Global youth unemployment is expected to remain elevated at around 12.3 to 12.4 percent through 2027 as weak economic growth, geopolitical tensions and the impact of artificial intelligence slow the recovery of young workers, the International Labour Organization (ILO) said.

The ILO’s Global Employment Trends for Youth report said the post-pandemic improvement in youth labor markets has stalled, with the global unemployment rate rising from 12.3 percent in 2023 to 12.4 percent in 2025.

About 67 million young people were unemployed in 2025, while the number of young people not in employment, education or training reached 257 million, equivalent to 20 percent of the global youth population.

The NEET rate is projected to rise slightly to 20.2 percent by 2027, putting the total at more than 264 million.

The ILO also warned that population growth is outpacing job creation. While youth employment reached 476 million in 2025, the employment-to-population ratio fell to 37.1 percent.

The report said job growth in developing economies remains concentrated in low-skilled positions, while middle-skilled opportunities are shrinking, particularly in manufacturing, construction and food preparation.

“The shrinking of opportunities for job entry in the manufacturing sector could be especially problematic in developing economies struggling to grow their capacity to connect to global manufacturing supply chains as a route to economic development,” the ILO warned.

AI could add to the pressure. The ILO estimates that 6.1 percent of jobs held by workers aged 15 to 29 are highly exposed to AI. If just 10 percent of these jobs disappeared entirely, about 5.6 million young workers could face unemployment, job changes or labor-force exit.

Still, employment is growing strongly in science, engineering, health and information and communications technology, offering some relief amid the broader challenges.