Missing out on a generation: Youth unemployment darkens outlook

Missing out on a whole generation’s ability to contribute to the economy isn’t a hypothetical future for Zimbabwe; it’s a harsh reality unfolding right now.

With a staggering 47,1 percent of youth between 15-35 years old unemployed, and an even more alarming 48,5 percent not in education, employment, or training (NEET), according to ZimStat, the nation is hemorrhaging its potential and mortgaging its future.

While the world views a young population as a dividend to cash in on, high unemployment levels mean young people, brimming with potential and ambition, are forced to watch their dreams wither on the vine.

The socio-economic consequences of higher youth unemployment levels are multifaceted and far-reaching.

On the individual level, unemployment breeds poverty, despair, and social alienation. It also leads to increased crime, substance abuse and mental health issues as is the case now.

But the damage doesn’t stop there. From an economic point of view, disengaged youth translates to stunted growth as they don’t pay taxes, spend, save, or invest.

Without the youth spending power, businesses struggle to thrive, tax coffers shrink, and innovation stagnates and aggregate demand takes a dent.

The NEET demographic represents a vast, untapped pool of human capital, essential for driving economic growth and development.

According to ZimStat’s 2023 Q4 Labour Force Survey, 2,26 million youth between the ages of 15 and 35 years are not in education, employment, or training. Their absence creates a vicious cycle: a weak economy generates fewer jobs, further entrenching youth unemployment.

The social fabric also falls under the weight of youth unemployment. With limited opportunities, young people lose faith in the system, leading to apathy, and disillusionment.

So, what can be done to avert this looming catastrophe? The solution requires a multi-pronged approach.

Investing in skills development and creating supportive policies that unlock entrepreneurship opportunities could unlock a high return on investment for Africa’s future. By focusing on youth development and entrepreneurship, Zimbabwe can unleash its true potential and emerge as a major player on the global economic stage.

“Investing in education and skills development as well as equipping young people with the tools they need to compete in the modern economy is crucial,” said Walter Mandeya, an analyst with Trigrams Investments.

“Fostering entrepreneurship and creating an environment conducive to business growth can unlock job creation opportunities,” he said.

Mandeya’s views were supported by Enterprise Development Consultant, Chad Mhako while commenting on the subject on X, formerly Twitter.

“I think SMEs will unlock more jobs faster if they are capacitated. Not just jobs, quality jobs. Aggregate some youth enterprise activities and incubate them,” advised Mhako.

Mandeya added that addressing the skills mismatch — where available jobs don’t match the skills of the youth — is also vital.

“This requires collaboration between government, industry, and educational institutions to ensure training aligns with market needs,” he said.

“But perhaps the most important step is tackling the underlying issues that contribute to youth unemployment, such as poverty, lack of access to technology, and limited social mobility. By addressing these inequities, Zimbabwe can create a more level playing field and empower its youth to reach their full potential,” said Mandeya.

-ebusines