Youth Employment: Why It Matters
By Janpha Thadphoothon
In this blog post, I would like to discuss the issues related to youth employment. By youths, I mean the definition given by the International Labor Organization, that youths refer to anyone with the age of 15 to 24 years. As we know, this is a very dynamic and sensitive stage of human life — a stage where people either make it or break it. It is my personal belief that without proper attention to this group, no country can secure its future.
Why is it important for young people to have jobs? Fundamentally, it is all about the continuation of a culture, a civilization, and the economic stability of a country. They say that a nation without young blood to replace the old will soon collapse under its own weight. The reproduction and continuation of species and cultural identity depend on the ability of the young to work, produce, and carry on the values and achievements of those who came before them.
Youth unemployment refers to the proportion of the labor force aged 15–24 who do not have a job but are seeking employment. I think it is important to highlight that youth unemployment is different from unemployment in the general workforce in that youth unemployment rates are consistently higher than those of adults worldwide. The European Commission, for example, reported that from 2014 to 2024, the EU youth unemployment rate has remained approximately twice as high as the general unemployment rate. What's more, youth unemployment is a complex issue because it often intersects with other socio-economic inequalities like racism, class, gender, and caste.
I like the idea of approaching this issue from both global and local perspectives. Globally, we have about 65 million unemployed young people in 2023, and about 20.4% of young people are not in employment, education, or training — a status known by the acronym NEET. What we all know and agree upon is that this is not merely a number but a social and economic challenge with far-reaching consequences.
Some argue for the idea that modern education systems are to blame for youth unemployment. I must admit that there might be some truth in this claim. As a language teacher, I have seen many students graduate with excellent grades but little or no marketable skills. Critics such as those in the field of human capital theory would tell you that education should be aligned with the demands of the labor market. In my opinion, our education systems, particularly in developing countries, have been slow to adapt.
What’s more interesting is that young women are twice as likely to be NEET as young men. This statistic should alarm policymakers. Accordingly, there should be gender-sensitive employment policies and initiatives. It is well known that gender-based inequalities persist in the job market despite decades of advocacy and reforms.
Let me introduce you to the notion of skills mismatch. This occurs when the skills young people acquire do not match the requirements of available jobs. The news has it that in Thailand and many ASEAN countries, graduates with degrees in social sciences, arts, and humanities struggle to find jobs, while there is a shortage of skilled technicians and IT specialists. My gut tells me that the mismatch between education output and labor market demand will continue to widen if immediate reforms are not undertaken.
Somehow I think it is time for governments and educational institutions to sit together and have a serious conversation. Experts say that vocational education and training (VET) programs can be an effective solution. In Germany, for example, the dual education system — combining classroom instruction with on-the-job training — has been credited with keeping youth unemployment rates relatively low. I am not an expert, but I have read somewhere that a similar model was proposed in Thailand under the name "work-integrated learning." Nevertheless, it is my long-held belief that though this sounds good on paper, its implementation is fraught with challenges.
Gradually, I have come to realize that technology is both a blessing and a curse when it comes to youth employment. On one hand, digital platforms offer new job opportunities, such as freelancing, gig work, and e-commerce. On the other, automation and AI threaten to replace entry-level jobs traditionally held by young workers. As a matter of fact, according to the media, robots and AI systems have already replaced thousands of jobs in industries such as manufacturing and retail.
Fundamentally, I would argue that it is not technology per se but our unpreparedness for technological change that exacerbates youth unemployment. I like the idea of preparing young people for the digital economy. No one knows everything, but I would like to suggest that coding, digital marketing, and AI literacy be included in school curricula.
Having said that, I realize that not all young people have equal access to digital resources. Digital divide is another issue worth our attention. In rural areas and low-income communities, lack of internet access and digital devices further marginalize young people. I am sure you would agree with me that in the 21st century, digital skills are as essential as reading and writing.
People say that youth unemployment is a ticking time bomb. I could be wrong, but my conviction is that unless we address it urgently, we might witness social unrest and increased crime rates. The past is the past. Those were the days when everything was simple, but today’s labor market is complex and competitive.
Like it or not, the world moves on. What’s more, the COVID-19 pandemic has made things worse. According to the International Labor Organization, millions of young people lost their jobs during the pandemic, and many have yet to recover. The long-term effects include not only income loss but also mental health issues, delayed family formation, and reduced social participation.
Let's be a bit more scientific. Studies have shown that prolonged unemployment during youth has a scarring effect, leading to lower lifetime earnings and job security. Wisdom from the past hints that when young people are left idle, they either fall into despair or rebellion. I notice a growing sense of alienation among today’s youth.
I guess it is time for a new social contract that prioritizes youth employment. Governments, employers, and educational institutions must collaborate. I like the idea of public-private partnerships, where companies co-design training programs and offer apprenticeships.
First of all, governments must improve labor market policies. And then ultimately, they should invest in sectors with high employment potential such as green energy, healthcare, and digital services. That’s not all, social protection schemes should be extended to cover young informal workers and those in gig economy jobs.
Make no mistake, addressing youth employment challenges is not an easy task. However challenging, I determine to make it clear that ignoring this issue is far more dangerous. It has perplexed me why some policymakers treat it as a secondary concern.
I’d like to entertain you with the idea that youth entrepreneurship could be another way out. Encouraging young people to start their own businesses not only creates jobs but also fosters innovation. In Thailand, programs like the OTOP (One Tambon One Product) initiative have shown promise.
Some argue against giving subsidies to youth-led startups, citing risks and market inefficiency. Nevertheless, it is my belief that with proper mentorship and market research, young entrepreneurs can succeed.
As a language teacher, I often tell my students that learning English is not just about grammar and vocabulary, but about opening doors to global job opportunities. Globally, English proficiency is a valuable skill in multinational corporations, NGOs, and international organizations.
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