Global Youth Unemployment Rises as Decent Work Becomes Harder to Find — ILO
Global youth unemployment rose to 12.4% in 2025, with 67 million young people jobless, as weak growth and technology reshape employment prospect
By GLEBM News Desk
Global youth unemployment increased in 2025 as weak economic growth, declining entry-level jobs and rapid technological change made it increasingly difficult for young people to secure decent and stable employment, a new report by the International Labour Organization (ILO) has revealed.
The Global Employment Trends for Youth 2026: Back to the Future report said the global youth unemployment rate rose to 12.4 per cent in 2025, representing about 67 million unemployed people aged 15 to 24.
The report also found that the proportion of young people not in employment, education or training (NEET) increased slightly to 20 per cent, affecting more than 257 million young people worldwide.
The ILO said the worsening situation was particularly concerning because some of the sharpest increases in youth unemployment occurred in higher-income economies, where young people traditionally have had stronger access to formal employment opportunities.
Between 2023 and 2025, youth unemployment increased in eight of the world’s 11 subregions, with the ILO attributing the trend to slowing economic growth, weak job creation, geopolitical tensions and rapid technological transformation.
“A generation that cannot find decent work cannot build its future with confidence,” ILO Director-General Gilbert F. Houngbo said.
Houngbo warned that when young people are excluded from quality employment, countries lose valuable talent, productivity and social cohesion.
“Creating decent jobs for young people is not just a social imperative, it is one of the smartest investments a country can make,” he said.
Youth job prospects deteriorate in richer economies
The report highlighted a significant deterioration in youth employment prospects across several higher-income regions.
In Northern America, the youth unemployment rate rose from 8.3 per cent in 2023 to 9.8 per cent in 2025.
Meanwhile, youth unemployment remained high at 15 per cent in Northern, Southern and Western Europe in 2025. The ILO said 20 of the 29 countries in the subregion recorded weaker employment opportunities for young people.
The decline of middle-skilled occupations is also making it harder for young workers to establish stable careers.
According to the report, several occupations that have traditionally provided entry points into the labour market—including clerical and administrative jobs, service and sales positions, manufacturing-related employment and some technical roles—are shrinking.
Developing economies face a different challenge
While higher-income economies are experiencing rising youth unemployment, developing economies continue to struggle with a different but equally serious problem: creating enough decent jobs to accommodate rapidly growing young populations.
The ILO noted that relatively low unemployment rates in developing countries can conceal significant labour market insecurity because many young people cannot afford to remain without an income and are therefore pushed into informal or unstable employment.
Nearly nine out of every 10 young workers aged 15 to 29 in low- and lower-middle-income countries work informally, limiting their access to stable earnings, social protection and other employment benefits.
The situation is particularly challenging in sub-Saharan Africa, where rapid population growth is placing additional pressure on labour markets that are already struggling to generate sufficient decent jobs.
The report warned that these demographic pressures are contributing to an increase in the number of young people falling into the NEET category.
Arab States and Northern Africa record high youth unemployment
The Arab States and Northern Africa continue to record some of the world’s highest youth unemployment rates.
Youth unemployment stood at 26.2 per cent in the Arab States and 22.6 per cent in Northern Africa in 2025.
The ILO said at least one in three young people in both subregions were not in employment, education or training.
The figures highlight the growing gap between the aspirations of young people entering the labour market and the availability of productive and sustainable employment opportunities.
AI and technology reshape the jobs landscape
The ILO report also examined the impact of technological change, particularly the rapid development of artificial intelligence (AI), on young people’s employment prospects.
It estimated that 6.1 per cent of jobs held by young people aged 15 to 29 are in occupations highly exposed to AI-related changes.
Many of these jobs overlap with middle-skilled occupations that have declined among young workers since 2023, particularly clerical and administrative positions.
However, the report noted that technological change is also generating demand for knowledge-based technical workers in areas such as science, health and engineering.
This, according to the ILO, makes investment in relevant skills and lifelong learning increasingly important as labour markets evolve.
“There is increasing noise around AI,” said Sukti Dasgupta, Director of the ILO’s Employment, Skills and Sustainable Enterprises Department.
While the direct impact of AI on employment remains uncertain, Dasgupta said countries must not underestimate the risks associated with technological disruption.
“We need to step up our investment in skills, lifelong learning and social protection so that young people can adapt to change and seize new opportunities,” she said.
“Technological progress, including AI, must work for young people, not against them.”
The ILO’s findings underscore the growing urgency for governments, employers and policymakers to expand pathways into decent work, strengthen skills development and ensure that young people are equipped to participate meaningfully in rapidly changing labour markets.
