Youth Unemployment and Economic Growth in Tunisia

Youth Unemployment and Economic Growth in Tunisia

Introduction

Similar to several Arab spring countries; currently, Tunisia is experiencing a high level of youth unemployment which is a result of some factors.  The issue of youth unemployment in Tunisia is the consequences of structural problems in its labour market and its education system as well as an embedded understanding of “employment” grounded on decades of political and social development. The paper discusses the current situation of the youth labour market in Tunisia, the causes and consequences of unemployment and what can the government of Tunisia and businesses do to address the issue of youth unemployment in Tunisia.

The current situation of the youth labour market and the causes of the high level of youth unemployment in Tunisia.

Today, the rate of unemployment in Tunisia among youths with a university degree is 30 per cent, more than twice the rate in 2005 of 14 percent. The point in general unemployment (currently at 17 percent) got partially explained by the tremendous economic and political situation (Haouas, Sayre, & Yagoubi, 2012). Since its revolution in 2011, the economy has had a tough time to regain its pre-Arab spring growing rate. The presence of Al Qaeda has evolved in the last few years (Zelin, 2014). Unsteadiness in bordering Libya has only added to anxiety over the situation of security in Tunisia, a nation usually boasting substantial tourism revenues. Finally, Tunisian exports demand has dried up in the European Union, which is the most important trade partner of Tunisia (Larbi, & Chymes, 2010). The narratives are the critical elements of Tunisia’s post-revolution. According to the most current Global Competitiveness Index from the World Economic Forum, the labour market of Tunisia has failed to competently marshal its young talent to create job opportunities and growth (Stampini, & Verdier-Chouchane, 2011). A superficially brief diagnosis, but, when unpacked, it discloses a few occurrences that contribute to the seamless storm of a high rate of youth unemployment a gap concerning labour demand and supply, an excessively stiff labour market, and protracted cultural assumptions about entrepreneurship and self-employment. Since the 1960s, the government of Tunisia has poured a lot of dollars into its system of an education-to great result, at least on paper ( Guruz, K. 2011). The higher education system of Tunisia remains one of the best in North Africa and the Middle East. More students in Tunisia are pursuing higher degrees than ever before (based on the government investigation most are women). Yet, Companies in Tunisia cannot find candidates qualified for jobs- there is a gap when it comes to skills.

Those owning businesses lament that University education does not prepare students for available jobs (Gassab, & Jamoussi, 2011).

Consequences of unemployment in Tunisia

Tunisia belongs to the third world that a category of developing countries. The high rate of youth unemployment contributes to this situation (Khan, 2014). When most of the residents are employed especially youths who do not possess a lot, they cannot manage to pay taxes which would contribute to the development of the country. As a result of high youth unemployment in Tunisia, this contributes to high levels of outward migration, where migrants with top skills migrate to look for jobs in developed countries that offer opportunities to them (David, & Marouani, 2015). Sometimes, migration is a part of the solution to unemployment as it can decrease social tensions and afford an outlet for educated youths ( Dimaya, McEwen, Curry, & Bradley, 2012).

 

What can government and business do to address the issue of youth unemployment in Tunisia?

The government should reform the economy as the immediate priority for the central government, given its policy for supporting political progress and ensure a stable transition (Honwana, 2011). Policymakers and political differences should recognize the need to address the issue of youth unemployment. Also, slow economic development and a failure of the economy to create employment opportunities for an increasing number of educated youths in Tunisia demands a move on the way to a new growth model focused on the stability of macroeconomic ( Azeng, & Yogo, 2013). The business should also come up with models that concentrate on the development of the economy and through this, their employment opportunities will increase.

Conclusion

In conclusion, for Tunisia to overcome this issue of unemployment among its graduates, it needs to put the effort in its area of weaknesses. One of these is by implementing the right system of education as according to what discovered above, some percentage of unemployment is not only a result of just cyclical unemployment but also structural unemployment.

 

 

 

 

 

References

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