Despite improvements in overall labor market conditions, reflected in a labor force activity rate of 65.7% and an employment rate of 57.4% for individuals aged 15-64, a large portion of the working-age population remains outside the workforce. Youth unemployment continues to be a pressing issue, and addressing the underlying barriers to employment remains crucial to fully integrating young people into the economy.

To address these issues, the government has introduced targeted measures to boost youth employment. The Economic Reform Programme 2024-2026 prioritizes the integration of young job seekers, particularly those from low-income backgrounds receiving social assistance. Key interventions include:

• Training and retraining programs to equip youth with in-demand skills,
• Employment support through the Youth Guarantee,
• Subsidized employment schemes to incentivize businesses to hire young workers.

A cornerstone of these efforts is the Youth Guarantee, launched in 2018 as a pilot and expanded nationwide in 2019. This initiative ensures that young people (aged 15-29) receive an employment, education, training, or internship offer within four months of registering as unemployed. The program has evolved over three phases:

• Phase 1 (2018-2019): Focused on policy reform, identifying NEET (Not in Employment, Education, or Training) youth, expanding employment programs, and establishing monitoring mechanisms.
• Phase 2 (2020-2022): Strengthened institutional coordination and expanded service delivery.
• Phase 3 (2023-2026): Emphasizes NEET youth integration, aligns with the Operational Plan for Employment 2024, and focuses on skills development, work-based learning, and employer engagement.

Since its launch, the Youth Guarantee has yielded significant results in improving youth employment and skills development. By the end of 2023, more than 80,000 young people had participated in the program. Approximately 40% of participants successfully transitioned into employment, training, or internships. Moreover, follow-up data reveals that 40% of those placed in jobs or training remained engaged in their respective roles even 18 months later, demonstrating the program’s long-term impact on youth labor market integration. 

To further tackle youth unemployment and enhance labor market integration, the Operational Plan for Employment 2024 includes several targeted measures to support young job seekers. Key elements of the plan involve:

• Expanded Career Guidance and Counselling: This measure aims to provide better support to young individuals in identifying career paths, understanding labor market trends, and making informed decisions about training or employment opportunities.

• Support for NEET Youth: Special focus will be given to young people who are Not in Employment, Education, or Training (NEET), ensuring they have access to tailored interventions, such as job readiness programs and vocational training, to help them enter the labor market.

• Enhanced Vocational Training and Apprenticeships: The plan aims to strengthen work-based learning, creating more opportunities for young people to gain practical experience and skills that match the needs of employers.

• Stronger Employer Engagement: By offering financial incentives and other support to businesses that hire young workers, the plan encourages greater participation from the private sector in creating youth employment opportunities.

Despite these positive developments, tackling youth unemployment requires sustained efforts in education reform, skills development, and equitable employment opportunities. The Youth Guarantee remains a crucial mechanism in integrating young people into the labour market, but its success depends on continuous investment and policy innovation.