QUEZON CITY – The Institute for Labor Studies (ILS) joined the global launch of the Employment and Social Trends 2026 report under the World of Work Series of the International Labour Organization (ILO), engaging with leading experts, research institutions, and social partners in examining the current state and future direction of global labor markets. 

According to the report, global GDP growth in 2026 is projected at 3.1%, according to the resilience amid geopolitical and economic uncertainty. The global unemployment rate is projected to remain at 4.9% in 2026, unchanged since 2023, with approximately 186 million people unemployed—among the lowest rates recorded in decades. Youth unemployment figures also appear broadly stable.

The report also underscores that progress in employment quality has stalled across much of the world. Productivity growth remains weak and uneven, limiting income convergence between high- and low-income countries. An estimated 284 million workers continue to live in extreme poverty, earning less than USD 3 per day. In Africa alone, extreme working poverty has increased by 30 million people between 2019 and 2025.

Informality remains a defining challenge, affecting 2.1 billion workers globally. Although contributing family work has declined, overall improvements in job quality remain fragile and uneven.

Persistent Gaps, Regional Realities, and Implications for the Philippines

Across regions, five major areas of concern dominate labor market discussions: job quality, demographic shifts, changing trade patterns in Asia, youth employment amid AI disruption, and climate and green transition challenges.

Informality continues to be a central issue in many developing economies, limiting access to stable and decent work. Beyond unemployment, the report highlights a substantial global “jobs gap” of 408 million people who want paid work but are unable to access it, many of whom are women constrained by unpaid care responsibilities.

For ILS and the Department of Labor and Employment (DOLE), participation in the global launch underscores the importance of monitoring international labor trends to inform domestic policy. Global labor market developments, particularly in productivity, trade, demographic shifts, and technological disruption, carry significant implications for developing countries like the Philippines.

By engaging with international reports and comparative data, DOLE is better positioned to benchmark Philippine programs against global practices, identify policy gaps, and design forward-looking interventions. Insights from youth employment trends, trade-linked job patterns, and the evolving structure of work provide valuable guidance in strengthening employment programs and addressing informality.

As global labor markets navigate a period of cautious stability amid structural transformation, the ILS reaffirms its commitment to grounding Philippine labor policy in rigorous research, international evidence, and proactive governance, ensuring that stability translates into inclusive and decent work for all.

Source: International Labour Organization. (2026). Employment and social trends 2026 (World of Work Series). https://www.ilo.org/publications/flagship-reports/employment-and-social-trends-2026

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