Global Job Quality Lags Despite Stable Employment Figures, New ILO Report Warns
A new report by the United Nations’ International Labour Organization (ILO) shows that although headline unemployment rates remain relatively steady, a persistent global shortage of decent, secure and well-paid work continues to undermine sustainable economic progress worldwide.
According to the ILO’s Employment and Social Trends 2026 report, the global unemployment rate is projected to hold at around 4.9 percent in 2026, equivalent to roughly 186 million people without jobs. However, this apparent stability masks deeper structural issues affecting job quality and workers’ economic security.
The organization warns that hundreds of millions of workers remain trapped in low-quality employment — especially in informal sectors, with limited access to social protection and labor rights. Nearly 300 million workers continue to live in extreme poverty, earning less than US $3 a day. Furthermore, some 2.1 billion people are expected to be in informal employment this year, lacking basic workplace protections.
The structure of many labor markets, particularly in low-income and developing countries, contributes to persistent inequality and insecurity, with millions of families at risk due to limited income stability and lack of employment benefits. Experts note that the growth of informal and precarious jobs poses long-term challenges for economic development and poverty reduction.
Young people and women are among the hardest hit. Youth unemployment was estimated to rise to about 12.4 percent in 2025, and around 260 million young people are neither employed nor in education or training, highlighting barriers to securing productive employment.
The ILO also points to emerging risks from technological change and global trade uncertainties. While automation and artificial intelligence offer potential productivity gains, they may also disrupt job prospects in some sectors and require proactive policy responses to ensure inclusive outcomes.
In response to these trends, the ILO has urged policymakers around the world to shift focus from merely increasing the number of jobs to improving the quality, security and sustainability of employment. This includes strengthening labor standards, expanding social protections, and fostering environments that support safe, decent work for all.
ILO Director-General Gilbert F. Houngbo emphasized that maintaining low unemployment figures alone is not sufficient. “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,” he said, underscoring the urgency of addressing job quality worldwide.
As global labor markets navigate ongoing economic transitions, the report highlights the need for international cooperation and national policy reforms that prioritize safe, sustainable and adequately compensated employment as foundations for both social stability and long-term development.
