Unemployment In Emerging Markets- The Big Picture

Unemployment In Emerging Markets- The Big Picture

Overview

    Emerging markets continue to face challenges in terms of economic growth. In addition to political instability, policy uncertainty, education problems and rising poverty levels, emerging markets have to contend with the challenge of alarmingly high rates of unemployment.  

    More about unemployment in emerging markets: 

    The sharp rise in unemployment has been driven by recessions in large economies in various regions across the world. Some regions, like Africa, are slowly recovering from recessions; which means that they look set to slightly improve employment prospects. 

    Targeted measures are needed to tackle barriers in the creation of private sector jobs. This may mean that companies need to be more proactive, by employing individuals with the potential to develop a particular skill set. 

    Possible causes of unemployment in emerging markets include high rates of income instability as well as political and social instability. Barriers to entry such as race inequalities continue to feature. 

    There has also been a decline of trust in institutions among job seekers, while there is a lack of leadership and persistent gender inequalities. 

    While in the emerging markets there are more jobs to be had, the workforce does not yet possess the broad based sets of skills necessary to satisfy demand. 

    Emerging economies that have the largest and fastest-growing populations of young people also have the worst-run labour markets. 

    One of the main reasons for unemployment in emerging markets is the mismatch is the type of skills demanded and those supplied may be poor basic education. 

    Challenges that cause unemployment in emerging markets include low growth, clogged labour markets and a mismatch between education and work. 

    Countries with long traditions of high-quality vocational education and apprenticeships have been able to reduce youth unemployment. 

    Companies also need to be more willing to invest in training as a measure taken to curb unemployment in emerging markets.

    Categories: Business

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