The Barriers to Youth Employment in the MENA Region: A Decade of USAID's Youth in Development Policy and the MENA Conundrum

By Hisham Jabi

Since the advent of USAID's inaugural of the first youth policy in 2012, the Middle East and North Africa (MENA) region has experienced tumultuous changes akin to global shifts. Yet, one persistent issue that continues to plague the region is the high rate of youth unemployment. The self-immolation of Mohamed Bouazizi in Tunisia, which served as the catalyst for the Arab Spring, was a dire symbol of the disenfranchisement felt by a significant portion of the population in the Middle East and North Africa (MENA). According to the World Bank, the MENA region, with a population estimated over 500 million as of 2022, grapples with a youth unemployment rate of around 24% for those aged between 15 and 24, one of the highest in the world. Despite earnest efforts by USAID and other international organizations to bolster youth employment, this rate has remained largely stagnant over the past decade. This article aims to explore the persistent challenges hindering the reduction of youth unemployment in the MENA region, thereby providing insights into the ongoing struggles facing donors, international communities, and local stakeholders.

1-?? The High Cost of Conflict: Aggravating Youth Unemployment in the MENA Region

The persistent conflicts across the MENA region not only cost lives but cripple the future potential of its youth. These conflicts create a vicious cycle: they hinder economic development, which exacerbates unemployment, which in turn serves as a recruiting ground for further conflict. Breaking this cycle demands urgent and concerted international effort, aimed not just at peacebuilding but also at structural youth empowerment and economic revitalization. Therefore, to tackle youth unemployment effectively, a multifaceted strategy is imperative—one that goes beyond aid and seeks to resolve the underpinning conflicts that deprive the youth of opportunities for a brighter, more secure future. ?The conflict in Yemen has resulted in a devastating humanitarian crisis, affecting nearly 24 million people. According to the United Nations, the conflict has claimed the lives of over 233,000 people as of late 2020. Economically, the World Bank estimates that Yemen has lost around $88.8 billion in GDP since the conflict began in 2015. The Libyan conflict, ongoing since 2011, has claimed more than 20,000 lives and internally displaced around 400,000 people. Economically, the cost is staggering—estimated at over $176 billion in lost GDP between 2011 and 2020. In Syria, more than 500,000 people have been killed since the conflict commenced in 2011. The Syrian Center for Policy Research estimates the conflict has cost Syria $226 billion in lost GDP, roughly four times its GDP in 2010. Although Lebanon has not been in active conflict, it has felt the spillover effects from neighboring Syria. Over one million Syrian refugees have placed enormous stress on Lebanese resources, exacerbating unemployment and impacting its GDP by $7.5 billion, according to the World Bank. Finally, the Israeli-Palestinian conflict has cost thousands of lives and crippled the Palestinian economy. The United Nations estimates that restrictions in the West Bank and Gaza have reduced its GDP by approximately $16.7 billion in 2015 alone.

The Lure of Extremism: A Dangerous Divergence: Amidst this backdrop of conflict and economic stagnation, extremist groups seize opportunities to recruit disenfranchised youth. Groups like Al Qaeda and various militias in Syria, Libya, and Yemen, offer an alternative to unemployment and a sense of empowerment, however misleading and perilous. For example, Libyan militias, often backed by foreign governments, have become breeding grounds for young recruits. With limited prospects for employment, the allure of taking up arms becomes a viable, albeit destructive, option. In Yemen, Houthi rebels and other factions capitalize on the absence of state structures and the desperation of youth, offering immediate livelihoods in exchange for military service, thus perpetuating the cycle of conflict and underdevelopment.

2- The Scale of Youth Unemployment in the MENA Region: Statistics, Implications, and USAIDs Evolving Policy

Youth unemployment rates in the Middle East and North Africa (MENA) are among the highest globally. According to the International Labor Organization (ILO), approximately 24% of youth between the ages of 15 and 24 are unemployed. To put this in perspective, that translates to about 5 million young individuals without jobs. Gender disparities are evident as well: 41% of young women are unemployed compared to 21% of young men. These numbers reveal the profound scale of the problem, which impacts not only the youth themselves but also has broader implications for societal stability and economic development. Traditionally, USAID programs have been driven by the necessity to deliver tangible outputs and outcomes. The scope of projects has largely been designed around measurable indicators and short-term goals, which, although essential, could be restrictive given the vast scale of youth unemployment. But a monumental shift in USAIDs approach has been the Development Beyond Programming policy. In my opinion, this is a pivotal development over the last decade. The policy acknowledges that programming alone isnt sufficient to bring about systemic and scalable change; programs, projects and activities are merely tools. The ultimate goal is to alter local systems to be more conducive to youth employment at scale. Also, the System Approach in Youth Development Policy emphasizes a system approach in youth development, encapsulated by its third principle. A system approach evaluates how activities can scale up promising youth employment practices either horizontally —through expansion, replication, or coordination—or vertically by integrating these youth activities into local systems such as Ministries of Education or Labor. The transition from childhood to young adulthood has become increasingly longer and complex, with different youth stages having unique needs. This makes the scaling of youth programs complicated as they need to cater to these multiple, and sometimes conflicting, requirements.

