One possible long-term solution might be to introduce vocational training systems that help ensure young people leave school with the kinds of skills that are actually in demand. Germany and Switzerland's training systems could act as models. In theory at least, rolling out similar models in other countries would not only boost employment but also a society's long-term resilience.
In tandem with appropriate educational systems, smart immigration policies could also prove beneficial both for developed and developing countries.
(Read more: Youth unemployment could 'scar' an entire generation)
Young immigrants with certain skill sets can help boost a country's competitiveness in international markets, strengthen its public services, create jobs by starting up companies and generally contribute to its social resilience. And because they do all of these things, they can also help to offset the adverse financial impact of an ageing indigenous population by paying taxes and making pension contributions.
Even though our analysis describes the daunting challenges facing young people, it also points to their resourcefulness. This is a reason for us to be hopeful. As the report says: "The mentality of millennials is realistic, adaptive and versatile. Smart technology and social media provide new ways to quickly connect, build communities, voice opinion and exert political pressure. They are full of ambition to make the world a better place."
David Cole is chief risk officer and member of the executive committee