Global youth unemployment rises to 12.4% in new ILO report

Global youth unemployment rose to 12.4% in 2025, leaving 67 million young people without work as job creation weakened, the ILO said.

ILO counts 67 million jobless

The United Nations labor agency said the rate increased from 12.3% in 2023, reversing part of the labor-market recovery that followed the COVID-19 pandemic. The report linked the change to weaker economic growth, geopolitical tensions and slow job creation, and said both the quantity and quality of jobs available to young workers had deteriorated.

"The picture is worsening almost universally," the report said. Youth unemployment increased between 2023 and 2025 in eight of the world's 11 subregions, with rates also rising across high-income, lower-middle-income and low-income countries.

The share of young people not in employment, education or training edged up to 20%, representing more than 257 million people, according to the ILO. That group is closely watched because extended time outside school and work can weaken earnings prospects and reduce future labor-force participation.

Arab States top the table

The highest youth unemployment rate was in the Arab States at 26.2%, followed by Northern Africa at 22.6%, the report said. In North America, the rate rose to 9.8% in 2025 from 8.3% in 2023, while Northern, Southern and Western Europe recorded 15%.

The regional pattern matters for governments because youth joblessness can put pressure on public finances through training programs, income support and delayed tax receipts. It also affects employers by narrowing the early-career pipeline that supplies entry-level workers for offices, factories, sales teams and service businesses.

Middle-skill ladder narrows

The ILO identified a decline in middle-skilled jobs as a central pressure point. Clerical, administrative, sales and manufacturing roles have traditionally helped young people move from secondary school or university into paid work.

"A shrinkage of jobs associated with middle-skilled occupations means longer job queues and growing unemployment for young people with secondary-level education that seek them," the report said. The shift leaves more young workers competing for fewer openings before they have accumulated the experience needed for higher-skilled positions.

High-skilled sectors such as science, engineering, healthcare and information technology continued to expand in most countries, according to the report. In many developing economies, however, young people often cannot wait for those roles and instead accept insecure work.

Nearly nine in 10 young workers in low- and lower-middle-income countries remain in informal employment, the ILO said. Those jobs typically lack adequate labor and social protections, making income more fragile when growth slows or employers cut hours.

AI exposure reaches young roles

The ILO estimated that jobs most exposed to AI-related change account for 6.1% of positions held by people aged 15 to 29. If 10% of those roles disappeared entirely, around 5.6 million young workers, mainly in high-income countries, could face unemployment, career changes or exit from the labor force, the agency said.

The report said the long-term effect of AI remains uncertain, but warned that the risks should not be underestimated. The immediate policy question is whether education systems and employers can move young workers toward expanding roles before automation reduces demand in exposed occupations.

If global hiring stabilizes, lower youth joblessness would support household income and reduce pressure on public employment programs; employers would also have a steadier flow of junior workers. If middle-skill hiring keeps shrinking or AI exposure turns into job losses, governments could face weaker consumption and higher training costs, while service and office-based industries would need faster reskilling for entry-level roles.