Labor Market Reforms and Youth Unemployment

Abstract

Purpose: The general purpose of the study was to examine labor market reforms and youth employment.

Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive's time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.

Findings: The findings reveal that there exists a contextual and methodological gap relating to labor market reforms and youth employment. The study illuminated the intricate relationship between labor market reforms and youth unemployment, revealing both opportunities and challenges in tackling this issue. Analyzing empirical evidence from various studies provided insights into the effectiveness of different reform measures across different contexts. While some reforms, such as flexibility promotion and investment in human capital, showed promise in enhancing youth employment, others had mixed results. Future research directions include exploring interactions between labor reforms and macroeconomic factors and conducting longitudinal studies. Overall, the study emphasized the importance of nuanced reform approaches for inclusive economic growth, requiring collaboration among stakeholders and ongoing research for evidence-based policymaking.

Unique Contribution to Theory, Practice and Policy: The Dual Labor Market theory, Human Capital theory and the Institutional theory may be used to anchor future studies on labor market reforms and youth unemployment. The study provided a comprehensive set of recommendations to address the challenges identified. These recommendations included adopting a multifaceted approach to labor market reforms, prioritizing investments in education and skills development, and fostering collaboration between stakeholders. The study emphasized the importance of active labor market policies (ALMPs), continuous monitoring and evaluation of reforms, and addressing structural barriers to youth employment. Additionally, policymakers were urged to prioritize youth entrepreneurship, enhance collaboration and knowledge sharing, and promote inclusive decision-making processes. Overall, the study offered practical strategies for policymakers, contributed to theory by highlighting the importance of evidence-based policymaking and stakeholder engagement, and informed future policy efforts to tackle youth unemployment effectively.

Keywords: Labor Market, Reforms, Youth, Unemployment, Employment Policies, Economic Policy, Labor Force Participation