Youth Employment Recovery Stalled, ILO Report Warns
The International Labour Organization's 'Global Employment Trends for Youth 2026' report indicates a halt in the post-pandemic recovery for youth labor markets. Global youth unemployment rose in 2025, with a significant increase in young people not in employment, education, or training.
Key takeaways
- The ILO's 'Global Employment Trends for Youth 2026' report indicates that the recovery in youth labor markets has stalled.
- Global youth unemployment rose to 12.4% in 2025, and the percentage of young people not in employment, education, or training (NEET) increased to 20%.
- Young women face a greater NEET challenge, with their rate at 27.4% compared to 13.1% for young men.
- Factors contributing to the difficult transition to decent work include slowing economic growth, geopolitical tensions, and technological change.
The recovery of youth labor markets following the COVID-19 pandemic has stopped, according to a new report from the International Labour Organization (ILO). The 'Global Employment Trends for Youth 2026: Back to the Future' report highlights that a combination of slowing global economic growth, reduced job creation, geopolitical instability, and rapid technological advancements is making it harder for young people to transition into stable employment.
What Happened
Released on Wednesday, August 12, 2026, the ILO report stated that the global unemployment rate for individuals aged 15 to 24 reached 12.4% in 2025. This figure represents 67 million unemployed young people worldwide and is a 0.1 percentage point increase from the rate observed in 2023, which was the lowest in over two decades. Additionally, the proportion of young people not in employment, education, or training (NEET) increased to 20% in 2025, up from 19.7% in 2023. This marks an increase of nine million young people in NEET status since 2023, bringing the total to 257 million.
The youth unemployment rate saw increases in eight of the 11 subregions. Higher rates of youth unemployment were also noted in high-income, lower-middle-income, and low-income countries between 2023 and 2025. The largest increases occurred in Northern Africa, Northern America, and Northern, Southern, and Western Europe. In some regions like Central and Western Asia and Eastern Europe, despite declining youth unemployment rates, the rise in NEET status presented a contrasting challenge.
Why It Matters
ILO Director-General Gilbert F. Houngbo commented that a generation unable to secure decent work struggles to build a secure future. He emphasized that when young people are excluded from quality employment, countries suffer losses in talent, productivity, and social cohesion. Houngbo described creating decent jobs for youth as a critical social necessity and a smart investment for any nation.
The report points out that young women are disproportionately affected by the NEET challenge. In 2025, over two-thirds of individuals in NEET status were women. The NEET rate for young women stood at 27.4%, more than double the rate for young men, which was 13.1%. Furthermore, 6.1% of jobs held by young people aged 15 to 29 are in sectors highly vulnerable to AI-driven changes. ILO Director Sukti Dasgupta noted the growing discussion around AI, stating that technological progress, including AI, must benefit young people rather than hinder them.
In developing economies, the challenge of creating sufficient decent jobs for a growing youth population persists. The report also indicated that low unemployment rates can obscure widespread insecurity, as many young individuals may take informal or unstable jobs due to an inability to remain unemployed.
Key Facts
- The global unemployment rate for young people aged 15-24 was 12.4% in 2025, totaling 67 million individuals.
- This represents a 0.1 percentage point increase from 2023.
- The global share of young people not in employment, education, or training (NEET) reached 20% in 2025, an increase from 19.7% in 2023.
- This brings the total number of youth in NEET status to 257 million in 2025, nine million more than in 2023.
- The youth NEET rate for young women in 2025 was 27.4%, compared to 13.1% for young men.
- 6.1% of jobs held by youth aged 15-29 are in occupations highly exposed to AI-related changes.
Background
The ILO report, titled ‘Global Employment Trends for Youth 2026: Back to the Future’, was released in Geneva on Wednesday, August 12, 2026. It analyzes trends in youth employment markets following the COVID-19 pandemic.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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