The 2020s started on a bad note. First, the entire world went in a lockdown to contain the spread of the deadly coronavirus. Then, when things started to improve, the Russia-Ukraine war broke out, leaving the global economy more volatile and uncertain. In 2023, Israel’s assault on Gaza and the subsequent economic shocks made the situation even worse. Naturally, an uncertain economic environment would lead to a broken job market. According to a new report from the International Labour Organisation (ILO), global unemployment remains stable, but progress towards decent work has stalled. The report also warns that young people continue to struggle, while artificial intelligence and trade policy uncertainty risk further undermining the job market. The Employment and Social Trends 2026 report finds that, while the global unemployment rate is projected to stay at 4.9 per cent in 2026 – equivalent to 186 million people – millions of workers around the world still lack access to quality jobs.
The report further says that nearly 300 million workers continue to live in extreme poverty, earning less than $3 a day, while informality in work is rising, with 2.1 billion workers expected to hold informal jobs by 2026, with limited access to social protection, rights at work and job security. The acute lack of progress in low-income countries is pushing workers with the poorest employment conditions even further behind. There has been a visible shift in how people work. Over the years, a full-time job has stopped leading to a secure future that many have dreamed of. This is true for almost all countries, including Pakistan. In the local job market too, employers are actively pulling away medical and other perks for their employees, leaving with no incentives for workers.
The situation has stayed like that mostly because of a rise in the gig and orange economies. Many startups have entered the mainstream job market, offering people with part-time gigs where apparently they have the freedom to work on their terms without the watchful eyes of a boss. Then, there is the rise of social networking sites where accounts can be monetised. While all of this has allowed people to make money, it has also destroyed the solid structure of the job market. Almost everyone is operating on an ad-hoc basis, doing whatever they could to earn a day’s living. The concept of improving their skills and becoming an expert of their field is fast disappearing. On top of this, there is a threat of artificial intelligence taking over entry-level jobs, especially those that follow a rules-based order. Such a weak economy cannot survive for long. If not for today, we have to think for our future generations who will need some stability to go ahead in life.
