Navigating the Path to Decent Work and Reducing Youth Unemployment

I recently attended and spoke at the 6th Asia-Pacific Meeting on Education 2030, organized by UNESCO , in collaboration with 联合国儿童基金会 , in Bangkok on the topic, ‘Building skills for an uncertain world of work'. I walked away knowing the world is off track in achieving the global education goal, SDG 4. I reflected a lot more after the forum, the problem is complex and multifaceted without an easy fix, and thought it’s worth sharing how five elements including Education might help.

The world today is grappling with a polycrisis—a complex set of interconnected global challenges that impact economies, industries, and job markets simultaneously. From climate change and geopolitical tensions to technological disruptions and economic instability, these crises are reshaping the landscape of work, especially for young people. While youth unemployment remains high, employers worldwide are also struggling to fill critical roles, highlighting a significant skills gap.

According to the International Labour Organization (ILO), the global youth unemployment was 13% in 2023, with many young people facing limited prospects for stable and decent work (ILO, 2024). On the flip side, the World Economic Forum (WEF) found that 44% of businesses report difficulties in finding talent with the right skills to fill jobs (WEF, 2023). This juxtaposition reflects a deepening mismatch between the supply of young job seekers and the demand for skilled talent, which, if left unaddressed, will exacerbate both unemployment and the talent shortage.

To tackle this challenge, we must take a comprehensive, systems-based approach, focusing on five interconnected elements: Economy, Education, Employability, Equality, and the Ecosystem. Together, these factors can help close the skills gap, reduce youth unemployment, and create pathways to decent work for all.

1. Economy: Growing Jobs and funding

Economic growth remains a critical driver of job creation, but the quality and inclusivity of that growth matter. In many parts of the world, jobless growth has become a pressing concern, as economies expand without generating enough formal employment opportunities for young people. Youth unemployment continues to rise even in nations with positive GDP growth, indicating that inclusive economic policies and investment in key sectors are lacking (ILO, 2024).

Moreover, the alignment between economic growth and investment in education is critical. The Global Education Monitoring Report 2023 highlights that national budgets for education often fall short of the recommended 4-6% of GDP that UNESCO advocates (UNESCO, 2023). Without adequate financial support, education systems cannot provide the skills and competencies needed to prepare young people for modern job markets, leaving many young workers without the necessary tools to succeed.

2. Education: Providing the Foundation for Lifelong Learning

Education systems need to evolve to meet the changing demands of the workforce. The OECD - OCDE emphasizes the importance of embedding skills, knowledge, attitudes, and values into education systems to ensure that young people are prepared for lifelong learning (OECD, 2023). In particular, stackable credentials—modular qualifications that allow learners to build expertise over time—are becoming an essential component of successful education-to-employment transitions.

Despite the need for adaptable learning pathways, many education systems remain rigid and slow to adopt these models. However, countries that have embraced flexible learning, such as Germany with its robust vocational education and training (VET) programs, have been able to reduce youth unemployment significantly. The integration of industry-specialized learning and competency-based education is critical for preparing young people to thrive in an evolving workforce, particularly in sectors like technology and sustainability.

3. Employability: Training the Right Skills for Available Jobs

One of the most significant barriers to reducing youth unemployment is the skills mismatch—the gap between what young people learn and what employers need. The World Economic Forum's Future of Jobs Report 2023 projects that 50% of employees will need reskilling by 2025 due to rapid technological advancements (WEF, 2023). Yet, traditional education systems are often not aligned with industry needs, leaving many young workers without the skills required for high-growth sectors.

Governments and businesses must collaborate to ensure that training programs are directly linked to market demand. Public-private partnerships, such as apprenticeship programs and industry-led training initiatives, can play a pivotal role in closing the skills gap. For example, in Switzerland, where education and training are tightly integrated with the labor market, youth unemployment is among the lowest in the world (ILO, 2024). Building a system that continually adapts to changing workforce needs is essential for improving youth employability.

4. Equality: Ensuring an Inclusive and Diverse Talent Pipeline

Any strategy to reduce youth unemployment must prioritize equality, ensuring that opportunities are equally accessible to all young people, regardless of their background, gender, or location. Despite advances in education, women and marginalized communities continue to face barriers to entry in high-growth industries, particularly in STEM fields. According to UNESCO, only 35% of STEM graduates are women, highlighting the gender gap in science, technology, engineering, and mathematics (UNESCO, 2024).

Programs that specifically target underrepresented groups—such as mentorships and women-in-tech initiatives—can help diversify the talent pipeline. Furthermore, companies that emphasize inclusive hiring practices, gender parity, and equity in leadership are not only contributing to social justice but also benefiting from a more innovative and dynamic workforce. The data is clear: promoting diversity is a strategic advantage in the modern economy (ILO, 2024).

5. Ecosystem: Aligning Stakeholders for Maximum Impact

A thriving job market requires more than just a functioning economy and well-prepared workers—it needs a cohesive ecosystem where governments, businesses, educational institutions, and civil society work together efficiently. The OECD underscores the importance of synergy across the value chain, ensuring that all stakeholders are aligned toward the goal of reducing unemployment and fostering decent work (OECD, 2023).

Successful models of ecosystem collaboration, like those seen in Singapore, offer valuable lessons for other nations. In these countries, the government plays a central role in orchestrating cooperation between educational institutions and industries to ensure that young people are being trained in fields that are projected to grow. Such synergies foster an environment where young people can transition smoothly from education to employment and where employers can easily find the talent they need.

Conclusion: A Path Forward

The polycrisis we face today demands multi-dimensional solutions that address both the supply and demand sides of the labor market. By focusing on the interconnected elements of economy, education, employability, equality, and ecosystem, we can create a comprehensive strategy to reduce youth unemployment and foster decent work for all.

Policymakers, business leaders, and educators must come together to close the skills gap, promote inclusive growth, and build resilient labor markets. The challenges are great, but so are the opportunities. With coordinated effort and sustained investment, we can build a future where young people have the skills, opportunities, and support they need to thrive in the global economy.

References

International Labour Organization. (2024). Global Employment Trends for Youth 2024. Retrieved from https://www.ilo.org/media/595131/download

Organisation for Economic Co-operation and Development. (2023). Skills Outlook 2023: First Results. Retrieved from https://www.oecd.org/content/dam/oecd/en/publications/reports/2023/11/oecd-skills-outlook-2023_df859811/27452f29-en.pdf

United Nations Educational, Scientific and Cultural Organization. (2023). Global Education Monitoring Report 2023. Retrieved from https://doi.org/10.54676/UZQV8501

United Nations Educational, Scientific and Cultural Organization. (2024). Global education monitoring report 2024, gender report: technology on her terms. Retrieved from https://doi.org/10.54676/WVCF2762

World Economic Forum. (2023). The Future of Jobs Report 2023. Retrieved from https://www.weforum.org/reports/the-future-of-jobs-report-2023