The current labor market outlook for young people is not particularly encouraging. It is not only a matter of the economic uncertainty the world has experienced in recent years; the impact of generative artificial intelligence has now been added to the situation. Mexico is no exception to this reality.
This Wednesday marks International Youth Day (August 12), a date established by the United Nations General Assembly in 2000 as an opportunity to raise awareness about the challenges faced by young people, including those related to the labor market.
This occasion provides a good opportunity to discuss the challenges faced by young people entering the workforce in Mexico.
According to the latest available data from the National Survey of Occupation and Employment (ENOE), young people face the highest risk of unemployment among all age groups in the country.
The unemployment rate among people between the ages of 20 and 24 in Mexico is 5.9%, nearly twice the overall average of 2.6%. The age group closest to this figure is people between 25 and 29 years old, with an unemployment rate of 4.3%.
The situation becomes even more difficult when considering people who are economically inactive but available to work if an opportunity arises, a situation known as extended unemployment. Under this measure, the rate rises to 14.9% among people aged 20 to 24, compared with a general rate of 9.8%.
In practical terms, according to the ENOE, this means that among the unemployed and those who are inactive but available to work, there are approximately one million young people in this age group.
The National Graduate Survey (ENE), conducted by the UVM’s Public Opinion Center, also found that 48.3% of university graduates in Mexico have faced difficulties finding employment. The main reasons include lack of experience, low salaries, and a lack of job openings in their field of study.
Another indicator that reflects the difficult conditions young people face when entering the labor market is informality, meaning employment without legal protections or access to benefits.
According to the ENOE, 68.7% of people under 24 who participate in the labor market work informally, well above the overall average of 54.8% among employed people. The only group with a higher rate of informality is adults over 65, with a rate of 74.3%.
The Impact of Artificial Intelligence
As if these figures were not concerning enough, there is now the additional factor of artificial intelligence.
The World Economic Forum (WEF) estimates that 37% of young people under 24 worldwide work in occupations with medium or high exposure to artificial intelligence. In Latin America, half of young people who already participate in the labor market are in this situation.
In addition, the International Labour Organization (ILO) estimates in its latest study, World Employment Trends for Youth 2026, that 5.6 million young people worldwide could face employment risks as a result of this changing environment, including approximately 785,000 in Latin America.
These are just three indicators that help illustrate the difficulties faced by younger generations when entering the workforce. Young people are more likely to be unemployed; when they do find an opportunity, it is more likely to be informal employment; and they now face additional risks from the rapid advancement of artificial intelligence.
The Challenge of Creating Better Opportunities
The challenge is significant. The conditions under which a person begins their working life can shape a large part of their professional career.
For this reason, talking about youth employment means talking about opportunities, experience, training, and, above all, formal employment with labor rights.
On this International Youth Day, these issues should perhaps be among the priorities on Mexico’s labor agenda.
Source: eleconomista
