Executive Summary
Youth unemployment and underemployment remain among the most pressing challenges in emerging economies. While millions of young people are entering the labor market each year, education and training systems often fail to equip them with skills aligned to evolving labor market needs. As economies undergo rapid technological change, green transitions, and shifts toward services and digital industries, skills mismatches are widening, limiting productivity and social mobility.
This proposal presents a comprehensive skills development initiative aimed at improving youth employability and access to decent work in emerging economies. The program integrates demand-driven technical skills, digital and soft skills, work-based learning, and strong private sector engagement. Implemented over four years, the initiative will support young women and men to transition successfully from education to employment, entrepreneurship, or further training, while strengthening national skills systems.
Background and Problem Statement
Emerging economies face a demographic opportunity and risk. Large youth populations can drive economic growth, but only if young people have relevant skills and access to jobs. Many youth leave school without practical competencies, career guidance, or exposure to real work environments. Employers report difficulties finding job-ready candidates, while young people struggle to secure stable and decent employment.
Structural barriers—such as limited access to quality TVET, weak links between training institutions and employers, gender norms, informality, and regional inequalities—disproportionately affect disadvantaged youth. The COVID-19 pandemic and economic shocks further disrupted learning and employment pathways.
Addressing youth unemployment requires integrated, market-responsive skills development approaches that combine technical, digital, and transferable skills with pathways to real economic opportunities.
Project Goal and Objectives
Overall Goal
To enhance youth employment and economic inclusion by strengthening demand-driven skills development systems in emerging economies.
Specific Objectives
- Equip youth with relevant technical, digital, and soft skills aligned with labor market demand.
- Improve school-to-work transitions through work-based learning and employer partnerships.
- Increase access to quality skills training for marginalized youth, especially young women.
- Strengthen institutional capacity for responsive and inclusive skills development.
- Support youth entrepreneurship and self-employment opportunities.
Target Populations and Geographic Focus
Target Populations
- Youth aged 15–29, including school leavers and unemployed youth
- Young women and marginalized groups
- TVET institutions, trainers, and career counselors
- Employers and private sector partners
Geographic Focus
The program will be implemented in selected urban and peri-urban areas of emerging economies, with outreach to rural youth through mobile and digital solutions.
Project Components and Key Activities
- Component 1: Labor Market Analysis and Skills Alignment
- Component 2: Market-Relevant Skills Training
- Short-cycle, modular technical and vocational training
- Digital skills (basic ICT, coding, data literacy)
- Green and climate-relevant skills
- Blended learning approaches combining online and in-person training
- Component 3: Soft Skills and Career Readiness
- Communication, teamwork, problem-solving, and adaptability
- Job search skills, CV preparation, and interview coaching
- Financial literacy and workplace ethics
- Component 4: Work-Based Learning and Employer Engagement
- Apprenticeships, internships, and traineeships
- Employer co-design of curricula and assessments
- Incentives for firms to host and mentor youth
- Component 5: Youth Entrepreneurship and Self-Employment
- Component 6: Inclusion and Support Services
- Scholarships and stipends for disadvantaged youth
- Gender-responsive training environments
- Career guidance and psychosocial support
Expected Results and Outcomes
Key Outputs
- Youth trained in market-relevant skills
- Employers engaged in training and work-based learning
- Functioning partnerships between training providers and industry
Outcomes
- Increased youth employment and earnings
- Improved job readiness and productivity
- Reduced skills mismatches in target sectors
- Stronger national skills ecosystems
Monitoring, Evaluation, and Learning (MEL)
The MEL framework will include:
- Baseline and endline employment tracking
- Monitoring of training completion and job placement rates
- Employer satisfaction surveys
- Continuous learning to adapt training content
Implementation Strategy and Partnerships
The initiative will be implemented through partnerships with:
- Ministries of Labor, Education, and Youth
- TVET institutions and training providers
- Private sector and industry associations
- NGOs and youth organizations
A phased implementation and adaptive management approach will be applied.
Sustainability and Scale-Up
Sustainability will be ensured through institutional capacity building, employer co-investment, and integration into national skills strategies. Successful models will be scaled through public–private partnerships.
Budget Overview
The indicative budget covers training delivery, equipment, stipends, monitoring, and program management. Investments prioritize cost-effectiveness and employment impact.
Conclusion
Skills development is central to unlocking youth employment and inclusive growth in emerging economies. By aligning training with labor market demand and supporting youth transitions into decent work, this initiative will contribute to economic resilience, social stability, and sustainable development, aligned with SDGs 4, 8, and 10.
