Global Unemployment to Stay at 4.9%; Youth & Women Jobs Decrease

• The global unemployment rate is predicted to stay at 4.9% for 2026, impacting 186 million individuals around the world.
• Approximately 284 million workers are left living in extreme poverty, while over two billion are in informal work conditions worldwide.

The International Labour Organization (ILO) recently disclosed that “the world can look forward to a historically low unemployment level of 4.9 percent, or 186 million people, in 2026,” based on its report titled “Employment and Social Trends 2026,” launched at its headquarters in Geneva yesterday (January 14, 2026).

The study estimated that 284 million workers still live in extreme poverty and earn less than three dollars per day; on the other hand, more than 2 billion workers are informally employed. According to the report, in the period from 2015 to 2025, “the proportion of workers in extreme poverty fell by only 3.1 percentage points to 7.9%, whereas it fell by 15 percentage points in the previous decade.” “This means 284 million workers live in extreme poverty - that is, less than $3.00 a day,” it added. Millions of workers across the world do not have access to decent work, it added.

"However, in low-income countries, there are increasing numbers of working poor and informal economy workers," added ILO Director-General Gilbert F. Houngbo, pointing to a lack of progress in places that need progress most. The Director-General went on to state that there are persistent gaps in equality for women in the world of work, with "few gains in most areas, except in contributing family work."

On trade uncertainties, the report stated that these “are set to remain a characteristic of the global economy in the short term. These dynamics are taking place alongside broader processes of structural transformation and digitalization, which are in turn shaping trade, supply chains, and production structures.”

The global informality rate grew by 0.3 percentage points between 2015 and 2025 after having fallen during the previous ten years. In 2026, ILO estimates that 2.1 billion workers will be informally employed worldwide.

According to the report, informality means generally lower quality of employment because of limited access to social protection, rights at work, workplace safety, and job security. It also added that the rise largely reflects the growing share of employment in countries with higher rates of informality, mainly in Africa and Southern Asia, making the reduction of informality in these economies a critical one.