Why in News?
The International Labour Organization (ILO) released the Employment and Social Trends 2026 report, projecting global unemployment at 4.9% in 2025.

Key Highlights of the Employment and Social Trends 2026 Report

1. Stalled Progress on Employment Quality
   • Quality of employment has improved very slowly over the last 20 years.
   • Extreme working poverty fell only 3.1 percentage points (2015–2025) to 7.9% (≈284 million workers).
   o Earlier decade achieved a much larger 15-point drop.
   • In low-income countries, 68% of workers remain in extreme or moderate poverty.
   • Extreme working poverty → Employed individuals living under USD 3/day.
2. Rising Informality
   • Global informality rate increased 0.3 percentage points (2015–2025).
   • By 2026, 2.1 billion workers expected to be informally employed.
3. Slowed Structural Transformation
   • Movement of workers across sectors has halved in the last two decades.
   • Slow shift toward formal, productive sectors → Weak job quality & low productivity growth.
4. Uneven Unemployment & Employment Growth
   • Global unemployment rate = 4.9% (2025); projected 186 million unemployed (2026).
   • Global jobs gap = 408 million.
   • Employment growth:
   o High-income countries → Declining in 2026
   o Upper-middle-income countries → Slow (0.5%)
   o Low-income countries → Fastest (3.1%)
5. Persistent Gender and Youth Gaps
   • Women = only 40% of global employment.
   • Female participation 24.2 percentage points lower than men.
   • Youth unemployment increased to 12.4% (2025).
   • 257 million youth = NEET (Not in Employment, Education, or Training).
6. Insufficient Productivity & Labour Income Growth
   • Labour productivity growth remains low, especially in low-income countries.
   • Labour income share = 52.6% (2025), still below 2019 → wages lag productivity.
7. Emerging Risks from AI & Trade
   • AI adoption risks affecting educated youth in high-skilled entry-level roles.
   • Trade policy uncertainty threatens wages & job creation, particularly in:
   o South-Eastern Asia
   o Europe
8. Uneven Benefits from Trade
   • 465 million jobs in 2024 depended on foreign demand.
   • Low-income countries remain marginalized in trade & investment → fewer high-quality jobs.

Findings Related to India

1. Strong Economic Growth
   • India set to be among the fastest-growing economies in the Asia-Pacific region.
   • Will significantly contribute to Southern Asia’s high GDP growth.
2. Manufacturing Share Still Low
   • India’s share in global manufacturing output (current USD) = 3%.
   • Very low compared to:
   o China: 27%
   o USA: 17%
3. Renewable Energy Strategy & Employment
   • India has developed large-scale renewable energy capacity.
   • Significant progress in creating renewable energy jobs, alongside Japan & South Korea.
4. Green Talent Gap
   • In India (and Asia-Pacific), demand for green skills > supply.
   • Indicates a potential skills mismatch in emerging green sectors.

International Labour Organization (ILO)
About
• UN specialized agency for social justice & labour rights.
Founded
• 1919, under Treaty of Versailles; became first UN specialized agency in 1946.
• Awarded Nobel Peace Prize (1969).
Mandate / Objectives
• Promote:
o International labour standards
o Fair working conditions
o Employment opportunities
o Human & labour rights

Unique Tripartite Structure
Representation from:

1. Governments
2. Employers
3. Workers (Trade Unions)
   Ensures inclusive, consensus-based policies.

Principal Governance Bodies
• International Labour Conference – supreme decision-making body.
• Governing Body – executive council; sets policies & budget.
• International Labour Office – secretariat in Geneva; headed by Director-General.

Key Reports
• Employment and Social Trends
• World Employment and Social Outlook
• Global Wage Report
• World Social Protection Report
• Social Dialogue Report

UPSC Civil Services Examination, Previous Year Questions (PYQs)
Q. International Labour Organization’s Conventions 138 and 182 are related to (2018)
(a) Child Labour
(b) Adaptation of agricultural practices to global climate change
(c) Regulation of food prices and food security
(d) Gender parity at the workplace

Ans: (a)
Q. Disguised unemployment generally means (2013)
(a) large number of people remain unemployed
(b) alternative employment is not available
(c) marginal productivity of labour is zero
(d) productivity of workers is low

Ans: (c)

UPSC Prelims Practice Questions

Q.With reference to the ILO Employment and Social Trends 2026 report, consider the following statements:

1. The global unemployment rate is projected to remain at 4.9% in 2025.
2. Extreme working poverty refers to workers earning less than USD 1.9 per day.
3. The global informality rate has decreased consistently between 2015 and 2025.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1 and 3 only

  Ans: (a)

Q.Consider the following statements regarding global employment trends (2026):

1. Employment growth is expected to decline in high-income countries.
2. Youth unemployment has risen to over 12% globally.
3. Over 400 million workers worldwide are classified as NEET.

Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Ans: (a)

Q.With reference to structural transformation in labour markets, the report indicates that:

1. The movement of workers across sectors has doubled in the past two decades.
2. The slowing transition to formal sectors is one of the reasons for weak productivity growth.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 2
(d) Neither 1 nor 2

 Ans: (b)