Activation Policies for the Poor in OIC Member States
29
 Setting minimum wages: a minimum wage protects workers at the bottom of the wage
distribution structure. It also addresses rises in inequality and the risk of working poverty (which
would prevent activation being successful of poverty alleviation). Most countries have some form
of minimum wage but in OIC Member States this is sometimes restricted to public sector workers
(such as in Afghanistan).34
 Maternity protection: if employers bear the cost of maternity leave, female workers can be
disadvantaged compared to male workers. This is because employers could consider female
workers to create additional costs.35 Where employers do not offer any kind of protection to
female workers, women are further disadvantaged. Countries such as Jordan are therefore
introducing reforms to offer maternity insurance through social security.36 Low income
countries, such as Bangladesh, also offer protection although this is targeted at the poor.37
 Employment protection for fixed term workers: increasing legal protection for workers is
another tool to develop quality employment. Several countries are developing their protection for
fixed term workers, such as Gabon and Morocco which have introduced a statutory definition of a
fixed term contract. Niger has also introduced limitations to renewals of fixed term contracts but
has increased their maximum duration.38
Youth unemployment
Most countries around the world are challenged with rates of youth unemployment that exceed
overall unemployment rates. Member States in each income grouping are affected by this trend but
Member States in the Middle East and North Africa (MENA) are particularly affected. Youth
unemployment is also distinguishable in the MENA region because youth unemployment spells tend
to be longer than in other regions around the world.39
As mentioned above, it is the educated young in the MENA region in particular who face difficulties
finding quality employment. University graduates in Egypt have the highest rates of unemployment
among young men. In Tunisia, over 30% of young workers were estimated to be unemployed in
2008; in 2007, university graduates were estimated to have an unemployment rate of 40%.40
Some of the reasons identified by the ILO for high youth unemployment in the MENA region, which
would also apply to other Member States, particularly in Sub-Saharan Africa are:
 Large young populations are increasing labour force growth
 Skills mismatch affects young people’s employability
 Large public sectors mean this sector is often viewed as the principle employer, leading to labour
market distortions
2.1.2 Trends in labour supply
Skills mismatch
Skills mismatch refers to the situation in which skills held by workers are not those required by
employers. Skills mismatch is a significant problem in the labour market especially in North Africa.
As discussed above, one of the causes attributed to high youth unemployment in North Africa is the
34 ILO (2014)
35 ILO, Protect the future: maternity, paternity and work , Bureau for Gender Equality, ILO
36 ILO (2013) Jordan Maternity Benefits. Available at:
jsessionid=1c41175dd77dcd34403a7a4d2e51dfad7db3e1a
3055ad72a8bdba2d623ac7d97.e3aTbhuLbNmSe34MchaRah8Tchr0?th.themeId=3525
37 ILO website, available at:
38 ILO (2014)
39 ILO (2012) Youth Unemployment in the MENA region: Determinants and Challenges. Available at:
40 AfDB (2012)