Youth unemployment has emerged as a significant crisis in Asia, particularly in its most populous countries, India and China. With staggering numbers of young people entering the workforce each year and a limited number of jobs to accommodate them, these nations face an urgent challenge. The impact is far-reaching, influencing economic growth, social stability, and the future prospects of millions.
India, home to the largest youth population in the world, faces immense pressure to generate employment. With 650 million individuals under the age of 25, the demand for jobs is unprecedented. A Citigroup report predicts that India will need to create 12 million jobs annually over the next decade to meet this demand. However, current economic growth rates suggest that only 8-9 million jobs can be generated each year, leaving a significant gap.
In China, the situation is equally daunting. Researchers have found that 24% of Chinese graduates are overqualified for their current positions, while 34% have jobs with little relevance to their fields of study. Nearly three in ten youths with a graduate degree remain unemployed due to a skills gap. As a result, China's youth unemployment reached a record high of 21.3% in June 2023, prompting a temporary suspension of monthly data releases.
The youth unemployment crisis in India is further highlighted by a reported rate of 45.4% in 2023, according to the Centre for Monitoring Indian Economy. This staggering figure underscores the challenges faced by young Indians entering the job market. Compounding the issue is gender disparity; only 18% of startups in India are female-led, as revealed by the 2023 Women in India’s Startup Ecosystem Report.
Despite these challenges, there are government initiatives aimed at tackling unemployment. India's apprenticeship scheme has engaged over 3.2 million people as of June last year, providing valuable training and work experience. However, experts argue that more comprehensive solutions are needed to address the scale of the problem.
“It’s the meaningful, large answer to the youth unemployment challenge that we face.” – Ravi Srivastava
In Indonesia, youth unemployment and underemployment also pose significant challenges. Nearly 60% of Indonesia's workforce is employed in the informal sector, which many unemployed youth turn to for short-term jobs. This sector offers limited job security and benefits, but provides immediate income.
“Unfortunately for most people, they don’t have the luxury to wait (for) the high-skilled, high-paid jobs.” – Asep Suryahadi
“We don’t have strong social protection, and they have to pay for their necessities, so they have to do whatever job is available.” – Asep Suryahadi
Many Indonesian youths are considered underemployed, working below their skill level or for fewer hours than they desire. For some, like Tarismaul “Aris” Pinki, construction work offers better financial prospects than factory or office jobs.
“Factories and offices would pay only … around 2.5 million rupiah (US$150) per month.” – Tarismaul “Aris” Pinki
“In construction jobs, I can earn 3 million rupiah in two weeks if I work the maximum amount of overtime.” – Tarismaul “Aris” Pinki
Both India and Indonesia have ambitious economic visions for the future. India aims to become a US$30 trillion economy by 2047 and achieve developed country status. Meanwhile, Jakarta is focused on its Golden Indonesia 2045 vision, which seeks to position Indonesia among the world's largest economies.
The mismatch between education and employment opportunities is a recurring theme across these nations. In China, changes in job market demands have diminished the value of academic qualifications.
“Academic qualifications are depreciating (in value), and the requirements for talent are changing too.” – Sherrie Shang
This shift has led to situations where highly trained individuals find themselves working in irrelevant roles.
“Imagine this: You’re trained to be an AI engineer but end up working as a receptionist because there are no such jobs in the city you’re currently living in.” – Claire Qi Wen
The challenge extends beyond just finding employment; it involves finding meaningful employment that aligns with one's skills and aspirations. This struggle is echoed by individuals like Mansha Jindal and U Vivekanand.
“The hard thing is, you can’t find a job up to (the) mark.” – Mansha Jindal
“If there’s one position, then hundreds or thousands of applicants vie for that one position.” – U Vivekanand
Employers recognize the importance of harnessing young talent for future development.
“Young talent is crucial to the future development of the company.” – Wendy Qu
However, aligning educational output with market needs remains a critical step in addressing youth unemployment.
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