Along with punitive legislation and harsher policing, the government has acknowledged the role

that social interventions can play in tackling the risk factors for crime and violence, such as
insecurity, unemployment and poor education. The government of Jamaica has taken numerous
steps to address the causes of violence. For example, the Child Development Agency has been
established as an executive agency to coordinate childrens services, while the Child Care and
Protection Act imposes penalties for failing to report cases of

Youth Unemployment and Entrepreneurship

in the Caribbean
August 16, 2013 COHA 1 Comment
In 2012, nearly 75 million young people between the ages of 15 and 24 were unemployed
worldwide, and 14.3 percent of those young people lived in Latin America, including the Caribbean.
[1] Considering this alarming rate of unemployment, Caribbean governments have put forth a
number of initiatives to provide their youth with basic skills and opportunities to find gainful work,
but there is still more to be done. At a time of considerable economic decline, youth
entrepreneurship and careful monitoring of programs are promising solutions because these
measures provide young people with the means to be self-employed and to remain so for an
extended period of time. This article outlines general trends in Caribbean youths unemployment
and government initiatives, and reviews Jamaicas efforts to support its youths entrepreneurial
efforts.
Causes and Consequences of High Youth Unemployment
There are numerous reasons why young people have such high unemployment rates throughout the
region. First, the recent global economic downturn characterized by recession, debt service
obligations, and declines in development assistance significantly decreased the number of job
openings available. [2] For example, as a result of the crisis, Jamaicas overall labor force decreased
by 2.7 percent in 2010. This resulted in the loss of 16,000 jobs for youths between the ages of 14
and 24 from October 2009 to October 2010. [3] Meanwhile in Barbados, in 2011, while the overall
unemployment rate was 11.2 percent, the youth unemployment rate was more than double that, at
28.9 percent. [4] It is evident that youth are especially vulnerable to being out of a job during times
of general economic hardship.
Furthermore, a general lack of preparation leads to unemployment among the young, as they often
do not have the skills needed to compete against older, more experienced workers. This is especially
true in low-income communities where there are fewer resources. [5] Even if they manage to secure
employment, younger workers are likely to be fired first under the assumption that they have fewer
dependents, and thus the impact of their lost income would be less severe. In other words,
vulnerability on account of a strained economy, added to limited experience, makes it more difficult
for youth to acquire and keep a job.
Considering that approximately 25 percent of the Caribbean population is between the ages of 10
and 24, an increase in unemployment has greater consequences for youth, their families, and
society. [6] People who are suffering from unemployment are likely to have a lower sense of selfworth because they are not actively contributing to society. According to the International Labour
Organization (ILO), a lack of decent work, if experienced at an early age, threatens to compromise
a persons future employment prospects and frequently leads to unsuitable labour behavior patterns
that last a lifetime. [7] Furthermore, high rates of unemployment and idleness among youth in
general are correlated with increased violent crime. A study by the World Bank, published in 2007,
found that in Jamaica, in 1998, 80 percent of all prosecuted crimes were committed by young

