The education and training system shapes young individuals’ readiness for the labour market, with educational achievement predicting their school-to-work transition. Standardised and differentiated systems ease transitions, reducing job changes. Skill development is influenced by economic growth, technology, investment, and societal norms. Effective labour market policies blend demand-side measures like fiscal stimuli with supply-side strategies to strengthen infrastructure, education, and innovation, vital for sustainable transformation and improving employment in Less Developed Countries. The Ministry of Skill Development and Entrepreneurship (MSDE), established in 2014, oversees bodies like DGT, NCVET, and SSCs, implementing skill programmes, including apprenticeships, to enhance youth employability and entrepreneurship. Challenges persist, including informal sector dominance, skills mismatches, and weak industry ties. Active labour market policies boost skill training, job creation, and placements, leveraging digital platforms to cut recruitment costs. Yet, informal sector employment among youth highlights the need to formalise the labour market for quality work. While strides have been made in skill development and labour policies, sustained efforts are vital to tackle challenges and bridge the skills gap effectively.