Employment and Social Trends Report 2026

The International Labour Organization (ILO) has released its Employment and Social Trends Report 2026 highlighting both progress and persistent challenges in the world of work.

Key Points of the Report

• Global Unemployment Stability: The global unemployment rate is projected to remain at 4.9% in 2026, equivalent to around 186 million unemployed people. 
• Broader Jobs Gap: Beyond official unemployment, the global jobs gap (people who want paid work but cannot access it) is projected to reach 408 million in 2026.
  • It indicates significant hidden underemployment and unmet labour demand.
• Stalled Job Quality: Despite some progress, 284 million workers globally still live in extreme poverty, earning less than $3 a day.
• Rise in Informal Employment: More than two billion workers worldwide remain in informal employment.
• Demographic and Regional Divergences: Labour market trends vary by income group:
  • High and upper-middle-income economies benefit from population ageing and slower labour force growth, stabilizing unemployment despite modest job creation
  • Low-income countries face rapid labour force expansion but struggle with low-quality jobs, with employment projected to grow by 3.1% in 2026. 
• Youth Employment Crisis: Youth unemployment remains high around 12.4% in recent data.
  • About 260 million young people are not in education, employment, or training reaching 27.9% in low-income countries.
• Gender Gaps: Women account for just two-fifths of global employment and are 24% less likely than men to participate in the labour force.
  • It is due to social norms, stereotypes, and care responsibilities.
• Emerging Risks: Artificial intelligence (AI), automation, and trade policy uncertainty pose threats to job quality, wages, and employment.

Key Recommendations from the Report

• Boost Productivity: Invest in skills, education, and infrastructure to enhance workforce and economic capacity.
• Close Gender & Youth Gaps: Tackle barriers to participation and responsibly harness technology to create quality opportunities.
• Strengthen Trade: Ensure all regions benefit from global flows through fair trade and labor policies.
• Mitigate Emerging Risks: Use coordinated global and domestic policies to address debt, AI disruption, and trade uncertainty.

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