people aged 17 to 29. [8] Although the statistic is 15 years old, the involvement of youth in
criminal activity is still apparent in todays Jamaica, as evinced in the governments prodigious
resources allocated to controlling gangs. The individual impacts are evident and go on to influence
those who live in close proximity to that person.
Familial units suffer because they lack the added income that could be contributed to the household.
If a young person works, then a family could more easily meet its basic needs without strain. On a
larger scale, governments spend more money in corrective services, security, crime, drug
prevention, and unemployment benefits when young people are without jobs, according to the
Organization of American States. [9] Caribbean governments must assume the onus of correcting
destructive behavior that could be avoided if, instead of idle time and little structure, youth had a
constructive outlet. The first ever U.N. Human Development Report focusing specifically on the
Caribbean was published in 2012, and found that, for every additional gang in a community,
homicide rates increased by about 10 percent. [10] Youth unemployment could even be considered
a threat to national security, due to the rampant crime, violence, and economic burdens it causes.
The Caribbean Community estimates that the cost of gang-related crime is between 2.8 and 4
percent of gross domestic product (GDP) in the region through both the cost of policing and as a
result of lost income from youth incarceration and reduced tourism. [11] Widespread youth
unemployment results in negative consequences that can be registered on both large and small
scales.
Regional Initiatives to Combat Youth Unemployment
There have been numerous programs across several countries, as well as some regional seminars, to
address youth unemployment in the Caribbean. For example, the Youth Entrepreneurship Scheme in
Barbados was established in 1995 with the goal of promoting youth empowerment and
development through the establishment of viable and sustainable micro and small businesses. [12]
In 2000, Youth Business Trinidad and Tobago was founded with the purpose of helping young
persons to work for themselves by providing access to business loans and business mentoring. [13]
Most recently, the Commonwealth Youth Progamme Caribbean Centre and the ILO held a regional
seminar in St. Lucia surrounding the theme, Addressing Youth Employment Changes in Times of
Crisis. [14] The focus of the these programs, and others like them, is multifaceted, with concerns
for problem solving, financial acumen, and entrepreneurial development; however, it seems that
they fail to encourage the skills that are necessary to survive in and to transform a region with a
lackluster economy.

Photo source: tt.unleashingideas.org

Case Study: Jamaica
Jamaica is a good example of how youth unemployment and the programs meant to solve this issue
are seen as falling short. Jamaica has the lowest average annual per capita GDP growth in the
Caribbean outside of Haiti (negative 0.1 percent), and recently signed an agreement with the

International Monetary Fund, with funding from the World Bank and Inter-American Development
Bank, for nearly $2 billion USD in loans throughout the next four years. [15] In terms of violence,
the aforementioned U.N. Human Development Report found that Jamaica has the highest homicide
rate in the Caribbean and the third-highest murder rate worldwide in recent years, with about 60
murders per 100,000 inhabitants. [16] The impacts of increased violence are considerable, with
$529 million USD spent on costs associated with crime every year. [17] There are approximately
800,000 young people in Jamaica, and given the countrys waning economy, it is not surprising that
youth are negatively impacted.
As of July 2012, unemployment for Jamaicans aged 14-19 was at 47 percentvirtually unchanged
from the previous year. Unemployment for those aged 20-24 in 2012 was at 30.1 percenta 3.7
percent increase since 2010. [18] These numbers are nearly double those of adult unemployment.
Particularly startling is that the overall youth unemployment rate in Jamaica in 1990 (ages 15-24)
was 25.4 percentindicating that the problem has increased over the past two decades. [19] Young
Jamaican females are more likely to have higher rates of unemployment than males, on average,
despite having higher enrollment and average daily attendance rates in school. Young men tend to
lag behind and often yield to societal expectations that men acquire income-generating skills, leave
school early to go working, or get involved with gang activities and criminal actions. [20] This
negative correlation between education and employment for young women demonstrates an overall
lack of opportunities to work.
There are four notable advances that have been madepast and presentwhich have been
implemented to resolve youth unemployment issues. The 1994 Jamaican Youth Policy focused on
motivation, as it specifically states that its goal is to improve work ethics and training and promote
entrepreneurial skills. [21] The National Centre of Youth Development, created in 2000, organizes
a Youth Entrepreneurship Training program that emphasizes entrepreneurial skills and development
as means of alleviating unemployment. [22] In addition, the Jamaican Emergency Employment
Programme, founded in 2011, is a job placement organization aimed at the general population. To
date, it has created 15,000 jobs for youths and adults.
An important program launched in June 2012, Digital Jam 2.0, demonstrates the importance of
entrepreneurship and the need for similar programs. Digital Jam 2.0 capitalized upon the booming
mobile applications and virtual economy markets by focusing on relevant and forward thinking
topics. Funded at less than $200,000 USD, the program attracted 2,000 young Jamaicans in a
series of competitions (app contests and a hackathon on the sports industry), workshops, training
on mobile software development, and presentations by industry leaders [and] successful young
Jamaicans who are currently working online. [23] Not only were youth exposed to opportunities in
the field of technology, but Howard University, a premier black institution located in the U.S.
capital, also offered two full Master of Arts fellowships to the winners of the app competition. As a
result of the event, there are now 4,400 new Jamaican youth working in the fields of microwork
(dividing tasks into smaller jobs to be be completed via internet) and e-lancing platforms (online
freelancing). [24] Forward thinking initiatives like Digital Jam 2.0 are of the utmost importance
because they offer relevant skills that could position youth to be competitive in the global market.
The Jamaican government seems committed to ending youth unemployment, but, despite nearly two
decades of these efforts, the problem of rampant youth unemployment persists.

