Today marks Youth Skills Day, a global initiative established by the UN in 2014 to underscore the critical role of skills development for young people. Below, we examine the challenges that young workers face in today's evolving workplace, together with some innovative solutions that confront these challenges.
In an era reshaped by the COVID-19 pandemic, the digitisation of the workplace has accelerated at an unprecedented rate. While there's a common assumption that younger workers naturally excel in navigating new technology, the reality is more nuanced. In this article, we explore some of the challenges young people face in today's digital world and explore some of the ways that different countries are helping them build the skills they need to succeed.
Technological evolution and skill demands
One significant issue confronting young people is the perpetual evolution of technologies, demanding continual upskilling and adaptability.
The World Economic Forum's 2025 Future of Jobs Report found that, on average, workers can expect 39% of their existing skill sets to be transformed or become outdated over the 2025-2030 period. Artificial intelligence (AI) and big data top the list of the fastest-growing skills, followed closely by networks and cybersecurity as well as technology literacy. Another study has found that the skills sought by employers are changing 66% faster in roles most exposed to AI – an increase of 25% from last year.
For young people, there are clearly going to be real challenges in obtaining the skills required for this new world of work. While we tend to assume that the younger generation is more tech-savvy than older ones, the picture is far more nuanced. A 2023 study investigating students' capacities to use information and communications technology found that in the EU, 43% of students do not reach the basic level of digital skills. Worldwide, the EU rate of 43% of underachieving students is lower than the respective share in the USA (51%), but behind top-performing South Korea (27%). In response, the global education system must transform, arming students with the problem-solving capabilities to emerge as competitive candidates in a rapidly changing job market.
Further, the concept of digitalisation is closely intertwined with globalisation: the demand for specialised skills allows workers from different regions and with perse skill sets to compete for the same job. Although this presents opportunities for young people, one could speculate that this could have the effect of intensifying competition and erecting barriers for inexperienced job-seekers to enter the world of work.
Impact of artificial intelligence and recruitment
Another hurdle for young job seekers is the growing integration of AI in the workplace. It is displacing many entry-level administrative roles, with reports indicating that 300 million jobs worldwide could soon be automated, potentially affecting 25% of the global labour market. This is of real concern for younger people. In fact, in a recent 2025 survey, Gen Z'ers and millennials reported that in addition to the challenges of education and gaining the right skills for work, gaining experience and a 'foothold' job where they can learn, was a particular challenge. They noted how this problem has been exacerbated by the fact that AI is shrinking entry-level jobs.
Further, research has uncovered instances of AI systems using discriminatory language, which is particularly troubling given their widespread use in the hiring process.
However, it's not just employers that are turning to AI as part of the recruitment process. Employees are frequently using AI to produce their resumes, and in some cases assist with the subsequent online application process. This is only making the competition for new roles more intense as employers are becoming overwhelmed by hundreds of AI-generated applications. This also has the potential to create an added layer of bias to the recruitment process, as some jobseekers may not be able to access more sophisticated AI tools while others can.
Challenges in virtual work environments
Even after being hired, young professionals still encounter obstacles when developing new skills. The shift to a virtual work environment (i.e. working remotely or on a hybrid basis) can be challenging when it comes to their professional advancement.
A central issue is that to aid career growth, many industries still depend heavily on personal connections and face-to-face interactions in a traditional office setting. However, remote work (particularly hybrid arrangements) remains popular, and opportunities for in-person networking and physical meetings have decreased, making it harder for young professionals to build relationships with colleagues and supervisors. In fact, according to one analysis of remote workers in the US, people working from home got promoted 31% less frequently in the past year than office-based workers. The research also found that these workers are less likely to receive mentorship and nearly 90% of the CEOs surveyed reported they are more likely to prioritise in-office employees for career-advancing projects, raises or promotions. There are clearly risks then that young people's career progression will be hindered and there is a need for new methods by which to maintain professional relationships online to develop.
These issues aren't expected to go away anytime soon. While we have seen an increasing number of organisations mandate a return to the office and in-person working, a study into future trends suggests that the number of global digital jobs (i.e. jobs that can be performed remotely from anywhere) is expected to rise in the coming years, growing by around 25% to over 90 million roles by 2030.
Initiatives and solutions
In response to the challenges faced by young people in the digital era, various countries and regions are implementing targeted initiatives to enhance skills and support young people in the workforce.
The EU has launched several programmes to boost youth skills and employment. A prominent example is the Youth Guarantee, which addresses youth unemployment and provides skills development support for those under 30. The programme is backed by significant EU funding, mainly through the European Social Fund Plus (ESF+) with a budget of EUR 142.7 billion. This fund, supporting the European Pillar of Social Rights, focuses on employment, education, and training from 2021 to 2027 by equipping young people with essential skills, regardless of their socioeconomic background. It aims to modernise Member States' employment services, improve digital training, develop new learning management approaches and ensure that education and training systems remain resilient in the face of an aging population and a changing labour market.
In fact, the Netherlands recently came out on top in a 2024 study of youth employment as having the highest youth employment rate and the lowest youth NEET rate (youth not in education, employment or training) of the 38 OECD countries. Credit is given to the Dutch government-backed initiative whereby a network of Regional Report and Coordination Centres (RMCs) has been implemented to support school leavers between the ages of 18-23. It is specifically aimed at helping these inpiduals achieve the most suitable education qualifications and/or position in the labour market.
In the Americas region, Canada is also positioned well, with its Youth Employment and Skills Strategy (YESS) aiming to help young people aged 15 to 30, particularly those facing barriers to employment, gain the skills, work experience, and support they need to successfully transition into the workforce. Through partnerships with community organisations, employers, and educational institutions, this federal initiative offers a range of services including skills training, paid work placements, mentorship, and career counselling. The YESS has also included a Digital Skills for Youth programme in the past, connecting underemployed post-secondary graduates with small businesses and not-for-profit organisations to help them build the skills needed for the digital economy.
Finally, in the Asia-Pacific region, Hong Kong has a comparatively low NEET rate, with the Youth Employment and Training Programme (YETP) supporting young people aged 15 to 29 with sub-degree qualifications by offering a structured pathway to employment. It includes pre-employment training, one-month workplace attachments with an HKD 8,000 allowance, and on-the-job training with employer subsidies of up to HKD 5,000 per month. Trainees receive career guidance from registered social workers and can access additional vocational training with fee reimbursements. The programme aims to enhance employability by helping youth understand their strengths, gain work experience, and develop job-ready skills.
Through these initiatives, the EU, the Netherlands, Canada and Hong Kong are in various ways addressing the need for youth skill development in the digital age, providing pathways for young people to succeed in modern economies.
Takeaway for employers
The first issue for entry-level workers is to gain the skills needed to help them get a foot in the door. Yet for employers, workforce upskilling is not confined to the early career stages but pervades every stage of career development. This ongoing responsibility of employers to upskill workers is best served when there is good collaboration between the public and private sectors, enabling employees to stay up to date with the latest technology and methods and equipping them for our constantly changing job market.
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