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Why unemployment persist despite the rise in education in the Global South?

Updated: Sep 14, 2024

Date: 13th September 2024

Authors:  George Lmangeyan

Country: Kenya

SUMMARY

Theoretical knowledge is given far more importance in most education systems than practical skills, and not all the graduates possess the necessary competences that employers are looking for. Moreover, many of the countries in the global south suffer from sluggish economic growth, minimal industrialization, and a heavy dependence on informal sector channels which cannot absorb the expanding number of professionals. It is further compounded by limited physical infrastructure and access to capital necessary for new entrepreneurial activity, given the political instability in that part of the world.


BACKGROUND

INTRODUCTION

According to, International Labour Organization (ILO), unemployment occurs when individuals who are capable of working, available to work, and actively seeking work are unable to find employment. This definition sets a benchmark globally but often does not fully capture the complexities in the Global South, where underemployment and informal work are prevalent.

Unemployment is a highly relevant socio-economic problem in developed and developing regions, however there are marked dissimilarities on how it manifests especially between the Global North and Global South (Latin America, Africa, and Asia).

“Global South” is a term in more commonly used to reference countries mainly from the Southern Hemisphere, and that have been historically economically exploited or depleted due usually from colonialism/marginalization. The root cause of the problem is complex and remains unaddressed for numerous reasons that revolve around inadequate educational systems, political instability, failing economies which are sustained on informal labour to a large extent.

Whatever the reasons for this, one challenge that still stubbornly persists is unemployment despite a rise in access to education, particularly in the Global South—including among university graduates. With the expansion of access to higher education, however, and a concomitant mismatch among high school-taught skills now available also in colleges with those required by jobs today, it has left many individuals unable to find stable employment that pays more than subsistence wages.

In many developing countries, their economies are not able to create enough formal job opportunities for a growing number of educated workforce, which ultimately leads to high rates of unemployment or underemployment. The situation is further complicated by various structural issues related to limited industrialization, a high share of the informal sectors, and insufficient economic development. This means that, despite the promise of education an economic investment made by so many young people and families in developing countries these days a path to employment is riddled with landmines: worse and perhaps deeper systemic issues inside labour markets at play.

While there has been greater access to education across much of the Global South, unemployment still persists for a number of reasons;

Mismatch between education and labour market needs

It means that the education system often mismatches with labour market needs. This is because certain fields of study have limited job prospects, or graduates lack the practical skills and experience employers seek. This skills gap leaves thousands of educated individuals underqualified for current jobs.

Quality of Education

Despite wider access to education, the quality of it in many areas is still substandard. Outdated infrastructure, poorly trained teachers, and irrelevant curricula fail to equip students with the skills required for a rapidly changing economy. Some countries in the Global South find themselves caught up with high unemployment, often as an economic burden owing to slow growth or unstable economies. The other part is that not enough jobs are being created (particularly in the formal sector) to adequately employ an educated workforce.

Higher Population Growth

Rapid increases in population, particularly in nations with predominantly young populations, lead to labour oversupply. More people enter the job market than there are jobs to be had, causing higher unemployment.

Automation and technological change

Technological advancements coupled with automation in industries result in less demand for human labour in certain sectors. This transition is uneven and mixed in the Global South, whose industrialization processes often depend heavily on low-skilled labour that machines will now quickly replace.

Lack of entrepreneurship and small business growth

In many developing countries, inefficient systems for setting up one's own businesses, including inadequate funding options, bureaucratic red tape, and a lack of support for start-ups, prevent people from starting their self-employment journey. In many regions, political instability and conflict disrupt economic activity in ways that discourage foreign investment, making job growth more difficult.

Gender and social inequality

Cultural norms, stereotypes, and discriminatory practices can also result in high unemployment rates, even if women and other minority groups are equally educated.

RECOMMENDATIONS

Bridging the Gap between Education and Industry Needs

One major challenge is the disconnect between what students learn and the skills employers seek. Many graduates leave school with a solid theoretical foundation but lack the hands-on experience needed in the workplace. To address this, education systems must evolve by placing a stronger emphasis on vocational training, technical skills, and real-world internships. These changes will ensure that graduates possess the practical skills needed to excel in today’s competitive job market.

In addition, placing a higher priority on fields such as STEM (Science, Technology, Engineering, and Math), data science, and coding will better prepare the workforce for rapidly expanding sectors like tech and sustainable energy. Enhancing digital literacy across all educational levels is also crucial to ensure that workers are equipped for future challenges.

Fostering Entrepreneurship and Innovation

Small and medium-sized enterprises (SMEs) form the backbone of many economies, particularly in the Global South. Governments can support these enterprises by offering targeted financial assistance, such as grants, tax breaks, and microloans. This support is especially critical for the informal sector, which plays a dominant role in many developing economies.

Creating innovation hubs—incubators that provide access to mentors, training, and capital—can encourage local entrepreneurs to develop solutions tailored to regional problems. By nurturing innovation, these hubs can spark the creation of new businesses that drive economic growth.

