ECONOMYNEXT – Youth unemployment remains high across many parts of Asia, including Sri Lanka, the Asian Development Bank has said, and countries must reform education systems and expand vocational training, while enabling youth-led enterprises.
Sri Lanka has a very high rate of youth unemployment of nearly 22%.
“Youth unemployment in Asia and the Pacific is alarmingly high, with rates in countries like Armenia, Sri Lanka, Malaysia, and Bangladesh more than double the overall unemployment rate in their respective countries,” according to ADB’s Basic Statistics report.
It said many young people leave school or university with qualifications that are not in demand.
“Asia is producing far too many graduates in business, the arts and social sciences and not nearly enough graduates in Science, Technology, Engineering, and Mathematics (STEM) subjects, vocational trades or with Information and Communication Technology (ICT) skills.”
“A big upgrade in vocational training is essential to turn out large numbers of workers with the craft and trades skills required by growing economies.”
Tackling youth unemployment requires different strategies, the bank said, given the region’s diversity and the differing causes.
“First, education needs to be urgently reformed so it produces far fewer academics and far more young workers who have the skills needed to thrive in a modern economy, like computing, technology, digital know-how and entrepreneurship.”
With much of industrial production now mechanized, there are also fewer jobs in traditional sectors, ADB said.
Quality of employment is also declining in many parts of Asia. “Where young people can find work after finishing their education, it’s more and more likely to be irregular, temporary and low-paying.”
“If modern economies are growing and people are wealthier, but the jobs are simply not there, then support young people to create their own through support for entrepreneurship.”
This support should include start-up loans, tax breaks, subsidized premises, and mentorship.
Asian youth are clamoring to start their own enterprises, surveys suggested, but most require initial capital, comprehensive training, and simpler ways of registering a new business, the ADB said.
Another option for governments is to include skills trainings in traditional crafts like carpentry, masonry, and weaving.
“These programs often lead to employment and enterprise creation while promoting the country’s rich cultural heritage, often to the benefit of its growing niche tourist sector.”
“Asia and the Pacific can no longer rely on piecemeal fixes to youth joblessness. Governments and educators must realign curricula to meet fast-shifting market needs, while policymakers channel a modest foreign direct investment or partnership levy into seed capital for young entrepreneurs.” (Colombo/Jul3/2025)