Youth Unemployment Rises Globally as AI Reshapes Jobs

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Youth unemployment increased worldwide last year, with some of the sharpest rises occurring in high-income economies as artificial intelligence rapidly transforms the labour market, the International Labour Organization (ILO) said on Tuesday.

The ILO’s annual report on youth employment estimates that the global unemployment rate among people aged 15 to 24 reached 12.4% in 2025, up from 12.3% in 2024. Around 67 million young people were unemployed.

At the same time, the proportion of young people who were not in employment, education or training (NEET) also edged higher, reaching 20%, or more than 257 million people.

The ILO expects youth unemployment to remain broadly stable at 12.3% in both 2026 and 2027.

Despite that apparent stability, the organisation remains concerned.

“When unemployment and NEET rates rise at the same time, we sound the alarm,” said Sarah Elder, an ILO employment policy official, during the report’s presentation to journalists in Geneva.

Between 2023 and 2025, youth unemployment increased in eight of the world’s 11 regions.

“The slowdown in economic growth, the insufficient number of jobs being created, geopolitical tensions and the acceleration of technological change are pushing countries towards a new youth employment crisis,” the ILO warned.

The largest increases in youth unemployment between 2023 and 2025 occurred in North America, North Africa, and Northern, Southern and Western Europe.

AI reshapes young people’s employment prospects

The report highlights technological developments, particularly the rapid expansion of artificial intelligence, as a major factor reshaping young people’s prospects of finding work.

The decline in many jobs requiring mid-level skills is making it harder for young workers to enter stable career paths.

According to the ILO, several occupations that have traditionally provided an entry point into the labour market for young people are now declining. These include office and administrative jobs, broader service occupations, sales positions, industrial work and technical trades.

Around 6.1% of jobs currently held by people aged 15 to 29 are in occupations highly exposed to AI-related changes, said Sukti Dasgupta, Director of the ILO’s Employment, Skills and Sustainable Enterprises Department.

She warned that the impact could become significant if AI-driven changes eliminate a proportion of exposed jobs.

“If 10% of AI-exposed jobs disappear, 5.6 million active young people, mainly in high-income countries, could face unemployment, occupational transitions or withdrawal from the labour market,” Dasgupta said.

The findings point to a growing challenge for policymakers as economies attempt to ensure that technological advances create opportunities for young workers rather than further limiting their access to stable employment.

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