The new report, ‘Employment and Social Trends-2026’, projects that the global unemployment rate will remain at 4.9 percent in 2026. That’s about 186 million people. The report shows that millions of workers around the world are still deprived of access to quality employment.
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Despite global unemployment not rising, progress towards decent work has been disappointing. A report released by the International Labour Organization (ILO) on Wednesday warned that young people continue to struggle and that artificial intelligence (AI) and uncertainty over trade policy risk further weakening the labor market.
The new report, ‘Employment and Social Trends-2026’, projects the global unemployment rate to remain at 4.9 percent in 2026. That’s about 186 million people. Millions of workers around the world are still deprived of access to quality employment, the report shows. “Slow economic growth and stable unemployment figures should not distract us from the deeper reality. Millions of workers are still trapped in poverty, informality and exclusion,” said ILO Director-General Gilbert F. Hongbo. Job quality under pressure
About 300 million workers still live in extreme poverty. Those with a daily income of less than US$3. Meanwhile, informal employment is on the rise. The report estimates that 2.1 billion workers will be in informal employment by 2026. Where access to social protection, workplace rights and job security is limited. The sharp slowdown in progress in low-income countries is pushing workers in the most vulnerable employment situations further behind.
The report, which includes data by region, income group, gender and age, says that the slow pace of economic transformation in high-value industries or services is a major obstacle to long-term progress in job quality and productivity growth.
The youth unemployment rate is expected to reach 12.4 percent in 2025. Some 260 million young people are not in education, employment or training (NET). The net rate in low-income countries is as high as 27.9 percent. The ILO warns that artificial intelligence and automation could exacerbate the challenges for educated young people seeking their first jobs, particularly in high-income countries.
“While the full impact of AI on youth employment is still uncertain, its potential consequences warrant close monitoring,” the report says. Women still face deep barriers stemming from social norms and stereotypes, the report says. They account for only a small share of global employment. They are 24 percent less likely than men to participate in the labor force. The report says that progress towards gender equality in the workplace has slowed down as progress in women's labor participation stalls. The report also analyzes the impact of demographic change on labor markets. In rich countries, labor force growth is slowing as populations age. Because there are fewer people of working age. On the other hand, the report says that low-income countries are struggling to convert rapid population growth into productive employment.
Employment growth in 2026 is projected to be 0.5 percent in upper-middle-income countries, 1.8 percent in lower-middle-income economies and 3.1 percent in low-income countries. The ILO warns that poor countries risk losing their demographic advantage due to the lack of sufficient productive employment opportunities.
Weak labor productivity growth in low-income countries is deepening geographical inequalities, hindering progress towards decent work and slowing the convergence of living standards with developed economies, the report says.
