Global and regional outlook for youth labour markets

The 2026 edition of Global Employment Trends for Youth finds that the recovery in youth labour markets following the COVID-19 pandemic has stalled. Global youth unemployment edged up to 12.4 per cent in 2025, equalling 67 million unemployed young people worldwide. Simultaneously, the global share of young people not in employment, education or training (NEET) rose to 20.0 per cent, representing 257 million individuals. This trend is particularly worrisome as youth disengagement is harder to redress than unemployment. Worsening results on job entry are nearly universal, with youth unemployment rates rising in eight of eleven subregions, including Northern America and Northern, Southern and Western Europe.

Gender gaps remain entrenched, with young women facing a double disadvantage. In 2025, more than two out of every three youth in NEET status were women. Globally, the NEET rate for young women was 27.4 per cent, more than double the 13.1 per cent rate for young men. While the gender gap in employment-to-population ratios (EPR) narrowed slightly, the male EPR of 43.3 per cent remains nearly 13 percentage points higher than that of young women. The report identifies a “hollowing out” of middle-skilled jobs, such as clerical support and sales work, which overlaps with occupations most exposed to disruption by artificial intelligence (AI). Conversely, knowledge-based technical occupations in fields like science and engineering have shown continued growth across all income groups.

What is behind stagnating progress in youth labour markets?

The current macroeconomic environment is characterised by considerable uncertainty, with global GDP growth projected at 3.1 per cent in 2026. This subdued growth limits the capacity of economies to generate sufficient opportunities for young labour market entrants. Furthermore, global conflicts are on the rise, with state-based armed conflicts reaching a historic high of 65 in 2025. Approximately 4.6 per cent of the world’s youth lived in conflict-affected areas in 2022, facing devastating physical and mental stress alongside poor employment prospects. Internal displacement affects 68.6 million people, of whom an estimated 38 per cent are below 18 years of age.

Technological disruption from AI poses significant risks, with 6.1 per cent of jobs held by youth aged 15 to 29 falling into categories most exposed to AI-task replacement. This risk is disproportionately concentrated in high-income countries, where 14.3 per cent of youth employment is exposed, compared to just 0.9 per cent in low-income countries. Additionally, “job experience inflation” has become a major barrier. Employers increasingly use prior experience as a filtering mechanism for entry-level roles, creating an “experience paradox” where young jobseekers cannot find work without experience they are unable to obtain. In AI-exposed occupations, more than half of new skills required are traditionally associated with experienced workers.

Promoting decent work for youth in turbulent times

To bolster labour market transitions, the report recommends a policy package built on four pillars: creating opportunities through gender-responsive macroeconomic and sectoral policies; preparing youth through quality apprenticeships and vocational training; facilitating placement through effective employment services; and ensuring inclusiveness through social protection and rights at work. Integrated approaches are proven to be most effective, combining services such as training, job placement support, and access to finance.

Adaptive policies are required to meet future-of-work disruptions. These include adopting a human-centred approach to AI governance, investing in “skill bundles” that combine technical competencies with social and cognitive capabilities, and modernising employment services. The report advocates for expanding social protection to cover diverse forms of work, including temporary and gig arrangements. Furthermore, strengthening international cooperation is essential to reduce widening inequalities in opportunities across countries. Meaningful engagement of young people in the policy cycle is indispensable to ensure that interventions are responsive, trusted, and sustainable.