The International Labour Organization finds that too much or too little regulation leads to poor employment outcomes. Rather than increasing or decreasing regulation, we need to identify appropriate mixes of policies and regulations to maximize benefits for young workers, keeping in mind that there is no one-size-fits-all formula. Government labor policy and regulations should reflect a country’s context, cultural values, and economic realities.
Governments have room to develop policies that support the growth of micro, small, and medium enterprises, entrepreneurs, as well as self-employed individuals. These five categories create the majority of employment opportunities in any economy. Governments can also support the growing ecosystem of digital jobs, which will be a valuable source of jobs in the future. In addition, active labor market policies should align jobseeker and employer needs and incentives when engaging in government-sponsored or subsidized programs such as apprenticeships. Finally, governments could develop policies that increase the resources and tools that job seekers have available in order to find a job, for example, policies increasing internet access could give job seekers more access to job openings and announcements.