Labor demand is mostly dependent on the development and labor intensity across various
sectors within the domestic as well as the global economy. However, studies indicate that a
decreased permanent job opportunity compared to the whole supply of labor pose a great
challenge for the youth living in developing countries (Save the Children p.2). While the high
demand for youth labor can help to solve the challenge regarding youth unemployment and
crowding it, the youth’s forums are unable to solve the problem within the structural labor
market. This paper will examine various issues concerning the youth displacement in labor force
to help us gain an inner depth of the question.
The challenge of youth employment especially in the middle or low earning countries is
based on the slow growth of the production sector. This condition has compelled the youth to
join the self-employment sector unwillingly due to inadequate job opportunities. As a result of
trying to help the youth attain employment, the already unemployed people make it hard for the
youths to be easily absorbed leading to displacement effect. It is, however, difficult to evaluate
the impact of displacement since the general equilibrium effects dictate them.
Although it is difficult to measure the displacement and general equilibrium effects, there
are important strategies that can be put in place to address the extremes in the labor market. The
matter of the fact is that the rate of wages is increasing with the decrease in of workers, which
translate into lower displacement level. Nevertheless, the experimental study offers a way
forward in understanding the best developmental interventions and effective means of analyzing
and implementing them (Save the Children p.3). Consequently, the development approaches
have become both theoretical and scientifically oriented.
The Manifestation of Youth Displacement
Several studies provide us with some revelations regarding how displacement occurs to
help us gain a deeper meaning of the concept of movement. According to a survey carried out in
French indicated that the primary role of the employment program was to enable the sample
group to gets jobs more quickly than the non-participants (Save the Children p.4). However, the
more the numbers of youth’s participants, the outcomes were very overwhelming. The program
could not reduce the unemployment level at any remarkable rate since those who got the job
would eventually displace the rest.
Similarly, the job seekers with necessary recruitment skills got jobs, but still others without prior guidance were left out without jobs. In yet another example, displacement is likely
to occur with projects with an aim to start HEs in which the newly formed HEs may outdo the
already existing HEs in the same department. For example, in Uganda, the Wings Intervention
helped women to stop agriculture business and begin sale business. Unfortunately, they misplaced the men traders who were less competitive.
The Best Interventions Based On the Research Evidence
According to David, we can employ non-youth specific evidence to enlighten youth –
programming (Save the Children p.4). However, there are vital things that stakeholders need to
understand; Firstly, it is crucial to determine the overall impact of labor elasticity especially
between the youth labor supply and that of adult supply. “When the demand for youth labor is
inelastic, the minimum wage leads causes relatively small reduction in employment
opportunities” (Save the Children p.4).
Secondly, the majority of youth’s applicants do not have the required skills to perform
various duties in the firm. As a result, organizations can use them interchangeably more than
they would do to the adult employees. While these criteria cannot be employed in the self-employment sector, studies suggest that organizations can assist the youths by creating policies
that will encourage companies to hire more workers. Also, youths should be supported to venture
into a small and major business that can help them employ themselves and others.
Lastly, the youth’s needs to be informed on the existing business gaps and equip them
with the necessary skills required to perform various tasks whether in HEs or Big Firms(Save the
Children p.3). Educating youths can only be successful if more research is conducted to analyze
the growing needs of youth and obtain precise information on the cost-effectiveness, the long-term effects, displacement, and equilibrium effects.
Work Cited
Save the Children US., Are we robbing Prakesh to pay Priyanka? Available Online at
https://twitter.com/SavetheChildren/status
Accessed on Nov 28, 2018
