Global Youth Unemployment Rises to 12.4% as Economic Friction and AI Loom

Global youth unemployment increased to 12.4% last year, leaving 67 million young people aged 15 to 24 without work. Sluggish economic growth, geopolitical tensions, and slow job creation drove the uptick.

The International Labour Organization highlighted the trend in its Global Employment Trends for Youth 2026 report released Wednesday. The UN agency warned that emerging artificial intelligence could exacerbate these growing labor market pressures.

Concurrently, the rate of young people Not in Employment, Education, or Training rose to 20%, affecting over 257 million individuals. The decline follows a brief post-pandemic recovery across global youth labor markets.

“Slowing global economic growth, diminished job creation, geopolitical tensions and rapid technological change are combining to make the transition from school to decent work increasingly difficult,” the ILO stated in the report.

In Sub-Saharan Africa, headline youth unemployment registered lower at 8.9%, but severe underemployment persists. Over 71% of young adult workers in the region remain trapped in informal or vulnerable jobs.

The regional challenge is exacerbated by a youth NEET rate reaching 21.9%, alongside massive demographic expansion where over 10 million young entrants join the labor force annually without matching formal job creation.

The global deterioration stems largely from the contraction of middle-skilled entry-level roles—such as clerical, administrative, and manufacturing positions—that traditionally provide initial career pathways for secondary and tertiary graduates.

“A generation that cannot find decent work cannot build its future with confidence,” said ILO Director-General Gilbert Houngbo. “When young people are locked out of quality employment, countries lose talent, productivity, and social cohesion.”

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