The global goal for education, as part of the United Nations’ Sustainable Development Goals (SDGs), is currently far from being achieved. Reports from UNESCO and UN News warn that without substantial changes, the commitment to provide inclusive and equitable quality education by 2030 will remain unmet.
The world today is navigating a “polycrisis” – a web of interconnected global challenges that simultaneously affect economies, industries, and labor markets. From climate change and geopolitical instability to rapid technological advancements and economic uncertainty, these crises are reshaping the job market, especially for younger generations. Despite high levels of youth unemployment, businesses around the globe face difficulties filling key positions, reflecting a significant mismatch between workforce skills and job requirements.
Data from the International Labour Organization (ILO) reveals that global youth unemployment reached 13% in 2023, leaving many young people with limited prospects for stable employment. Meanwhile, the World Economic Forum (WEF) reports that 44% of businesses struggle to find talent with the necessary skills. This growing divide between the skills of job seekers and employer needs underscores the urgency of addressing the issue to prevent both unemployment and talent shortages from worsening.
To address these challenges, a holistic approach is required, focusing on five interconnected dimensions: economy, education, employability, equality, and the broader ecosystem. This framework can help bridge the skills gap, reduce youth unemployment, and create pathways to sustainable employment.
Economy: Job Creation and Funding
Economic growth is a key driver of employment, but it must be inclusive and equitable. In many regions, “jobless growth” persists, with economies expanding without generating sufficient formal job opportunities for young people. Even countries experiencing GDP growth often see rising youth unemployment, highlighting the need for policies that prioritize inclusive growth and investment in sectors that create jobs.
Investment in education must align with economic growth to build a skilled workforce. The Global Education Monitoring Report 2023 reveals that national education budgets often fall short of the 4%-6% of GDP recommended by UNESCO. Without adequate funding, education systems cannot equip young people with the skills necessary for modern labor markets, leaving many ill-prepared to meet employer demands.
Education: Adapting for Lifelong Learning
Education systems must evolve to address the shifting demands of the workforce. The OECD emphasizes the importance of integrating skills, knowledge, attitudes, and values into curricula to prepare students for lifelong learning. Modular qualifications, such as stackable credentials, are increasingly vital in facilitating smoother transitions from education to employment.
Countries with flexible learning systems, such as Germany’s vocational education and training (VET) programs, demonstrate how integrating industry-specific skills into education can reduce youth unemployment. Education systems must embrace similar adaptability to prepare students for emerging sectors like technology and sustainability.
Employability: Bridging the Skills Gap
A key challenge in reducing youth unemployment is addressing the mismatch between the skills young people acquire and the needs of employers. The WEF’s Future of Jobs Report 2023 predicts that half of all employees will require reskilling by 2025 due to technological advancements. Yet, many traditional education systems remain misaligned with industry needs.
Collaboration between governments and businesses is crucial to creating training programs that meet market demands. Public-private partnerships, such as apprenticeships and industry-led initiatives, have proven effective in closing the skills gap. Switzerland’s integrated education and labor market system is a notable example, with one of the lowest youth unemployment rates globally.
Entrepreneurship is also gaining popularity among young people, driven by aspirations for independence and societal impact. However, supporting aspiring entrepreneurs requires access to education, mentorship, and skill-building resources. Initiatives like the Global Entrepreneurship Monitor highlight the importance of fostering an entrepreneurial ecosystem for youth.
Equality: Building Inclusive Opportunities
Efforts to tackle youth unemployment must prioritize equity, ensuring equal access to opportunities regardless of gender, background, or location. Despite progress, significant barriers persist, particularly for women and marginalized groups. For example, UNESCO reports that only 35% of STEM graduates are women, underscoring gender disparities in high-growth industries.
Targeted programs, such as mentorships and diversity-focused hiring initiatives, can help diversify the talent pipeline. Companies that prioritize inclusion and equity benefit from a more dynamic and innovative workforce, creating a competitive advantage in today’s economy.
Ecosystem: Fostering Collaboration
Addressing youth unemployment requires a cohesive ecosystem where governments, businesses, educational institutions, and civil society work in tandem. The OECD highlights the importance of collaboration across sectors to reduce unemployment and promote sustainable work opportunities.
Countries like Singapore demonstrate the effectiveness of aligning education and industry efforts, ensuring young people are trained for jobs in growth sectors. Such collaborative models create smoother transitions from education to employment and help employers find the skilled talent they need.
Partnerships Driving Impact
SAP and UNICEF exemplify the power of partnerships in addressing global workforce challenges. Their joint initiatives, such as the Youth Agency Marketplace (YOMA) and SAP Educate to Employ, equip underserved youth with critical skills for digital and green economies. By the end of 2022, these programs reached over 600,000 young people, providing foundational and digital skills training to prepare them for employment.
A Way Forward
The interconnected crises of today require integrated solutions that address both workforce supply and demand. By focusing on the economy, education, employability, equality, and ecosystem, stakeholders can create strategies to close the skills gap and foster inclusive labor markets. With collective effort and sustained investment, we can build a future where all young people have the skills, opportunities, and support to succeed in a rapidly changing global economy.
