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Unemployment may be stable, but millions of workers are still stuck in low-quality and insecure jobs. The ILO’s latest outlook highlights why decent work remains out of reach for many in 2026.
Global unemployment is projected to remain stable at 4.9% in 2026, equivalent to about 186mn people, according to the International Labour Organization’s (ILO) Employment and Social Trends 2026 report. However, the ILO cautioned that this stability should not be mistaken for progress, as deeper challenges continue to affect workers across regions.
Despite resilient economic growth in parts of the world, the report found that millions of workers still lack access to quality jobs, social protection, and secure employment.
“Resilient growth and stable unemployment figures should not distract us from the deeper reality: hundreds of millions of workers remain trapped in poverty, informality, and exclusion,” said Gilbert F. Houngbo, Director-General, ILO.
Poor job quality
The report highlighted persistent weaknesses in job quality. Nearly 300mn workers worldwide continue to live in extreme poverty, earning less than USD$3 a day. At the same time, informality is on the rise, with 2.1bn workers expected to be in informal employment by 2026.
Workers in informal jobs typically have limited access to social protection, rights at work, and job security. The ILO noted that progress has been particularly slow in low-income countries, pushing those with the poorest working conditions even further behind.
A key obstacle identified in the report is the slowdown in the transition towards higher-value industries and services. This has limited gains in productivity and constrained improvements in job quality across many economies.
The impact of AI on youths
Young people continue to face significant barriers in the labour market. Youth unemployment rose to 12.4% in 2025, while around 260mn young people globally were not in education, employment, or training (NEET).
In low-income countries, NEET rates reached 27.9%, highlighting the scale of the challenge. The ILO also warned that artificial intelligence and automation could worsen employment prospects for young people, particularly educated youth in high-income economies seeking entry into high-skilled roles.
While the full impact of AI on youth employment remains uncertain, the report noted that its potential scale calls for close monitoring.
Gender inequalities in labour markets
Gender disparities remain deeply embedded in labour markets. Women account for only two-fifths of global employment and are 24% less likely than men to participate in the labour force.
The report found that gains in female labour force participation have stalled, largely due to persistent social norms and stereotypes. This has slowed progress towards gender equality at work and limited improvements in women’s access to employment opportunities.
Demographics drive uneven labour market outcomes
The ILO also examined how demographic changes are reshaping labour markets. Ageing populations in higher-income economies are slowing labour force growth, as fewer people of working age enter or remain in employment.
In contrast, low-income countries are experiencing rapid population growth but face difficulties creating enough 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 countries.
Without sufficient productive employment, the report warned that poorer economies risk missing out on their demographic dividend. Weak labour productivity growth in low-income countries is also widening geographic inequalities and slowing convergence with advanced economies.
Trade turbulence adds uncertainty
Global trade disruptions are further adding to labour market uncertainty. Ongoing uncertainty around trade rules and supply chain bottlenecks are weighing on workers’ wages, particularly in Southeast Asia, Southern Asia, and Europe.
Even so, trade remains a major source of employment, supporting 465mn workers worldwide, with more than half based in Asia and the Pacific. Export-linked sectors often provide better pay, lower informality, and more opportunities for women and youth, especially in low- and middle-income economies.
Digitally delivered services now account for 14.5% of global exports, while nearly half of all trade-related jobs are in market services. However, many African and Southern American economies continue to rely heavily on markets outside their regions for trade-related employment.
Call for coordinated action
The ILO highlighted the need for coordinated action and stronger institutions to advance decent work and social justice, particularly in poorer economies facing the risk of being left behind as supply chains and digital trade expand.
Houngbo stressed that governments, employers, and workers must act together to harness technology responsibly and expand quality job opportunities for women and youth. Without such efforts, the report warned that decent work deficits will persist and social cohesion could be undermined.
To address these challenges, the ILO recommended productivity-enhancing investments in skills, education, and infrastructure, targeted action to close gender and youth gaps, stronger links between trade and decent work outcomes, as well as coordinated policies to manage risks related to debt, artificial intelligence, and trade uncertainty.
As the report shows, the challenge in the year ahead lies not just in finding jobs, but in securing work that is productive, fair, and sustainable.
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