MCE: Generation
Jobless is a huge issue that just isn’t going to go away. If you were a
business leader what do you think could be your (no matter how small)
contribution to helping people into real work?
Peter Vogel (PV): Employers play a key role in
tackling youth unemployment and there are many different things that can and
have to be done on that front. However, the issue is everything but
straightforward and solutions always require an orchestrated effort from
various stakeholders, including employers but also public policy, educational
institutions and of course young people, too.
In
‘Generation Jobless?’ I discuss dozens of examples of what employers are doing
to fight youth unemployment. Overall, one can sum them up into the following
action items:
Employers must
- Properly think through the actual ‘business case’ for hiring young
people and balance the advantages and disadvantages. Overall, when taking a
long-term perspective, they will come to the conclusion that it pays off to
engage in young recruiting rather sooner than later.
- Assume their responsibilities in preparing youth for the world of
work by closely collaborating with the education system, providing internship
and mentoring opportunities, giving lectures and talks in school, attending
career fairs and other career-related events and open up their doors for young
people.
- Build a global skills supply chain in order to recruit for
tomorrow’s needs instead of yesterday’s needs.
- Ensure that they build adequate vocational training opportunities
to counteract the increasing academization and help build relevant skills and
capabilities on the job.
- Build a workforce management system that allows them to
effectively work with four or five generations of employees.
- Ensure that there are sufficient youth-compatible jobs available
in their companies, taking into account the Digital Natives’ characteristics
and expectations from work.
- Ensure that tomorrow’s leaders (i.e., the talents from today’s
youth) find a stimulating and satisfying work environment in order to ensure
continuity when the older managing employees are retiring. This needs to be
done by building a 21st century workplace.
MCE:
You talk a lot about entrepreneurs and the vast reservoir of creative energy.
How do we promote that in the school system to encourage people to try out new
ideas and take risks?
PV: Entrepreneurship is considered one of the
most promising avenues to solving the current youth labor market crisis. Why?
Because it is one of the main drivers of innovation, economic and societal
development and job creation.
As I
argue in ‘Generation
Jobless?’, the promotion of youth entrepreneurship is
essential to tackling youth unemployment, because it…
- …creates employment opportunities for those that start the
businesses as well as those that they employ, particularly because young
entrepreneurs are more prone to hiring other young people
- …brings back alienated and marginalized youth into the labor
market
- …helps address socio-psychological issues arising from
unemployment
- …helps youth develop new skills and professional experience that,
in turn, can enhance their general employability
- …revitalizes local communities through new products and services
- …capitalizes on the youth’s particular responsiveness to new
trends and opportunities
- …keeps young and otherwise idle young people occupied, which is
always better than not having anything to do leaving them feeling useless and
without hope.
Promoting an entrepreneurial mindset early on in life – at school or at
home – is the key to success when it comes to boosting youth entrepreneurship.
It therefore also cannot be considered a short-term solution to the crisis but
rather a long-term strategic shift of the labor market.
To foster an
entrepreneurial mindset, we need to…
- …make room for creativity and inspiration – at
home, in school, and elsewhere.
- …give our kids the opportunity to develop financial
literacy in a fun and playful way.
- …help them jump over their shadow and pro-actively
engage in conversations.
- …foster their problem-solving skills by brainstorming
solutions to their problems.
- …turn learning into a fun and playful setup to
acquire important skills.
- …let them take responsibility and make decisions.
- …help them experience risk and their boundaries.
- …allow our children to be critical about the status
quo and come up with better ideas.
MCE: For every
well-educated kid out there, you’ll find another nine who are in the wrong
place with the wrong qualifications at the wrong time. How do we get better at
predicting where the new jobs will come from?
PV:
Overall, we can say that the level of education is less an issue than the
“match” between what is being taught and what is being looked for on the labor
market. According to UNESCO, the Gross Enrollment Ratio (GER) for Tertiary
Education in Europe went up from around 50% in 1999 to above 70% in 2013. Of
course this picture looks different in developing countries, but even on a
global level it went up from 20% to over 30%.
Hence,
in order to become better at predicting where new jobs will come from, employers
need to spend significant time on predicting their future skills requirements –
that is build a global skills supply chain. At the same time, the interaction
between the employers and the education system must become more frequent and
relevant. Unfortunately, we can observe a drift into theory at academic
institutions, which further reduces the chances of teaching practical and
relevant things. It is therefore even more important that employers get active and
try to connect into the education system to shape what is being taught.
MCE: And a simple
question. If you are 16 years old what do you do to give yourself a better
chance of climbing on the career ladder and being a success? What experience
and what qualifications will win through?
PV: There are of course many evident steps
that can be taken to enhance one’s employability, including internships,
language courses, exchange programs, etc. However, this is a rather blunt
advice that doesn’t seem to have done too much in helping the Gen Y and Gen Z
in getting ready for the world of work. First of all, because there are not
enough youth-specific job opportunities and second, because today’s youth has
fundamentally different expectations from work than those 40 or 50 years ago. Hence,
the best thing that young people can do is to try and develop a clear
understanding of what they specifically want to do with their life and which
career path is a realistic and interesting option for them – corporate,
entrepreneurial, academic, political, etc. The better one gets at understanding
one’s goals in life, the easier it gets to align the specific next steps to
reach that goal. The current youth seems to have a particularly hard time to
express their goals and ambitions.