Activation Policies for the Poor in OIC Member States
30
mismatch between the skills held by young graduates and those sought by private sector employers.
In North Africa, the public sector is the main employer for university educated workers. The
principle eligibility criterion for employment in the civil service is a university degree, rather than
the content of that degree. This means universities face less pressure to teach the skills sought by
employers. Degrees emphasise rote learning and fail to include adequate training in numerical skills,
abstract reasoning or science.41 Poor standards of education have also trickled down to the
secondary level. For example, in Tunisia, despite a high participation rate in secondary education
(99.4% for 15 year olds), the country ranked 60th out of 65 in the OECD’s Program for International
Student Assessment (PISA) in terms of student performance in maths.42
Youth unemployment rates in North Africa are lower among less educated young workers. Whilst it
can be assumed that better educated workers are at less risk of poverty, skills mismatch nonetheless
needs to be addressed if activation is to be successful in alleviating poverty. Less educated young
workers are less able to rely on their family to support them financially whilst they search for work,
and are therefore more willing to accept informal employment (Egyptian workers aged between 20
and 24 have reported spending 34 months searching for work)43. This implies that skills mismatch
could extend beyond young graduates but is less visible due to the pressures of earning an income.
Skills mismatch is also prominent in OIC Member States in Sub-Saharan Africa and in the high
income Member States in the Middle East. In low income and lower-middle income Member States in
Sub-Saharan Africa, there are two prominent reasons for the mismatch. Firstly, the quality of
education is often poor. This means that even when students are taught subjects which do offer
employment opportunities, the training does not equip students with the knowledge they need for
the workplace. This is particularly relevant to low income Member States, where vocational training
institutions do not have the funds to invest in the modern equipment young people are likely to use
in the workplace. The second reason for the mismatch is the negative attitude many young people,
and their parents, have towards vocational skills training compared to academic subjects. This
means that many young people are discouraged from pursuing skills training even if these skills are
likely to make them more employable.
In high income Member States in the Middle East, many young people are highly educated. Oman, for
example, has a tertiary education enrolment ratio of 28%.44 However, students are choosing to
pursue tertiary education in subjects not in demand by private sector employers. 71% of students in
countries of the Gulf Cooperation Council pursue degrees in the humanities.45 Part of the reason why
students are not pursuing studies in the areas required by private sector employers is the
overwhelming preference that individuals have to work in the public sector.
Increasing employment in the private sector
As mentioned above, there is a tendency for the public in North Africa to view the public sector as
the primary source of employment. This trend is also found in high income OIC Member States in the
Middle East, such as Saudi Arabia.
In the Maghreb, new private sector businesses have struggled to establish themselves due to the
regulatory environment which makes it difficult for new businesses to enter the market.46 This
environment promotes the view that the public sector is the main source of employment and that a
civil service job is a symbol of success. Not only does the environment constrain new businesses
41 ILO (2014)
42 OECD (2012) Education GPS
43 AfDB (2012)
44 World Bank data, 2011, available at Note: the ratio refers to total enrolment
in tertiary education, regardless of age, expressed as a percentage of the total population of the five year age group following on
from secondary school leaving.
45 Vazquez Alvarez, R. (2012) Labor markets and informality in GCC countries – current labor policy and future changes. Presentation
in London, 28 February 2012.
46 AfDB (2012)