By Keshav Srikant at Econofact

Tuesday, October 14, 2025

Unemployment among young U.S. workers is the highest it’s been in nearly four years. 

Unemployment among young U.S. workers (those aged 16-24) was 10.5% in August 2025. That is the highest rate since February 2021 when it was 10.9%.

The World Health Organization ended the COVID-19 pandemic’s “global health emergency” status on May 5, 2023. However, prior to the pandemic, youth unemployment was higher than current levels from August 2007 to January 2016.

The reason for the recent rise in youth unemployment is unclear. Some economists point to displacement of recent college graduates by artificial intelligence, while others point to a broadly softening labor market. 

The overall unemployment rate was 4.3% in August 2025.

This fact brief is responsive to conversations such as this one.

Sources

• Federal Reserve Bank of St. Louis Unemployment Rate – 16-24 Yrs.
• Reuters WHO declares end to COVID global health emergency
• Federal Reserve Bank of St. Louis Unemployment Rate
• CNBC AI is not just ending entry-level jobs. It’s the end of the career ladder as we know it.
• Reuters US weekly jobless claims fall, but labor market softening
• Yahoo Finance Top economists and Jerome Powell agree that Gen Z’s hiring nightmare is real—and it’s not about AI eating entry-level jobs