The ILO warns that geopolitical tensions and rapid tech change are driving a new youth employment crisis, and calls for a human-centered AI governance approach, stronger education systems, better employment services, expanded social protection, and more decent job opportunities to counter it.

According to Director-General Gilbert Houngbo, creating dignified jobs for youth is not only a social imperative but a smart investment for countries.

Analysts note that the decline in mid-skilled jobs, which previously served as entry points for young graduates, may intensify as AI evolves, though the long-term effects remain uncertain.

The deterioration in youth employment follows weaker economic growth, slow job creation, and shifting skills demand, reversing the post‑COVID recovery trend.

A structural crisis is identified: roughly 15,000 fewer industrial jobs are created each month, and new job formation isn’t keeping up with young entrants, unlike past crises which were temporary and mitigated by policy tools.

In France, sectors most exposed to AI are already showing visible impacts on young workers, reflecting global trends at the domestic level.

Youth unemployment is rising even as overall unemployment dips slightly, leaving youths four times more likely to be unemployed than adults.

High-skilled sectors—science, engineering, healthcare, and IT—continue to expand, underscoring the need for investment in education and skills development.

The overarching challenge for this generation is securing stable, protected, long-term work opportunities amid slower growth and rapid technological change.

There is insufficient creation of new jobs to absorb entering cohorts, raising concerns about whether economies can offer opportunities for young people amid automation and AI pressures.

In developing economies, many youths resort to insecure informal work due to unemployment, with nearly nine in ten young workers in low- and lower-middle-income countries lacking protections; regional variations exist.

There is debate about AI’s real impact on youth employment, with some framing it as part of a broader innovation crisis rather than a dedicated entry-level crisis.