Click here to know more.
The world today is navigating a “polycrisis” – a web of interconnected global challenges that simultaneously affect economies, industries, and labor markets. From climate change and geopolitical instability to rapid technological advancements and economic uncertainty, these crises are reshaping the job market, especially for younger generations. Despite high levels of youth unemployment, businesses around the globe face difficulties filling key positions, reflecting a significant mismatch between workforce skills and job requirements.
Data from the International Labour Organization (ILO) reveals that global youth unemployment reached 13% in 2023, leaving many young people with limited prospects for stable employment. Meanwhile, the World Economic Forum (WEF) reports that 44% of businesses struggle to find talent with the necessary skills. This growing divide between the skills of job seekers and employer needs underscores the urgency of addressing the issue to prevent both unemployment and talent shortages from worsening.
To address these challenges, a holistic approach is required, focusing on five interconnected dimensions: economy, education, employability, equality, and the broader ecosystem. This framework can help bridge the skills gap, reduce youth unemployment, and create pathways to sustainable employment.
Economy: Job Creation and Funding
Economic growth is a key driver of employment, but it must be inclusive and equitable. In many regions, “jobless growth” persists, with economies expanding without generating sufficient formal job opportunities for young people. Even countries experiencing GDP growth often see rising youth unemployment, highlighting the need for policies that prioritize inclusive growth and investment in sectors that create jobs.
Investment in education must align with economic growth to build a skilled workforce. The Global Education Monitoring Report 2023 reveals that national education budgets often fall short of the 4%-6% of GDP recommended by UNESCO. Without adequate funding, education systems cannot equip young people with the skills necessary for modern labor markets, leaving many ill-prepared to meet employer demands.
Education: Adapting for Lifelong Learning
Education systems must evolve to address the shifting demands of the workforce. The OECD emphasizes the importance of integrating skills, knowledge, attitudes, and values into curricula to prepare students for lifelong learning. Modular qualifications, such as stackable credentials, are increasingly vital in facilitating smoother transitions from education to employment.
Countries with flexible learning systems, such as Germany’s vocational education and training (VET) programs, demonstrate how integrating industry-specific skills into education can reduce youth unemployment. Education systems must embrace similar adaptability to prepare students for emerging sectors like technology and sustainability.
Employability: Bridging the Skills Gap
A key challenge in reducing youth unemployment is addressing the mismatch between the skills young people acquire and the needs of employers. The WEF’s Future of Jobs Report 2023 predicts that half of all employees will require reskilling by 2025 due to technological advancements. Yet, many traditional education systems remain misaligned with industry needs.
Collaboration between governments and businesses is crucial to creating training programs that meet market demands. Public-private partnerships, such as apprenticeships and industry-led initiatives, have proven effective in closing the skills gap. Switzerland’s integrated education and labor market system is a notable example, with one of the lowest youth unemployment rates globally.
Entrepreneurship is also gaining popularity among young people, driven by aspirations for independence and societal impact. However, supporting aspiring entrepreneurs requires access to education, mentorship, and skill-building resources. Initiatives like the Global Entrepreneurship Monitor highlight the importance of fostering an entrepreneurial ecosystem for youth.
Equality: Building Inclusive Opportunities
Efforts to tackle youth unemployment must prioritize equity, ensuring equal access to opportunities regardless of gender, background, or location. Despite progress, significant barriers persist, particularly for women and marginalized groups. For example, UNESCO reports that only 35% of STEM graduates are women, underscoring gender disparities in high-growth industries.
Targeted programs, such as mentorships and diversity-focused hiring initiatives, can help diversify the talent pipeline. Companies that prioritize inclusion and equity benefit from a more dynamic and innovative workforce, creating a competitive advantage in today’s economy.
Ecosystem: Fostering Collaboration
Addressing youth unemployment requires a cohesive ecosystem where governments, businesses, educational institutions, and civil society work in tandem. The OECD highlights the importance of collaboration across sectors to reduce unemployment and promote sustainable work opportunities.
Countries like Singapore demonstrate the effectiveness of aligning education and industry efforts, ensuring young people are trained for jobs in growth sectors. Such collaborative models create smoother transitions from education to employment and help employers find the skilled talent they need.
Partnerships Driving Impact
SAP and UNICEF exemplify the power of partnerships in addressing global workforce challenges. Their joint initiatives, such as the Youth Agency Marketplace (YOMA) and SAP Educate to Employ, equip underserved youth with critical skills for digital and green economies. By the end of 2022, these programs reached over 600,000 young people, providing foundational and digital skills training to prepare them for employment.
A Way Forward
The interconnected crises of today require integrated solutions that address both workforce supply and demand. By focusing on the economy, education, employability, equality, and ecosystem, stakeholders can create strategies to close the skills gap and foster inclusive labor markets. With collective effort and sustained investment, we can build a future where all young people have the skills, opportunities, and support to succeed in a rapidly changing global economy.
Click here to know more.