Harnessing Technology and the Gig Economy

Technology has unlocked unprecedented opportunities, particularly through the rise of remote work. Digital platforms now allow skilled professionals to offer their services to global clients, eliminating the need for migration. This is a boon for workers in developing nations, providing them with access to higher-paying jobs in international markets.

The gig economy offers another path to immediate employment, especially for tech-savvy youth. Encouraging young professionals to tap into freelancing platforms like Upwork or Fiverr can provide them with valuable experience while boosting their income.

Enhancing Labor Market Flexibility

Labour market reform is essential to fostering economic growth. Modernizing labour laws can pave the way for greater flexibility, allowing businesses to hire, train, and retain employees without being bogged down by excessive bureaucracy. This ensures that talent acquisition and development are smoother and more efficient, ultimately benefiting both employers and workers.

In parallel, recognizing and supporting the informal economy is crucial. Governments can adopt policies that formalize this sector, providing access to social security, training, and investment opportunities. This not only improves the livelihoods of informal workers but also boosts the overall economy by integrating this often-overlooked workforce.

Strengthening Infrastructure for Economic Growth

robust infrastructure is the backbone of any thriving economy. Investment in reliable energy, transport systems, and internet connectivity is key to driving industrial expansion, attracting foreign investors, and creating jobs. Sustainable infrastructure development, supported by both the government and private sectors, will help meet the needs of modern businesses.

Another critical aspect is access to affordable credit. Many small enterprises and entrepreneurs struggle to secure financing, which limits their growth potential. Expanding access to financial services can empower aspiring business owners and lead to job creation across various sectors.

Fostering Government-Private Sector Collaboration

Public-private partnerships offer tremendous potential for job creation and economic development. Governments can collaborate with private businesses on large-scale infrastructure projects, such as industrial parks or special economic zones, to generate employment and stimulate growth.

Corporate social responsibility (CSR) initiatives, especially those led by multinational companies operating in the Global South, can also play a significant role. By investing in local communities, offering vocational training, and supporting sustainable development, these corporations can help create jobs and ensure long-term economic prosperity.

Boosting Agribusiness and Rural Development

Agriculture remains a primary employer in the Global South, and modernizing this sector is key to creating new jobs. Investment in agribusiness, the adoption of sustainable farming practices, and improvements in value chains can significantly increase employment opportunities, both in rural and urban areas.

Diversifying economies beyond agriculture is also crucial. Expanding industries like manufacturing, tourism, and services will reduce overreliance on any single sector and open up a wider array of employment opportunities.

Advancing Regional Economic Integration

Regional cooperation can be a powerful driver of economic growth. Strengthening trade agreements and reducing cross-border trade barriers can help local businesses access broader markets, thereby boosting employment.

Furthermore, promoting labour mobility within regions through collaborative programs could allow skilled workers to migrate more easily, reducing unemployment in overcrowded urban centers and addressing skill shortages in neighbouring areas.

Addressing Social and Gender Inequality

Gender inequality continues to be a significant barrier to economic participation. Empowering women through education, offering childcare support, and ensuring equal pay for equal work can dramatically increase female labour force participation. Similarly, focusing on marginalized groups and ensuring they have equal access to job opportunities will foster a more inclusive economy.

Expanding social safety nets such as unemployment benefits, healthcare, and retraining programs can also help vulnerable populations transition into new roles and better adapt to changes in the job market.

Empowering Youth through Employment Programs

Youth employment programs are essential for addressing the high levels of unemployment faced by young people. Apprenticeships and internships, backed by government and business partnerships, can provide hands-on experience and open doors to future career opportunities.

In addition, establishing mentorship programs where experienced professionals guide young graduates can help bridge the gap between education and employment. These programs offer invaluable support as young people navigate the complexities of the job market and build the skills they need to succeed.

CONCLUSION

Unemployment in the Global South is a multifaceted issue, deeply tied to economic structures, social inequalities, and labour market dynamics. It often involves a combination of unemployment, underemployment, and informal work, reflecting the unique challenges that developing economies face in providing stable and sustainable jobs for their populations.

Issues such as political instability, corruption, and underinvestment also stifle development, making it difficult for industries to expand and create meaningful employment. Finally, globalization and automation have shifted the nature of work, with many traditional jobs disappearing before new sectors have fully emerged. These challenges, in combination, ensure that unemployment remains a pressing issue, despite advances in education.


REFERENCES

3.      Mr.Romain A Duval, Mr.Prakash Loungani. 2019 Designing Labor Market Institutions in Emerging and Developing Economies Evidence and Policy Options. https://www.google.co.ke/books/edition/Designing_Labor_Market_Institutions_in_E/OJ4YEAAAQBAJ?hl=en&gbpv=0

7.      Arjan de Haan, Gillian Dowie, Kate Grantham. 2021 Women's Economic Empowerment Insights from Africa and South Asia. https://www.google.co.ke/books/edition/Women_s_Economic_Empowerment/DG4ZEAAAQBAJ?hl=en

 




 
 
 

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