IPAR-IDRC Regional Conference on Youth Employment, Kigali, Rwanda, Lemigo Hotel

School-to-work Transitions of the Youth in Uganda

Edward Bbaale

Center for Basic Research and Makerere University, Kampala-Uganda

11/24/2014 IDRC Youth Regional Workshop 24th-25th 2014, Kigali-Rwanda

Flow of the presentation• Introduction and study concern

• Objectives of the study

• Methodology

• Findings

• Recommendations


Introduction• Globally, the population of the youth has grown

exponentially.

• As a result, the number of unemployed youth has rapidly risen.

• The number unemployed youth was 73.4 million as of 2013 (ILO, 2012).

• Uganda’s current population is about 35 million.


Objectives of the study

• To enhance a deeper understanding of why the youth encounter difficulties in entering and remaining in labor markets.

• The prevailing labor market surveys are deficient in this aspect.

• Do not examine contract situations, earnings, job satisfaction, and not the ease or difficulty of the SWT.


Methodology

• The primary sampling units in this regard were the households.

• A multi-stage stratified sampling design was used.

• Analytically, we presented descriptive statistics using cross-tabulations, graphs and charts for the variables of interest.


Results: Age cohorts


15-19 20-24 25-29 30-34

14%

47%

24%

16%

Results: Gender distribution


Male Female

57%

43%

Mobility of unemployed youth: willing to move to another location to find work


No Moving tocapital city

Move totown/cityother thancapital city

Moving to arural area

Moving toanothercountry

No preference

20%

26%

35%

3%5%

11%

Share of early school leavers and the reasons for leaving school


Finished thecourse

Failed exams Wanted to startwork

To get married Economic reasons (Couldn’t afford)

Other

20%

1%5%

2%

71%

3%

Some characteristics of the youth in Education


Future aspirations of the youth in education


Look for a job Stay at home Further studies Don't know Other

67%

1%

16%

1%

15%

Ever stopped education to work and re-entered at a later date


Reasons for re-entering the education system


Couldn't findsuitable work

Neededdifferent

education tochange career

Wasn’t sure what I wanted

to do yet

Finally hadsufficient

money to payfor education

Not ready to face the

‘working’ world yet

Other

3%

60%

1%

29%

4% 3%

Highest education level the youth aspire to attain


Vocationaltraining

SecondaryEducation

University Post-graduatestudies

Other

12%

2%

57%

28%

1%

Reasons for the choice of the field of study


Job prospects Prestige/self-esteem An easy field Field of study done bypeers

Field of study likedby parents

70%

19%

8%

2% 1%

Some characteristics of the unemployed youth

11/24/2014IDRC Youth Regional Workshop 24th-25th

2014, Kigali-Rwanda

Duration of unemployment


Less than amonth

A month Six Months One year More than a year

4%7%

14%

22%

53%

Discouraged Unemployed youth

• Is one who is currently inactive for a reason that undertaking a job search would be a futile effort.

• 64% of the youth in our sample are discouraged .


Discouraged Unemployed youth


Believe no suitable work available (in

area of relevance to one’s skills

Lack of employers'requirements

(qualifications,training, experience,

age, etc.)

Could not findsuitable work

Don't know how orwhere to seek work

8%

22%

25%

9%

Job reservations of Unemployed youth

• We gauged the relative urgency of the job search among unemployed youth by determining:

(i) if they have ever refused a job offer

(ii) if so, for what reasons

(iii) under what conditions they would accept a job offer.


Ever refused a job offered to you


Why refuse a job offer


61%

6% 6% 4% 2% 4% 4% 4%8%

Conditions for the youth to accept any job


Accept any job,whatever the

conditions

Accept any job,provided it was

stable


well paid


appropriate to myqualification

Accept a job onlyif it was stable,

well paid and if itwas appropriate

to my level ofqualification

Other

31%

12%

35%

7%

13%

3%

Is there a minimum wage below which you would not work


Some characteristics of the employed youth


Quality of employment

• The thresholds for “good” and “bad” and hence decency of employment are difficult to determine.

• At the minimum, “decent” employment can be according to the permanency of the contract and the job satisfaction of the person in question.


Type of employment contract


I do not have one I have an oralcontract of

unlimited duration(Permanent)

I have an oralcontract of a limitedduration (temporary

I have a writtencontract of

unlimited duration(permanent)

I have a writtencontract of a limited

duration

52%

28%

11%9%

0%

Extent of satisfaction with the job


Are you hoping to change the job


Some characteristics of the Self-employed youth


Becoming self-employed

• Self-employment for the young worker is argued to be both voluntary than involuntary in nature.

