Background/purpose. Youth labor informality remains a persistent socioeconomic challenge in Ecuador, particularly in urban areas such as Guayaquil. Many young people are pushed into informal employment due to limited access to quality education, lack of professional experience, and the urgent need for income. This situation limits their opportunities for long-term professional growth and social protection. The purpose of this study is to identify the root causes and consequences of youth labor informality and to propose educational and policy-based strategies that foster youth employability and support their transition into formal labor markets. Materials/methods. This research applied a mixed-methods approach combining quantitative surveys and qualitative interviews. A structured questionnaire was distributed to 384 young individuals working in the informal sector across various urban zones of Guayaquil. Additionally, semi-structured interviews were conducted with three human resources experts to gather professional insights into the causes and possible solutions to youth labor informality. The data were analyzed to identify patterns, correlations, and recurring socioeconomic factors that influence informal employment among youth. Results. The findings show that 84% of surveyed youth work informally due to limited education, lack of experience, and financial necessity. Most respondents identified low wages, job instability, and lack of social security as key disadvantages. However, informal work was also seen as accessible and flexible. Interviews revealed the need for policy reforms, youth-targeted hiring incentives, and technical training programs. The study highlights a mismatch between educational preparation and labor market requirements. Conclusion. Structural barriers, including insufficient education, limited job opportunities, and inadequate employment policies drive youth labor informality in Guayaquil. The study concludes that implementing integrated educational strategies, improving access to technical training, and enforcing youth-inclusive labor policies can significantly reduce informality rates and support a more equitable employment landscape for young Ecuadorians.