Global youth unemployment rises as job creation slows, UN agency warns

Global youth unemployment increased in 2024 as job creation remained sluggish, the International Labour Organization (ILO) said on Friday.

The UN labor agency’s latest report highlighted a deterioration in labor market conditions for young workers, citing structural challenges including slow economic growth and uneven recovery across regions. Youth unemployment rose to 13.5% in 2024, up from 12.8% in the prior year, reversing a decade-long trend of gradual improvement.

The ILO attributed the rise to persistent labor market rigidities, weak demand for entry-level positions, and the lingering effects of the post-pandemic economic slowdown. Developing economies, particularly in sub-Saharan Africa and South Asia, experienced the sharpest increases, where youth unemployment now exceeds 20% in several countries.

Emerging risks from artificial intelligence and automation were flagged as potential exacerbating factors. The report warned that AI-driven displacement could disproportionately affect younger workers in sectors such as retail, customer service, and administrative roles, where repetitive tasks are most vulnerable to automation. However, the ILO noted that AI also presents opportunities for productivity gains and new job creation in tech-driven industries.

The agency called for targeted policy interventions, including expanded vocational training programs, incentives for employers to hire young workers, and stronger social safety nets to mitigate the impact of technological disruption. It also urged governments to invest in digital skills education to prepare youth for evolving labor market demands.

The report comes amid broader concerns over global economic stagnation, with the World Bank recently downgrading its 2024 growth forecast for emerging markets. The ILO’s findings underscore the urgency of addressing youth unemployment as a key barrier to inclusive economic growth.