Global Unemployment to Remain Near Historical Low, ILO Reports

The International Labour Organization (ILO) has released its World Employment and Social Outlook: Trends 2025 report, indicating that global unemployment is expected to hold near its historical low of 5% in 2025. This positive trend, however, masks significant disparities between countries and demographic groups. The report highlights the need for targeted policies to address these disparities and promote inclusive economic growth.



The ILO report notes that the global unemployment rate has remained steady at 5% since 2024, with a projected decline to 4.9% in 2026. This is the lowest unemployment rate recorded in the ILO's data series, which dates back to 1991. However, the report also emphasizes that some countries and groups are not benefiting from this positive trend. Young people, in particular, face significantly higher unemployment rates, with a rate of 12.6% compared to the overall rate of 5%. Additionally, low-income countries continue to struggle with high unemployment rates, with some countries reporting levels above 30%.

The report attributes the disparity in unemployment rates between low-income and middle-income countries to several factors. Economic instability, political turmoil, and unresolved debt issues can hinder job creation and economic growth in low-income countries. Additionally, these countries may lack the infrastructure and skills necessary to fully benefit from technological advancements and the green transition. A larger informal sector and limited access to social protection and education can also contribute to higher unemployment rates in low-income countries.

To address these disparities and promote inclusive economic growth, the ILO report recommends several policy interventions. Investing in education and skills training can help close the skills gap and promote lifelong learning, enabling workers to adapt to changing job demands. Encouraging private funds, such as migrants' remittances, to support local development in low-income countries can also boost job creation and reduce unemployment disparities. Expanding social protection and targeted interventions to support young people and those in low-income countries can help mitigate the negative effects of unemployment on individuals and society as a whole.



In conclusion, the ILO's World Employment and Social Outlook: Trends 2025 report highlights the positive trend of global unemployment remaining near its historical low. However, the report also emphasizes the need for targeted policies to address the disparities between countries and demographic groups. By investing in education and skills training, encouraging private funds for local development, and expanding social protection, countries can promote inclusive economic growth and reduce unemployment disparities. As the global economy continues to evolve, it is crucial for policymakers to remain vigilant and adapt their strategies to support a thriving labor market for all.