AI Threatens Entry-Level Jobs as Youth Unemployment Rises

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Global youth unemployment rose to 12.4% in 2025, with the ILO warning that artificial intelligence is reducing traditional entry-level job opportunities and increasing labour market risks for young people.

Global youth unemployment increased in 2025, with some of the sharpest rises recorded in high-income economies as artificial intelligence continues to transform labour markets, according to the International Labour Organization (ILO).

The UN agency's annual youth employment report estimates that the unemployment rate among people aged 15 to 24 reached 12.4% in 2025, up from 12.3% in 2024. In absolute terms, approximately 67 million young people were unemployed.

Over the same period, the proportion of young people who were not in employment, education or training (NEET) also increased slightly, reaching 20%, equivalent to more than 257 million people worldwide.

According to the ILO, youth unemployment is expected to remain broadly stable at 12.3% in both 2026 and 2027.

Warning signs despite stability

Despite the relatively stable outlook, the organisation expressed concern about the simultaneous rise in both unemployment and NEET rates.

"When the unemployment rate and the NEET rate increase at the same time, alarm bells ring," said Sara Elder, a senior specialist in the ILO's employment policy department, during the presentation of the report in Geneva.

Between 2023 and 2025, youth unemployment increased in eight of the world's eleven regions.

The ILO warned that slowing economic growth, insufficient job creation, geopolitical tensions and accelerating technological change are pushing countries towards a new youth employment crisis.

The largest increases in youth unemployment during that period were recorded in North America, North Africa, and Northern, Southern and Western Europe.

AI reshaping job prospects

The report notes that technological developments, particularly the rapid expansion of artificial intelligence, are transforming employment prospects for young people.

The decline of many jobs requiring medium-level skills is making it more difficult for younger workers to establish stable careers.

According to the report, occupations that have traditionally served as entry points into the labour market are increasingly under pressure.

These include:

  • Clerical and office jobs.
  • Administrative support roles.
  • Service-sector occupations.
  • Sales positions.
  • Industrial jobs.
  • Technical trades.

Millions could be affected

According to the ILO, 6.1% of jobs currently held by people aged 15 to 29 are in occupations considered highly exposed to AI-related disruption.

"If 10% of AI-exposed jobs disappear, 5.6 million economically active young people, mainly in high-income countries, could face unemployment, career changes or withdrawal from the labour market," said Sukti Dasgupta, director of the ILO department for employment, skills and sustainable enterprises.

The organisation argues that the combination of technological change, economic uncertainty and slower job creation presents growing challenges for young people attempting to enter the workforce.

Source: CNA