The International Labour Organisation (ILO) has issued a stark warning that despite resilient economic growth, the world is failing to create decent work, projecting that a staggering 186 million people will remain unemployed in 2026. The global unemployment rate is expected to hold steady at 4.9 per cent, masking deeper crises of poverty and inequality.
Stalled Progress and Rising Informality
In its Employment and Social Trends 2026 report released on 14 January 2026, the UN agency painted a concerning picture of global labour markets. While headline employment figures appear stable, progress on job quality has effectively stalled. The report reveals a widening gap, with nearly 300 million workers surviving on less than $3 a day, trapped in extreme poverty.
Furthermore, informal employment is on the rise globally. The ILO estimates that by 2026, a massive 2.1 billion workers will be engaged in informal jobs, lacking security, benefits, and legal protections. ILO Director-General Gilbert Houngbo cautioned that stable unemployment numbers should not create a false sense of security, as hundreds of millions remain excluded from decent work.
The Dual Threat of AI and Youth Struggles
The report identifies two critical pressure points: youth unemployment and technological disruption. Youth unemployment climbed to 12.4% in 2025, with approximately 260 million young people classified as NEET (Not in Education, Employment, or Training). The situation is dire in low-income countries, where the NEET rate hits a daunting 27.9 per cent.
Compounding this crisis is the risk posed by artificial intelligence and automation. The ILO warns that these technologies could exacerbate job market challenges, particularly for educated young people in high-income nations seeking their first roles in high-skilled sectors. This, combined with ongoing uncertainty in global trade policy, creates a perfect storm undermining job security.
A Call for Coordinated Global Action
Director-General Houngbo underscored the urgent need for coordinated action and stronger institutions to promote decent work and social justice. He emphasized that poorer economies risk being left behind as digital trade and supply chains evolve.
The ILO's recommendations for governments and policymakers include:
- Implementing productivity-enhancing policies through investment in skills, education, and infrastructure.
- Actively addressing gender and youth gaps by removing barriers to participation.
- Harnessing new technologies like AI responsibly to support, not undermine, workers.
- Strengthening the link between trade policies and decent work outcomes so all regions benefit.
- Mitigating risks from debt, AI, and trade uncertainty through coordinated domestic and international policies.
The report serves as a clear call to move beyond celebrating superficial economic growth and to confront the harsh realities of poverty, informality, and technological disruption facing workers worldwide.
