Make Way for the Young: Strategies to Reduce Youth Unemployment

The Future of the World: New Platform for Global Growth
Theme      : Investment in People
Essay Topic: Make Way for the Young: Strategies to Reduce Youth Unemployment
By Maw Maw Tun

Introduction
Young people are the future for any economy, not only as consumers and clients but also as workers [1]. Engaging young people in the labour market and society is not just about their individual economic success and well-being – it is also about driving overall economic growth and fostering social cohesion [2]. By 2030, as the global population is expected to reach 8.6 billion, the youth population will increase to more than 1.3 billion[3]. However, pervasive unemployment, underemployment and longer school- to-work transitions are some of the most significant challenges facing the rising youth population[4]. Youth unemployment is considered to be one of the most pressing problems for both the government and the youth [5]. This essay aims to identify strategies for reducing youth unemployment globally to create opportunities for young people. By examining the global context of youth unemployment along with its causes and consequences, it will examine six strategic interventions—education reform, vocational apprenticeships, entrepreneurial ecosystems, and digital literacy, labour market policies, career guidance and job matching services—as pathways to mitigate youth unemployment, ensuring alignment with evolving economic demands.

Global Context of the Youth Unemployment
Youth unemployment refers to people aged 15 to 24 years or 15 to 29 years who are unemployed [6]. Youth unemployment in modern societies is a key example of how the position of youth in global society is beset by problems of inequality, class, race, and gender [5]. Youth unemployment rates are typically higher than the unemployment rates of older people, even in times of economic growth, because young people tend to have less work experience and a more limited professional network to rely on for their job search [2]. Globally, 13% of the young labour force is unemployed. 20% of young people were NEET (not in employment, education or training) in 2023.  2 in 3 young NEETs globally are women [7]. The International Labour Organization (ILO) Head of Employment Analyses and Public Policies spotlights that in East Asia (up 4.3 per cent), the Arab States (up one per cent) and South-East Asia and the Pacific (up one per cent), youth unemployment rates have continued to rise [8]. According to the new ILO report [9], the 2023 youth unemployment rate, at 13 per cent, equivalent to 64.9 million people, represents a 15-year low and a fall from the pre-pandemic rate of 13.8 per cent in 2019. It is expected to fall further to 12.8 per cent this year and next. Looking ahead, the ILO [10] projects a slight increase in global youth employment by 2025, with 2.9 million additional young people expected to find jobs. However, it stresses that challenges remain, particularly in regions where youth population growth outpaces employment opportunities.

Causes of the Youth Employment and Their Consequences
Although youth unemployment is directly connected to national unemployment rates, and therefore reflects the national context in which it emerges, young job seekers around the world also clearly share certain barriers and challenges regarding their employability [1]. Individual characteristics, such as low education, economic hardship, migration background, and health or social problems can also pose additional challenges for them to enter and remain in employment [2]. ILO Director-General Gilbert Houngbo asserts that without equal opportunities to education and decent jobs, millions of young people are missing out on their chances for a better future [8].  
There are four key barriers to youth employability: (a) lack of information, networks, and connections; (b) lack of relevant skills; (c) lack of experience credentials, and (d) lack of available entry-level jobs with career potential [11].  Other contributing factors related to youth unemployment may include slow economic growth, rigid labour market policies, a lack of career guidance and opportunities, and technological advancements, which can further exacerbate youth unemployment by automating jobs traditionally performed by young workers.  Many industries are replacing people with machines to increase production and save money in the long run [5]. Gender disparities also persist, with young women facing more significant challenges in securing employment [10].
Indeed, unemployment is costly to a society and it is seen as productivity loss [5]. The social stigma associated with being unemployed and the lower socio-economic standard which it leads to has many adverse effects on the individual's mental health. Unemployed young people are more likely to become marginalized and alienated from mainstream society. Long-term youth unemployment or underemployment is also a cause of social exclusion. In the developing world, high youth unemployment represents lost potential for national economic transformation, and high numbers of economically frustrated youth may contribute to social instability. High rates of youth unemployment also represent a wasted resource and human potential for developing economies [5, 11]. Poor youth labour market participation limits the inputs available for urgently needed growth and makes it harder for developing countries to realize the benefits of labour-intensive growth strategies [11].

