Young people around the world are finding it increasingly difficult to secure decent work, with global youth unemployment rising and millions being pushed outside employment, education or training, according to a new report from the International Labour Organisation (ILO).
The Global Employment Trends for Youth 2026: Back to the Future, released on August 11, found that the global youth unemployment rate increased to 12.4 per cent in 2025, representing approximately 67 million unemployed people aged 15 to 24.
At the same time, the proportion of young people not in employment, education or training (NEET) rose slightly to 20 per cent, affecting more than 257 million young people worldwide.
The deterioration is occurring despite the critical importance of employment to young people’s transition into adulthood. According to the ILO, youth unemployment increased between 2023 and 2025 in eight of the world’s 11 subregions, as slowing economic growth, weak job creation, geopolitical tensions and rapid technological change create additional barriers to entering the labour market.
ILO Director-General Gilbert F. Houngbo warned that the consequences extend beyond individual young people.
“A generation that cannot find decent work cannot build its future with confidence. When young people are locked out of quality employment, countries lose 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.”
Richer economies also struggling
The report challenges the assumption that youth unemployment is primarily a problem of developing economies.
In Northern America, youth unemployment rose from 8.3 per cent in 2023 to 9.8 per cent in 2025. Across Northern, Southern and Western Europe, youth unemployment remained at approximately 15 per cent, with 20 of 29 countries in the subregion reporting weaker employment opportunities for young people.
The ILO attributes part of the problem to the decline of middle-skilled occupations that have traditionally provided entry points into the workforce. Clerical and administrative positions, service and sales jobs, manufacturing-related occupations and some technical jobs are among those experiencing contraction.
Developing countries face a different crisis
In developing economies, the challenge is less about unemployment alone and more about the availability of stable and decent employment.
Young people who cannot afford to remain unemployed frequently enter informal or insecure work. The ILO estimates that nearly nine in 10 young workers aged 15 to 29 in low- and lower-middle-income countries are employed informally, leaving many without stable incomes or adequate social protection.
Sub-Saharan Africa faces particularly intense demographic pressure, with rapidly growing young populations confronting insufficient opportunities for decent work. The Arab States and Northern Africa continue to record the world’s highest youth unemployment rates, at 26.2 per cent and 22.6 per cent respectively in 2025. In both regions, at least one in three young people were NEET.
AI reshaping the jobs landscape
The report also examines the growing influence of artificial intelligence (AI) on employment.
It estimates 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 occupations overlap with middle-skilled jobs that have been declining among young workers.
At the same time, demand is increasing for knowledge-based technical occupations in areas such as science, health and engineering, underscoring the importance of equipping young people with skills suited to a changing labour market.
“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. 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. Technological progress, including AI, must work for young people, not against them.”
ILO calls for urgent action
The ILO is calling for renewed investment in quality education, lifelong learning, apprenticeships and employment services, alongside stronger social protection and workplace rights for young people.
It also recommends human-centred AI governance to ensure technological progress expands opportunities rather than deepening inequality.
