Global unemployment remains stable, but progress toward decent work has stalled, according to a new report from the International Labour Organisation (ILO). The report also warns that young people continue to struggle, while artificial intelligence and trade policy uncertainty risk further undermining the job market.
The Employment and Social Trends 2026 report finds that while the global unemployment rate is projected to stay at 4.9% in 2026, equivalent to 186 million people, millions of workers around the world still lack access to quality jobs. However, the ILO warned that stable headline figures mask deep and persistent deficits in job quality across regions and income groups.
ILO Director-General Gilbert F. Houngbo said resilient growth should not obscure the reality that hundreds of millions of workers continue to face low pay, informality and exclusion from basic labour protections.
The report estimates that nearly 300 million workers worldwide are living in extreme poverty, earning less than $3 per day, while informality continues to rise. By 2026, around 2.1 billion people are expected to be in informal employment, often without access to social protection, job security or workplace rights. Progress has been particularly weak in low-income countries, where poor employment conditions are becoming more entrenched.
The ILO noted that slow structural transformation—especially limited movement into higher-value industries and services—remains a major barrier to improving productivity and job quality.
Young people continue to face acute labour market challenges. Youth unemployment rose to 12.4% in 2025, while around 260 million young people globally are not in education, employment or training. In low-income countries, the share of youth classified as NEET stands at nearly 28%. The report cautioned that artificial intelligence and automation could further complicate job prospects, particularly for educated youth in high-income economies entering the labour market.
Gender disparities also remain persistent. Women account for only about two-fifths of global employment and are 24% less likely than men to participate in the labour force. Gains in female labour force participation have stalled, slowing progress toward gender equality at work.
The report also highlighted the impact of demographic shifts. Ageing populations are constraining labour force growth in advanced economies, while low-income countries face difficulties in creating enough productive jobs to absorb rapidly growing populations. Employment growth in 2026 is projected at 0.5% in upper-middle-income economies, 1.8% in lower-middle-income countries and 3.1% in low-income economies.
Global trade uncertainty is adding further pressure. Disruptions to trade rules and supply chains are weighing on wages, particularly in parts of Asia and Europe. Despite this, trade remains a major source of employment, supporting about 465 million workers globally, more than half of them in Asia and the Pacific. The ILO noted that export-linked sectors often provide better pay and lower informality, especially in developing economies.
The report called for coordinated action to address productivity gaps, reduce gender and youth inequalities, strengthen trade-related employment outcomes and manage risks linked to debt, artificial intelligence and policy uncertainty. Without such measures, the ILO warned, decent work deficits are likely to persist, posing risks to social cohesion and long-term development.
