KEY DRIVERS OF YOUTH UNEMPLOYMENT IN DEVELOPING ECONOMIES

Abstract

Youth unemployment remains one of the most pressing socio-economic challenges in developing economies. Despite rising levels of education and digital awareness among young people, many countries face persistent gaps between the skills acquired in formal education and those demanded by the labor market. This article examines the key structural and policy-related drivers of youth unemployment, including demographic pressure, inadequate vocational training, slow-paced job creation in the formal sector, and weak labor market institutions. It also considers the long-term consequences of youth unemployment, such as economic stagnation, increased crime rates, political instability, and brain drain. The paper further explores successful case studies and policy interventions, highlighting the potential of targeted education reforms, entrepreneurship promotion, and digital skills development to improve youth employability. By evaluating both the challenges and opportunities, the article aims to provide actionable insights for policymakers, educators, and development organizations to reduce youth unemployment and harness the economic potential of young populations in developing regions.