The ILO Employment and Social Trends 2026 report indicates that global unemployment remains stable and is projected to stay just under 5 per cent in 2026, but progress toward decent work has stalled. Young people continue to face challenges in accessing quality employment, while factors such as artificial intelligence and trade policy uncertainty pose additional risks to the global labour market.
In Europe, labour market indicators appear relatively stable, yet structural imbalances persist, with shortages in occupations such as welders, nurses, cooks, and electricians, alongside surpluses in other sectors. These mismatches reflect changing labour demand driven by demographic shifts, technological adoption, and the green and digital transitions, highlighting the need for proactive policies to adapt the workforce and improve long-term growth and employment outcomes.
Efforts to address informality and undeclared work were highlighted during a joint workshop organized by the European Labour Authority, the ILO, and ITC-ILO. The event brought together researchers, policymakers, statisticians, and social partners to share best practices and innovative tools for measurement, which are crucial for evidence-based policy and enforcement in both EU and non-EU countries.
The ILO also strengthened its strategic partnerships with European countries and institutions. Luxembourg renewed its Strategic Partnership Framework with the ILO until 2029, focusing on social protection and voluntary contributions. Similarly, the European Training Foundation and the ILO agreed to expand collaboration on skills, lifelong learning, and employment policies to support the green transition, competitiveness, and social inclusion.
Studies and initiatives emphasized the importance of embedding decent work metrics in development and external action. The European Parliament highlighted the fragmented measurement of employment outcomes in EU interventions in sub-Saharan Africa, calling for stronger institutionalization of decent work principles. Likewise, the ILO engaged with international financial institutions to promote more coherent approaches to measuring job quality in development finance.
Additional initiatives explored innovative financing and social inclusion. At a European Commission workshop, the ILO examined ways to promote financial inclusion for forcibly displaced persons, while a webinar on social vouchers demonstrated how these tools can support formalization and decent work when designed according to the ILO Domestic Workers Convention. Finally, the ILO convened a knowledge-sharing event on the social and solidarity economy, focusing on sustaining contributions to social justice and fostering long-term resilience across participating European countries.
