Global youth unemployment saw a marked increase in 2025, with high-income economies recording significant spikes as Artificial Intelligence (AI) fundamentally reshapes employment prospects. According to the United Nations' International Labour Organization (ILO), the unemployment rate for those aged 15-24 rose to 12.4%, leaving approximately 67 million young people without work.
The NEET Surge and Red Flags
The report highlights a concerning trend: the simultaneous rise in the number of young people Not in Employment, Education, or Training (NEET). This rate reached 20%, affecting over 257 million youth globally. Sara Elder, an ILO employment policy official, described the concurrent rise of unemployment and NEET rates as a major "red flag."
The ILO attributes this shift to a combination of slowing economic growth, job scarcity, geopolitical tensions, and accelerated technological change. The most significant increases were observed in North America, North Africa, and across Northern, Southern, and Western Europe.
AI Shrinking the "Entry Gateway"
Technological advancements, particularly AI, are transforming the job market by reducing middle-skill roles that have traditionally served as entry points for young professionals. Positions in administration, sales, and industrial sectors are increasingly on the decline.
- 6.1% of jobs currently held by 15-29 year olds are highly exposed to AI-driven changes.
- If 10% of these exposed roles are lost, 5.6 million active youth—primarily in high-income countries—could face unemployment or forced career shifts.
- The shrinking of "gateway" jobs makes stable professional paths harder to access.
While the ILO forecasts the youth unemployment rate to stabilize at 12.3% in 2026 and 2027, the organization warns that the underlying transformation of work continues to pose a risk to the next generation of the global workforce.
