The Global Youth Jobs Crisis: Why Entry-Level Opportunities Are Vanishing

The youth job crisis, once most visible in China, is now a global phenomenon with major economic and social implications. Young people worldwide face growing competition for entry-level jobs as graduate numbers rise, hiring slows, and AI-driven disruption adds uncertainty to career prospects.

The Scale of the Problem

Last year, unemployment and weak job prospects drove young people to the streets in Kenya, Peru, Nepal, Indonesia, and the Philippines. This year, concerns about youth unemployment have fueled protests in South Africa and Morocco, and even sparked a political movement in India.

China remains an early example: in May, the official unemployment rate among urban 16-to-24-year-olds was 15.6%, three times higher than the overall rate. However, the problem is far from isolated.

AI and Entry-Level Jobs

Artificial intelligence is reshaping entry-level opportunities. In the UK, graduate job postings have fallen faster than non-graduate roles, and many of these positions are highly exposed to AI. Research shows that where firms adopt AI faster, employment of 15-to-24-year-olds grows more slowly. However, experts agree that the AI effect is currently small compared to the regular business cycle.

"In the UK, new postings for graduate jobs have fallen faster than for non-graduate jobs, and many of these roles are highly exposed to AI." – Golo Henseke, University College London

What's Driving the Crisis?

According to the International Labour Organization (ILO), economies are not dynamic enough to create jobs at the pace needed. Employers are raising hiring criteria, making it harder for young people with little experience to get their foot in the door. This creates a vicious cycle: without entry-level jobs, young people never gain the experience needed for better positions.

Regional Variations

While Europe has not seen a broad youth jobs crisis – with improvements in southern countries since the financial crisis – the ILO found that between 2023 and 2025, youth unemployment rates rose in eight of the world's 11 regions, including East Asia, North America, and Southeast Asia. Opportunities have declined particularly in manufacturing, construction, and services, while high-skilled technical areas like science, engineering, and ICT have fared better.

What Can Be Done?

Policymakers and employers need to make big investments to create decent jobs and support school-to-work transitions. Experts emphasize that today's graduates are not less capable than previous generations – the problem is a lack of economic growth.

"More than anything, what would help is economic growth." – Golo Henseke

Edited by: Andreas Becker