Global labour markets are facing persistent challenges, with nearly 186 million people expected to be unemployed in 2026, as young people and women continue to struggle to find stable work, according to a new report from the International Labour Organisation.
The ILO estimates that the global unemployment rate will remain at 4.9 per cent next year, amounting to around 185.8 million people without jobs. This is an increase from 182.9 million in 2024, largely due to the steady growth of the working-age population worldwide.
The Employment and Social Trends 2026 report highlights that 300 million workers are still living in extreme poverty, earning less than $3 (Sh387) a day. Even those in employment are often trapped in low-paying, insecure jobs, showing that having a job does not always protect against poverty.
Young people are particularly affected, with 67.3 million expected to be unemployed in 2026.
Additionally, 257 million are classified as Not in Education, Employment, or Training, known as NEET. Young women are more likely to fall into this category, reflecting persistent inequalities in opportunities.
Women overall continue to face higher unemployment and fewer work opportunities compared to men.
They account for only two-fifths of global employment and are 24 per cent less likely to participate in the labour market. Social expectations and stereotypes remain major barriers, slowing progress toward workplace equality.
“Gains in female labour force participation have stalled, slowing progress toward workplace gender equality. Social norms and stereotypes continue to limit opportunities for women worldwide,” the ILO said.
The report also points out that higher education does not always translate into better employment, particularly in low- and middle-income countries. Many graduates encounter mismatched skills and limited job openings, pushing some into informal or insecure work.
Informal employment is rising, particularly among youth with lower education levels. By 2026, 2.1 billion workers are expected to hold informal jobs, often lacking access to social protection, labour rights, or job stability.
“Resilient growth and stable unemployment figures should not distract us from the deeper reality: hundreds of millions of workers remain trapped in poverty, informality and exclusion,” ILO Director General Gilbert Houngbo said.
Labour force participation is expected to fall to 60.7 per cent in 2026 and 60.5 per cent in 2027, despite the working-age population reaching 3.8 billion. The ILO says that slow transitions toward higher-value jobs and industries are limiting improvements in work quality and productivity.
Low-income countries face particular hurdles, with NEET rates reaching 27.9 per cent. These countries are struggling to turn population growth into productive employment, while richer nations see labour growth slowed by ageing populations.
The ILO also warns that automation and artificial intelligence could create further challenges for educated youth in high-income countries entering the workforce.
“While the full impact of AI on youth employment remains uncertain, its potential magnitude warrants close monitoring,” the report states.
Employment growth in 2026 is projected at 0.5 per cent in upper-middle-income countries, 1.8 per cent in lower-middle-income nations, and 3.1 per cent in low-income countries. Despite this growth, low productivity in poorer countries continues to worsen regional inequalities and slow progress toward decent work.
The ILO emphasizes the need for coordinated action by governments, employers, and workers to use technology responsibly and expand good-quality jobs, especially for women and young people.
“Unless governments, employers and workers act together to harness technology responsibly and expand quality job opportunities for women and youth, through coherent and coordinated institutional responses, decent work deficits will persist and social cohesion will be at risk,” Houngbo said.
The agency also recommends investing in education, skills development, and infrastructure, addressing gender and youth employment gaps, strengthening trade outcomes, and managing risks from debt, AI, and trade uncertainty through unified policies.
