Youth unemployment stays a pressing problem across Asia, with significant differences between countries. Despite various levels of economic development, many countries struggle to create enough high-quality jobs for his or her growing youth population.
We will analyze youth unemployment situation in seven key Asian countries, analyzing its contributing aspects and broader implications for economic stability and social development within the region.
1. India
India is battling a persistent problem of youth unemployment. Data for 2023 shows that youth unemployment (aged 15-24) in India is around 17.97%, the best amongst countries for which data is on the market in Southeast Asia.
The youth unemployment rate isn’t only relatively high, but particularly worrying because in India a really large population of young people enters the labor market yearly.
Factors contributing to this include a mismatch between the talents acquired in education and people required by employers, the predominance of informal or low-productivity professions, and the slow uptake of latest graduates.
Differences between rural and concrete areas are significant, and concrete youth have greater difficulty finding formal work. Strategies have been proposed to support vocational training, promote entrepreneurship and improve labor market connections, but progress has been uneven.
2. Brunei
Brunei has the best youth unemployment rate amongst Southeast Asian countries in several datasets. In 2023, youth unemployment (aged 15-24) in Brunei was roughly 18.5%.
Despite having considered one of the best per capita incomes within the region, Brunei faces structural challenges in creating sufficiently diverse employment opportunities for young people.
The economy is heavily depending on oil and gas revenues, and diversification into non-oil sectors has not at all times met youth expectations or the variety of job seekers.
High youth unemployment can also be linked to weaker private sector growth, dependence on public sector employment and possible gaps within the alignment of educational outcomes with market needs.
3. Indonesia
Indonesia is some of the populous countries in Southeast Asia, in addition to a rustic with a comparatively high youth unemployment rate. As of 2023, Indonesia’s 15-24 yr old rate was roughly 13.1-13.3%, rating it third amongst its peers within the region.
The challenge in Indonesia is compounded by rapid population growth, migration from rural to urban areas, and a casual sector absorbing many young employees, but often in insecure, low-paid jobs.
Moreover, young women have a better unemployment rate and a lower level of skilled activity than young men. Regional disparities are also evident, with some provinces in a much worse situation than others.
4. Malaysia
Malaysia also faces higher levels of youth unemployment in comparison with some neighboring countries. In 2023, the unemployment rate amongst young people (aged 15-24) was around 10.6-12.3% in various data sources.
While that is lower than India, Brunei and Indonesia, it continues to be high considering Malaysia’s level of development.
Problems in Malaysia include underemployment of young people, skills mismatches (for instance, young graduates lacking adequate technical skills or English skills) and challenges in transitioning young people from education to employment, especially in non-urban regions.
Government programs have aimed to enhance job training, apprenticeships and incentives for corporations to employ young people, but some structural barriers remain.
5. China
China’s youth unemployment rate has attracted worldwide attention. According to the most recent reports, the unemployment rate amongst urban youth aged 16–24 (excluding students) in February 2025 was 16.9%.
Unemployment challenges stem from many causes: high numbers of university graduates, economic slowdown, particularly in certain sectors (e.g. technology, real estate), weak labor demand in some cities and possible lags in innovation in matching skills to recent sectors.
The Chinese government has adjusted the way it reports youth unemployment, complicating comparisons, but the general trend stays concerning.
6. Bangladesh
Bangladesh is one other South Asian country with relatively high youth unemployment and underutilization. According to ILO estimates reported in 2024, youth unemployment in Bangladesh is approaching 16%, considered one of the best rates in a long time.
Part of the issue is the high proportion of young people who find themselves NEET (not in education, employment or training), limited access to decent quality jobs and gender disparities: young women are at much greater risk of being excluded.
Infrastructure, regulatory constraints and the isolation of rural youth from labor markets also play a job.
7. Pakistan
Some sources indicate that Pakistan’s youth unemployment rate is less precise, but data suggests additionally it is amongst the best in Asia.
In South Asia, youth unemployment is the best of all sub-regions and is estimated to be around 15.1% in 2023, and Pakistan is among the many countries that contribute to this figure.
The challenges facing Pakistan include low rates of female labor force participation amongst young people, insufficient vocational training, precarious employment, high levels of informal work, and geographic and gender inequalities that worsen outcomes for a lot of young people.
