Abstract:
Young people are defined as those who are between the ages of 15 and 24 they hold the key to
a country's future. The unemployment among the youth is a critical problem for achieving the
macro economic objectives of a country which will be directed to the illegal activities. Both
labor demand and supply play a significant role in determining whether or not youths are
unemployed. When it comes to the job markets and the youth workforce in Sri Lanka, it appears
that there is no proper relationship between labor demand and labor supply. Although there is
a significant demand for competent youth labor in Sri Lanka, the quality and competent labour
supply is not enough to meet the labour demand of both national and international market. The
objective was to study the affecting factors on employability of the youths in Sri Lanka. Mixed
research approach, both quantitative and qualitative methods were employed using primary
data and secondary data. 200 young people who are living in the Matale district were selected
using convenience sampling technique. Binary logistic regression was conducted through SPSS
22.0. Educational qualifications, professional qualifications, training & experiences, English
proficiency, and basic IT skills had a significance negative relationship between youth
unemployment in Matale district in Sri lanka. Expand young people's employment and
Vocational training possibilities, establishing career guidance centers, increasing number and
quality of jobs/ internships availability, increasing awareness programs, creating entrepreneur
and positive mindsets, restructuring education system, proper government attention and
contribution are the major recommendations to fulfill the gap between youth labor demand and
supply in Sri Lanka.