Skilling Asia's Youth Workforce Key to Tackling Unemployment

COLOMBO (News 1st); Dr. Krishna Srinivasan, Director of the International Monetary Fund's Asia and Pacific Department, highlighted structural challenges and solutions to address youth unemployment across Asia.

Srinivasan noted that in some parts of Asia, economic growth is strong but not generating sufficient jobs. This issue arises as demographics shift in the region. Certain countries are seeing a lot more young people added to the population and the workforce.

The core question, he said, is whether growth is strong enough to create adequate jobs. In some cases, it has not been. Several factors contribute to this gap.

One key factor is investment, which could be much stronger. Excluding tech-related investments, private investment remains on the weaker side in some countries. As uncertainties subside and investment picks up, more jobs would be expected to follow.

More importantly, Srinivasan emphasized skilling the labor force as a critical factor for many Asian countries. This involves ensuring the workforce has the skills needed for available jobs, representing a significant structural reform.

He recommended improving education systems and enhancing labor force skills. Countries that prioritize this make their workforce more employable, which would lead to a decrease in youth unemployment.