According to the International Monetary Fund (IMF), by 2050 Africa will house a quarter of the global population, with its youthful demographic as a key economic asset. However, integrating youth into the labor market and fostering entrepreneurship are vital to harness this potential. In particular within the African continent, Southern and Eastern Mediterranean (SEMED) countries face similar challenges, including high youth unemployment, modest economic growth, and regional disparities, despite their diverse political and socioeconomic contexts.
In these countries, labor markets show low participation rates, particularly among youth and women, alongside a large informal sector and significant brain drain due to emigration. Education, while improving access and gender equity, has yet to translate into better employment outcomes due to skills mismatches and inadequate alignment with labor market needs. Other challenges include insufficient job creation, poor school-to-work transition mechanisms and limited private sector involvement in policy-making. Gender inequality and political instability further exacerbate these issues.
According to the OECD, youth unemployment in the region is among the highest globally, with rates reaching 50% in Libya, 35% in Tunisia, and over 25% in Morocco. Young women face even greater unemployment rates, exceeding 50% in 2019. Education systems, though expanded in access and coverage, lack flexibility and responsiveness to rapid economic and social changes.
Addressing these issues requires targeted policies to improve job creation, align education systems with labor market demands, and promote inclusive economic opportunities. The challenges in Libya, Tunisia, and Morocco, while similar, demand tailored approaches to account for differing national contexts. Reforms must focus on leveraging the demographic potential, fostering equitable labor market participation, and reducing the mismatch between skills and market needs. This is critical to achieving sustainable growth and addressing the root causes of unemployment and inequality in the region.