Global youth unemployment climbs to 12.4% as AI adds pressure

The International Labour Organization reports that global youth unemployment rose to 12.4% in 2025, up from 12.3% in 2023. That translates to roughly 67 million people aged 15 to 24 without work, reversing the gains made after the COVID-19 pandemic.

The uptick reflects weaker economic growth, geopolitical tensions, and sluggish job creation, according to the UN agency. The quality of available jobs has also deteriorated, with the share of young people not in employment, education, or training (NEET) edging up to 20% — more than 257 million individuals.

Regional disparities are stark. The Arab States recorded the highest youth unemployment at 26.2%, followed by Northern Africa at 22.6%. North America saw a sharp rise to 9.8% from 8.3%, while Europe's rate stood at 15%. The ILO noted that unemployment increased in eight of the world's 11 subregions between 2023 and 2025.

A key driver is the decline of middle-skilled jobs — clerical, administrative, sales, and manufacturing roles that traditionally served as entry points for young workers. This shrinkage means longer job queues and higher unemployment for those with secondary-level education.

Artificial intelligence could intensify the problem. The ILO estimates that 6.1% of jobs held by 15-to-29-year-olds are in occupations most exposed to AI-related changes. If just 10% of those roles vanish, around 5.6 million young workers, mainly in high-income countries, could face unemployment or career shifts.

While high-skilled sectors like science, engineering, healthcare, and IT continue to expand, many young people in developing economies cannot afford prolonged job searches. Nearly nine in ten young workers in low- and lower-middle-income countries remain in informal employment, lacking adequate labour and social protections.