Youth unemployment remains a pressing issue across Asia, with significant disparities among countries. Despite varying levels of economic development, many nations are struggling to create enough quality jobs for their growing youth populations.
We will examine the youth unemployment situation in seven key Asian countries, analyzing the contributing factors and the broader implications for economic stability and social development in the region.
1. India
India has been grappling with a persistent youth unemployment challenge. Data for 2023 shows youth (ages 15‑24) unemployment in India at about 17.97%, the highest in Southeast Asia among countries with available data.
In addition to being relatively high, the youth unemployment rate is especially concerning because India has a very large youth population entering the labor force every year.
Contributing factors include a mismatch between skills acquired through education and those demanded by employers, a predominance of informal or low‑productivity jobs, and sluggish absorption of new graduates.
Rural‑urban disparities are significant, with urban youth struggling more to find formal work. Policies to boost vocational training, promote entrepreneurship, and improve labor market linkages have been proposed, but progress remains uneven.
2. Brunei
Brunei displays the highest youth unemployment rate among Southeast Asian nations in several datasets. In 2023, Brunei’s youth unemployment (15‑24 age group) reached about 18.5%.
Despite having one of the highest per capita incomes in the region, Brunei faces structural challenges in creating enough diverse employment opportunities for young people.
The economy has been heavily reliant on oil and gas revenues, and diversification into non‑oil sectors has not always matched youth expectations or the number of people seeking work.
The high unemployment among youth is also linked to weaker private sector growth, dependency on public sector employment, and possibly gaps in matching educational output with market needs.
3. Indonesia
Indonesia is among the more populous Southeast Asian countries and also among those with relatively high youth unemployment rates. As per 2023 data, Indonesia’s rate for ages 15‑24 was around 13.1–13.3%, placing it third among regional peers.
The challenge in Indonesia is compounded by rapid population growth, migration from rural to urban areas, and the informal sector absorbing many young workers but often in insecure, low‑paid jobs.
Moreover, young women tend to have higher rates of unemployment and lower labor force participation than young men. Regional disparities are also marked, with certain provinces much worse off than others.
4. Malaysia
Malaysia has also been facing elevated youth unemployment compared with some neighboring countries. In 2023 the youth unemployment rate (ages 15‑24) was about 10.6‑12.3% in different data sources.
While that is lower than for India, Brunei, or Indonesia, it is still high given Malaysia’s level of development.
Issues in Malaysia include youth underemployment, a skills mismatch (for example young graduates without relevant technical or English language skills), and challenges in transitioning young people from education into employment, especially in non‑urban regions.
Government programs have sought to improve vocational training, apprenticeship, and incentives for firms to hire youth, but some structural barriers remain.
5. China
China’s youth unemployment rate has drawn global attention. According to recent reports, the unemployment rate for urban youth aged 16‑24 (excluding students) reached 16.9% in February 2025.
The unemployment challenges stem from multiple causes: a large number of university graduates, slowing economy especially in some sectors (e.g. tech, property), weak demand for labor in some cities, and possibly lagging innovation in matching skills to new sectors.
The Chinese government has adjusted how youth unemployment is reported, which complicates comparisons but the overall trend remains concerning.
6. Bangladesh
Bangladesh is another South Asian country with a relatively high youth unemployment and under‑utilisation of its young people. According to the ILO estimate reported in 2024, youth unemployment in Bangladesh is nearing 16%, which is one of its highest rates in decades.
Part of the issue is a large segment of youth who are NEET (not in education, employment or training), limited access to decent quality jobs, and gender disparities: young women are much more likely to be excluded.
Infrastructure, regulatory constraints, and rural youth being isolated from job markets also matter.
7. Pakistan
Pakistan’s youth unemployment rate is less precisely reported in some sources, but data suggests it is also among the higher end in Asia.
In South Asia, youth unemployment is highest of any subregion, estimated around 15.1% in 2023, and Pakistan is among the countries contributing to that figure.
Challenges in Pakistan include low rates of female labor force participation among youth, insufficient vocational training, insecure employment, high levels of informal work, and geographic as well as gender inequalities that worsen outcomes for many young people.
