Asia's Youth Job Crisis: A Growing Threat to Social Stability
Young people across Asia are facing an increasingly difficult job market, with many struggling to find stable, well-paying employment. A recent report by the World Bank warns that this situation is creating widespread frustration and could potentially destabilize the region due to a growing number of youth-led protests. This article explores the key findings of the report and examines the underlying factors contributing to this crisis.
The Unemployment Gap and Vulnerability to Poverty
The World Bank report highlights a significant gap between the employment prospects of younger and more experienced workers. In several Asian economies, including China and Indonesia, approximately one in seven young people are unemployed. The report also notes that a significant portion of the population is now more vulnerable to falling into poverty than the size of the middle class in many countries.
The report states, "The employment rate is generally high, but the young struggle to find jobs," adding that while most people in Asia "who look for work find it," many end up in low-productivity or informal jobs. This situation contributes to the persistent unemployment gap, where the rate for those aged 15 to 24 is significantly higher than for workers aged 25 to 54.
Shifting Job Markets and Gender Disparities
A key trend identified in the report is the shift in job creation from manufacturing to low-wage services. This transition is eroding the gains that once lifted millions out of poverty. Labour force participation remains low in Pacific nations and among women. There's approximately a 15-percentage-point gap compared with men in Indonesia, Malaysia, and the Philippines. This underscores existing inequalities that hinder progress for many young people in Asia.
The Role of New Firms and Trade
According to the World Bank, firms that are five years old or less play an outsized role in job creation. In Malaysia and Vietnam, for example, they account for 57% of total employment but contribute 79% of job creation. However, the report also notes that fewer new firms are entering markets, which is dampening job creation. Trade has boosted jobs in countries such as Cambodia and Vietnam, though the gains remain uneven and vulnerable to global shocks.
Rising Protests and Social Instability
Governments across Africa and Asia have been grappling with a surge of Gen Z-led demonstrations in recent months. Thousands have taken to the streets in countries like the Philippines, Morocco, Madagascar, Indonesia, Timor-Leste, Kenya, and Mongolia to protest against corruption, joblessness, and widening inequality. These protests, fuelled by anger over lavish displays of wealth by ruling elites, have even led to political changes in some nations, such as Nepal and Bangladesh. The World Bank warns that these structural challenges, if unaddressed, could undermine stability and stall growth in several economies.
| Country | Youth Unemployment Rate (15-24) | Overall Unemployment Rate (25-54) |
|---|---|---|
| Mongolia | Over 10% | 5% or lower |
| Indonesia | Over 10% | 5% or lower |
| China | Over 10% | 5% or lower |
In conclusion, the World Bank report paints a concerning picture of the youth job market in Asia. The combination of high unemployment, low-quality jobs, and rising inequality is creating a volatile situation that could have significant economic and social consequences. Addressing these challenges will require comprehensive policy interventions focused on promoting entrepreneurship, improving education and training, and ensuring fair access to opportunities for all.
