Spanish version

LABOR

Lack of skilled workers still a problem

The lack of skilled workers is considered a roadblock to economic growth.

Studies cite lack of experience as a major reason youths go unemployed.

Spanish version

Temas:

The Inter-American Development Bank is holding a conference in Bolivia to examine the issues being experienced regionally that affect unemployment.

One of the issues being discussed is high unemployment among people under 30. A major factor is due to a lack of experience among this age group, who may have trouble finding work despite having a degree.

While the bank focused its study on Bolivia, it said the conclusions "reflect what is happening in many other countries in the region."

It found that many vacancies for skilled workers go unfilled for months, and the main cause is a lack of people with the skills needed for the job.

Additionally, young people are considered qualified to fill only 25 percent of jobs being created.

"Most of the young people work in small businesses and often with no formal contracts," said the bank.

This has created a large pool of unemployed young people. In Latin America, there are about 22 million young people who are neither studying nor working, earning them the nickname "ninis".

In Panama this phenomenon is growing, and affects an estimated 23 percent of the population in their 20s.

"Employment in Latin America seems to be a puzzle where the pieces don't fit," the bank said. "On the one side are the skills of workers, and on the other side are the needs of the productive sector."

This leads to low productivity rates, which stymies economic growth. 

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