Global Jobs Crisis Deepens as Employment Quality Stalls; 284 Million Workers Still in Extreme Poverty

 

A new global labour report has revealed that progress in the quality of employment has slowed significantly, with millions of workers worldwide still trapped in poverty, informal jobs, and unstable working conditions.

According to the Employment and Social Trends 2026, report, the share of workers living in extreme poverty declined by only 3.1 percentage points between 2015 and 2025, reaching 7.9% globally. This marks a sharp slowdown compared to the 15 percentage-point drop recorded in the previous decade.

The report estimates that 284 million workers still live on less than US$3 per day, while poverty among workers in low-income countries has worsened. By 2025, nearly 68% of workers in low-income nations were living in either extreme or moderate poverty.

The study also shows that global informality is rising again, reversing earlier gains. By 2026, an estimated 2.1 billion workers are projected to be employed informally, often without access to social protection, workplace rights, job security, or safe working conditions.

Experts warn that this increase is being driven largely by rising employment in regions with historically high informal work rates, especially Africa and Southern Asia.

Unemployment Holds Steady, But Risks Remain

Despite mounting global economic uncertainty, the unemployment rate has remained largely unchanged.

The global unemployment rate stood at 4.9% in 2025 and is projected to remain at the same level through 2027. However, the number of unemployed people is expected to hit 186 million in 2026, while the broader jobs gap is projected at 408 million.

The report notes that slowing labour force growth, partly caused by ageing populations and increasing retirements, has helped stabilise unemployment figures despite weak job creation.

Women and Youth Face Greater Challenges  

Women continue to face major barriers in the labour market, representing only two-fifths of global employment in 2025.

The report found that women were 24.2 percentage points less likely than men to participate in the labour force, while young women were significantly more likely to be outside employment, education, or training.

For young people globally, labour market conditions remain troubling. Youth unemployment rose slightly to 12.4% in 2025, while 257 million young people were classified as not in employment, education, or training (NEET).

AI and Trade Uncertainty Raise Fresh Concerns  

The report further warns that the rapid adoption of artificial intelligence (AI) could worsen job prospects for young workers, especially those entering high-skilled professions for the first time.

In addition, growing trade policy uncertainty and disruptions in global supply chains are expected to affect wages and employment opportunities, particularly in regions heavily dependent on exports.

Globally, around 465 million jobs currently depend on foreign demand and international supply chains.

Call for Stronger Institutions and Faster Growth  

The report concludes that stronger economic growth, better labour market institutions, and domestic policy reforms are urgently needed to tackle worsening decent work deficits.

It warns that without faster productivity growth and improved working conditions, many low-income countries risk missing the opportunity to benefit from their growing youth populations.

Read the full report HERE