ISLAMABAD – The world’s job market may look stable on surface, but if you run through numbers, there are murky patterns as millions of workers are struggling to make ends meet. From factory worker earning less than $3 a day to a young graduate searching for first high-skill job, the global workforce is facing unprecedented challenges.
Amid this dilemma, a report by International Labour Organization warns that unless governments, businesses, and workers act together, this hidden crisis could deepen, and millions more could be left behind. Rising informal employment, massive gender gaps, and youth left out of education and work are just part of the story. With AI reshaping industries and trade policies adding uncertainty, the future of work is more fragile than ever.
ILO’s Employment and Social Trends 2026 report said the global unemployment rate is projected to hold at 4.9% next year, and 186 million people will be out of work, but headlines mask a far deeper crisis, as hundreds of millions of workers remain mired in extreme poverty, informality, and exclusion.
“The world cannot afford to be distracted by stable unemployment numbers. Hundreds of millions of workers remain trapped in poverty and exclusion, and without coordinated action, the future of work is at serious risk,” ILO Director-General Gilbert F. Houngbo warned.
The report said nearly 300 million people worldwide still earn less than $3 a day, while informal work is exploding, with 2.1 billion workers expected to lack social protection, job security, and basic labour rights by 2026. Low-income countries are being left even further behind as their economies struggle to create quality jobs.
Young people are facing staggering employment emergency. Youth unemployment hits 12.4% in 2025, and around 260 million young people globally are neither in school nor working. In poorest countries, that figure soars to nearly 28%, threatening long-term social stability and economic growth. Adding to the danger, AI and automation are expected to displace educated youth, particularly in high-income countries searching for high-skill roles.
Gender inequality continues to cast long shadow over global employment. Women make up just two-fifths of the workforce and are 24% less likely than men to participate in the labour market. Gains in female employment have stalled, halting progress toward workplace equality.
Demographic shifts are further reshaping labour markets. Ageing populations in richer countries slow workforce growth, while rapid population expansion in low-income nations risks wasting the so-called “demographic dividend” unless enough productive jobs are created. Employment growth in 2026 is projected at just 0.5% in upper-middle-income countries, 1.8% in lower-middle-income nations, and 3.1% in low-income economies.
Trade turbulence adds another layer of uncertainty. Supply chain disruptions and unclear trade rules are suppressing wages, especially in Southeast Asia, South Asia, and Europe. Yet trade still supports 465 million jobs worldwide, with export-focused sectors providing higher pay, reduced informality, and opportunities for women and youth. Digital services now make up 14.5% of global exports, showing the shifting landscape of work in the 21st century.
ILO warns that unless governments, employers, and workers act in unison, decent work deficits will persist, social cohesion will be threatened, and the gap between rich and poor countries will widen. Its recommendations are clear, invest in education, skills, and infrastructure, close gender and youth employment gaps; manage technology responsibly; and ensure trade policies create quality jobs while mitigating risks from debt, AI, and global market instability.
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