Global Youth Unemployment Hits 12.4% Amid Economic Slowdown

    UN labour agency warns of rising joblessness among young people worldwide, with AI posing a new threat to employment prospects.

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    Global youth unemployment increased to 12.4% in 2025, affecting 67 million young people aged 15 to 24, according to the International Labour Organisation (ILO). This rise marks a reversal of improvements seen after the COVID-19 pandemic, driven by weaker economic growth and geopolitical tensions.

    The ILO report indicates a deterioration in both the quantity and quality of jobs available for young workers. The share of young people not in employment, education, or training (NEET) also edged higher to 20%, representing over 257 million individuals. This trend suggests a worsening global employment landscape for youth.

    This global challenge resonates deeply in Ghana, where youth unemployment remains stubbornly high, estimated at around 30% by the International Monetary Fund (IMF). The Ghanaian government has acknowledged the severity of the crisis, with officials like Opare Addo stating that 18 months were needed to fully grasp the youth jobs situation. This local context underscores the broader international findings.

    The ILO highlighted that youth unemployment was highest in the Arab States at 26.2%, followed by Northern Africa at 22.6%. Wealthier economies also saw significant increases, with North America's youth unemployment climbing to 9.8% in 2025 from 8.3% in 2023. These regional disparities show the widespread nature of the problem.

    A critical factor contributing to this trend is the decline of middle-skilled jobs, such as clerical, administrative, sales, and manufacturing roles. These positions traditionally served as entry points into the labour market for young people leaving secondary school or university. Their shrinkage creates longer job queues and increased unemployment for those with secondary-level education.

    Artificial intelligence (AI) poses an additional threat to youth employment. The ILO estimates that 6.1% of jobs held by individuals aged 15 to 29 are highly exposed to AI-related changes. If just 10% of these jobs disappear, approximately 5.6 million young workers, primarily in high-income countries, could face unemployment or career shifts. This looming risk adds complexity to an already challenging environment.

    While the long-term impact of AI remains uncertain, the report advises against underestimating its risks. Conversely, high-skilled sectors like science, engineering, healthcare, and information technology continue to expand in most countries. This creates a skills mismatch, as many young people lack the training for these growing fields.

    In developing economies, including Ghana, many young people cannot afford prolonged unemployment. They often resort to insecure work, with nearly nine in 10 young workers in low- and lower-middle-income countries remaining in informal employment. This informal sector lacks adequate labour and social protections, perpetuating economic vulnerability.

    The rising global youth unemployment, coupled with the potential disruption from AI, demands urgent attention from policymakers worldwide. Ghana's ongoing struggle with youth joblessness makes these global trends particularly pertinent. Addressing this requires concerted efforts to foster economic growth, create quality jobs, and equip young people with future-ready skills.

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