Global Youth Unemployment Rises to 12.4% as AI Reshapes Entry-Level Work
Synopsis
The ILO estimates 67 million people aged 15 to 24 were unemployed in 2025, while one in five young people were not in employment, education or training as job creation slowed.
Global youth unemployment increased in 2025 as slowing economic growth, geopolitical uncertainty and weaker hiring trends made it harder for young people to secure jobs, according to a recent report from the International Labour Organization (ILO).
The UN labour agency also warned that AI could intensify employment challenges by disrupting millions of entry-level and middle-skilled roles.
The report shows that the global unemployment rate among people aged 15 to 24 rose to 12.4%, up from 12.3% in 2023 which is affecting around 67 million young people worldwide. The increase reverses employment gains made in the years following the COVID-19 pandemic.
Youth Job Market Weakens across Most Regions
The ILO said labour market conditions deteriorated across eight of the world's 11 subregions between 2023 and 2025. The share of young people classified as Not in Employment, Education or Training also increased to 20% which represents more than 257 million people globally.
According to the report, the decline reflects not only fewer job opportunities but also a drop in the quality of employment available to young workers. Youth unemployment increased across high-income, lower middle-income and low-income economies which is highlighting a broad-based slowdown in global labour markets.
Arab States and North Africa Record the Highest Unemployment Rates
The Arab States recorded the highest youth unemployment rate at 26.2%, followed by Northern Africa at 22.6%.
Among developed economies, North America experienced one of the sharpest increases with youth unemployment rising from 8.3% in 2023 to 9.8% in 2025. Across Northern, Southern and Western Europe, the unemployment rate stood at 15%, underscoring persistent employment challenges even in advanced economies.
AI Could Threaten Millions of Young Workers
The ILO highlighted the shrinking availability of middle-skilled jobs, including clerical, administrative, sales and manufacturing roles which have traditionally served as entry points into the workforce for school and university graduates.
The report estimates that 6.1% of jobs held by people aged 15 to 29 are in occupations most exposed to AI-driven changes. If just 10% of those jobs were eliminated, around 5.6 million young workers could face unemployment, career transitions or leave the labour force particularly in high-income countries.
While the long-term impact of AI remains uncertain, the agency said policymakers should not underestimate its potential effect on youth employment.
High-Skilled Sectors Continue to Create Opportunities
Despite the growing risks, the report noted that demand continues to expand in high-skilled fields such as science, engineering, healthcare and information technology.
However, in developing economies, many young people have little choice but to accept insecure work due to limited formal employment opportunities. The ILO estimates that nearly nine in 10 young workers in low and lower middle-income countries remain in informal employment, leaving them without adequate labour rights or social protection.
Source: Reuters
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