Source of Information. This data is derived from the International Labour Organization (ILO)’s *Employment and Social Trends 2026* report, released on January 14, 2026. The full article can be read here: .
Stable Unemployment Rate. The global unemployment rate is projected to remain at a historically low **4.9%** throughout 2026, which translates to roughly **186 million** people.
The Hidden Jobs Gap. While official unemployment is low, the “jobs gap”—which includes people who want to work but cannot find employment—is much higher, projected to reach **408 million** people this year.
2. The Persistence of Extreme Working Poverty
Stalled Progress. Between 2015 and 2025, the share of workers in extreme poverty declined by only **3.1 percentage points** (to 7.9%), a sharp slowdown compared to the **15 percentage point** decline seen in the previous decade.
Living on the Edge. Approximately **284 million workers** globally still live in extreme poverty, surviving on less than **$3.00 a day**.
Regional Disparities. ILO Director-General Gilbert F. Houngbo warned that the number of “working poor” is actually rising in low-income countries, where economic progress has failed to translate into better job conditions.
3. The Rise of Informal Employment
A Reversal of Gains. After a decade of decline, the global rate of informality increased by **0.3 percentage points** between 2015 and 2025.
Insecure Labor. More than **2 billion workers** (projected to reach 2.1 billion by late 2026) are in informal employment, lacking access to social protection, job security, and basic labor rights.
Geographical Concentration. High rates of informality remain most persistent in **Africa** and **Southern Asia**, where structural transformations into formal sectors have slowed.
4. Youth Employment and NEET Status
Youth Unemployment Surge. The global youth unemployment rate climbed to **12.4%** in 2025, significantly higher than the general population’s rate.
NEET Statistics. Around **260 million** young people are classified as “Not in Education, Employment, or Training” (NEET).
Vulnerable Cohorts. In low-income countries, the NEET rate reaches a staggering **27.9%**, highlighting a major hurdle for nations hoping to benefit from a “demographic dividend.”
5. Entrenched Gender Inequalities
Participation Gap. Women still account for only **two-fifths (40%)** of global employment and are **24% less likely** than men to participate in the labor force.
Structural Barriers. The report notes that gender equality in the workplace has stalled due to persistent social norms, care responsibilities, and stereotypes.
Limited Advances. One of the few positive trends identified is the gradual reduction in “contributing family work,” which has traditionally disproportionately affected women.
6. The Impact of Artificial Intelligence (AI)
Reshaping Entry-Level Work. The ILO warns that digitalization and AI are rapidly reshaping production systems faster than many workers can adapt.
Threat to Educated Youth. In high-income countries, AI and automation pose a specific threat to educated youth seeking their first jobs in high-skilled occupations.
Productivity Paradox. While AI could theoretically boost productivity growth, there is significant uncertainty regarding how those gains will be distributed among workers.
7. Trade Uncertainties and Structural Shifts
A Persistent Feature. Global trade policy uncertainty is expected to remain a short-term fixture of the economic landscape, inhibiting long-term investment in job creation.
Supply Chain Disruptions. These uncertainties are forcing a reorganization of global supply chains, which the ILO says is often occurring without adequate social safeguards.
Impact on Wages. Disruptions in trade flows have contributed to stagnant real wage growth in several regions, especially across Europe and parts of Asia.
8. The Divergence Between Income Groups
Ageing rich nations. High-income economies face a shrinking labor force due to ageing populations, which helps keep their unemployment rates low but creates labor shortages.
Explosive growth in poor nations. Low-income countries are seeing rapid labor force expansion (projected employment growth of **3.1%** in 2026), but the new jobs are often low-quality and low-paying.
Widening Productivity Gap. The gap in labor productivity between advanced and developing economies is deepening, further entrenching global inequality.
9. Labour Income Share Stagnation
Below Pre-Pandemic Levels. Globally, the share of national income going to labor (wages) remains below pre-pandemic levels.
Capital-Intensive Growth. Growth models in many countries are becoming increasingly capital-intensive, meaning workers are benefitting less from productivity gains than investors.
Weak Bargaining Power. The report suggests that weak labor organizations in several regions are limiting the ability of workers to negotiate for a fairer share of economic growth.
10. Key Policy Recommendations
Beyond Economic Growth. The ILO argues that relying on GDP growth alone is insufficient to deliver decent work; governments must proactively manage structural transformations.
Investing in Skills. High priority must be given to investing in education and infrastructure that specifically targets “human-centric” skills that AI cannot easily replicate.
Strengthening Social Protection. Formalization strategies—legal reforms and social safety nets—are required to help the 2.1 billion informal workers transition into secure employment.