Why is youth unemployment often very high in low and middle income countries?

Youth unemployment tends to be high in low-income countries due to a combination of economic, social, and structural factors. These factors interact and create a challenging environment for young people seeking employment. Here are some key reasons why youth unemployment is often high in low-income countries:

1. Limited Job Opportunities: Low-income countries often lack a diverse and robust job market. Employment opportunities may be scarce, particularly for entry-level positions that young job seekers typically seek.
2. Lack of Economic Diversification: Many low-income countries heavily rely on a narrow range of industries, often tied to agriculture or a few key sectors. This lack of economic diversification can limit the availability of jobs in other sectors.
3. Limited Access to Education: Access to quality education is often limited in low-income countries. A lack of education and vocational training can hinder young people's ability to acquire the skills and qualifications needed for employment.
4. Skills Mismatch: Even when young people have received education, there can be a mismatch between their skills and the skills demanded by the job market. Educational systems may not be aligned with the needs of the labour market.
5. Informal Employment: Many jobs in low-income countries are in the informal sector, which is characterized by low wages, job insecurity, and often no social protections. Young people may be more likely to work in these precarious informal jobs.
6. Youth Population Growth: Low-income countries often have a significant youth demographic bulge, meaning a large proportion of the population is young. This demographic situation can strain the labor market as it competes for a limited number of jobs.
7. Lack of Infrastructure and Basic Services: Insufficient infrastructure, such as transportation, electricity, and telecommunications, can limit business development and job creation. Additionally, a lack of basic services like clean water and sanitation can impede business growth and employment opportunities.
8. Limited Access to Finance: Young entrepreneurs in low-income countries often face challenges in accessing credit and financial resources to start or expand businesses, limiting their ability to create jobs for themselves and others.
9. Gender Disparities: Young women in low-income countries may face additional challenges related to gender-based discrimination, which can limit their employment prospects.

Addressing youth unemployment in low-income countries requires a multi-pronged approach that combines efforts to stimulate economic growth, improve education and vocational training, reduce barriers to entrepreneurship, promote inclusive policies, and invest in infrastructure and basic services. These efforts should be aimed at creating more job opportunities and improving the employability of young people, while also fostering an environment that supports business development and job creation.