The potential and energy of young people represent the world’s most valuable untapped resource, surpassing oil, data, and capital. Unfortunately, many youths worldwide face challenges transitioning from education to employment, leading to high rates of youth unemployment. Even in times of economic prosperity, young people experience unemployment rates three to four times higher than adults, impacting the quality and security of their work.
Currently, a significant portion of young workers globally are stuck in informal jobs, which expose them to poverty and unstable job conditions like temporary and gig work. The COVID-19 pandemic exacerbated these issues, disproportionately affecting young individuals by disrupting education, career paths, and mental well-being. The International Labour Organization (ILO) reported a global youth unemployment rate of 13 percent in 2023, with even higher rates in regions like Sub-Saharan Africa and the Middle East, where youth unemployment often exceeds 30 percent.
In South Asian countries, complex labor market dynamics, the prevalence of the informal sector, and a large influx of new entrants to the workforce contribute to high youth unemployment rates. For instance, Bangladesh recorded a 15.7 percent youth unemployment rate in 2023, surpassing both the global and low and middle-income countries’ averages. Similarly, India experienced a 15.8 percent youth unemployment rate, while Nepal and Sri Lanka faced rates exceeding 20 percent. Pakistan performed somewhat better with a rate of around 9.7 percent. In East Asia, China reported a notable 21.3 percent youth unemployment rate in June 2023, marking a continuous increase over the years. In contrast, Japan maintained a low unemployment rate of 4.1 percent in 2023.
The percentage of young people not engaged in education, employment, or training (NEET) in 2023 reached 18.8 percent in the region. Comparatively, countries like China and Japan in East Asia have been more successful in integrating youth into the labor force.
Youth today encounter numerous obstacles in securing decent jobs with fair wages and stable working conditions. Policymakers worldwide are increasingly focusing on enhancing youth employment outcomes through various strategies that address labor market constraints. These strategies include skills development programs, support for entrepreneurship, targeted wage subsidies, and labor market reforms. By adopting strategic international approaches, countries like Bangladesh can create pathways for youth to access meaningful job opportunities.
Different countries have implemented unique solutions to tackle youth unemployment. For example, China has heavily invested in vocational training programs to enhance technical skills, while Germany introduced a “transition system” to bridge the gap between school and vocational training for youths. Brazil’s social welfare schemes aim to delay youth entry into the labor market by providing financial incentives for extended education. The US has adopted an apprenticeship model to connect young people with better-paid, long-term careers.
Youth play a crucial role in driving today’s socio-economic landscape, fueling innovation, entrepreneurship, and productivity. As global trends and technology reshape the job market, it is essential for Bangladesh to equip its youth with future-ready skills through targeted strategies focusing on skill-building, digital transformation, and entrepreneurship. Increased investment in skills development, technological integration in education, support for startups, and public-private partnerships can help mitigate the negative impacts of youth unemployment.
Ensuring access to decent work for all is a fundamental right that contributes to overall well-being. Collaboration among policymakers, businesses, and communities is crucial to achieving this goal and empowering youth effectively. The future of Bangladesh hinges on its ability to empower its youth today by investing in their potential and creating opportunities for sustainable economic growth.