"In the trenches": Maldives running out of time to harness young workforce

Youth constitute 35 percent of the country’s total unemployed. Those who are employed say they work long hours for very little pay, which takes a toll on their mental health. 

"We are really in the trenches, and it feels like it is getting worse day by day," says a 29-year-old freelancer, part of the group at the newly-opened Hulhumalé restaurant. 

Nearly a quarter of Maldivians aged 18 to 35 are neither working, studying nor training – amounting to 117,076 youth, almost the population of Malé. Yet the country has more young, educated people in the workforce than ever before. Young people account for 45 percent of the working age population of adults between 18 to 64 years of age.  

Economists and data analysts call this a “demographic dividend.” As the financial jargon suggests, a “dividend” is a surplus, gain or profit. This young and educated workforce offers a window of opportunity that could drive productivity, growth and savings if properly harnessed.

Experts say capturing this opportunity calls for urgent and concrete action: building cost-effective social services, investing in youth skills training, and financing emerging sectors like creative industries and green jobs.  

The narrow window, however, could close by the end of this decade. Current population trends point towards an ageing population with a median age of 35 years.

"By 2062, one-fifth of the Maldivian population is projected to be over the age of 65," the president observed in his World Population Day message last Friday, pledging to "invest in expanding access to reproductive healthcare, improve the quality of education, provide adequate housing and protect the overall social and economic wellbeing of every Maldivian."

Maldivians now live longer but have fewer children. A recent study identified financial constraints as a key factor behind the declining birth rate. 

"The cost of living is unbearable. Getting basic groceries, paying rent or bills whether you're sharing or not, it's not a place where you can have a stable living with a normal salary. Each year there's a new wave of expenses and higher prices,” says a recent graduate looking for work in the humanitarian field.  

“Unless you're having to not pay for one of those or you have a steady flow of income whether it be from your parents or a good job with a great salary – normal people cannot lead normal lives here." 

A recent analysis of the 2022 census revealed the rise of “discouraged job seekers,” a group that accounted for 9.4 percent of the workforce, with a higher proportion of men than women.

A young Maldivian studying international tourism management in Malaysia sees “little to no opportunities” for employment after graduation. 

“I think I'm lucky because I've already got prior work experience, but for those who are fresh out of university, it's extremely challenging to find jobs…most of us usually have to settle for jobs that are out of our field." 

This is particularly true for niches such as literature, arts and culture, and social and humanitarian work. 

"Even if I do settle for a job it pays so little and is driving me insane,” suggests a young man working in tech, a common sentiment shared by influencers and TikTok videos.

The dinner conversation at the Chinese restaurant settles on the vexing question of navigating a troubled economy facing high inflation, a foreign currency crisis and a potential sovereign debt default. 

Would forgoing the cheap restaurant meal in favour of cooking at home help? “Not in this economy!” the consensus view rings out, pointing to eye-watering grocery prices.  

"It is really bad, It has deteriorated and people cannot hold a job for long," says a worker in the creative economy.

"Jobs are mostly held under a year, career prospects are not very promising and work seems to not hold any value," adds a student in her first year of an undergraduate degree in marketing.

The IMF and World Bank have forecast economic growth of five percent for 2025, largely driven by tourism and the opening of the Velana International Airport’s new passenger terminal. The healthy GDP growth, however, belies the reality of ordinary Maldivians facing an inflation rate that stood at five percent in May. 

"Things are so unaffordable and the government's policies are making it harder, 30 percent for purchase on popular sites like Temu? It is harder to get supplies or even basic goods for my home," says a teenager working in the beauty industry, referring to a new shopping fee slapped mainly on popular Chinese e-commerce platforms. 

The dinner wraps up and the bill arrives. The total amount for the hearty meal of noodles, dumplings and soft drinks was only MVR 180 (US$ 12).

Not bad in this economy.