What's Happening?
The International Labour Organization (ILO) has reported a rise in global youth unemployment, reaching 12.4% in 2025, affecting 67 million young people. This increase reverses post-COVID-19 improvements and is attributed to weaker economic growth, geopolitical
tensions, and rapid technological changes, including the impact of artificial intelligence (AI). The report emphasizes that AI is making it increasingly difficult for young people to transition from school to decent work, with 6.1% of jobs held by youth aged 15 to 29 being highly susceptible to AI-related changes. The ILO calls for renewed action to support young people in navigating an uncertain job market.
Why It's Important?
The rise in youth unemployment has significant implications for global economic stability and social cohesion. As young people struggle to find quality employment, countries risk losing talent and productivity, which can lead to increased social unrest. The report highlights the need for policy measures to address these challenges, such as investing in quality education, lifelong learning, and apprenticeships. The focus on AI's impact underscores the necessity for a human-centered approach to AI governance to ensure technological progress benefits young people rather than hindering their employment prospects.
What's Next?
The ILO recommends strengthening employment services and labor market institutions to support young people's transitions into work. There is a call for governments and stakeholders to adopt policies that facilitate the integration of young people into the workforce, particularly in high-income countries where the impact of AI is more pronounced. The report suggests that without intervention, the youth unemployment rate may stabilize at high levels, necessitating urgent action to prevent long-term economic and social consequences.
Beyond the Headlines
The report also highlights the gender disparities in youth unemployment, with young women being disproportionately affected. The NEET (Not in Employment, Education, or Training) rate for young women is more than double that of young men, indicating a need for targeted interventions to address these inequalities. Additionally, the rise in informal employment among young people in developing economies points to a lack of social protection and job security, further exacerbating the challenges faced by this demographic.
