UN Report: Global Youth Unemployment Rate Surges

The International Labour Organization (ILO) warns that global youth unemployment is on the rise, posing a significant challenge to the economic future. A new report, "Global Employment Trends for Youth, 2026: Back to the Future," projects that the youth unemployment rate will reach 12.4% in 2025, leaving an estimated 67 million young people aged 15 to 24 without work.

The report highlights that the issue is particularly acute in higher-income countries, with youth unemployment increasing in 8 out of 11 global subregions between 2023 and 2025. Factors contributing to this trend include sluggish economic growth, a lack of new job creation, geopolitical instability, and the accelerating pace of technological advancements. These forces are disrupting traditional entry-level positions in sectors like office administration, services, trade, and manufacturing.

In developing nations, the challenge is compounded by the need to create sufficient decent jobs for a growing young population. Many young individuals cannot afford prolonged unemployment and are compelled to accept work in the informal sector or unstable employment arrangements. The ILO estimates that nearly nine out of ten young workers aged 15 to 29 in low- and lower-middle-income countries are employed in the informal economy, limiting their access to stable incomes and social security.

Furthermore, the report underscores the growing impact of technological changes, including artificial intelligence, on young workers' employment prospects. Approximately 6.1% of jobs held by young people aged 15 to 29 are in occupations highly susceptible to AI-driven transformations. Simultaneously, there is an increasing demand for certain high-skill technical roles in science, healthcare, and engineering, emphasizing the critical need for youth to acquire skills aligned with evolving labor market demands.