The Hidden Drivers of Youth Unemployment

Youth unemployment remains a pressing socioeconomic issue in many developing countries, driven by complex and interrelated factors. This study explores the hidden drivers of youth unemployment, focusing on four key variables: lack of proper skills, lack of opportunity, vertical mismatch, and high competition. Using quantitative analysis methods, including Pearson correlation and multiple regression, the research examines how these factors contribute to rising unemployment rates among young job seekers. The results provide empirical evidence supporting existing theories on structural unemployment and human capital deficiencies. The study underscores the necessity for strategic interventions, including enhanced vocational training programs, industry-academic collaborations, and government policies aimed at bridging skill gaps and expanding job opportunities. Addressing these hidden drivers is essential to reducing youth unemployment and fostering a more resilient and inclusive labour market in Malaysia.