Global youth unemployment rises amid weak growth and ai-driven change

Economy
Thu, 13 Aug 2026 7:26 GMT
Global youth unemployment increased in 2025 as weak economic growth, limited job creation and rapid technological change made it more difficult for young people to enter the labor market, according to a new report by the International Labor Organization.
Global youth unemployment rises amid weak growth and ai-driven change

The ILO’s Global Employment Trends for Youth 2026: Back to the Future found that the global youth unemployment rate rose to 12.4% in 2025, representing 67 million unemployed people aged 15 to 24.

More young people outside work and education

The report also found that the proportion of young people not in employment, education or training increased to 20%, affecting an estimated 257 million people worldwide.

The ILO said stagnant economic growth and weak employment opportunities were creating greater barriers for young people seeking to begin their careers.

The situation has raised concerns about the long-term effects of limited access to decent work, particularly as traditional entry-level positions become harder to secure.

AI reshapes employment prospects

Technological change, including rapid advances in artificial intelligence, is also reshaping the employment landscape for younger workers, the report said.

The ILO estimated that 6.1% of jobs held by people aged 15 to 29 are in occupations highly exposed to changes linked to AI.

Many of these positions are concentrated in middle-skilled occupations, including clerical and administrative roles, which have declined among young workers since 2023.

Sukti Dasgupta, director of the ILO’s Employment, Skills and Sustainable Enterprises Department, said the growing focus on AI highlighted the need for greater investment in workers’ ability to adapt.

“While the direct impact on jobs is still unclear, we must not be complacent and underestimate the risks,” Dasgupta said.

She called for increased investment in skills, lifelong learning and social protection, saying technological progress should create opportunities for young people rather than undermine them.

Youth unemployment rises in wealthy economies

The report found that youth unemployment increased in eight of the world’s 11 subregions between 2023 and 2025, with some of the sharpest increases recorded in higher-income economies.

In North America, the youth unemployment rate climbed from 8.3% in 2023 to 9.8% in 2025.

In Northern, Southern and Western Europe, the rate stood at 15% in 2025.

The ILO said the continued decline in middle-skilled jobs was making it increasingly difficult for young workers to establish stable careers, as traditional entry-level positions continued to disappear.

Ilo calls for more decent jobs

ILO Director-General Gilbert F. Houngbo warned that prolonged difficulties entering the labor market could have broader economic and social consequences.

“A generation that cannot find decent work cannot build its future with confidence,” Houngbo said, adding that countries risk losing talent, productivity and social cohesion when young people are excluded from quality employment.

He called the creation of decent jobs for young people “one of the smartest investments a country can make,” urging governments to strengthen employment opportunities and prepare younger workers for changes in the labor market.

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