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Latin America – Youth unemployment threatens to damage economy

11 February 2016

A report by the World Bank shows that 20 million Latin Americans who are between 15 and 24 years are currently not in school or working and this could lead to damage to the economy.

According to the study, these young people, nicknamed ‘ninis ' (neither study nor work) and they can have lasting negative consequences on productivity by lowering wages and employment opportunities, thus damaging to economic growth in general.

These young people represent a vulnerable population that can easily be drawn into organized crime, especially in countries like Colombia, Mexico and Central America, according to StaffingAmericaLatina, a business partner of Staffing Industry Analysts.

The report, prepared by Rafael De Hoyos, Halsey Rogers and Miguel Székely said that women make up two-thirds of the group.

The World Bank urged governments of the continent to prevent the dropout of 'ninis'. Meanwhile, the OECD (Organisation for Economic Co-operation and Development), reports that income inequality in the region and the low levels of productivity are major obstacles for development, with structural reforms needed.

According to staffingamericalatina, Angel Gurria, Secretary General of the OECD stated that the governments of the region face the challenge of putting their "economies on a path of stronger, sustainable and equitable growth through comprehensive structural reforms to accelerate productivity growth while improving social cohesion. "

The document notes that education, social protection and entrepreneurship are some of the areas where action is needed more to curb the slowdown in economic growth and fight inequality in Latin America.

The report indicates that the "skills development of young people and their preparation for lifelong learning increase social cohesion and labor productivity. More than half of those who are 15 years of age in Latin America do not acquire the level of basic skills for proper performance in the labor market."