UN reports rise in global youth unemployment as AI reshapes job market

The International Labour Organisation said the worldwide youth unemployment rate edged up to 12.4% in 2025, affecting 67 million people, while the share of NEETs reached 20%.

The United Nations’ labour arm, the International Labour Organisation, released its Global Employment Trends for Youth 2026 report, noting that the global youth unemployment rate climbed to 12.4% in 2025, up from 12.3% the previous year, which translates to about 67 million unemployed people aged 15 to 24. At the same time, the share of young individuals classified as NEET (not in employment, education or training) rose modestly to 20%, affecting more than 257 million.

The steepest increases were recorded in high-income countries, where AI and other technological advances are reshaping entry-level roles such as office, sales and manufacturing jobs. The ILO attributed the worsening outlook to a mix of slowing global growth, reduced job creation, geopolitical strains and rapid tech change, with Sara Elder emphasizing that simultaneous rises in unemployment and NEET rates trigger a red flag.

While the agency expects the unemployment rate to hold at 12.3% in 2026-27, officials like Sukti Dasgupta warned that the link between AI and youth job loss remains uncertain but warrants further study. ILO chief Gilbert Houngbo stressed that failing to provide decent work for young people undermines talent, productivity and social cohesion worldwide.