Global employment rates have stabilized, and 300 million workers live in extreme poverty

The Employment and Social Prospects 2026 report notes that while global unemployment rates are expected to remain at 4.9 percent this year – equivalent to 186 million people – millions of workers around the world still lack access to high-quality jobs.

The greatest growth is in poor countries, reflecting population aging in richer economies, where fewer working-age people are available to enter or remain in the labor market.

Job growth is expected to be 0.5% in upper middle-income countries, compared to 3.1% in low-income countries.

However, getting a job does not necessarily mean getting a good job or a decent wage; Nearly 300 million workers live in extreme poverty, earning less than $3 a day.

About 2.1 billion people are expected to work in the informal sector this year, with limited access to social protection, rights at work and job security.

Youth employment is at risk

The report describes the global employment situation for young people in low-income countries as “alarming”; More than a quarter of them (27.9%) are not in education, work or training.

Educated youth in high-income countries are not immune to uncertainty; The report warns that artificial intelligence and automation may make it difficult for them to find work, calling for “close monitoring” of this technology.

The gender gap persists

Regarding gender equality at work, data shows that social norms and stereotypes remain entrenched.

According to the report, previously achieved progress has stalled, slowing progress towards gender equality at work, adding that women are approximately 24% less likely to participate in the labor force than men.

Trade disruptions

The report further explained that in 2025, the global economy will be characterized by disruptions in international trade rules and tariff rates, led by the United States of America.

Trade supports about 465 million workers worldwide, more than half of them in Asia and the Pacific, and uncertainty is negatively affecting workers’ wages, especially in Southeast Asia, South Asia and Europe, according to the report.

He emphasized that trade can be a powerful driver of decent work, especially in low- and middle-income countries, where export-related sectors often provide better wages, lower rates of informal employment, and more opportunities for women and youth.

Coordinated action and stronger institutions are required

Commenting on the report’s findings, ILO Director-General Gilbert Hongbo pointed out that: “Resilient growth and stable unemployment figures must not distract us from the deeper reality: hundreds of millions of workers remain trapped in poverty, informal labor, and exclusion.”.

He stressed the need for coordinated action and stronger institutions to promote decent work and social justice, especially in poorer economies that risk being left behind as supply chains and digital trade expand.

Hongbo added: “Unless governments, employers and workers work together to responsibly harness technology and expand good employment opportunities for women and youth – through coherent and coordinated institutional responses – the decent work deficit will persist and social cohesion will be at risk.”.