• “Voluntary” motives for choosing self-employment include the desire for:

(a) greater independence,

(b) more flexible working hours, and

(c) higher income.

• “Involuntary” motives include:

(a) could not find a wage job and

(b) no other family member available to take care of the family business


Reasons for choosing self-employment or own account worker


2014, Kigali-Rwanda

Could not find awage or salary

job

Greaterindependence

More flexiblehours of work

Higher incomelevel

Other

35% 35%

4%

20%

6%

Source of start-up capital


5%

61%

25%

4% 3% 1% 0% 1%

Benefited from a youth enterprise development fund


Were the funds allocated to you sufficient


Are government programmes addressing youth unemployment?


Government programmes are innovative in addressing youth unemployment


Job Search methods of the unemployed youth


2014, Kigali-Rwanda

Taken steps to find work or establish own business last month


Steps taken to seek work in the last month


Througheducation/training

institution

Checking atworksites

Answering adverts Throughfriends/relatives

Looking for land,machinery,

equipment toestablish own

business

Arranging forfinancial resourcesto start a business

4%

37%

15%

34%

3%

7%

Received assistance from Employment services


Main Obstacle for finding a good job


26%

17%

3%5%

24%

2% 3%

7%

3%

10%

What can be done to address these obstacles?


20%

4%

34%

13%

0%

10%12%

7%

Education/Training Received useful in getting a job


Very useful Somewhat useful Not useful Do not know

29%

34%36%

1%

Job search methods and duration of search


Search Strategies/duration of unemployment

Less

than a

month

A

month

Six

months

One

year

More

than

one

year Total

Through Education/training Institution 0 0 17 67 17 4

Checking at work sites 2 3 19 19 58 37

Answering adverts 4 9 17 39 30 15

Through friends and relatives 0 8 13 21 58 34

Looking for land, building,

machinery/equipment to start own enterprise 0 25 0 25 50 3

Arranging financial resources to start a business 0 8 8 15 69 8

Source: own Survey data set

STAGES OF TRANSITION

• Matsumoto and Elder (2010) define a youth who has ‘transited’ to be one currently employed in:

(i) a fixed-term and satisfactory job;

(ii) a fixed-term but non-satisfactory job;

(iii) a temporary but satisfactory job; or

(iv) self-employed and satisfied11/24/2014 IDRC Youth Regional Workshop 24th-25th 2014, Kigali-Rwanda


• A youth “in transition” has either of the following current statuses:

(i) employed in a temporary and non-satisfactory job;

(ii) in wage & salaried employment with no contract;

(iii) self-employed and unsatisfied;

(iv) in unpaid family employment (both satisfactory and non-satisfactory);

(v) unemployed; or

(vi) inactive and not in school, with an aim to work later.



• A youth “not transited” has either of the following current statuses:

(i) still in school; or

(ii) inactive and not in school, with no intention of looking for work.


Average percentage of the employed youth by transition status


2014, Kigali-Rwanda

Mostly satisfied Mostly unsatisfied Overall Transition Status

No contract 33 67 52 in transition

Permanent contract 52 48 36 Transited

Temporary contract 46 54 11 46% transited, 54% in transition

Source: own Survey data set

Conclusions and implications• Governments should be mindful of the influx of the youth

to urban centers.

• Need to re-orient the education system to make it more relevant to the job market. Majority of the youth re-entered the education system.

• Government needs to demystify the association of vocational education to failures. The majority of the youth look at university education as a sign of success.

• The government needs to put in place a legal framework that ensures a minimum wage.

• The majority of the youth do not have employment contracts


Conclusions and implications• Youth chose self-employment for both voluntary and

involuntary motives; greater independence, higher income level, couldn’t find a wage/salary job. Conducive environment required.

• Self-employed youth obtained start-up capital from own savings. Yet very few youth ever benefited from government youth fund. Need to strengthen the programme.

• The majority of the youth argued that government programmes were not addressing youth unemployment and were not innovative.


2014, Kigali-Rwanda

Conclusions and implications

• Job search is dominated by informal methods like social networks and checking at worksites. Need to make public employment services functional.

• The leading obstacles to finding a good job are no education, unsuitable general education, and not enough jobs.

• Solutions suggested are providing financial help, technical education, and entrepreneurship training.

• Some job search methods become more important while others become less important as unemployment episode increases.


2014, Kigali-Rwanda

Conclusions and implications

• Putting in place better designed labour market institutions that ensure career planning and placements.

• Timely and relevant labour market information is one element that can ease the policymaking process. This can help to identify vulnerable groups.


2014, Kigali-Rwanda

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IPAR-IDRC Regional Conference on Youth Employment, Kigali, Rwanda, Lemigo Hotel

Presentations & Public Speaking