Youth Labour Force Participation - A South Asian Crisis

Abstract

Abstract

Technological change in the productivity of labour (Schumpeter 1934) and structural transformation in economic growth (Kuznets 1971) were well debated in the past. The expansion of technological advancement in automation, artificial intelligence, machine learning, the internet and blockchain transform the labour market and pose different challenges to the skill development of youth. The ILO report on ‘Global Employment Trends for Youth 2020’ reveals a drastic reduction of youth participation in the labour market (aged 15-24) due to poor vocational skills. South Asian Countries (SACs) face a severe crisis in this, which slowdown ‘output per labour’ in the future. Economic models such as ‘Neo-classical and Endogenous growth theories’ provide a well-defined framework about augmenting labour efficiency and invest in human capital in a technologically driven economy. Policy measures on these directions will help to overcome the skill deficits of youth in SACs.