Global job growth is holding steady, but millions of workers worldwide continue to struggle with low pay, poor working conditions, and limited opportunities, the International Labour Organization (ILO) has warned.
In its Employment and Social Trends 2026 report, the ILO said the global unemployment rate is expected to remain at 4.9 per cent, affecting about 186 million people. However, it cautioned that progress towards decent and productive work is stalling despite these stable headline figures.
Commenting on the findings, the ILO’s Director-General, Gilbert F. Houngbo, said resilient growth and stable unemployment should not obscure deeper structural problems. “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,” he said.
According to the report, nearly 300 million workers live in extreme poverty, earning less than US$3 a day. By 2026, about 2.1 billion workers are expected to be in informal employment, often without social protection, rights at work, or job security.
The report noted that low-income countries face the most severe challenges, as slow transitions into higher-value industries and services continue to constrain improvements in job quality and productivity. Young people are particularly affected. Youth unemployment rose to 12.4 per cent in 2025, while about 260 million young people globally are not in education, employment, or training (NEET). In low-income countries, NEET rates stand at 27.9 per cent.
The ILO also warned that advances in artificial intelligence and automation could further complicate entry into high-skill jobs for young, educated workers, particularly in high-income countries.
Women, meanwhile, continue to face entrenched disadvantages in labour markets. They account for only two-fifths of global employment and are 24 per cent less likely than men to participate in the workforce. “Gains in female labour force participation have stalled, slowing progress towards gender equality at work,” the report said.
Demographic shifts are also reshaping labour markets worldwide. Ageing populations in high-income economies are slowing workforce growth, while low-income countries are struggling to convert rapid population growth into productive employment. Employment growth in 2026 is projected at 0.5 per cent in upper-middle-income countries, 1.8 per cent in lower-middle-income countries, and 3.1 per cent in low-income countries.
Without sufficient creation of productive jobs, poorer countries risk missing out on their demographic dividend, the ILO warned.
Global trade disruptions are adding further uncertainty. Supply chain bottlenecks and unclear trade rules are weighing on wages, particularly in Southeast Asia, Southern Asia, and Europe. Nevertheless, trade remains a major source of employment, supporting an estimated 465 million workers worldwide, more than half of them in the Asia-Pacific region.
The report stressed that trade can play a critical role in promoting decent work, especially in low- and middle-income countries, where export-linked sectors often provide better pay, lower informality, and more opportunities for women and young people.
Mr. Houngbo called for coordinated action to address these challenges. “Unless governments, employers, and workers act together to harness technology responsibly and expand quality job opportunities for women and youth – through coherent and coordinated institutional responses – decent work deficits will persist and social cohesion will be at risk,” he said.
The report recommended increased investment in skills development, education, and infrastructure; targeted measures to close gender and youth employment gaps; stronger trade outcomes; and coordinated global and domestic policies to mitigate risks arising from debt, artificial intelligence, and trade uncertainty.
