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Global youth unemployment rises amid sluggish job creation and looming AI risk, UN labour agency says

Global youth unemployment rises amid sluggish job creation and looming AI risk, UN labour agency says

GENEVA, Aug 12 - The number of young people worldwide without jobs has risen in 2025, the International Labour Organization reported on Wednesday, citing weaker economic growth, geopolitical tensions and a lack of new positions as factors. The global youth unemployment rate climbed to 12.4% from 12.3% in 2023, affecting 67 million individuals between the ages of 15 and 24, according to the U.N. labor agency's latest assessment.

This rise signaled a setback after the economic recovery from the COVID-19 pandemic, with the quantity and quality of available jobs declining for young workers. Additionally, the proportion of young people not in education, employment or training (NEET) climbed to 20%, or over 257 million people.

The report revealed that youth unemployment worsened across nearly all regions, with eight out of 11 subregions experiencing an increase between 2023 and 2025. The highest rates were observed in the Arab States (26.2%) and Northern Africa (22.6%), while wealthier nations like North America and Northern, Southern, and Western Europe saw rates of 9.8%, 15%, and 15%, respectively.

The ILO emphasized the decline of middle-skilled jobs, such as clerical, administrative, sales, and manufacturing positions, which often serve as an initial entry point for young people transitioning from education to the workforce. The shrinking availability of these roles has led to longer job queues and increased unemployment among young individuals with secondary-level education.

This trend may worsen as artificial intelligence (AI) continues to reshape industries. The ILO estimated that 6.1% of jobs held by those aged 15 to 29 are particularly vulnerable to AI-related changes. Should just 10% of these positions disappear, around 5.6 million young workers, mainly in high-income countries, could face unemployment, career shifts, or exit the labor force.

While the long-term consequences of AI remain uncertain, the report cautioned against underestimating the risks. Moreover, in developing economies, many young people find it impossible to endure prolonged unemployment and often accept insecure work lacking essential labor and social protections.

Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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