The global economy will need to create 600 million jobs over the next 10 years or 5 million a month to keep pace with projected youth employment rates and prevent unemployment.
A third of the world's 1.8 billion young people are not employed, in school or undergoing training.
Of the 1 billion youths that will enter the job market in the next decade, only 40% are expected to be able to get jobs that currently exist, according to "Toward Solutions for Youth Employment: A 2015 Baseline Report".
The report was conducted by Solutions for Youth Employment (S4YE), a global coalition established to improve youth access to work opportunities.
The coalition comprises the World Bank Group, Plan International, the International Youth Foundation, Youth Business International, Rand Corporation, Accenture and the International Labour Organization.
"Young people account for 40% of the world's population -- the largest youth generation in human history -- but they are disproportionately affected by unemployment. This is a persistent problem," said Matt Hobson, S4YE coalition manager.
"About 30% of young people are not in employment, training or education, and young women are worse off. We need to act now, and we need to act together if we are going to realise the significant opportunities presented by this many young people today."
Reversing the youth employment crisis is a pressing global priority and the socio-economic cost of inaction is high, says the report.
While circumstances differ in various regions, the report adds, the issues remain the same -- the world's youth are unable to find sustainable productive work. This contributes to inequality, spurs social tension and poses a risk to present and future national and global prosperity and security.
"The report shows that young people are by inclination more entrepreneurial than adults -- and we now know that of all the interventions governments, private sector and civil society implement to address youth employment, providing support to early entrepreneurs is the most effective," said Mr Hobson.
Today's youth will not be able to escape poverty by 2030 if they are jobless, he said.