Global youth unemployment rate rises to 12.4%: AI poses challenges

The International Labor Organization (ILO) released a report on Wednesday, August 12, 2026, pointing out that due to the slowdown in global economic growth, geopolitical tensions, and insufficient new job opportunities, global youth employment situation deteriorated in 2025. The unemployment rate among young people aged 15 to 24 rose to 12.4%, with approximately 67 million young people unemployed. The report also warned that the rapid development of Artificial Intelligence (AI) could further exacerbate youth employment pressures.

The report indicated that the youth employment market briefly improved after the COVID-19 pandemic, but worsened again in the past two years. Not only have employment opportunities decreased, but the quality of jobs has also declined. At the same time, the proportion of young people who are neither in employment, education, nor training (NEET) increased to 20%, totaling over 257 million individuals.

The International Labor Organization stated that between 2023 and 2025, youth unemployment rates increased in 8 out of 11 regions globally, with both high-income, middle-income, and low-income economies showing a deteriorating trend.

Regionally, Arab countries had the highest youth unemployment rate at 26.2%, followed by North Africa at 22.6%. Youth unemployment in North America increased from 8.3% in 2023 to 9.8% in 2025, while it stood at 15% in Northern, Southern, and Western Europe.

The International Labor Organization pointed out that the reduction of middle-skill level positions in administrative, sales, and manufacturing sectors is one of the main challenges young people face when entering the labor market. These types of jobs have traditionally been important entry points for high school or university graduates entering the workforce, and with fewer available positions, competition for young job seekers intensifies.

Meanwhile, employment opportunities in high-skill fields such as science, engineering, medicine, and information technology continue to increase in most countries. However, in low-income and middle-income countries, nearly 90% of employed young people are still engaged in informal work, with lower levels of employment stability and labor protections.

A previous report by the International Labor Organization on “Global Youth Employment Trends 2024” also highlighted the significant gap young people face transitioning from school to the workforce, especially in low-income countries. Young people in these countries are particularly vulnerable to engaging in informal, unsecured work due to their inability to withstand long-term unemployment.

The report also raises concerns about the potential impact of AI on youth employment. The International Labor Organization estimates that about 6.1% of jobs currently held by young people aged 15 to 29 globally are highly susceptible to AI influence. If only 10% of these positions are eventually replaced by AI, approximately 5.6 million young people could face unemployment, job transitions, or exit from the labor market, with the most affected still being in high-income countries.

However, the International Labor Organization also points out that the long-term impact of AI on employment is currently uncertain. The 2024 Youth Employment Report indicated that Generative AI is more likely to alter or assist with specific job tasks rather than directly replace entire positions. Therefore, the long-term impact of AI on youth employment is still subject to observation.

The International Labor Organization (ILO) is a specialized agency of the United Nations responsible for labor affairs, headquartered in Geneva, Switzerland. It regularly releases global labor market reports to assist countries in formulating employment policies.

(Information referenced from Reuters)