Southeast Asia is facing a concerning rise in youth underemployment, with nearly 11.2 percent of young people in Vietnam—about 1.6 million—falling into a category known as “three không,” which translates to no job, no education, and no training. This figure represents an increase of 195,000 from previous reports. While Vietnam’s economy experienced rapid growth of 9.95 percent in the third quarter of this year, many young people remain frustrated by their job prospects, highlighting an alarming trend as the region grapples with high levels of underemployment.
According to data from the International Labour Organization, the situation is even more severe in other Southeast Asian nations. Indonesia leads the region with a youth underemployment rate of 21.5 percent, followed by Thailand at 12.9 percent, the Philippines at 12.7 percent, and Malaysia at 10.3 percent. Only Singapore maintains a rate below 10 percent.
Although youth unemployment is reportedly lower than pre-pandemic levels, many of the newly created jobs lack quality and stability. In Indonesia, most new positions are emerging in lower-productivity sectors such as agriculture and restaurant services. Additionally, a significant number of educated workers are being funneled into informal employment, according to World Bank research.
The job market dynamics in Thailand reflect a similar trend. The country has seen a decline in high-quality job creation since 2021, with many workers leaving urban areas for rural family farms. Malaysia’s growth in high-skill jobs has not kept pace with the number of individuals holding tertiary degrees. Concurrently, Vietnam’s rising number of university graduates is entering the gig economy, taking on roles such as delivery drivers while gaps remain in skilled positions within sectors like construction.
This youth employment crisis is not unique to Southeast Asia; it mirrors challenges faced across the continent. World Bank Group President Ajay Banga warned that the issue may worsen as approximately 1.2 billion young people will enter the job market over the next 10 to 15 years, while only an estimated 420 million jobs will be generated in emerging economies.
Technological advancements, particularly in artificial intelligence (AI), present both opportunities and challenges. While the electronics sector and AI adoption offer potential growth, they also contribute to issues of graduate unemployment, as many sectors face a skills mismatch. Fields such as engineering and software development are struggling to find qualified talent despite the growth in demand.
Recent social media trends have worsened frustrations among young people, leading to visible anger towards perceived economic inequalities. For instance, a recent outcry erupted in the Philippines following the appointment of a young professional with a privileged lifestyle to a position concerning urban poverty. This incident, among others, highlights the growing disconnect between youth aspirations and the realities of the job market.
The ongoing dialogue surrounding education, job quality, and economic disparities suggests that solutions are urgently needed. In the midst of rising discontent, government officials and institutions face mounting pressure to address these pressing challenges in order to stabilize the future for Southeast Asia’s youth.
