Youth Unemployment in Developing Countries: A Review of Policy Interventions

Abstract

Youth unemployment in developing countries presents a persistent and complex challenge that threatens economic development, social cohesion, and long-term prosperity. This study conducts a systematic literature review of empirical research and policy evaluations to assess the effectiveness of various interventions targeting youth unemployment from five-year period. The review categorizes interventions into three main types: supply-side approaches (e.g., vocational education and skills training), demand-side measures (e.g., wage subsidies, entrepreneurship support), and integrated programs that combine elements of both. Findings suggest that while supply-side strategies are the most commonly implemented, they often fall short due to misalignment with labor market needs. Demand-side initiatives can yield positive outcomes, particularly in entrepreneurship and income generation, but suffer from scalability and sustainability issues. Integrated approaches emerge as the most promising, offering more holistic and context-sensitive solutions, though they require strong institutional capacity and policy coherence. This review emphasizes the need for inclusive, adaptable, and well-funded strategies that align youth skills development with real labor market opportunities to ensure sustainable employment outcomes