Determinants of school to work transition and COVID-19

Abstract

PurposeThis is Part 1 of the two special issues on the topic, “School to work transition around the world – the effect of the pandemic recession.” The first part focuses on the determinants of the school-to-work transition (STWT) and the implications of the COVID-19 pandemic on the young worker and their response to uncertain labor market conditions. The second issue will explore the country-specific experiences around the globe in tackling the problem of a smooth STWT. The purpose of this introductory article is to elaborate on the transition of young workers in the labor market. Discussion on the status of various indicators of the youth labor market (unemployment, underemployment and not in employment, education and training [NEET]) is also integrated. The determining factors of school-to-work transition (STWT) and the role of technical and vocational institutions and universities are analyzed. Moreover, the impact of COVID-19 on the labor market is also evaluated. After the pandemic, there was a dreadful change in the job market; this study dives into those diverse factors and carves out the multiple impacts on youth unemployment.Design/methodology/approachThe study analyses relevant literature on STWT, NEET and COVID-19 implications for the labor market, based on the other papers in this special issue. Using the review method, the authors identified similar research articles and reports which helped in strengthening the study’s argument. The primary focus of the study was on the smooth transition of young workers in the labor market and the impact of the pandemic on youth unemployment. Hence, literature supported the authors in giving the justifications from various economies and societies.FindingsThe paper finds that youth worldwide have suffered from the repercussions of COVID-19, especially in their early career (STWT). Skill mismatch, underemployment, job losses, salary cut downs, health issues, vocational education importance, vulnerable employment, etc. were some of the significant impacts the authors identified by analyzing the various reports and papers. Furthermore, this paper also discusses the role of active labor market policies and hiring incentives for promoting youth employment.Social implicationsThe paper finds that the times ahead are challenging ones. There is a dearth of productive job opportunities due to slow economic growth. The unemployment rate among youth and adults is high, and labor markets have become more competitive. The young generation is now left with no choice but to upgrade and improve their skill set or some other expertise. On the one hand, technical and vocational education and training (TVET) and universities need to enhance their marketable knowledge and skills, and on the other hand, there is a need for active labor market policies to encourage their participation in the labor markets.Originality/valueThis paper strongly contributes to highlighting the professional and societal hit backs faced due to the aftermath of COVID-19. The study summarizes the specific details of STWT and employment issues faced by youth in various parts of the world.