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Youth unemployment grows globally amid economic stagnation and the challenge of AI
🇧🇴 Bolivia /Economy & Trade

Youth unemployment grows globally amid economic stagnation and the challenge of AI

From El Deber · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Global youth unemployment stands at 12.4%, with 67 million young people jobless, and 257 million not in education, employment, or training (NEET).
  • The International Labour Organization (ILO) attributes this deterioration to economic stagnation and the impact of artificial intelligence.
  • Young people are four times more likely to be unemployed than adults, with AI posing a significant risk to entry-level jobs traditionally held by youth.

The global labor market is showing a deteriorating outlook for young people, with approximately 67 million individuals aged 15 to 24 unemployed, resulting in a 12.4% unemployment rate. An additional 257 million young people are not engaged in education, employment, or training (NEET), according to new data from the International Labour Organization (ILO).

In the previous report, we painted a positive picture of young people benefiting from the recovery after the COVID crisis, but the situation has changed in a context of slowdown and geopolitical tensions.

— Sukti DasguptaDirector of the Employment and Sustainable Enterprises Department at the ILO, commenting on the changing global labor market for youth.

These figures represent a slight increase from previous reports, reversing a positive trend observed after the COVID-19 crisis. The ILO attributes this downturn to economic stagnation and geopolitical tensions. "In the previous report, we painted a positive picture of young people benefiting from the post-COVID recovery, but the situation has changed in a context of slowdown and geopolitical tensions," stated Sukti Dasgupta, director of the ILO's Employment and Sustainable Enterprises Department.

Dasgupta highlighted that youth unemployment has risen while the general unemployment rate has slightly decreased, making young people four times more likely to be jobless than adults. The increasing impact of artificial intelligence is also a significant factor, with the ILO estimating that 6.1% of jobs currently held by young people are among those most exposed to AI disruption.

There is a decrease in mid-skill jobs, mainly administrative and office jobs, those most at risk of being replaced by AI, and these occupations have traditionally served as entry-level jobs into the labor market for young people.

— Sukti DasguptaExplaining how AI is impacting traditional entry-level positions for young workers.

Jobs requiring medium-level qualifications, such as administrative and office roles, are particularly at risk of being replaced by AI. These positions have historically served as entry points into the labor market for young individuals. The ILO warns that if even 10% of these exposed jobs disappear, it could affect 5.6 million young people, primarily in high-income countries, pushing them towards unemployment, job changes, or withdrawal from the labor force.

If only 10% of the jobs exposed to AI were to disappear completely, this would translate into 5.6 million young people, mainly in high-income countries, at risk of unemployment, of a change in their position, or of leaving the active population altogether.

— Sukti DasguptaWarning about the potential scale of job displacement for young people due to AI.
DistantNews Editorial

Originally published by El Deber in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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