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Global youth unemployment climbs as AI economic slowdown reshape job market: ILO

WEB DESK: Global youth unemployment increased last year, with high-income economies recording some of the sharpest rises as artificial intelligence and slowing economic growth put pressure on entry-level jobs, the United Nations labour agency reported.

According to the International Labour Organization’s (ILO) Global Employment Trends for Youth 2026 report, the worldwide unemployment rate among people aged 15 to 24 rose from 12.3% in 2024 to 12.4% in 2025, leaving around 67 million young people without jobs.

The proportion of young people neither employed nor enrolled in education or training also edged up to 20%, affecting more than 257 million people worldwide.

The ILO said the post-pandemic improvement in youth employment has lost momentum. Slower economic expansion, weaker job creation, geopolitical uncertainty and rapid technological advances are making it harder for young people to move from education into stable and decent employment.

Youth unemployment is projected to remain broadly unchanged at around 12.3% in both 2026 and 2027.

The report also highlighted a decline in traditional entry-level occupations, including administrative and office work, sales roles and manufacturing positions, increasing concerns about opportunities available to young workers.

ILO Director-General Gilbert Houngbo warned that prolonged exclusion from quality employment could cost countries talent, productivity and social stability, stressing that creating decent jobs for young people should be viewed as a key economic investment.

At the regional level, some of the largest increases in youth unemployment were recorded in northern Africa, northern America and parts of Europe. In Central and Western Asia and Eastern Europe, falling unemployment was accompanied by a rise in the number of young people outside employment, education or training.

Youth unemployment rates remained particularly high in the Arab States and northern Africa, reaching 26.2% and 22.6%, respectively.

The ILO cautioned that rising unemployment from already elevated levels points to persistent structural barriers, with young women facing particularly significant obstacles to entering productive employment.