UNITED NATIONS, Jan 14 (APP): Global unemployment remains stable, but progress toward decent work has stalled, according to a new report from the International Labour Organization (ILO), which warns that young people continue to struggle in a job market which risks being further undermined by AI and trade policy uncertainty.
According to the data compiled for the latest Employment and Social Trends 2026 report, the global unemployment rate is projected to stay stable at around 4.9 per cent this year, equivalent to some 186 million people out of work.
The biggest area of growth is in poorer countries – a reflection of the aging population in richer economies, where fewer people of working age are available to enter or remain in work.
Job growth is projected to be 0.5 per cent in upper middle-income countries as opposed to 3.1 per cent in low-income nations, IL, the Geneva-based UN agency said.
However, being employed is not necessarily the same as having a quality job or a decent wage: nearly 300 million workers are living in extreme poverty, earning less than $3 a day.
It is expected that around 2.1 billion people will be working in the informal sector this year, with limited access to social protection, rights at work, and job security.
The global job situation for young people in low-income countries is described in the report as “daunting”: more than a quarter (27.9 per cent) are neither in education, employment or training.
Educated youth in high-income countries are not immune from uncertainty: the study warns that AI and automation could make it harder for them to find work and calls for “close monitoring” of the technology.
There’s little good news in the report for those fighting for women’s equality in the workplace; the data shows that social norms and stereotypes remain entrenched.
Previous gains have stalled, slowing progress towards gender equality at work, and women are today around 24 per cent less likely than men to participate in the labour force.
In 2025, the global economy was marked by the upheaval in international trade rules and tariff rates, led by the United States.
Trade supports around 465 million workers worldwide, more than half of them in Asia and the Pacific, and the uncertainty is cutting into workers’ wages, especially in Southeast Asia, Southern Asia, and Europe.
Responding to the findings in the report, ILO Director-General Gilbert Houngbo called for coordinated action and stronger institutions to advance decent work and social justice, particularly in poorer economies that risk being left behind.
“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,” said Houngbo.
In Asia and the Pacific, ILO said the regional unemployment rate in 2025 was 4.1 per cent, down from 5.1 per cent a decade earlier. Manufacturing employment remains significant: 16.1 per cent of total employment in 2025 overall, 20 percent in Eastern Asia.
According to the report, there are persistent challenges for youth employment, especially in China, where urban youth unemployment reached 17.8 per cent in mid-2025.