the report, World Bank Economist Nicholas Woolley, said the urgency of job creation in SSA is underscored by the huge opportunity from demographic transitions seen in other regions.
In his view, this will require an ecosystem that facilitates private-sector development and firm growth as well as skill development that matches business demand.
The report urged SSA countries to identify interventions that will improve learning in school as well as vocational education that can be useful in addressing underemployed and those who have missed out on education as children.
It noted girl education and access to jobs for women can reduce potential productivity loss from the misallocation of female labour.