South Asia's youth at a crossroads

Globally, there are close to two billion young people aged 15-24 years. South Asia is home to the largest youth population in the world, with over 210 million young people. This demographic cohort has the potential to drive vibrant and productive economies, provided adequate investments are made in the health and education sectors to create a healthy and skilled workforce.

According to the International Labour Organization (ILO), global youth unemployment was 13 per cent in 2023, though with wide disparities across countries and gender groups, particularly disadvantaging young women. Youth unemployment is a pressing challenge in Asia, especially in South Asia.

Unemployment among educated youth is particularly alarming worldwide, with high regional and gender inequalities. In South Asia, it has been exacerbated by the rapidly growing supply of educated young workers and the mismatch between their skills and labour market needs.

The problem varies in scale and intensity across the countries in the region. In Afghanistan, the youth unemployment rate was 18 per cent in 2024, with about half of educated youth unable to find work. Bangladesh's unemployment pool is about 3 million, with youth unemployment at 12 per cent. There has been a three-fold rise in unemployment rate among tertiary-educated youth in Bangladesh, rising from around 9 per cent in 2013 to about 28 per cent in 2022.  Bhutan recorded a youth unemployment rate of 29 per cent in 2022, again higher among educated youth in urban areas. India's youth unemployment was around 16 percent in 2023, disproportionately concentrated among those with secondary or higher education. In the Maldives, youth unemployment ranged from 15-20 per cent, but earlier data show rates as high as 43 per cent among educated youth. Nepal reported a youth unemployment rate of 21 per cent in 2024, with university graduates three times more likely to be unemployed than those with no formal education. In Pakistan, more than 30 per cent of educated youth are unemployed, with women comprising over half of this group. In Sri Lanka, the overall unemployment rate was relatively low at 5 per cent in 2024, but this surged to nearly 30 per cent among graduates-six times higher than the national average.

High unemployment among educated youth in South Asia stems from a combination of interrelated factors. First, there is a deep mismatch between what the education system provides and what the labour market demands. Second, skills development remains weak, with limited emphasis on technical or practical training that could prepare young people for real-world jobs. Third, there is inadequate coordination between education and employment systems, leaving graduates without pathways into suitable careers. Fourth, the capacity of economies to generate enough decent jobs remains constrained, unable to absorb the growing number of job seekers. Finally, persistent informality in labour markets reduces the scope for secure, well-paid employment, pushing many educated youth into underemployment or precarious work.

The consequences of this situation are severe. Economies lose potential growth and productivity when skilled young people remain unemployed or underemployed. Brain drain accelerates as talented graduates leave for opportunities in Australia, Canada, Europe, and the U.S. Poverty deepens, and the risk of social unrest rises as frustrated youth confront limited opportunities. Mental health challenges are also increasing, as disillusionment spreads among educated young people who find their aspirations blocked.

Tackling youth unemployment in South Asia requires a multi-pronged strategy. Given the extreme heterogeneity of the region-ranging from small economies like Bhutan to continental-scale India, from land-locked low-income Afghanistan to the upper-middle-income island economy of the Maldives-no single blueprint will fit all. Countries differ in their economic structures, stages of development, and demographic pressures; and solutions must be tailored accordingly.

That said, several common elements stand out;First, human resource development must be strengthened through investments in health, general education, and especially technical and vocational education and training (TVET), so that young people acquire practical, job-ready skills. Second, science, technology, engineering, and mathematics (STEM) education and digital competencies should be prioritized, as they are becoming increasingly critical for the jobs of the future. Third, greater collaboration between the public and private sectors is needed to ensure that curricula are aligned with labour market demand. Fourth, policies should also promote entrepreneurship and nurture innovation ecosystems, backed by access to finance and mentorship for young entrepreneurs to enable them to start their own businesses that will also be a source of employment for others. Finally, expanding both domestic and foreign investment is vital to generate sustainable, high-quality employment opportunities across the region.

To sum up, South Asia's vast youth population is both a tremendous opportunity and a looming challenge. The countries of the region are highly heterogeneous in their size, levels of development, and chosen strategies of growth. Yet they share a common predicament: the rising tide of educated but unemployed young people. The central task is to transform this demographic bulge into a productive and innovative workforce. This requires tailored country-specific approaches, but with shared regional priorities in human capital development-particularly in strengthening TVET, advancing STEM education, and fostering closer education-employment linkages.

A diploma should not be a ticket to the unemployment line; it should be a passport to opportunity. South Asia cannot afford a generation of educated idlers; it must turn degrees into decent jobs. Harnessed well, the region's youth could be its greatest asset; left adrift, they may become its greatest liability. The choice is stark: invest in skills, STEM, and jobs today, or face the cost of a lost generation tomorrow.

Dr Barkat-e-Khuda is a former professor and chairman of Department of Economics at the University of Dhaka. barkatek@yahoo.com.

Dr M.G. Quibria is a development economist and former senior adviser at the Asian Development Bank Institute. mgquibria.morgan@gmail.com