{"id":87614,"date":"2026-10-29T17:49:23","date_gmt":"2026-10-29T12:19:23","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=87614"},"modified":"2026-10-29T17:50:04","modified_gmt":"2026-10-29T12:20:04","slug":"youth-unemployment-causes","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/29-10-2026\/youth-unemployment-causes","title":{"rendered":"The Rise in Youth Unrest and Underlying Reasons"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Many countries in the world Including<strong> France, Spain, Albania and even India are witnessing mobilisation by youths.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>France has witnessed severe economic problems <\/strong>\u2014 high unemployment, low growth, rising cost of living, falling real wages and severe cutbacks in public expenditure.\u00a0<\/li>\n\n\n\n<li>At the heart of it all is the <strong>neoliberal economic model,<\/strong> which aggressively enforced reduced public expenditure in general, and welfare spending in particular.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Causes of Youth Unemployment<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Slow Economic Growth: <\/strong>Slower economic growth limits the expansion of businesses and reduces the creation of new jobs.\n<ul class=\"wp-block-list\">\n<li>There is a declining youth population in many developed countries and still youth unemployment remains high.<\/li>\n\n\n\n<li>This indicates that the problem is not merely an excess supply of labour but also insufficient demand for it.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"e1dde0\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"569\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-206-1024x569.png\" alt=\"\" class=\"not-transparent wp-image-87615\" style=\"--dominant-color: #e1dde0; aspect-ratio:1.7996786288162827;width:630px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-206-1024x569.png 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-206-300x167.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-206-768x427.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-206.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Declining Investment:<\/strong> According to heterodox economic approaches, employment depends significantly on investment and overall demand for goods and services. When businesses reduce investment, economic activity slows, reducing the demand for workers.<\/li>\n\n\n\n<li><strong>Neoliberal Economic Policies:<\/strong> Neoliberalism emphasises market-led growth, which means reduced government intervention including privatisation and fiscal restraint.\n<ul class=\"wp-block-list\">\n<li>The reduced public expenditure coupled with weakening of labour unions and reduced welfare support have contributed to economic insecurity and weakened workers\u2019 bargaining power.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Rising Inequality and Underconsumption:<\/strong> When wages grow slowly or the share of national income going to workers declines, the household consumption also weakens.\n<ul class=\"wp-block-list\">\n<li>Lower consumption can discourage businesses from investing in additional production, creating a cycle of slow growth and unemployment.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Technological Displacement: <\/strong>Automation and artificial intelligence (AI) have replaced certain tasks performed by workers, potentially reducing demand for some jobs.\n<ul class=\"wp-block-list\">\n<li>Young people entering the labour market face greater competition if the creation of new jobs does not keep pace with technological change.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Rising Cost of Education:<\/strong> Education has become increasingly expensive in many countries, while obtaining a degree does not guarantee secure or adequately paid employment.\n<ul class=\"wp-block-list\">\n<li>This creates financial pressure and frustration among young people, particularly those who struggle to find jobs matching their qualifications.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Promote Employment-Intensive Growth:<\/strong> There is a need to encourage labour-intensive sectors, support small and medium enterprises, and increase investment in infrastructure and public services to expand employment opportunities.<\/li>\n\n\n\n<li><strong>Improve Education and Skill Development: <\/strong>Affordable education, vocational training and stronger links between educational institutions and employers can help young people access suitable employment.<\/li>\n\n\n\n<li><strong>Manage Technological Change:<\/strong> Governments and businesses should invest in reskilling, worker protection and the creation of new employment opportunities to address the disruptive effects of automation and AI.<\/li>\n\n\n\n<li><strong>Strengthen Labour Market Institutions: <\/strong>Effective labour protections, collective bargaining and fair wages can improve workers\u2019 bargaining power while supporting sustainable economic growth.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Youth unemployment is not merely a problem of individual skills or employability; it is also linked to investment, aggregate demand, wage distribution and the structure of economic growth.\u00a0<\/li>\n\n\n\n<li>There is a need for a <strong>balanced approach<\/strong> combining productive investment, effective public policies, social protection and opportunities for decent work.<\/li>\n\n\n\n<li>Reducing youth unemployment is essential not only for economic stability but also for social inclusion and intergenerational equity.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/how-neoliberalism-turned-the-world-against-its-young\/article71635741.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> Many countries in the world Including France, Spain, Albania and even India are witnessing mobilisation by youths. <\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\"> France has witnessed severe economic problems \u2014 high unemployment, low growth, rising cost of living, falling real wages and severe cutbacks in public expenditure.\u00a0 <\/li>\n<li class=\"ms-5\"> At the heart of it all is the neoliberal economic model, which aggressively enforced reduced public expenditure in general, and welfare spending in particular.\u00a0 <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/29-10-2026\/youth-unemployment-causes \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-87614","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=87614"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87614\/revisions"}],"predecessor-version":[{"id":87619,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87614\/revisions\/87619"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=87614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=87614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=87614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}