For several decades international agencies have been supporting education and training programs that prepare youth for the workforce and higher levels of education. Workforce development programs also focus on putting in place a supportive policy and institutional environment so that learners gain access to jobs and employers benefit from increased workforce productivity. However, programs are based on the assumption that the private sector is growing and has jobs for qualified applicants. With the “youth bulge,” the number of youth in the world is increasing at a faster rate than the number of new jobs.

The solution
In response to this dilemma, USAID and other donor agencies have become increasingly interested in supplementing workforce development strategies with livelihood development programs for young people from marginalized backgrounds. Millions of young people working in the informal sector are finding ways to eke out a living and make something from very little. Successful livelihood development programs help youth where they are until they can break into the formal economy and build on the creativity youth develop when trying to squeak by on so little. Complementing workforce development with livelihood development is a strategic necessity for national development, especially when delivered in careful coordination with traditional investments in health, education, democracy and governance, and economic growth activities.

The following chart illustrates some of the characteristics of youth’s transition from the informal economy to the formal economy through livelihood and workforce development programs respectively.

Our Approach

EQUIP3’s initiatives seek to prepare youth for adult roles, including entering the world of work. Our projects cater to the specific needs of young people and help them progress on their individual journeys to employment, whether in the informal or formal economy. EQUIP3 also assists countries in taking full advantage of their youth populations, so that society on the whole can reap the socioeconomic benefits. EQUIP3 has expertise in both Workforce Development and Livelihood Development.

EQUIP3 has identified six essential practices in the design and implementation of youth livelihood interventions:

• Appraise existing youth livelihood assets (human, social, and financial), youth livelihood capabilities (positive risk-taking, innovation, problem-solving skills), and youth livelihood activities, using a Youth Livelihood Mapping process.

• Understand the contributions youth make through their economic activities (paid and unpaid) to existing household and extended family income and livelihood.

• Document existing sources, both formal and informal, of support for livelihood development, including sources for technical skills training, start-up capital accumulation, enterprising life-skills development, and social/peer support.

• Use appraisal tools to identify the specific needs of youth in the community and a "demand-driven" product development approach to identify the "youth market,” or areas where the greatest economic potential for young people can be found. Then work with key stakeholders, including youth, to redesign existing and develop new interventions for improving livelihood readiness.

• Work with microfinance providers to appraise current youth use, both direct and indirect, of existing microfinance services and products. Identify any barriers to access (structural, legal, cultural) faced by young clients, and assess areas for new product development.

• Identify the optimal ways that supportive adults can "accompany" young men and women's ongoing development of livelihood assets, capabilities, and activities, with an emphasis on livelihood coaching and mentoring style interventions.