Background: Illegal small-scale mining, locally known as galamsey, is a pressing socioeconomic challenge in Ghana, particularly in the Western and Western North regions. Despite government interventions, many youth remain involved in galamsey, driven by unemployment, poverty, and limited educational opportunities. This study aims to understand the socioeconomic drivers of youth participation in galamsey and explore policy implications for sustainable livelihoods. Methods: A descriptive cross-sectional survey design was employed, involving 400 youth (aged 18–35) from galamsey-prone communities in Ghana’s Western and Western North regions. A structured questionnaire captured demographic data, education, employment status, family dynamics, and motivations for engaging in illegal mining. Descriptive and inferential statistics, including chi-square tests and logistic regression, were used to analyze the data. Results: The study found that the majority of respondents were young males (79.5%) aged 18–29. Most had only basic education (56.5%), with low representation at the tertiary level (5.5%). Galamsey was the main source of income for 66.3% of respondents, and 44.5% cited lack of jobs as their primary motivation. Family influence was significant: 54.5% reported having family members in galamsey, and 40.8% felt encouraged by family to join. Despite high involvement, 78% expressed interest in alternative vocational training, suggesting readiness for livelihood transitions. Conclusion: Youth participation in galamsey is driven by unemployment, limited education, economic desperation, and family traditions. Interventions should focus on vocational training, education access, and job creation to provide sustainable alternatives. Addressing structural socioeconomic challenges is key to reducing illegal mining and promoting community resilience.