Labour market conditions for young people remain problematic in large parts of the world, and as the adoption of AI increases, concerns are growing about its impact on first-time jobseekers in highly skilled roles.
The International Labour Organisation (ILO) released its Employment and Social Trends 2026 report last week. It finds that while the global unemployment rate is projected to stay at 4.9% in 2026 (186 million people) – millions of workers around the world still lack access to quality jobs.
ILO director-general Gilbert F Houngbo called for coordinated action and stronger institutions to advance decent work and social justice, especially in poorer economies that risk being left behind as supply chains and digital trade expand.
“Unless governments, employers and workers act together to harness technology responsibly and expand quality job opportunities for women and youth – through coherent and coordinated institutional responses – decent work deficits will persist and social cohesion will be at risk,” he said.
Youth unemployment climbed to 12.4% last year, with around 260 million young people not in education, employment or training (NEET). In low-income countries, NEET rates are 27.9%.
The ILO — part of the UN — warns in its report that AI and automation could exacerbate challenges. Preliminary evidence from the US suggests that entry-level positions may be disproportionately affected by AI technologies.
And, according to recent Organisation for Economic Co-operation and Development (OECD) survey data, younger, highly educated individuals are more worried about job losses from AI than older workers, who may be somewhat shielded by their experience and seniority.
Full impact uncertain
The risk of automation is higher among people under 24 with university-level education, relative to their less educated counterparts, partly because they tend to work in occupations more exposed to AI.
“This exposure is most pronounced in high-income countries, regardless of age or education level, reflecting their specific occupational structures and task profiles. In contrast, youth and adults in low-income countries – where agriculture is more prevalent and non-routine task intensity is lower – face lower risk, particularly those with non-advanced education,” the report said.
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However, the full impact of AI on youth employment remains uncertain. The ILO said that in the meantime, monitoring both risks and opportunities is essential to ensure policies maximise benefits and mitigate negative impacts.
According to ILO advisor Sher Verick, while there is no shortage of information on AI and the future of work, the discourse tends to focus on job losses and sensational headlines. He has previously warned that it is too soon to draw firm conclusions, and the effects of the labour market must be studied more carefully.
This entails understanding how AI impacts not only the quantity of jobs but also the quality of them and the nature of work, in terms of wages, working conditions and rights more broadly.
Also, the impact on inequality is just as important. The report said that currently the youth in Africa are less exposed to AI disruption, but at the same time they are less able to take advantage of its benefits. – © 2026 NewsCentral Media
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