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Global youth unemployment rises amid weak growth and AI-driven change

Employee holding boxes, including a pot plant and documents for personal belongings. (Photo via Adobe Stock)
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Employee holding boxes, including a pot plant and documents for personal belongings. (Photo via Adobe Stock)
August 12, 2026 02:41 PM GMT+03:00

Global youth unemployment is rising amid stagnant economic growth, weak job creation and rapid technological change driven by artificial intelligence, the International Labor Organization said in a report released on Tuesday.

"Global youth unemployment is rising as stagnant economic growth and weak job creation increase barriers to job entry for young people and push more of them outside employment, education or training," the Global Employment Trends for Youth 2026: Back to the Future, the report said.

The report showed that the global youth unemployment rate rose to 12.4% in 2025, accounting for 67 million unemployed people aged 15 to 24. Meanwhile, the share of young people not in employment, education or training also increased to 20%, affecting 257 million people.

The report cited technological change, including advances in artificial intelligence (AI), as one of the factors reshaping youth employment.

It estimated that 6.1% of jobs held by young people aged 15 to 29 are in occupations highly exposed to AI-related changes. Many of these overlap with middle-skilled occupations that have declined among young workers since 2023, particularly clerical and administrative roles.

Sukti Dasgupta, director of the ILO's Employment, Skills and Sustainable Enterprises Department, also pointed to the "increasing noise around AI."

"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," Dasgupta said.

Fired office worker holding a box with belongings and leaving the office, humanoid AI robots waiting for a job interview in the background. (Photo via Adobe Stock)
Fired office worker holding a box with belongings and leaving the office, humanoid AI robots waiting for a job interview in the background. (Photo via Adobe Stock)

Unemployment increases even in higher-income economies

The report also found that some of the steepest increases in youth unemployment occurred in higher-income economies. Rates increased in eight of the world's 11 subregions between 2023 and 2025.

In North America, youth unemployment rose from 8.3% in 2023 to 9.8% in 2025. In Northern, Southern and Western Europe, it remained at 15% in 2025.

The report further said the decline in middle-skilled jobs was making it harder for young people to secure stable careers as traditional entry-level roles continued to shrink.

"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," said ILO Director-General Gilbert F. Houngbo.

Houngbo further stressed the need to create decent jobs for young people, calling it "one of the smartest investments a country can make."

August 12, 2026 02:41 PM GMT+03:00
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