Economic crisis: A profound impact on the employment of the younger generation
Sadia Sultana Rimi
The economic crisis in the current world is a much-discussed and complex issue, which not only affects the Gross Domestic Product (GDP) or stock market indices, but also has a direct impact on the employment of our young generation. The future of a country depends on its youth, their efficiency, innovative capacity and their contribution to society. However, whenever an economic recession or crisis comes, the first to be hit are these young people, who are just dreaming of starting their careers. In my opinion, this issue is not just an economic problem, it is a deep social and human crisis, which we must collectively address.
In the depths of the economic crisis: causes and effects
By economic crisis, we usually mean a recession in a country's economy, high unemployment, inflation, a decline in production, stagnation in investment, and instability in financial markets. The causes are complex and multifaceted. Global economic downturns, such as the 2008 financial crisis or the recent COVID-19 pandemic, have affected many countries. In the post-COVID-19 period, a new type of crisis has emerged in the global economy, which has disrupted supply chains, caused inflation to skyrocket, and slowed economic growth in many countries. Geopolitical instability, such as the Russia-Ukraine war, has further intensified the crisis by significantly affecting global energy and food prices. Inadequate government policies, such as unplanned spending, high tax rates, or a lack of a favorable environment for investment, can also create an economic crisis. Weaknesses in the financial sector, such as banking sector instability or rising loan defaults, further accelerate the crisis. Natural disasters and climate change also exacerbate the crisis by causing widespread damage to agricultural production, infrastructure, and other sectors of the economy.
The biggest victims of these crises are the young generation, especially those who have just completed higher education and are trying to enter the workforce. For them, employment opportunities become limited and existing challenges become more pronounced. During an economic downturn, companies reduce new hiring or lay off workers, resulting in higher unemployment rates. For young people, who have little work experience, it becomes even more difficult to find work. This creates a vicious cycle, where they cannot get work because they lack experience, and they cannot gain experience because they cannot get work.
Under-employment has become a common problem among highly educated youth. This means that they are forced to do jobs that are below their qualifications. If an engineering graduate has to do a simple administrative job, it hinders the proper use of his talent and skills. This not only increases his personal frustration, but also wastes the country's human resources.
The intense competition between a large number of candidates for a limited number of positions makes it more difficult for young people to find employment. The mismatch between the education system and the needs of the labor market is also a major problem. Our education system often fails to provide the skills needed for modern industries, leaving young people unprepared to enter the labor market.
During economic crises, the risk of starting a new business increases, which reduces the propensity for entrepreneurship among young people. It becomes difficult to raise capital and enter the market. Most importantly, long-term unemployment or precarious employment can cause stress, depression and anxiety among young people. This negatively affects their overall well-being and also threatens the stability of society.
In my opinion, this situation is also fueling the country's brain drain. When there are not enough opportunities within the country, talented youth are forced to migrate abroad in the hope of better employment opportunities and a better life. This is an irreparable loss for the country, because human resources are the most valuable asset of a country.
Solution: Coordinated efforts are essential
A concerted effort by government, academia, industry, and every level of society is essential to overcome this complex problem. I have some specific proposals:
1. Emphasis on skill development and vocational training:
Our education system must be aligned with the current and future needs of the labor market. We must go beyond traditional degrees and train young people in modern technology-based skills such as data analysis, digital marketing, artificial intelligence, machine learning, blockchain technology, coding, and cybersecurity. These skills are essential for the Fourth Industrial Revolution.
The government and the private sector can increase opportunities for hands-on learning by setting up Vocational Training Centers. This could include industry-based apprenticeship programs, where young people learn on the job. Such programs provide real-world experience, which is highly valuable to employers. In addition, life-long learning opportunities should be created for workers, so that they can adapt to the changing labor market and acquire new skills.
2. Entrepreneurship development and support for small and medium enterprises:
Our society needs to move away from the mindset of only creating job seekers and create the dream of becoming an entrepreneur among the youth. They need to be given the necessary support to fulfill that dream. The government should provide loans and government incentives on easy terms for young entrepreneurs. Incubator and accelerator programs can be launched to strengthen the startup ecosystem, which will help new ventures in the initial stages.
Introducing mentorship programs for young people through experienced entrepreneurs, so that they can learn the techniques of starting and running a business, can be very effective. Strengthening the small and medium enterprises (SME) sector is very important, as this sector is the biggest source of employment generation. This sector can be strengthened with incentives, tax benefits and easy financial support.
3. Employment-oriented government policies and investments:
The government must adopt policies that are conducive to job creation. Increased investment in infrastructure development, such as roads, electricity, communication systems and the technology sector, will create new jobs. In addition, investment in the green economy, renewable energy and environmentally friendly industries can be increased, which will create jobs for the future.
It is necessary to create an attractive and conducive environment for investment, which will attract domestic and foreign investors. Among these, simple tax policies, reducing bureaucratic complexity and ensuring the rule of law are essential. It is also important to modernize labor laws and create a favorable environment for job creation.
4. Leveraging the digital economy:
Freelancing and the gig economy have opened up endless possibilities for the youth. The government can create digital employment opportunities in rural areas by expanding digital infrastructure such as high-speed internet and digital payment systems. Freelancers should be provided with legal assistance, tax benefits and help in connecting with the right platforms. The expansion of online marketplaces and e-commerce will also help in job creation.
5. Social safety net and mental health support:
Unemployment or job insecurity creates depression, anxiety and stress among young people. In this situation, it is very important to provide mental health support and counseling for them. Mental health awareness should be increased in educational institutions and workplaces. Unemployment allowance or training assistance can be provided for the temporarily unemployed, which will help them survive difficult times and encourage them to acquire new skills.
6. International cooperation and research:
Effective strategies can be formulated to deal with economic crises by exchanging knowledge and experiences between different countries. It is very important to help create jobs in developing countries by working with international organizations. Regular research on labor market trends and youth needs should be done and policies and programs should be formulated accordingly.
Conclusion: Investing for the future
The economic crisis and youth unemployment are a complex interrelated problem. Economic measures alone are not enough to address this crisis, but a multifaceted strategy is needed, integrating education, social policies, and technological advancements. The young generation is the future of a country. Creating employment opportunities for them and building skills and confidence in them will not only affect their personal lives, but are also essential for the overall economic growth and social stability of the country.
I firmly believe that if we adopt a long-term plan to address these challenges, formulate visionary policies and implement them through collective efforts, then it is possible to come out of this crisis. We need to restore hope and confidence in the youth, and create a suitable environment for them to utilize their potential. The investment we make in the youth today will lay the foundation for a prosperous and stable nation in the future. Creating employment opportunities by relieving them of the burden of unemployment, utilizing their innovative power and instilling in them the courage to become entrepreneurs—these can be the main mantras for our future progress. If we can properly utilize their potential, it is possible to build a developed and prosperous country, where no youth will have to be disappointed with their talent.
The writer is a student, Mathematics Department,Jagannath University.She can be reached at email sadia15.jnu@gmail.com
