Guatemala Proposes National Apprentice System to Boost Youth Formal Employment

Guatemala's vibrant youth demographic, while a potential engine for growth, presents a significant challenge in terms of formal employment. Carlos Benítez Verdún, representing the United Nations Development Programme (UNDP), points out that between 180,000 and 200,000 young Guatemalans enter the job market annually, yet the vast majority are absorbed by the informal economy. This pervasive informality, coupled with a lack of prior work experience, creates a formidable barrier for young people seeking their first formal job. The situation demands innovative solutions that not only provide opportunities but also foster sustainable integration into the formal labor market.

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Youth employment is a two-sided coin. There are cultural, technical, and formal elements that prevent young people from having opportunities in the labor market today, but at the same time, there are other opportunities being generated that need scale.

The "My First Job" scholarship program, managed by the Ministry of Labor and Social Welfare, directly addresses this critical need. Launched initially in 2013 and evolving over the years, the program targets individuals aged 18 to 24 who lack formal work experience. It facilitates a four-month apprenticeship in private sector companies, with the state covering 51% of the salary and the companies the remaining 49%. This shared-responsibility model not only eases the financial burden on businesses but also incentivizes them to invest in training and potentially hire these young apprentices. The program's success is evident, with over 118 beneficiaries securing permanent positions by December 1, 2025, demonstrating its effectiveness in transitioning youth from informal to formal employment.

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The first challenge is informality. When absorption is not through the formal market, young people go to the informal market. 70% of young people are in the informal market.

While programs like "My First Job" offer a promising pathway, Benítez stresses the need for these initiatives to be scaled up and integrated into sustainable, long-term public policies. The current budgetary allocations, while increased for 2025, still cater to a limited number of scholarships. For Guatemala to truly harness its demographic dividend, a more comprehensive national strategy is required. This includes not only expanding such apprenticeship programs but also addressing underlying structural issues that perpetuate informality and limit opportunities for its young workforce. The conversation with Prensa Libre underscores the urgency of transforming this demographic potential into a tangible economic asset through concerted policy efforts.

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The State covers 51% of the salary and the companies, the remaining 49%.