A report by the International Labour Organisation (ILO) reveals that 67 million young people are without jobs, triggering a fresh unemployment crisis.
In a departure from historical trends, some of the sharpest spikes in youth unemployment occurred in higher-income economies. For instance North America saw its youth unemployment rate climb from 8.3 percent in 2023 to 9.8 percent in 2025. Across Northern, Southern, and Western Europe, the rate hovered at 15 per cent, with nearly 70 per cent of countries reporting weakened entry-level job opportunities.
The report titled The Global Employment Trends for Youth 2026: Back to the Future reveals that the global youth unemployment rate rose to 12.4 percent in 2025, leaving approximately 67 million young people aged 15 to 24 without work.
Concurrently, the proportion of youth not in employment, education, or training (NEET) ticked upward to 20 per cent, affecting more than 257 million young individuals worldwide, driven by stagnant economic growth, persistent geopolitical tensions, and rapid technological disruption.
A major contributor to this squeeze in developed markets is the steady erosion of middle-skilled jobs. Traditional entry-level roles-such as administrative positions, service and sales roles, manufacturing jobs, and select technical occupations-are shrinking.
Conversely, developing economies face a structural shortfall in quality job creation. While nominal youth unemployment rates in lower-income regions often appear low, they mask widespread economic insecurity. Millions of young people, unable to afford to remain idle, are forced into low-quality, informal work. Nearly nine out of ten young workers aged 15 to 29 in low- and lower-middle-income countries operate in the informal sector, devoid of income stability or social protection.
Sub-Saharan Africa remains under severe demographic stress, struggling to generate formal employment fast enough to match its expanding youth population. Meanwhile, the Arab States and Northern Africa continue to record the highest youth unemployment rates globally, standing at 26.2 percent and 22.6 percent respectively, with over a third of young people classified as NEET in both regions.
Technological shifts, particularly the rise of artificial intelligence, are accelerating these labour market disruptions. The ILO estimates that 6.1 percent of jobs held by young people aged 15 to 29 are highly exposed to AI-driven automation. Many of these positions overlap with the declining middle-skilled administrative roles that historically served as career stepping stones.
‘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. Creating decent jobs for young people is not just a social imperative; it is one of the smartest investments a country can make.’
While demand grows for high-skilled technical roles in science, healthcare, and engineering, bridging the gap requires targeted policy interventions. Sukti Dasgupta, director of the ILO’s Employment, Skills and Sustainable Enterprises Department, warned against underestimating the speed of technological adoption, emphasising that labour policies, social safety nets, and lifelong learning frameworks must be upgraded so technology works for young job seekers rather than displacing them.
To mitigate these systemic risks, the ILO calls on global policymakers to implement human-centred AI governance, expand vocational training and apprenticeships, strengthen employment services targeting young women, and deploy supportive macroeconomic policies aimed directly at formal job creation.