Amid global economic growth, the International Labour Organisation is warning that stagnant job quality and rising informality could leave 186 million people without work in 2026.
The ILO’s Employment and Social Trends 2026 report projects that the global unemployment rate will remain at 4.9 per cent next year, while young people continue to face significant challenges. The organisation also cautioned that artificial intelligence and trade uncertainties could further disrupt labour markets.
While headline employment figures remain stable, progress toward decent work has slowed, and inequalities are widening. Nearly 300 million workers live on less than $3 a day, and informal work is on the rise, with 2.1 billion people expected to hold informal jobs by 2026.
ILO Director-General, Gilbert Houngbo, stressed that stable unemployment numbers mask the deeper reality. “Hundreds of millions remain trapped in poverty, informality, and exclusion, highlighting that low-income countries face the greatest setbacks, leaving workers in precarious conditions further behind, he said.
Houngbo called for coordinated action and stronger institutions to promote decent work, urging investment in skills, education, and infrastructure while tackling barriers to participation for women and young people.
The report also highlighted the risks posed by AI and automation, particularly for youth. Youth unemployment reached 12.4 per cent in 2025, with around 260 million young people not in education, employment, or training (NEET). In low-income countries, NEET rates soared to 27.9 per cent, and AI could make it even harder for educated youth to secure their first high-skilled jobs.
To build more inclusive and resilient labour markets, the ILO recommended policies that strengthen trade, protect workers, and coordinate domestic and global action to address technological, economic, and debt-related challenges.
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