It is a pleasure for me to share my point of view with respect to how youth will be mostly affected in such an unprecedented scenario that is shaking the world today. Generally, Covid-19 does not discriminate against its victims, but the economic impact does.
By, scrutinizing 2008 financial crisis, we can derive that youth are hit harder than older, more experienced workers and they are the first to be laid off. According, to the United Nations (UN) estimates, youth (18-24) are 3 times more likely to be dismissed than adults.
There are many factors highlighting the vulnerability of young workers today.
First, as per the International Labour Organization (ILO), 3 out of 4 youth work in the informal sector. Covid-19 has forced our Government to extend the national lockdown till 01 July 2020, which is justifiable as ‘health is more precious than wealth’. But, this has been detrimental to the informal sector as they have not earn any revenue for about 2 months with little support by the government compared to the formal sector.
Furthermore, young workers are more likely to work in non-standard forms of employment (like part-time and temporary jobs), which will make it legally more easy for the employer to dismiss these workers.
Moreover, they are over-represented in sectors ravaged by the pandemic (like the tourism industry, accommodation and food services). Also, they were already at higher risk than others of losing their jobs and are normally the last to be considered for highly qualified jobs.
According to the World Bank unemployment figures for Mauritius, the youth unemployment rate has been around 24 to 23% over the past 3 years but the general unemployment rate has been around 6 to 7%. These figures show the existing reluctance of employer to employ youth workers and its support the fact that they are the first one to be laid.
Covid-19 as per the ministry of finance will lead to a rise in unemployment rate to around 17% (75,000 to 100,000 could lose their jobs) and there may be a negative growth of around 7 to 8%. There is a need to move fast, decisively, and together, the right and urgent measures need to be implemented in order to make the difference between survival and collapse. It is sure that once the lockdown is over the Mauritian’s economy will be in an urgency to be rebuilt from scratch. The effects on our economy have already started from Air-Mauritius though in trouble even before the virus outbreak, has been put under voluntary administration. This was just the peak of the iceberg, the worse is yet to come.
So, if the youth is not sustain properly and promptly with effective and daring measures in order to reduce youth unemployment and underemployment at the best of our country’s ability, we can say that the future (the root) of our economy is in serious dilemma.
In my opinion, promotion of youth entrepreneur has more than ever become a must today. We need awake the interest of youth to act as entrepreneur and government and financial institutions must do whatever possible for it to fructify. Incentives should be provided.
Financial institution should provide loan facilities that are repayable after 1 year at a very low interest rates with less paperwork and difficulties upon ensuring that the business plan is effective and will successfully be profitable in the future.
The government must set up programs that will help motivated youth entrepreneur to gain all the skills required to start up a particular project and constant advice should be given by experienced businesspersons especially in the introduction phrase. Moreover, the government should come forth with a specific amendment where business initiated by young individuals (18-24) may be exempted from paying cooperate taxes at all or at least pay a maximum rate of about 5% for a period of 3 years. This will not only contribute in terms of more employment in the short run but also it may help us diversify our economy and chances to be self-sufficient will be greater, which will contribute massively to our national income in the long run.
Furthermore, the informal sector should be supported by postponing the payments of loan and utility for a minimum period of 3 months. Also, specific businesses that are directly affected by the pandemic should be sustain financially providing that there will be minimum unemployment.
Covid-19 has given the state the opportunity to increase youth involvement in economic affairs more than ever and it is up to the government to seize the opportunity to safeguard the interest of youngsters by implementing appropriate, daring and exceptional decisions.
