According to official statistics, the unemployment rate has increased again among young people aged 16 to 24. According to the report “Labor force, Employment and Unemployment – Second quarter 2021” published on September 29 by Statistics Mauritius, the youth unemployment rate reached 32.4% in the second quarter of 2021, an increase of 8.1 percentage points compared to the second quarter of 2020.
This is a worrying finding since it has been more than two consecutive quarters that unemployment among the youngest working population is on the rise. According to Statistics Mauritius, for a labor force of 521400 persons registered in Mauritius in the second quarter of 2021, 52700 are between 16 and 24 years old, of which 17100 are unemployed.
There is no doubt that the Covid crisis is largely responsible for this growth in unemployment, but such a phenomenon would reflect a dysfunction of the labor market, and an inability to create new jobs for our youth. It is also a loss in terms of economic productivity. By depriving young people of work experience, it also has long-term effects: difficulties in entering the job market, loss of motivation, social problems, etc.
According to Statistics Mauritius, there is a decrease in the overall participation rate in the second quarter in Mauritius, compared to last year. This would imply that part of the labor force has stopped looking for work. The hypothesis of a discouragement effect in the labor market is real. In order to circumvent it, it would be advisable to improve information on job vacancies, generate more investment, to create more new jobs in the economy. With the recent opening of air borders, it is hoped that the arrival of more tourists will bring a renewed optimism in economic activities. This should benefit young people seeking employment.
