Global Unemployment Remains Steady

GENEVA (Reuters) – Global unemployment remained steady last year at a historical low of 5%, where it is set to stay in 2025, according to a report by the International Labour Organization (ILO) released on Thursday.

However, the Geneva-based body indicated that a global economic slowdown from 3.3% to around 3.2% last year, along with a gradual deceleration in the medium term, will limit job creation.

> “The global economy continues to expand at a moderate rate, but it is projected to gradually lose steam, preventing a stronger and more durable labour market recovery,” stated the ILO flagship report on global employment and social trends.

The current global unemployment rate of 5% is the lowest in the ILO data series dating back to 1991 and is projected to fall again in 2026 to 4.9%.

Despite this, some countries and demographics are not benefiting from the positive trend. Young people, for instance, face a significantly higher unemployment rate of 12.6%.

While several European nations have witnessed a decrease in unemployment in recent years, countries such as South Africa reported persistently high levels exceeding 30% in 2024.

ILO Director-General Gilbert Houngbo, a former Prime Minister of Togo, urged for bold actions to overcome barriers to a thriving labour market.

> “The world must embrace new approaches to social justice that generate decent work,” he emphasized in the report’s preface.

The 84-page report also offers recommendations to stimulate job creation through investments in education, alongside proposals for new private funds generated from migrants’ remittances to support development in poorer countries.