Global youth unemployment seen rising to 81.2 million

MANILA, Philippines - The youth sector is bearing the brunt of the global financial crisis, with youth unemployment set to hit a record 81.2 million worldwide by the end of the year.

In its “Global Employment Trends for Youth 2010” report, the International Labor Organization (ILO) said the youth unemployment rate could result in a “lost generation.” 

“The projections show a longer expected recovery (from the financial crisis) for youth compared to adults and their number of unemployed is projected to increase to a rate of 13.1 percent in 2010,” the report said.

The “significant consequences” of the increase in youth unemployment could lead to a lost generation who have no hope of finding employment and who voluntarily drop out of the labor force.

According to ILO projections, the global youth unemployment rate would see a moderate decline to 12.7 percent in 2011. Developing countries, where young people comprise the majority of the population, were particularly at risk.

Youth unemployment rates had proven more sensitive to the crisis than adult rates, with job market recovery likely to lag for young men and women, the report said.

This was causing an increase in social hazards in certain countries.

“In the lower-income countries, the impact of the crisis is felt more in shorter hours and reduced wages for the few who maintain... employment and in rising vulnerable employment in an increasingly crowded, informal economy,” the report said.

It estimated that almost one third of young workers in the world - 152 million young people - survived on less than $1.25 per person per day in 2008.

ILO director general Juan Somavia said the effects of the economic and financial crisis threatened to exacerbate unemployment.