2026 jobs outlook: Global unemployment hits 4.9%, decent work deficit widens

The United Nation has recently disclosed the 2026 outlook for global unemployment as the rate is projected to remain steady, but the labour markets would face the crisis in obtaining decent and quality jobs.

According to the UN’s International Labour Organization (ILO), the global economy and labour market have optimistically survived through recent economic shocks caused by tariffs and geopolitical frictions.

Unfortunately, despite weathering the economic setbacks, job quality has been facing stagnation, thereby leaving hundreds of millions of workers trapped in a vicious poverty cycle.

In 2024 and 2025, the global unemployment rate was estimated at 4.9 percent, amounting to 186 million people without jobs. It is expected to remain on the same trajectory until 2027 as reported by ILO.

Young people aged 15 to 24 are more susceptible to the unemployment rate and are projected to reach 12.4 percent.

"Global labour markets look stable, but that stability is quite fragile," Caroline Fredrickson, head of the ILO's research department, told reporters, with a warning that the "apparent calm masks deeper and unresolved problems".

Challenges faced by global labour markets

The report also highlights the factors that could jeopardize the labour markets globally. The disruptions stem from trade uncertainty and on-going changes in global trade could affect the outcomes.

Moreover, uncertain trade policies may also slash real wages for both skilled and skilled labour, specifically in Southern Asia, Southeast Asia, and Europe.

Another issue being highlighted by ILO’s report is extreme poverty. LO chief Gilbert Houngbo said in a statement, “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.”

Nearly 300 million workers live in extreme destitution, earning less than $3 per day. Around 2.1 billion people hold informal jobs this year.

The rapid advancements in the field of AI and automation are also responsible for compounding the dilemma of joblessness among educated young generations

"While the full impact of AI on youth employment remains uncertain, its potential magnitude warrants close monitoring," the report highlighted.

Gender inequality in the labour market still exists as women make just two-fifths of global employment.

The report cautioned, "Without decisive action, today's stability risks giving way to deeper inequalities.