The deterioration in young people’s career prospects is due to the insufficient rate of job creation in economies, as well as the partial transformation of jobs resulting from the adoption of AI technologies. The situation for young people aged 15–25 in the global labor market has worsened over the past year, according to the International Labor Organization (ILO) report “Global Labor Trends for Young Workers.”
ILO Director-General Gilbert Ungbo emphasizes that without large-scale government investment in retraining young people—particularly in the fields of healthcare, science, and engineering—countries risk losing an entire generation of talent.
Unemployed youth or youth without work?
In 2020, this global rate exceeded 15%; by 2023, it had fallen to 12.3%, after which it stabilized and began to rise gradually, reaching 12.4% by the end of 2025 (that is, 67 million people).
At the same time, for older age groups (over 25), the global average is more than three times lower—just 3.6%. This may indicate a decline in the global economy’s ability to integrate those who are just entering the labor market, the ILO notes.
This assumption is supported by the growing proportion of young people who are neither working nor studying. By the end of 2025, this share had increased by 0.3 percentage points (p.p.) to 20% (257 million people worldwide).
In other words, the situation is exacerbated by the fact that one in five young people worldwide (20% or 257 million people) now falls into the NEET category—that is, they are not working, not in school, and not undergoing vocational training.
The ILO reports the highest youth unemployment rates in Arab countries (26.2%), North Africa (22.6%), and Northern, Southern, and Western Europe (15%). The lowest rates are found in Sub-Saharan Africa (8.4%), Southeast Asia and Oceania (9.5%), and North America (9.8%).
However, the list of regions with the highest growth rates in the number of unemployed looks different: North Africa ranks first (+1.8 percentage points), followed by North America (+1.6 percentage points) and Northern, Southern, and Western Europe (+0.8 percentage points).
Overall, over the past two years, the number of countries worldwide where youth unemployment rose was nearly twice the number of countries where it fell (105 versus 58).
Why is this happening?
According to the study’s authors, the trend toward a worsening situation for young people in the global labor market is driven by two factors.
In regions such as East Asia, Eastern Europe, North America, and Northern, Southern, and Western Europe, the growth in the youth population has outpaced overall employment growth, indicating a lack of job creation in the economy.
On the other hand, in developed countries, jobs for young people are already gradually being transformed by the influence of AI. For example, 6.1% of jobs held by young people aged 15 to 29 currently fall into the categories most vulnerable to the impact of AI and are therefore at risk of disappearing.
So-called “entry-level” jobs are disappearing. The number of medium-skilled jobs worldwide (office and administrative work, the service sector, and retail)—which traditionally helped young people launch their careers—is rapidly declining.
Demographic imbalances and economic challenges are contributing to this trend. This is particularly true in countries where the mobility and career expectations of young people are adding to the imbalance. In a number of regions (including North America and Europe), the growth in the number of young people is outpacing the rate at which new jobs are being created in the economy.
The situation regarding the outflow and inflow of young people varies greatly depending on qualifications, chosen fields, and the distribution of jobs across countries and continents. On the one hand, there is an acute shortage of job openings for a growing population. On the other hand, there is an outflow of young people from struggling economies in search of a “better life.”
Geographic Map of Unemployment
|
Region |
Youth Unemployment Rate |
Key Features of the Situation |
| Arab Countries |
26.2% |
The highest unemployment rate in the world. |
| North Africa |
22.6% |
A severe shortage of jobs for a growing population. |
| Western, Northern, and Southern Europe |
15.0% |
The situation has worsened in 20 of the 29 countries in this region. |
| Eastern Europe |
11.1% |
One of the few regions where unemployment fell (from 12.7%). |
| North America |
9.8% |
A sharp increase compared to 8.3% in 2023. |
| Developing Countries |
Low on paper |
Formally, unemployment may be low, but 9 out of 10 people work in the informal sector without social protections. |
