Vietnam emerges as bright spot in Asia’s youth employment amid rising regional risks. (Photo: baothainguyen.vn)

In an article warning of a potential new regional risk, Nikkei said Asian policymakers have long zeroed in on public debt as the main economic threat. Yet another structural challenge has been building quietly: youth unemployment, which risks becoming the region’s next crisis.

Asia remains one of the world’s youngest regions, particularly in South and Southeast Asia, with hundreds of millions of people under the age of 30. Job creation, however, has failed to match rapid population growth and rising education levels.

Citing the International Labour Organisation (ILO), Nikkei reported that the global youth unemployment rate stands between 12.6%–13%, equating to about 65 million people, nearly three times higher than the adult rate.

The pressures have intensified due to the Middle East conflict, which has driven energy prices sharply higher, fueling inflation and tightening financial conditions across many Asian economies. Rising living costs are hitting young populations especially hard while automation, artificial intelligence and digital platforms continue to reshape labour markets.

Against this backdrop, some economies are showing that targeted policies can help ease the strain. Vietnam stands out as one of the few successes, having absorbed millions of young workers via its export-driven production model and strong position in global supply chains, it said.

Even so, the broader outlook for the region remains challenging, the author noted. In the long term, Asia’s economic stability will depend not only on managing public debt but also on converting its youthful population into a driver of growth. Without enough jobs, the demographic advantage could quickly flip into a structural risk. The ongoing Middle East conflict is adding more uncertainty to already-stressed youth labour markets across the region.