Today, the education a student chooses is not just a personal choice. It can shape his or her career and affect the country’s economy and growth. Some countries guide students to pick the right paths. For example, in Finland, students get early career guidance and are introduced to new industries.Through vocational programmes, technology training, and entrepreneurship education, students learn to select fields in demand. This supports their personal growth and fosters national innovation.
In South Asia, many young people struggle to find jobs that match the education they worked hard to complete. In Bangladesh, about 7.2 percent of young people aged 15–29 are unemployed, and around 31.5 percent of them even have a university degree. In Sri Lanka, youth unemployment for ages 15–24 is close to 25 percent, and it is even worse for young women at around 36 percent. In Pakistan, nearly 31 percent of educated youth cannot find work, including many who hold professional or university degrees.
In India, more than 65 percent of unemployed youth have at least a secondary education, and the unemployment rate is higher among educated young people than those without formal schooling. In Indonesia, youth unemployment for ages 15–24 is around 16 percent, and almost 24 percent of young people are not in employment, education, or training. All these numbers show that getting an education does not automatically lead to a job, and South Asian countries need to make sure that the education system is better connected to the real needs of the job market.
Many students pick subjects that no longer align with market demand, like general business, humanities, or traditional science programmes. At the same time, high-growth sectors such as technology, digital finance, renewable energy, healthcare, AI, and data analytics attract relatively few students. This mismatch leads to underemployment, wasted potential, and frustration, impacting individual careers and national growth.
Implications for the Economy and Digital Future: The gap between education and employment is slowing economic and digital growth in South Asia. With large young populations, countries risk losing their demographic advantage if youth are not engaged productively. When educated youth cannot access high-demand sectors, growth in technology-driven fields like fintech, AI, digital services, and renewable energy decreases. This reduces innovation and makes it harder for countries to compete in the global digital economy.
In contrast, Western countries perform better. In the European Union, youth unemployment is around 14 percent. In the USA, about 53 percent of youth aged 16 to 24 are employed. Strong vocational systems and better ties between education and employment help youth find jobs that match their skills. This promotes productivity, innovation, and competitiveness.
By working on the measures mentioned, South Asian countries can equip young people with the right skills, reduce unemployment, and boost both economic and digital growth.
South Asian countries can make their education system better: By linking it more closely to real jobs. Students should get career guidance early, so they pick subjects that help them in the job market. For example, in Finland, career counselling starts in middle school, helping students plan for jobs in fields that are in demand. Schools can also work with local businesses to give students practical experience. Germany’s dual-training system shows how schools and companies can team up to prepare students for real work.
Technical and vocational education should be improved too, so students learn skills needed in fast-growing areas like AI, fintech, renewable energy, and healthcare. In China, many technical programmes now teach coding, robotics, and automation, which companies really need.
A major problem in South Asia is that governments don’t spend enough on improving education quality. Most policies focus on getting more students into schools, not on what they actually learn. As a result, many students finish school without the skills needed for good jobs.
Governments should focus on “access plus learning” by updating curricula, training teachers properly, improving digital tools, and regularly checking what students are learning. Governments should make sure all students have access to modern learning tools, like good internet, computer labs, and trained teachers, in both cities and rural areas.
They can also create small, low-cost innovation and skill centers in colleges so students get hands-on experience in technology and modern trades. At the same time, cultural pressures that push students toward only “respectable” careers— like medicine, engineering, or government jobs— should be tackled through awareness programmes and early career guidance, helping students explore more options that fit their interests and the job market.
By working on these measures, South Asian countries can equip young people with the right skills, reduce unemployment, and boost both economic and digital growth.
