Drivers of urban youth unemployment: evidence from Somaliland

Urban youth unemployment is a major challenge in Somaliland, threatening socioeconomic stability and sustainable development. Despite its importance, nationally representative evidence on its determinants remains limited. This study examines the determinants of urban youth unemployment in Somaliland. The study analyzed nationally representative data from the (SLDHS, 2020) for 1,181 urban youth aged 15–29 years (n = 1,181) using logistic regression, with Probit and Linear Probability Models as robustness checks. Bank account ownership (OR = 16.95), mobile phone ownership (OR = 16.01), higher educational attainment (OR = 3.15), greater household wealth (OR = 5.74), and internet use (OR = 2.56) were positively associated with employment, whereas mobile financial transaction use (OR = 0.093) was negatively associated with employment, possibly reflecting greater reliance on remittances among unemployed youth. Urban youth employment is associated with educational attainment, financial inclusion, digital access, and socioeconomic conditions.