The number of unemployed young people has decreased to 64.9 million in 2023, the lowest figure since the start of the millennium, said a new report by the International Labour Organization (ILO).
The report, titled "Global Employment Trends for Youth (GET for Youth)," highlights that young labour market entrants have benefited during the recovery period following the COVID-19 crisis. However, this recovery has not been universal, either geographically or by gender.
The report projects that the global youth unemployment rate will decrease further over the next two years, expected to be 12.8 per cent in 2024 and 2025.
Entrants Benefited During the Recovery Period
More than four years after the onset of the COVID-19 pandemic, the labour market outlook has improved considerably for young people aged 15 to 24. Resilient economic growth rates and a strong rebound in labour demand have benefited young labour market entrants in the post-crisis environment.
With a global youth unemployment rate of 13 per cent in 2023, this represents a 15-year low, and the total number of unemployed young people worldwide was the lowest since the start of the millennium.
Additionally, the youth employment-to-population ratio saw a rebound to 35 per cent, as many young people who had temporarily withdrawn from the labour force or become unemployed during the pandemic returned to work or started working for the first time.
However, recovery has not been universal, geographically or by gender. In 2023, youth unemployment rates returned to or fell below pre-crisis levels in most sub-regions, but not all. In the Arab States, East Asia, and South-East Asia and the Pacific, youth unemployment rates in 2023 were higher than in 2019. For the Arab States, this represents a continuation of the pre-COVID-19 trend of rising youth unemployment rates. For the two Asian subregions, it signifies a shift from the pre-crisis years, when economic growth rates and job creation for youth were more robust.
Young men have benefited more from the recovery in the labour market compared to young women. In the decade preceding the pandemic (2009–19), the global youth unemployment rate for young men was higher than for young women by an average of 0.7 percentage points.
Since the peak of the crisis and continuing through 2023, the unemployment rates for young men and women have converged, with rates at 12.9 per cent for young women and 13 per cent for young men in 2023.
Consequently, young women have faced a double disadvantage: their youth unemployment rate rose more sharply during the COVID-19 crisis, and the subsequent decline in the youth unemployment rate was smaller among women.
Good News on Youth Unemployment Trends, Less So on NEET Trends
The decline in youth unemployment rates in most regions is positive news. However, unemployment is not the only indicator of challenges faced by young people in the labour market. While only 6 per cent of the world's youth population was unemployed in 2023, a much larger share—20.4 per cent—were not in employment, education, or training (NEET). This broader measure of labour market exclusion highlights missed opportunities in human capital development.
Progress towards Sustainable Development Goal (SDG) target 8.6 to reduce the youth NEET rate has been mixed and skewed in favour of advanced economies. The report finds that one in three (33 per cent) of the world’s young people lives in a country that is “off track” in achieving its target to reduce the youth NEET rate. Particularly concerning are the countries showing a regressive trend, which are low-income countries and those in subregions with already high NEET rates, namely the Arab States, North Africa, and sub-Saharan Africa.
Also alarming is the continued prevalence of young women in NEET status globally. Not only are two out of every three youth in NEET status women, but the NEET rate among young women is more than double that of young men (28.1 per cent compared to 13.1 per cent, respectively, in 2023).
Looking Ahead
With uncertain times ahead, the well-being of youth remains a growing concern. The global youth unemployment rate is expected to decrease slightly over the next two years, to 12.8 per cent in 2024 and 2025. Although rates are anticipated to fall slightly from 2023, they are expected to remain above pre-crisis levels in the Arab States, East Asia, and South-East Asia and the Pacific. In the coming two years, historically low youth unemployment rates in North America and in Northern, Southern, and Western Europe are expected to rise again.
Despite positive signals in global economic and labour market indicators, young people today show signs of growing anxiety about their future. Surveys highlighted in this report indicate that many young people feel stressed about job loss and stability, the state of the economy, a lack of social mobility across generations, and their prospects for financial independence. Whether or not these concerns are justified, young people’s perceptions about their future significantly impact their personal well-being and motivation, influencing their decisions regarding education, labour market participation, and civic engagement.
To alleviate youth anxieties, institutions will need to support young people through the complexities of transitioning from school to work and from youth to adulthood. Ensuring that young people maintain hope and motivation should be a shared mission involving all segments of society.
