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Global Youth Unemployment Rises as AI Reshapes Job Market: UN
🇲🇾 Malaysia /Economy & Trade

Global Youth Unemployment Rises as AI Reshapes Job Market: UN

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News From a news agency Context piece
  • Global youth unemployment rose slightly last year, with significant increases in high-income countries as AI impacts the job market.
  • The UN's International Labour Organization (ILO) reported that the global youth unemployment rate increased from 12.3% in 2024 to 12.4% last year, affecting 67 million young people.
  • The ILO also noted a slight increase in the percentage of youth not in employment, education, or training (NEET), reaching 20%, and warned of rising youth anxiety about job security due to technological changes.

Global youth unemployment saw a slight increase last year, with the most notable rises occurring in high-income nations as artificial intelligence begins to reshape the labor market. The United Nations' International Labour Organization (ILO) indicated that the temporary post-pandemic recovery for young workers has now stalled.

The growth of the global economy is slowing, job creation is decreasing, geopolitical tensions and rapid technological change are combining to make the transition from school to decent work increasingly difficult for many young people.

— ILO reportThe ILO report details the factors contributing to the challenges young people face in entering the workforce.

The ILO's Global Employment Trends for Youth 2026 report reveals that the global youth unemployment rate edged up from 12.3% in 2024 to 12.4% last year. This translates to approximately 67 million unemployed individuals aged 15 to 24. Concurrently, the proportion of young people not in employment, education, or training (NEET) saw a marginal rise to 20%, affecting over 257 million people.

The report highlights that the largest increases in youth unemployment were observed in high-income countries. Traditional entry-level jobs for young people in sectors like office and administrative work, sales, and manufacturing are becoming scarcer. The ILO attributes this difficulty in transitioning from school to decent work to a combination of slowing global economic growth, reduced job creation, geopolitical tensions, and rapid technological change.

However, the coincidence in timing is indeed real. The world is facing great uncertainty and fragility in the global economy as new risks related to AI begin to emerge.

— Sukti DasguptaThe Director of ILO's Sustainable Enterprises, Skills and Employment Department commented on the timing of AI's emergence with economic uncertainties.

Looking ahead, the ILO projects youth unemployment to remain at 12.3% in 2026 and 2027. However, officials are raising red flags as the youth unemployment rate and NEET rates are increasing simultaneously. Young people are expressing high levels of concern about their job prospects, with the full impact of AI on employment still uncertain. There are fears that technology could displace young workers and jeopardize job opportunities and income stability.

None of these developments bode well for young people.

— Sukti DasguptaDasgupta expressed concern about the current economic and technological trends affecting the youth.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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