The Ministry of Industry, Commerce and Employment has indicated that its earlier goal of reducing youth unemployment to 5.8 percent may no longer be attainable, proposing instead a revised target of over 10 percent by 2029. The adjustment emerged during the ministry’s Mid-Term Review, reflecting a more cautious outlook shaped by current economic conditions and labour market constraints.
Officials say the revised figure is grounded in realism rather than retreat. With youth unemployment remaining stubbornly high, policymakers argue that expectations must align with structural challenges that cannot be resolved in the short term.
Data from the National Statistics Bureau underscores the scale of the issue. As of the first quarter of this year, youth unemployment stands at 16.5 percent. By international standards set by the International Labour Organisation, this category includes individuals aged 15 to 24 who are actively seeking work but remain without employment.
During the review, ministry officials cautioned against assuming that unemployment rates could decline rapidly under present conditions. They pointed to persistent gaps in skills, mismatches between education and job market needs, and a lack of sufficient work experience among young job seekers. These issues, compounded by a relatively underdeveloped private sector, are seen as deep-rooted obstacles requiring sustained reform.
The Prime Minister, however, urged policymakers to look beyond statistical targets and examine the underlying dynamics of youth unemployment. He emphasized the need for clarity in defining who qualifies as unemployed, questioning whether individuals unwilling to work or pursuing opportunities abroad should be included in official figures.
“Before adjusting targets, we must understand why they are not being met,” the Prime Minister said. He called for a more nuanced approach that directly engages young people, explores their aspirations, and connects them with suitable opportunities through targeted training and support.
The government’s evolving stance highlights a broader shift in focus—from numerical benchmarks to systemic reform. While revising targets may acknowledge present constraints, the challenge ahead lies in addressing the structural weaknesses that continue to limit employment prospects for the country’s youth.
