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Published on April 8, 2008

It says Thailand in particular has an urgent need to invest in its youth.

Survey data from the four countries show that uneducated young people and those with little work experience are most vulnerable to high unemployment rates and low pay. In a report entitled "Young Asians: A Squandered Talent", the bank says young people are also the first to lose jobs in cyclical economic downturns.

"The young have suffered disproportionately in Indonesia and Thailand, where the Asian financial crisis destroyed jobs and recovery has been protracted," the report says, adding that if young people aged 15-24 could be productively employed, they could generate higher growth and yield a "demographic dividend" - the advantage of a large number of young people in the total population.

The report says competition from adults has become tougher. Young people are at a disadvantage to adults, young men to young women and rural youth to urban youth.

In anticipation of higher returns to education, young people are spending more years studying. However, they are facing stiffer competition from adults for limited job opportunities.

The report blames rigid labour regulations, including the high cost of firing, for limited job opportunities for the young. Firms in Thailand and India are required to pay more than one year's salary on severance, while in Indonesia, a firm must pay two years' salary.

Political and economic instability has also harmed small enterprises, the major drivers of new job creation in developing countries, the ADB said.

Wichit Chaitrong

The Nation