Peru has experienced a long and sustained period of economic growth during the last decades. As a result, the country’s macroeconomic indicators depict a picture that can be compared to the one of a middle-income country. Many social and development problems in Peru, however, are still in place.
Youth’s employability, especially that of the vulnerable ones (that is, individuals aged between 15 and 24 years old living in poor or extremely poor households), is one of the pending challenges. The good news is that their number has notably dropped. A decade ago one out of two youngsters lived in a household with per-capita income below the poverty line. Nowadays this happens with only one in five. Nonetheless, their employability is still a challenge.
The vulnerable youth in Peru show low labor market participation (with a decreasing tendency), high unemployment (although its tendency is towards a decrease of it), high informality and high incidence of part-time jobs. In turn, the vulnerable youth shows low levels of development of cognitive and socioemotional sills, configuring in this way a vicious circle of maladies.