Public-Private Initiatives Build Path to Youth Employment in Mexico

Youth unemployment and underemployment are a top concern in Mexico and across the Americas. In fact, in Mexico, where nearly one-third of the population is between 12 and 29 years old, the youth unemployment rate is 2.4 times higher than among adults. But the good news is that the public and private sectors are taking steps to improve youth labor market access and to create a pipeline of young workers for the Mexican economy, as shown in a new Americas Society white paper: Bringing Youth into Labor Markets: Public–Private Efforts amid Insecurity and Migration.

These steps, while important, can hopefully unleash a much greater nationwide commitment to Mexico’s young workers. This is critical to address the growing phenomenon of ninis—youth who neither study nor work (ni trabajan, ni estudian)—and the policy implications this presents for both business and policymakers.

As we discuss in Bringing Youth into Labor Markets, the federal government has launched efforts such as Programa del Primer Empleo, which uses tax incentives to encourage companies to hire recent graduates from universities and technical and professional Schools. Another program, Bécate, encourages unemployed and underemployed youth (older than age 16) to sign up for short-term training courses.

Select employers also are stepping up to improve workforce opportunities. For example, ManpowerGroup and Cisco Systems, Inc. are bridging skills gaps through programs that provide hands-on and/or virtual training and accreditation. ManpowerGroup’s Vinculación Académica interprets labor market demand in real time and connects the needs of employers to the skills of university graduates. Cisco Systems, Inc.’s Networking Academy is a comprehensive information and communications technology training program that teaches students how to design, build and secure computer networks.

Both of these programs respond to the paradox surrounding youth workers: despite high jobless rates, 2010 survey data from more than 2,000 Mexican companies show that 43 percent of employers report difficulty in filling open positions. Helping young workers develop skills that allow them greater access to formal job markets is a fundamental missing link in the labor supply-demand chain.

But the challenges facing Mexico’s youth are not specific to Mexico alone. Skills training, entrepreneurship and the creation of opportunities for at-risk youth are challenges seen across the Americas. That is why the Americas Society report recommends the following:

• Governments and the private sector must establish measures that prove the effectiveness of successful private-sector initiatives to facilitate their replication and scalability.
• The private and public sectors must provide incentives, such as guaranteed internships and apprenticeships or education scholarships, for youth to ensure they study the skills that employers most demand.
• Nationally recognized accreditation systems in technical and non-technical skills should be created so that young job-seekers and employers can verify employment preparedness.
• Employers must reverse the bias and discrimination that prevents the hiring of at-risk youth.

Read the full report here.

Jason Marczak is the director of Policy at Americas Society/Council of the Americas