3- The Informal Economy: A Double-Edged Sword in Addressing Youth Unemployment in MENA

A striking paradox exists within the youth demographics in the Middle East and North Africa (MENA). On one hand, there is a general lack of trust in government agencies and the political system, fueled by issues such as endemic corruption and misuse of resources. This skepticism keeps many young people at arm's length from engaging in social protection systems or formal economic structures. On the other hand, there is a strong preference among the youth to seek employment in the public sector. ?This dichotomy has led to a burgeoning informal economy. Many young people, as well as micro-businesses and SMEs, operate in this informal system. While this offers immediate, short-term benefits, it comes at the cost of long-term growth and job creation. The informal economy often denies youth access to social protections, job training, and the potential for career progression.

Countries like Brazil have successfully formalized large segments of their informal economies, providing a model that could be adapted to the MENA region. ?Brazil has been quite successful in reducing the size of its informal sector over the years. According to data from the Brazilian Institute of Geography and Statistics (IBGE), the informal labor rate dropped from approximately 50% in the early 2000s to around 40% by the end of the 2010s. Various initiatives have been instrumental in this decline, enabling the government to better regulate labor markets, provide social protections, and improve tax collection.

The prevalence of the informal economy is not merely a symptom in MENA region but also an impediment to scaling effective solutions for youth unemployment. The very structure of the informal sector makes it resistant to the kind of systemic change that policies like USAID's "Development Beyond Programming" aim to implement.

4- Bridging the Digital Divide for Youth Employment in MENA: A Call for Content-Driven Upskilling

While internet penetration rates in the MENA region have seen substantial increases over the years, the nature of its usage remains skewed toward consumption rather than research and development. According to a report by the International Telecommunication Union (ITU), as of 2019, internet penetration in the Arab States reached about 66.5%. However, a survey conducted by Northwestern University in Qatar revealed that over 70% of internet usage by youth in the MENA region is for socialization and communication, not for educational or professional purposes.

This gap highlights a missed opportunity for leveraging digital access for employability and upskilling. While the youth in MENA are digitally engaged, much of this engagement is passive consumption, such as social networking or entertainment, rather than interactive or productive uses that could translate to job skills or economic development. The transformation of digital engagement into upskilling and employment is an area where public and private sectors can collaboratively add value. For instance, Technical and Vocational Education and Training (TVET) programs could be designed to leverage the high levels of digital access among MENA youth. The focus should be on delivering content-driven initiatives that include virtual apprenticeships, mentorships, and on-the-job training. The current landscape calls for a multi-stakeholder approach where governments, USAID, and Implementing Partners (IPs) should collaboratively design programs that can effectively tap into the high levels of digital access among MENA's youth for skill development. These activities should prioritize digital literacy, coding, tech entrepreneurship, and other skills that lead to employment and contribute to a growing economy.

To unlock the potential of MENA's digitally connected youth, there is a need for a paradigm shift from digital consumption to digital production and innovation. Implementing flexible, content-driven initiatives geared toward employability can act as catalysts in transforming the digital landscape into an ecosystem of opportunity for the region's youth.

5- Gender Barriers in Employment in MENA: An Underutilized Asset and Pathways for Inclusion:The Gender Paradox in Labor Force Participation in MENA

One of the most puzzling aspects of labor force dynamics in the MENA region is the gender paradox: while women are increasingly well-educated, their labor force participation remains disproportionately low. According to the World Bank, as of 2021, only around 18% of women are active in the labor market in MENA, compared to a global average of nearly 49%.

Societal expectations and pressures often contribute to this low participation rate. For instance, the social norm that encourages women to marry and bear children at an early age can hinder their career development. Ironically, higher educational attainment may serve as a postponement strategy for women who want to delay these societal pressures, but it doesn’t necessarily lead to employment.

Digital upskilling provides a pathway for women to enter and thrive in the labor market. Remote work and flexible job designs can offer a workaround for sociocultural constraints, enabling women to balance family needs with career goals. To realize this potential, there must be targeted investments in digital skills training programs that are tailored to the unique needs and constraints of women in the MENA region. Public and private sectors should collaborate to create these programs, ensuring they are culturally sensitive, flexible, and aligned with market needs. Policy interventions can play a critical role in incentivizing and facilitating women’s entry into the labor force. For instance, establishing gender quotas in public and private sectors or providing tax incentives for companies employing women can go a long way in ensuring gender equality in employment.

Addressing gender-based barriers to employment is not just a social imperative but also an economic necessity for the MENA region. By investing in digital upskilling and creating gender-sensitive policies, stakeholders can leverage the untapped potential of educated women, thereby increasing productivity and fostering economic growth.

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Conclusion

Although USAID's Youth Development Policy has had a positive impact on a global scale, the MENA region presents a unique set of challenges that have yet to be overcome. ?Thus, while USAID and other donors' efforts are laudable, a concerted, strategic, and culturally nuanced approach is essential for reducing youth unemployment in the MENA region. Only then can we hope to give the young population the empowerment they so desperately seek.

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* Hisham Jabi is an international development specialist based in Washington, DC. He is the CEO of Jabi Tech Consulting, LLC in Washington, DC and MENA region “www.jabiconsulting.com” He can be reached at?[email protected]

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