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Global unemployment remains stable in 2026, yet progress toward decent work has stalled, according to the International Labour Organization (ILO).
A new ILO report warns that hundreds of millions of workers remain trapped in poverty and insecure employment, while youth, women, and low-income countries face growing risks. Artificial intelligence and global trade uncertainty add further pressure to fragile labour markets.
The Employment and Social Trends 2026 report projects the global unemployment rate at 4.9% this year. That equals around 186 million people out of work. The ILO cautions that stable unemployment figures hide deeper structural problems in job quality, income security, and access to labour rights.
ILO Director General Gilbert F. Houngbo said resilient growth should not distract policymakers from widening decent work deficits. “Hundreds of millions of workers remain trapped in poverty, informality, and exclusion,” he said.
Nearly 300 million workers live in extreme poverty and earn less than $3 a day. The ILO expects 2.1 billion people to work in informal jobs in 2026. These workers often lack social protection, workplace rights, and job security.
The report notes that slow transformation toward higher value industries and services blocks progress in productivity and job quality, especially in low-income economies.
Young people face severe labour market challenges. Youth unemployment reached 12.4% in 2025. Around 260 million young people are not in education, employment, or training and in low-income countries, the rate of youth not in employment, education, or training (NEET) stands at 27.9%.
The ILO describes youth job prospects in these economies as daunting. The report also warns that artificial intelligence and automation may worsen employment prospects for educated youth in high-income countries seeking entry into skilled occupations.
Women continue to face structural barriers to labor force participation. They account for only two-fifths of global employment and are 24% less likely than men to participate in the labor market. Gains in female labour force participation have stalled due to persistent social norms and stereotypes, slowing progress toward gender equality at work.
Demographic shifts further deepen labour market divides. Ageing populations in richer economies reduce labour force growth, while low-income countries experience rapid population growth but struggle to create productive jobs.
Employment growth in 2026 is projected at 0.5% in upper-middle-income economies, 1.8% in lower-middle-income economies, and 3.1% in low-income economies. The ILO warns that without sufficient job creation, poorer countries risk losing their demographic dividend.
Global trade disruptions add uncertainty to labour markets. Unclear trade rules and supply chain bottlenecks cut into wages, especially in Southeast Asia, South Asia, and Europe.
At the same time, trade supports around 465 million jobs worldwide, with more than half in Asia and the Pacific. Digitally delivered services now account for 14.5 percent of global exports, and nearly half of trade-related jobs sit in market services. Many African and South American countries still depend heavily on markets outside their regions for trade-related employment.
The ILO urges governments, employers, and workers to act together to prevent decent work deficits from becoming entrenched. Houngbo warned that without coordinated institutional responses, social cohesion remains at risk.
The report recommends investment in skills, education, and infrastructure, action to close gender and youth participation gaps, stronger links between trade and decent work, and coordinated policies to manage risks from debt, artificial intelligence, and trade uncertainty.
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