Global Jobs Gap Remains High at 402 Million, Youth Unemployment a Key Concern for 2025-2026

GENEVA, SWITZERLAND – Amidst persistent global economic uncertainties, a recent tweet from user @AshutoshShrivastava posed a critical question resonating with millions worldwide: "What's the plan when you have no jobs and no income?" This question highlights a pressing global challenge, as the International Labour Organization (ILO) estimates the global jobs gap to stand at approximately 402.4 million people in 2024, signaling deep-seated structural vulnerabilities in labor markets.

According to the ILO's "World Employment and Social Outlook: Trends 2025" report, while the global unemployment rate remained stable at 5 percent in 2024, this figure masks significant underlying issues. The comprehensive jobs gap includes 186 million individuals who are actively unemployed, 137 million categorized as part of the potential labor force, and another 79 million who are willing to work but not actively seeking employment. This indicates a substantial shortfall in both job creation and labor market participation.

Youth unemployment remains a particularly acute problem, with a global rate of around 12.6 percent in 2024, significantly higher than for older workers. The ILO report underscores that millions, especially in less developed countries, are trapped in cycles of informality and working poverty. Approximately 7 percent of the global workforce, or 240 million workers, endure extreme forms of working poverty, while informal employment affects nearly three in five workers worldwide.

The broader economic landscape contributes to these labor market challenges, with global economic growth projected to slow, impeding a robust recovery. Geopolitical frictions, the escalating costs of climate change, and unresolved sovereign debt risks continue to test the resilience of labor markets, with low-income countries bearing a disproportionate burden. Slow productivity growth globally is also hindering the recovery of real wages and the expansion of productive employment opportunities.

Regional disparities are stark. Northern Africa, for instance, is experiencing working-age population growth that outpaces employment creation, while Latin America and the Caribbean grapple with high inequality, poverty, and sluggish productivity. In the Arab States, significant gender gaps persist in labor force participation, and youth unemployment rates are among the highest globally. Addressing these multifaceted issues will require concerted policy efforts, including investments in education, skills training, and robust social protection systems to foster a more human-centered approach to the future of work.