One of the many repercussions of the GFC was rising unemployment rates around the world.
As economies struggled, many jobs disappeared and many young people in particular, were left without work or meaningful professional opportunities.
This weekend young entrepreneurs from around the world are meeting in Sydney for their own G20 Summit and one of the big issues to be tabled is youth unemployment.
Ahead of the G20 Young Entrepreneurs Alliance, EY has released ten recommendations to support innovative thinking as a way of generating jobs.
EY global vice chair of strategic growth markets, Maria Pinelli said youth unemployment is a persistent issue the world over. Currently the global youth unemployment rate is 16.1%.
“Despite improving economic conditions, it remains stubbornly high. This is not only a tragedy for the young people affected, but it is a huge wasted opportunity for governments across the globe,” she said.
This chart shows just how dramatically youth unemployment varies between G20 nations and highlights that there probably isn’t a blanket solution to the problem. Keep in mind the age group cited probably doesn’t capture the full situation either with many young people between 15 and 24 still completing school or university.
During the GFC and in the years proceeding, there were reports of youth struggling to enter the workforce after completing their education.
But the chart below (which you can click to enlarge) compares the speed of economic growth of the G20 nations to the quality of youth jobs available.
Australia is sitting nicely in the first quadrant while South Africa and Italy, two nations with high youth unemployment rates, are sitting in the bottom half with a small amount of lower skilled jobs available in economies that are growing at a much slower pace.
To promote youth entrepreneurship EY’s report, titled Avoiding a lost generation: ten key recommendations to support youth entrepreneurship across the G20 suggests these ten fixes.
Hint: They’re all to do with building a stronger startup sector.
- Establish funding and mentoring programs
- Incentivise venture capitalists, incubators and business angels to develop alternative sources of capital.
- Allocate public funding to startup growth.
- Create new financial products for startups and entrepreneurs to meet capital expansion requirements.
- Offer tax benefits for companies or funds that invest in startups.
- Introduce entrepreneur visas to attract international talent.
- Streamline tax administration to ease the burden on young entrepreneurs.
- Educate young people about entrepreneurship.
- Build an entrepreneurial culture by launching hubs, incubators, accelerators and networks to bring talent together.
- Link the entrepreneurial networks from around the world together.
Outcomes of the G20 YEA Summit will be passed on to the G20 Leaders Summit scheduled for November in Brisbane.