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Youth Motivations to Employment and Entrepreneurship Final Report

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Youth Motivations to Employment and Entrepreneurship Final Report YOUTH MOTIVATIONS TO EMPLOYMENT AND ENTREPRENEURSHIP FINAL REPORT Prepared by Altai Consulting for Expertise France | Libya – October 2016 Unless specified otherwise, all pictures in this report are credited to Altai Consulting Cover picture credit: Young Libyan in Tripoli, Monder Haraga for Altai Consulting TABLE OF CONTENTS LIST OF FIGURES AND TABLES ........................................................................................ 4 ABBREVIATIONS ................................................................................................................ 7 ACKNOWLEDGEMENTS ..................................................................................................... 8 NOTE ON THE ANALYSIS................................................................................................... 9 DEFINITIONS AND LIMITATIONS ..................................................................................... 10 1. EXECUTIVE SUMMARY ........................................................................................... 13 2. INTRODUCTION ....................................................................................................... 18 3. YOUNG LIBYANS IN THE LABOR MARKET .......................................................... 20 Profile of Youth .......................................................................................................... 20 Current Situation of the Youth in the Libyan Labor Market ......................................... 25 4. MOTIVATIONS FOR EMPLOYMENT ....................................................................... 41 Motivations to Work or Not to Work ........................................................................... 41 Preferred Work Conditions ........................................................................................ 43 Professional and Sectorial Attractions ....................................................................... 51 5. MOTIVATIONS FOR ENTREPRENEURSHIP........................................................... 56 Perception of Entrepreneurs ...................................................................................... 57 Profile of Young Entrepreneurs in Libya .................................................................... 57 Motivations of Youth to Become Entrepreneurs ......................................................... 61 Main Factors Hindering Young Libyans to Become Entrepreneurs ............................ 69 Business Creation Capacity of the Libyan Youth ....................................................... 75 Potential Business Creation Support Systems ........................................................... 79 6. ANSWERS TO KEY RESEARCH QUESTIONS ....................................................... 85 7. CONCLUSIONS ON EVOLUTIONS .......................................................................... 90 8. RECOMMENDATIONS ............................................................................................. 93 Macro level Challenges and Areas of Opportunities .................................................. 93 Recommendations that Complement Existing Activities of the Current SLEIDSE Logical Framework .............................................................................................................. 93 Recommendations that Propose New Activities to Supplement the Current Logical Framework of the SLEIDSE Programme ............................................................................. 95 9. ANNEXES ................................................................................................................. 97 Annex 1: Methodology ............................................................................................... 97 LIST OF FIGURES AND TABLES Figure 1: Young Libyan's marital status (n=1224 youth) ...................................................................... 21 Figure 2: Living conditions for different age categories (n=1224 youth) ............................................... 21 Figure 3: Level of education in Tripoli districts compared to the remaining districts of Libya (n=1224 youth) ............................................................................................................................................. 22 Figure 4: Main fields of study for Libyan youth with high education (n=657 youth) .............................. 23 Figure 5: Fields of study, comparison between genders (n=1224 youth) ............................................. 23 Figure 6: Access to Internet in relation to place of stay (n=1224 youth) ............................................... 25 Figure 7: Youth Labor Force Participation Rate (LFPR) compared to regional average (n=1224 youth) ....................................................................................................................................................... 26 Figure 8: LFPR per age group (n=1224 youth) ..................................................................................... 27 Figure 9: Estimation of the 16-34 labor force and gender distribution .................................................. 27 Figure 10: Distribution amongst the youth labor force: employed activities and unemployed (n=1224 youth) ............................................................................................................................................. 28 Figure 11: Youth unemployment by age group: comparison between 2015 and 2016 data (n=1224 youth) ............................................................................................................................................. 29 Figure 12: Distribution of the labor force for youth (16-34), comparison between 2015 and 2016 (n=1224 youth) ............................................................................................................................................. 30 Figure 13: "Do you feel it is easier or more difficult to find a job today compared to 2 years ago?" (n=1224 youth) ............................................................................................................................... 30 Figure 14: Main reasons evoked as obstacle to enter the labor market in Libya (n=1224 youth) ........ 31 Figure 15: Difficulty in finding a job for women as compared to men (n=1224 youth) .......................... 32 Figure 16: Share of the public and private sectors in the labor force: comparison between 2015 (n=183) and 2016 (n=796) .......................................................................................................................... 33 Figure 17: Self-employed youth as percentage of the 2016 youth labor force (n=663 youth) ............. 35 Figure 18: Self-employed activities (n=247 youth) ................................................................................ 35 Figure 19: Sectors of activities of the Libyan youth as percentage of the labor force (n=1147 youth) . 36 Figure 20: To what extent are you satisfied with your current situation? (n=1147 youth) .................... 38 Figure 21: Matrix of satisfaction with current situation and willingness to change this situation (n=1147 youth) ............................................................................................................................................. 39 Figure 22: To what extent would you like to find a job or change job? (n=1074 youth) ....................... 40 Figure 23: Main reason why you work (in your present job) and location of residence for youth (n=663 youth) ............................................................................................................................................. 42 Figure 24: What is the main reason why you work (in your present job) (n=663 youth) compared with what is the main reason why you would work (in a hypothetical/ideal job)? (n=1147 youth) ........ 42 Figure 25: Type of contracts for employed youth per broad sector of activity (n=549 youth) ............... 44 Figure 26: Type of contracts per age group (n=549 youth) .................................................................. 45 Figure 27: Salaries of male and female employed youth (n=798 youth) .............................................. 46 DRAFT YOUTH MOTIVATIONS TO EMPLOYMENT AND Altai Consulting ENTREPRENEURSHIP October 2016 4 Figure 28: Salaries of employed youth in different broad sectors (n=695 youth) ................................. 47 Figure 29: Salary claims of working age youth (n=1147 youth) and actual salaries on the labor market (n=796 youth) ................................................................................................................................. 48 Figure 30: Salary claims compared to level of education amongst youth (n=1147 youth) ................... 48 Figure 31: Hours worked weekly in different broad sectors (n=695 youth) .......................................... 49 Figure 32: «In a hypothetical job, what of the following options would you prefer?" (n=1147 youth) ... 50 Figure 33: Preferred location of work compared to situation of residence (n=1147 youth) .................. 50 Figure 34: "If you were offered a job in another city/district, would you be willing to move to accept the job” (n=1147 youth) ........................................................................................................................ 51 Figure 35: Broad activities of attraction for both male and female (n=1147 youth) .............................. 53 Figure 36: Actual sectors for active youth in the labor force (n=795 youth)
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