Photo source: Jamaica Gleaner

Conclusions
Jamaica and other Caribbean countries have tried to resolve youth unemployment; however, the
goal to lessen youth unemployment in times of economic downturn would be better supported if
there were more emphasis on entrepreneurship and careful monitoring of the programs success or
failure.
It could be argued that entrepreneurship is just one of a number of factors that should be attended to
in the struggle to alleviate youth unemployment and that other methodssuch as teaching
marketable skills through education, reforming the punitive justice system, addressing economic
issues, and providing more systematic loansshould take precedence. This is a valid concern;
however, youth entrepreneurship should be a priority alongside these other considerations, despite a
paucity of resources, as it is an important means of achieving self-sufficiency that can be
maintained in spite of the economic downturn. A diverse use of interventions, entrepreneurship
included, will help to develop secure, valued, and empowered adolescents who can realize their
full potential and contribute to a sustainable Caribbean Community, says Darren Turnques, the
Bahamas Director of Youth in the Ministry of Youth Sports and Culture. [25] Programs like Digital
Jam 2.0 are exemplary models of success. Todays Caribbean youth will soon be the leaders of their
countries, and their governments should encourage them to realize their potential through the
development of their own businesses.
Furthermore, it is not enough to merely encourage entrepreneurship. The government should
promote and foster quality businesses, which offer unique products and services that could be sold
at higher prices, and at international markets. [26] The existence of innovative and successful
businesses will help support flagging economies and disrupt the negative consequences, like youth
violence and distorted self-image, caused by high youth unemployment. Nonetheless, it is important
to monitor the effectiveness of these programs so that the government does not waste its time and
resources.
August 12 was International Youth Day, an occasion to stress the plight of young people in the
Caribbean and how entrepreneurship could be a viable way to help them to become productive, selfemployed citizens despite their countrys dismal economic situation. Doing so would benefit
individual young people, their families, and their country. The importance of this issue cannot be
exaggerated, as it was the focus of the Eighth ILO Caribbean Labour Ministers meeting held just