Strategies to Mitigate Youth Unemployment
Decent work is a ticket to a better future for young people and a passport for social justice, inclusion and peace [8]. Providing decent work for youth to reduce unemployment requires a holistic approach, spanning individuals to society, guidelines to public policy, education to technology, business to the economy, and national to global levels. This essay addresses six strategic interventions: education reform, vocational apprenticeships, entrepreneurial ecosystems, and digital literacy programs, labour market policies and career guidance and job matching services —

(i) Education Reform: Aligning Curriculum with Labour Market Needs
Education is an important part of human capital, and young job seekers who have higher levels of schooling are at an advantage compared to early school leavers [12]. There is a strong link between levels of education and unemployment, [5]. Traditional education systems often fail to equip youth with skills relevant to modern economies. Therefore, aligning curriculum with emerging labour market needs is crucial. For instance, in Singapore, the SkillsFuture initiative, which is a national skills training program offering lifelong learning credits has contributed to 4.1% youth unemployment rate by aligning curricula with sectors like emerging technologies [13, 14]. Similarly, to ensure better employment opportunities for the its labour force, in both local and overseas job markets, skills development and vocational education in Bangladesh was successfully aligned with the market demand through the Skills and Training Enhancement Project (STEP) [15].

(ii) Vocational Apprenticeships: Bridging the Skills Gap
Devoid of skills and education, an individual cannot achieve occupational mobility, and a number of youths with NEET is a cause for concern, despite falling jobless rate [5]. Expanding vocational programs can help equip youth with industry-specific skills through internships, apprenticeships, and on-the-job training, thereby contributing to effective ways of bridging the gap between education and employment. Germany’s dual education system combines classroom instruction with paid apprenticeships. As of January 2025, Germany has one of the lowest unemployment rates within the EU while EU unemployment rate at 5.8%[16]. In Australia, through the new apprenticeship scheme and the various programs collectively titled "Working Nation" Australian National Training Authority (ANTA) makes the vocational education more effective, efficient and relevant to the students and the employers [5].

(iii) Entrepreneurship Ecosystems: Empowering Job Creators
Encouraging youth to start their own businesses can create jobs and reduce high dependency on traditional employment. Entrepreneurial learning can offer a realistic and achievable means to develop the transferable skills that society and the labour market expect of today’s citizens [4]. Recognizing the important role that entrepreneurship can play in countering the challenges of youth employment [4]. Governments and institutions need to support entrepreneurship through access to microfinance and startup capital and business incubators and accelerators. Youth-led startups are essential for job creation. For example, M-PESA, Kenya's mobile payment system, developed by young entrepreneurs, has significantly impacted the nation's economy. Since its launch by Safaricom in 2007, M-PESA has grown to handle transactions amounting to 59% of Kenya's GDP, with 20 billion transactions processed in 2023. It has generated 200,000 new jobs [17, 18].
(iv)  Digital Literacy: Preparing for the Tech-Driven Economy
The Fourth Industrial Revolution, demographic changes, and mismatched skillsets amplify this crisis, thereby putting at risk an entire generation. Meanwhile, the future of work is evolving with digitalization and sustainability trends. Training young people in coding, artificial intelligence, renewable energy technologies, and circular economy practices will improve job prospects. Ajira Digital [19] is a government-led initiative in Kenya that helps young people access online and gig economy jobs, which provides free training in digital skills, partnerships with global tech firms like Google and Microsoft and offers special programs for women and marginalized communities to bridge the digital divide. Over one million Kenyan youth have found online work [19]. South Korea has managed to reduce youth unemployment levels by significantly funding digital skill development and youth business training aimed at cultivating young entrepreneurs. New technology and foreign trade competition in startup clusters, such as Pangyo Techno Valley in Seoul, has led to the creation of thousands of new job opportunities through technological innovation and international business competitiveness [20].

(v) Labour Market Policies: Fostering Youth Employment
Gilbert F. Houngbo, ILO Director-General states that peaceful societies rely on three core ingredients: stability, inclusion, and social justice; and decent work for the youth is at the heart of all three. Government policies play a crucial role in fostering youth employment through youth employment subsidies, flexible labour laws that ensures regulations support entry-level hiring without compromising worker protections, and job creation through public investment in infrastructure, green energy, and digitalization to stimulate employment. For instance, regarding the youth employment subsidies, YouWin! [21] is a competitive grant program designed to support young entrepreneurs in Nigeria. With grants up to 10 million Nigerian naira (approximately $64,000) for each of the winning projects, YouWin! has facilitated the creation of numerous enterprises and offered 26,000 jobs in three years, contributing to innovation and job creation, economic growth and employment. In Germany, promoting renewable energy sector nationwide, the number of job offers related to the energy transition rose to 372,500 in 2024 from around 173,000 in 2019 [22]. In Singapore, 540,000 Singaporeans benefited from SkillsFuture initiatives in 2020 through emerging technologies, including AI and renewable energy [14].

