Preparing Youth for the Lucrative Informal Economy
In a world where 61% of workers earn their living through informal employment, how can we best prepare youth for a meaningful future?
By Megan Vander Velde, Educate!
Illicit. Underground. Noncompliant. These are some of the stigmas surrounding the words “informal economy,” but in a world where 61% of workers earn their living through informal employment, these words, along with many other misconceptions, don’t paint an accurate picture.
The organization Women in Informal Employment: Globalizing and Organizing (WIEGO) defines the informal economy as the “diversified set of economic activities, enterprises, jobs, and workers that are not regulated or protected by the state.” Think, for example, street vendors, motorcycle couriers, and domestic workers. For those who are unable to access formal job opportunities, or in countries where very few exist, the informal economy plays a pivotal role in supporting livelihoods.
In fact, 95% of African youth ages 15–24 work in an informal setting, compared to less than 50% of youth in the Americas, Europe, and Central Asia. With high rates of unemployment, even among university graduates, it’s no wonder that many young people find themselves entering the informal workforce as means of securing an income. Furthermore, these jobs have economic implications beyond the individual level. In some African countries, the informal economy contributes between 25 and 65 percent of their GDP. These statistics alone shed new light on the disparities that exist within today’s global job market.
By recognizing the distinct realities facing young people entering the workforce around the world, we are able to focus our attention on the following question: How can we best prepare youth for a meaningful future, regardless of their geographic location?
Whether incorporated into individual schools, national education systems, or Technical and Vocational Education and Training (TVET) programs, a few key components are essential in developing solutions towards this goal.
- Youth must be put first. Successful solutions internalize young people’s diverse social contexts, center them within their design, and are further strengthened through an intentional focus on building support networks.
- In addition to job-specific skills, youth need a strong foundation of soft and transferable skills that ultimately allow them to sustain momentum and adapt to ever changing circumstances.
- Gender-responsive practices and equitable access should be at the forefront of conversations about today’s workforce, ensuring that young men and women have opportunities to learn and lead side by side.
At Educate!, we have seen youth emerge from learning experiences built upon these principles with the 21st-century skills needed to thrive — whether that’s obtaining further education, starting a business, overcoming gender barriers, driving development within their communities, or a combination of the above. As described by Jonathan, a Ugandan Educate! participant, youth mentor, and rising entrepreneur, “I learned to embrace change and apply means of problem-solving in every situation I am faced with.”
As the world continues to evolve, further complicated by the effects of the COVID-19 pandemic, we must cast aside preconceived notions about today’s economy and actively pursue pathways that support youth in building the competencies and mindsets to better their life outcomes and pursue their goals in any setting: formal or informal.
Educate! prepares youth in Africa with the skills to succeed in today’s economy. Since 2009, we have partnered with youth, schools, and governments in Uganda, Rwanda, and Kenya, and are now the biggest youth skills provider in East Africa. Our ultimate vision is to design evidence-based solutions that measurably impact millions of youth across Africa each year.
