Content
1. Introduction………………………………………………………………2
2. Labor market in Sri Lanka………………………………………………..3
3. Youth employment and unemployment in Sri Lanka…………………….7
4. Policies for youth unemployment……………………………………….11
Supply side: improving human capital
Education and training
Guidance and counseling
Job placement and labor mobility
Demand side: creating job opportunities
Job creation and public work
Job prospects for youth in information economy
Promoting self-employment and supporting small enterprise
5. Conclusion………………………………………………………………20
6. Bibliography…………………………………………………………….21

Introduction

Out of all the precious resources of our country, the most important resource is the human resource. Let me give you some figures: Sri Lanka’s population is 19.7 million and it is expected to increase up to 22 million during the next 10 years. Our labour force is 8 million. Young men and women in Sri Lanka account for 18.5 % of the population. Unemployment rate of the country at present is 7% and of which youth unemployment between ages 16-24 is 22%. Sri Lanka for decades is facing major challenges in providing employment and meeting aspirations of the youth.

Economic policies during the past few decades have contributed to the economic growth, at present it is 6.5 - 7%. However, benefits of growth have not reached many segments of the population and sufficient domestic entrepreneurship development has not taken place among the youth. Lack of entrepreneurial culture of the youth and thus queuing for public sector employment is the present day scenario. Youth unemployment is concentrated among the educated youth and the rate escalates with higher level of education. Educated youth have a significant preference for civil service over job opportunities in the private sector. The preference for the public sector is influenced by many factors most