Youth unemployment rises as young people struggle to find decent work

Young people are facing growing difficulties entering the labor market and finding decent employment, with youth unemployment rising across several regions of the world, according to the latest global employment trends report from the International Labour Organization (ILO).

In 2025, the employment expectations of around 67 million young people aged 15 to 24 were not met across eight of the ILO’s 11 geographical regions, including high-income economies. The global youth unemployment rate rose to 12.4%, up from a historic low recorded in 2023.

The sharpest increases were reported in North Africa, North America and Europe.

Economic slowdown and AI reshape youth employment
The ILO attributed the deterioration in young people’s employment prospects to slower economic growth, weak job creation, geopolitical tensions and rapid technological change, including the expansion of artificial intelligence.

The transition from education into decent employment is becoming increasingly difficult as traditional entry-level positions are shrinking.

Around 6.1% of jobs held by people aged 15 to 29 are considered highly exposed to changes linked to AI. Traditional entry points into the labor market, including office work, services, sales, manufacturing and certain technical occupations, are also becoming more limited.

257 million young people are NEET
The number of young people who are not in employment, education or training — known as NEET — increased by around 9 million, reaching 257 million globally in 2025.

Young women remain disproportionately affected. The global NEET rate among young women reached 27.4%, more than double the 13.1% rate recorded among young men.

The employment rate for young men stood at 43.3% in 2025, almost 13 percentage points higher than the 30.6% rate for young women.

The ILO noted that the gender gap cannot simply be explained by unequal access to education.

Developing economies face a different crisis
Developing economies often record lower youth unemployment rates, but the figures can conceal a lack of decent and secure employment.

In many poorer economies, young people cannot afford to remain unemployed and are therefore pushed into informal work, often without stable incomes or adequate social protection.

In sub-Saharan Africa, youth unemployment stood at 8.4% in 2025, four percentage points below the global average. However, the relatively low rate reflects the widespread reliance on informal employment rather than strong labor-market conditions.

Almost two-thirds of people aged 25 to 29 in low- and lower-middle-income countries were working in some form of insecure or informal employment in 2025.

North Africa and Arab states record highest youth unemployment
The highest youth unemployment rates were recorded in the Arab States and North Africa, at 26.2% and 22.6%, respectively.

At least one in three young people in both regions was classified as NEET, with NEET rates reaching 32.4% in the Arab States and 30.1% in North Africa.

The figures highlight the gap between having access to some form of employment and having access to stable, protected and decent work.

Youth employment deteriorates in high-income economies
The deterioration in young people’s labor-market prospects is a relatively recent phenomenon in high-income economies.

In the United States and Canada, youth unemployment increased from 8.3% in 2023 to 9.8% in 2025.

Northern, Southern and Western Europe recorded a smaller increase, but youth unemployment remained high at around 15% in 2025. Employment opportunities for young people declined in 20 of the 29 countries included in the ILO’s regional grouping.

Despite these difficulties, around 75% of young adult workers in high-income countries remained employed in secure forms of work.

Latin America and the Caribbean stand out
Latin America and the Caribbean were the only regions to record declines in both youth unemployment and NEET rates.

The ILO analysis, however, partly attributed the improvement to demographic changes, including a decline in the youth population, as well as deteriorating trends in youth participation in labor markets across many countries in the region.

ILO calls decent youth employment a strategic investment
ILO Director-General Gilbert F. Houngbo said creating decent jobs for young people should be viewed not only as a social responsibility but also as a strategic economic investment.

The ILO is calling on governments and social partners to develop comprehensive strategies centered on four priorities:

• A people-centered approach to AI governance.
• Investment in quality education, lifelong learning and apprenticeships.
• Stronger employment services and labor-market institutions to support young workers.
• Expanded social protection and stronger protection of labor rights, particularly for vulnerable young people.
• The latest figures suggest that the challenge facing younger generations is not simply finding a job, but gaining access to stable and decent employment in labor markets being reshaped by economic uncertainty, demographic change and artificial intelligence.