186 Million People May Remain Unemployed by 2026 as ILO Raises Alarm Over AI Impact on Jobs

The International Labour Organisation (ILO) has issued a strong warning that global employment recovery remains fragile, as an estimated 186 million people worldwide may still be without jobs by 2026, despite signs of economic resilience.

In its Employment and Social Trends 2026 report released recently, the ILO explained that while global employment figures appear stable on the surface, meaningful progress toward decent and secure work has slowed significantly. The organisation projects that the global unemployment rate will remain unchanged at 4.9 percent in 2026, signalling a worrying stagnation rather than improvement.

According to the report, young people continue to face severe challenges, with limited job opportunities and rising uncertainty. At the same time, emerging risks linked to artificial intelligence (AI), automation, and unpredictable trade policies are expected to place additional strain on labour markets across regions.

The report provides a detailed assessment of the global workforce, revealing that although employment numbers have not collapsed, job quality is deteriorating and inequality is widening. It analysed how productivity levels, demographic shifts, and ongoing economic pressures are shaping the future of work and slowing progress toward inclusive growth.

One of the most troubling findings highlighted by the ILO is the persistence of working poverty. Nearly 300 million workers worldwide still live in extreme poverty, earning less than $3 per day, even while being employed. In addition, the report noted a continued rise in informal employment, with an estimated 2.1 billion workers expected to be in informal jobs by 2026, lacking social protection and job security.

ILO Director-General Gilbert Houngbo cautioned that steady growth figures and stable unemployment rates should not create a false sense of success. He emphasized that hundreds of millions of workers remain trapped in poverty, informal work, and social exclusion, particularly in low-income countries.

Houngbo pointed out that the slow pace of progress in poorer economies is deepening inequality, pushing those with the weakest employment conditions even further behind. He stressed that without deliberate intervention, these regions risk being left out as global supply chains expand and digital trade accelerates.

To address these challenges, the ILO called for stronger institutions and coordinated global action aimed at promoting decent work and social justice. Houngbo recommended productivity-boosting strategies, including increased investment in skills development, education, and infrastructure, as key tools for improving job outcomes.

The report also underscored the importance of closing gender and youth employment gaps by removing participation barriers and ensuring that technological advancements are adopted responsibly. It stressed that technology should enhance work opportunities rather than deepen inequality.

Additionally, the ILO urged governments to strengthen trade systems and ensure that decent work standards are integrated into global trade flows, so that all regions can benefit fairly. The organisation warned that rising debt levels, AI disruption, and trade uncertainty could further weaken job markets unless addressed through coordinated domestic and international policies.

Focusing on young people, the report revealed that youth unemployment rose to 12.4 percent in 2025, with approximately 260 million young individuals classified as NEET—not in education, employment, or training. In low-income countries, the situation is even more severe, with NEET rates reaching 27.9 percent.

The ILO further warned that artificial intelligence and automation could intensify these challenges. Educated young people in high-income countries may face increasing difficulty securing their first jobs, particularly in high-skill roles that are rapidly being reshaped by AI-driven technologies.

Overall, the report paints a clear picture: without urgent and inclusive policy action, global labour markets risk entering a prolonged period of stagnation, where economic growth fails to translate into secure, decent employment for millions