The number of informal workers worldwide is rising, with 2.1 billion people expected to hold jobs lacking social protection, security, and labour rights by 2026, according to the latest report from the International Labour Organisation.
Informal jobs are not regulated by government rules, meaning workers often lack legal benefits, contracts, and workplace protections.
The Employment and Social Trends 2026 report notes that while global unemployment is projected to remain stable at 4.9 per cent, roughly 186 million people, millions of workers, continue to struggle with poor working conditions, low pay, and limited access to social benefits.
“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,” ILO Director-General Gilbert Houngbo said.
The report shows that nearly 300 million workers live on less than $3 a day, representing extreme poverty, while informal employment is rising across the globe. The lack of formal jobs with protections such as healthcare, pensions, and secure contracts is particularly severe in low-income countries, where the poorest workers are being pushed further behind.
Young people continue to face significant barriers to decent work. In 2025, youth unemployment reached 12.4 per cent, with about 260 million young people not in education, employment, or training. The situation is more acute in low-income nations, where NEET rates climb to 27.9 per cent.
The ILO also stated the risks posed by artificial intelligence and automation, particularly for young, educated workers in high-income countries seeking entry-level, high-skill roles.
Women remain under-represented in the workforce, comprising just 40 per cent of global employment and being 24 per cent less likely than men to participate in the labour market. Social norms, stereotypes, and persistent structural barriers continue to slow progress toward gender equality at work.
Shifting demographics are reshaping labour markets worldwide. Ageing populations in high-income countries are slowing labour force growth, while rapid population growth in low-income countries risks creating large cohorts of unemployed or underemployed workers if productive job opportunities do not expand.
The ILO forecasts employment growth in 2026 at 0.5 per cent in upper middle-income countries, 1.8 per cent in lower middle-income economies, and 3.1 per cent in low-income countries. Weak labour productivity growth in poorer nations is deepening geographic inequalities and slowing the convergence of living standards with advanced economies.
Global trade disruptions and uncertainties around supply chains are affecting workers’ wages, particularly in Southeast Asia, Southern Asia, and Europe. Nevertheless, trade remains a key source of employment, supporting 465 million workers worldwide, more than half in Asia and the Pacific.
“Unless governments, employers, and workers act together to harness technology responsibly and expand quality job opportunities for women and youth through coherent and coordinated institutional responses, decent work deficits will persist and social cohesion will be at risk,” Houngbo warned.
The report recommends boosting productivity through investment in education, skills, and infrastructure; addressing gender and youth participation gaps; and mitigating risks from AI, debt, and trade uncertainty through coordinated policy responses.