last month. Director General of the ILO, Guy Ryder, captured the need for change by affirming,
doing right by youth is a foundation for future success. [27] Guided by a managerial spirit of
innovation, endless possibility, and creativity, a new future is possible for Caribbean youth.
Angela Crumdy, Research Associate at the Council on Hemispheric Affairs
Please accept this article as a free contribution from COHA, but if re-posting, please afford
authorial and institutional attribution. Exclusive rights can be negotiated.
For additional news and analysis on Latin America, please go to: LatinNews.com and Rights
Action
References
[1] International Labour Organization, Global Employment Trends for Youth, (Geneva: ILO, 2012),
http://www.ilo.org/wcmsp5/groups/public/dgreports/
dcomm/documents/publication/wcms_180976.pdf.
[2] Tamjidul Huda Kazi, Youth Unemployment in the Caribbean: Social and Economic
Backgrounds, (paper presented at the United Nations Sub Regional Workshop For the Caribbean
on Youth employment policies, Kingstown, St. Vincent & the Grenadines, December 15-17, 2004),
http://unpan.org/publications/PDFs/E-Library%20Archives/2005%20Report%20on%20the
%20United%20Nations%20Sub-Regional%20Workshop%20for%20the%20Caribbean%20on
%20Youth%20Employment%20Policies.pdf.
[3] Stefanie Dorotha Weck, Jamaican Youths on Their Way to Employment, (MA thesis, Aalborg
University, 2012).
[4] Wade Mark, Tackling Youth Unemployment in Trinidad and Tobago and the Caribbean,
(paper presented at the 58th Commonwealth Parliamentary Conference, Colombo, Sri Lanka,
September 7-15, 2012).
[5] World Bank, School and Work in the Eastern Caribbean: Does the Education System
Adequately Prepare Youth for the Global Economy? Washington, D.C.: World Bank Publications,
2008.
[6] Population Reference Bureau, Noncommunicable Diseases in Latin America and the
Caribbean: Youth Are Key to Prevention, (Washington, D.C.: PRB,
2013), http://www.prb.org/pdf13/noncommunicable-diseases-latin-america-youth-datasheet.pdf.
[7] International Labour Organization, Global Employment Trends for Youth.
[8] World Bank, School and Work in the Eastern Caribbean.
[9] Stella Yerut Mendez Cardozo, Entrepreneurship As a Strategy for Job Creation in Latin
America and the Caribbean, (University of Maryland University College).
[10] Criminal Violence Taking Rising Toll in Caribbean Countries, UN Report Finds, UN News
Centre, accessed July 26, 2013, http://www.un.org/apps/news/story.asp?
NewsID=41175#.UgObEWQ6UbB.
[11] Ibid.
[12] Youth Entrepreneurship Scheme (YES), Ministry of Commerce and Trade, Barbados,
accessed July 25, 2013, http://www.commerce.gov.bb/index.php/departments-a-agencies/businessdevelopment-unit/small-business-agencies/youth-entrepreneurship-scheme-yes.
[13] Youth Business Trinidad and Tobago Youth Business Trinidad and Tobago, accessed July 25,
2013, http://www.ybtt.org/index.php.
[14] Mark, Tackling Youth Unemployment.
[15] Jake Johnston, The Multilateral Debt Trap in Jamaica, Washington, D.C.: Center for

Economic and Policy Research, 2013.

[16] Criminal violence.
[17] Ibid.
[18] Mark, Tackling Youth Unemployment.
[19] Kazi, Youth Unemployment in the Caribbean.
[20] Stefanie Dorotha Weck, Jamaican Youths on Their Way to Employment, (MA thesis, Aalborg
University, 2012).
[21] World Bank, Caribbean Youth Development: Issues and Policy Directions (Washington, D.C.:
World Bank Publications, 2003).
[22] Jamaica Emergency Employment Programme, Jamaica Emergency Employment
Programme, accessed June 20, 2013, http://www.mtw.gov.jm/JEEP/jeep.aspx.
[23] Creating Employment Solutions for Young Jamaicans in the Virtual Economy, World Bank,
accessed July 20, 2013 , http://www.worldbank.org/en/results/2013/04/24/creating-employmentsolutions-young-jamaicans.
[24] Ibid.
[25] Lack of Funds Frustrating CARICOM Push Against Youth Crime and Violence, Caribbean
360, accessed August 6, 2013,
http://www.caribbean360.com/index.php/news/bahamas_news/619644.html#axzz2bDGzoU9b.
[26] Stella Yerut Mendez Cardozo, Entrepreneurship As a Strategy for Job Creation in Latin
America and the Caribbean, (University of Maryland University College).
[27] Regional Labour Ministers Urged to Tackle Youth Unemployment, Jamaica Observer,
accessed July 18, 2013, http://m.jamaicaobserver.com/mobile/news/Regional-labour-ministersurged-to-tackle-youth-unemployment_14619800.