High Educated Youth Unemployment Crisis Challenges Sri Lanka’s Labour Market 📉

• Key Statistics & Overview • Post-secondary youth unemployment (ages 15–24) reached ~43% per IMF data, ranking highest among 12 Asia-Pacific economies compared. • Youth unemployment overall stands at 19.5% (Labour Force Survey), rising to 22.5% for those with GCE A/L and higher qualifications. • Nearly 40,000 graduates aged 20+ are unemployed, with around 50% holding degrees in Arts. • Labour Market Imbalance • Labour supply demand gap: ~1 million young people are projected to enter the labour force over the next decade (World Bank estimate). • Job creation shortage: Only ~300,000 new formal jobs are expected without stronger economic growth and private investment. • Structural Challenges & Sector Impact • Mandatory Z-score and district cut-offs assign university subjects, leaving graduates underprepared for flexible career pathways. • Shift needed from pure qualifications toward adaptive skills, active career alignment, and stronger links between education, industry, and private sector employment.