(vi) Career Guidance and Job Matching Services: Promoting Opportunities for Youths
Improved access to career and placement information is necessary for the youth, and that can be accomplished by stronger school-to-work transition programs which combine career guidance and job visits with coursework offered in high schools, online job portals and AI-driven job matching platforms, and youth employment networks that offer inter-peer and mentor-mentee exchange platforms for educational and professional advancement. Founded in 2005 by Dr. Arthur M. Langer, Workforce Opportunity Services (WOS) [23] bridge the employment gap for underserved communities by providing customized training programs, mentorship, and support services. The organization has partnered with more than 80 corporations across 65+ locations nationwide, representing a wide array of industries and workforce needs.  In collaboration with Walmart and Google, Arkansas developed LAUNCH, a job and workforce training portal that matches candidates based on specific knowledge and abilities rather than degree requirements or job title [24].

Economic and Social Impact of Reducing Youth Unemployment
Reducing youth unemployment has far-reaching benefits for the society and economy of a certain country. Tackling youth unemployment through appropriate policies and programs adjusts the economic productivity of the nation alongside nurturing a more balanced and peaceful society. There exists a positive correlation between a growing number of young people in productive jobs and heightened productivity, tax income, national economic growth and innovations. Youth employment can reduce crime, social unrest, and economic inequality worldwide. Stable employment opportunities for youth can uplift their mental health, social mobility and quality of life, hence, enhancing overall wellbeing.

Conclusion
Youth unemployment continues to be a global issue that requires immediate attention and poses a considerable economic risk. While slow economic growth, technological advancements, rigid labour market policies, and gender disparities may contribute to this problem, a well-planned strategic intervention plan can assist in reducing those impacts. Solving youth unemployment requires an integrative multi-stakeholder approach and the burdensome nature of youth unemployment can be eliminated through the alignment of education to the skills sought in the market, provision of apprenticeships to enhance skill sets, nurturing entrepreneurship, improving digital skills, active employment policies by governments and institutions, and career guidance and job matching services. Case studies from Singapore, South Korea, Kenya, Nigeria, Australia, Germany, etc. indicate that Education, coupled with appropriate labor market policies, technological developments, and innovation, can serve as a stimulus for enhancing the youth employment rate and driving economic growth. Therefore, investing in youth is an economic requirement as well as a social value that enhances integration, stability, and innovation.


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References
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Dr. Maw Maw Tun’s Short Bio
Dr. Maw Maw Tun is a dedicated educator, researcher, writer, and the Director of the Research Section in the Department of Technical and Vocational Education and Training (DTVET) at the Ministry of Science and Technology in Myanmar. Since 2019, he has spearheaded initiatives to enhance skills development, increase employment opportunities, and reduce poverty through strategic collaborations with international organizations, including UNESCO-UNEVOC, SEAMEO-VOCTECH, Colombo Plan Staff College, GIZ (Germany), the European Union, the Swiss Agency for Development and Cooperation, and the Japan International Cooperation Agency. His efforts focus on training TVET trainers, developing and updating curricula, fostering skills development for youth and adult learners, enhancing employment opportunities and household incomes, promoting human resource development, and reducing poverty nationwide.
Prior to his current role, Dr. Tun served as a lecturer at local technological universities and as a principal at technical high schools in Myanmar for several years. He also spearheaded voluntary programs aimed at providing quality education to youth, offering affordable access to scholarships, and facilitating training programs. He was the leader of the 'Pinnya Parami' Team, dedicated to providing underprivileged students with access to quality education. Additionally, for over a decade, he has served as a voluntary international reviewer for several research journals related to education, youth, sustainability, energy, and related fields.
Dr. Tun holds Bachelor's and Master's degrees in Mechanical Engineering from Mandalay Technological University, Myanmar. He earned a Ph.D. in Energy Engineering from VŠB-Technical University of Ostrava, Czech Republic, and an International Postgraduate Diploma in Education Administration and Management from the London College of Teachers. He also holds a Certificate of Advanced Studies in Public Governance and Administration from ETH Zürich, Switzerland. Notably, he was a Fellow of the 2022 UNESCO-UNEVOC TVET Leadership Programme and a recipient of prestigious scholarships, including the Czech Government Scholarship and the CAS PGA 2024 Scholarship from ETH Zürich. He has been awarded several national academic writing prizes and has contributed over 25 research articles, reviews, and conference papers focusing on energy, waste management, education research, youth employment, sustainability, human resource development, and TVET.