Global youth unemployment rose to 12.4 per cent in 2025, with 67 million young people aged 15 to 24 unemployed, as sluggish economic growth and weak job creation made it harder for young people to enter the labour market, according to a new International Labour Organisation (ILO) report.
The ILO’s ‘Global Employment Trends for Youth 2026: Back to the Future’ report also found that the share of young people not in employment, education or training (NEET) increased slightly to 20 per cent, affecting more than 257 million people.
Between 2023 and 2025, youth unemployment increased in eight of the world’s 11 subregions, driven by slowing economic growth, weak job creation, geopolitical tensions and rapid technological change, the report said.
Job prospects worsen in higher-income economies
Some of the sharpest increases were recorded in higher-income economies. In Northern America, youth unemployment rose from 8.3 per cent in 2023 to 9.8 per cent in 2025. In Northern, Southern and Western Europe, it remained high at 15 per cent.
The decline in middle-skilled jobs has made it harder for young people to establish stable careers, the report said. Clerical and administrative positions, service and sales jobs, manufacturing-related occupations and some technical roles, which have traditionally served as entry points for young workers, are shrinking.
Shortage of decent jobs in developing economies
In developing economies, the key challenge remains creating enough decent jobs to absorb growing young populations. Low unemployment rates in these countries often mask widespread insecurity, as many young people cannot afford to remain unemployed and instead enter informal or unstable work.
Nearly nine in 10 young workers aged 15 to 29 in low- and lower-middle-income countries are employed informally, limiting their access to stable incomes and social protection.
Sub-Saharan Africa faces particularly strong demographic pressures alongside insufficient decent jobs, resulting in more young people falling into NEET status, the report said.
The Arab States and Northern Africa recorded the world’s highest youth unemployment rates in 2025, at 26.2 per cent and 22.6 per cent respectively. In both regions, at least one in three young people were NEET.
AI reshaping youth employment
Technological change including advances in artificial intelligence is also transforming employment opportunities for young people.
According to the report, 6.1 per cent of jobs held by people aged 15 to 29 are in occupations highly exposed to AI-related changes. Many of these are among middle-skilled occupations that have declined since 2023, particularly clerical and administrative roles.
At the same time, demand is growing for some knowledge-based technical occupations in science, health and engineering, highlighting the need for young people to acquire skills suited to changing labour markets.
“There is increasing noise around AI,” said Sukti Dasgupta, ILO director of the Employment, Skills and Sustainable Enterprises Department. She said governments should increase investment in skills, lifelong learning and social protection so young people can adapt to technological changes.
ILO Director-General Gilbert F. Houngbo said young people unable to find decent work cannot build their futures with confidence.
“When young people are locked out of quality employment, countries lose talent, productivity and social cohesion,” he said, adding that creating decent jobs for young people is both a social imperative and a smart investment.
The report calls for greater investment in quality education, lifelong learning and apprenticeships, stronger employment services, expanded social protection and policies to create more decent jobs.
It also recommends a human-centred approach to AI governance so that technological innovation creates opportunities rather than deepening inequality.