The number of unemployed youths, who are one of the most economically productive age groups in society, rose by 15% to 85 million between 1995 and 2005, according to the ILO.
Some 300 million youth are living on less than $2 a day, it added.
While their global population grew by 13% between 1995 and 2005, employment for 15 to 24 year-olds only grew by 3.8%.
The report said that even a high standard of education was no guarantee of decent employment for young people.
By far the highest increase in the unemployment among the young over the past decade has occurred in southeast Asia (85%), according to the report.
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