Global youth unemployment rose in 2025 as sluggish economic growth, weak job creation and rapid technological change made it harder for young people to enter the labour market, according to a new report by the International Labour Organization (ILO).
The ILO’s Global Employment Trends for Youth 2026: Back to the future report found that the global youth unemployment rate climbed to 12.4% in 2025, leaving around 67 million people aged 15 to 24 without work. At the same time, the share of young people not in employment, education or training (NEET) increased slightly to 20%, affecting more than 257 million young people worldwide.
Between 2023 and 2025, youth unemployment increased across eight of the world’s 11 subregions, highlighting growing difficulties for young people seeking to establish themselves in the workforce.
“A generation that cannot find decent work cannot build its future with confidence,” said Gilbert F. Houngbo, ILO Director-General. “When young people are locked out of quality employment, countries lose talent, productivity and social cohesion.”
The deterioration has been particularly visible in higher-income economies. In Northern America, youth unemployment rose from 8.3% in 2023 to 9.8% in 2025. In Northern, Southern and Western Europe, the rate remained at 15%, with 20 of 29 countries in the subregion reporting weaker employment prospects for young people.
The decline of middle-skilled roles is adding to the challenge. Clerical and administrative positions, service and sales jobs, manufacturing-related occupations and some technical roles have traditionally offered important entry points for young workers, but many of these jobs are shrinking.
For developing economies, the challenge is different but equally significant: creating enough decent work to keep pace with expanding young populations.
Nearly nine in 10 young workers aged 15 to 29 in low- and lower-middle-income countries are employed informally, according to the report. While this can keep headline unemployment rates relatively low, it often leaves young workers without stable incomes, social protection or secure career pathways.
Sub-Saharan Africa faces particularly strong demographic pressures, while the Arab States and Northern Africa continue to record the highest youth unemployment rates globally.
Youth unemployment stood at 26.2% in the Arab States and 22.6% in Northern Africa in 2025. In both regions, at least one in three young people were NEET.
AI adds another layer of uncertainty
Technological change, particularly the rapid development of artificial intelligence, is also reshaping the prospects of young workers.
The ILO estimates that 6.1% of jobs held by people aged 15 to 29 are in occupations highly exposed to AI-related changes.
Many of these jobs overlap with middle-skilled roles that have already declined among young workers since 2023, particularly clerical and administrative positions.
However, the report also points to growing demand for knowledge-based technical roles in areas such as science, health and engineering. This is increasing pressure on education and training systems to ensure young people develop skills aligned with changing labour market needs.
“There is increasing noise around AI,” said Sukti Dasgupta, ILO Director of the Employment, Skills and Sustainable Enterprises Department. “While the direct impact on jobs is still unclear, we must not be complacent and underestimate the risks.”
The ILO is calling for greater investment in skills, lifelong learning and social protection to help young people navigate technological and economic disruption.
Creating pathways to decent work
The report argues that addressing youth unemployment requires more than simply increasing the number of jobs available. Young people need access to work that provides security, dignity, rights and opportunities for progression.
The ILO recommends a human-centred approach to AI governance, alongside stronger investment in quality education, apprenticeships and lifelong learning. It also calls for improved employment services and labour market institutions, with targeted support for young women and those in vulnerable situations.
For policymakers and employers, the challenge is increasingly about building pathways into sustainable careers as traditional entry-level roles disappear or change.
As economies navigate slower growth, geopolitical uncertainty and technological disruption, the ILO warns that failing to create decent opportunities for young people could carry wider consequences for productivity, social cohesion and economic development.