The International Labor Organization (ILO)'s Employment and Social Trends 2026 report observes that service-related jobs are a major driver of employment as it provides better-paying and formal jobs, especially for women and youth in developing economies.
These jobs fall within remote, digital and knowledge-based work, including back-office operations, accounting, jobs in creative industries and tech-enabled services.
Commenting on the report during the ILO's Future of Work podcast, Marwa Corley, ILO Senior Economist and Trade Expert, said: “Nearly half of trade-related jobs globally, some 465 million, are now linked to services rather than goods. Trade-linked jobs are critical to reducing informality and providing entry points for women and youth into the labor market,” she said.
However, changes in trade patterns leave some sectors behind. “In Africa, where much trade still takes place outside the region, this limits opportunities to integrate into global and regional supply chains,” he said.
In Nigeria, where youth face high informality, this service business provides an opportunity to integrate into remote, digital and knowledge-based work. These include back-office operations, accounting, creative industries and tech-enabled services.
Explained, “Large numbers of young people are entering the labor market and are unable to find good work. Many are stuck in low-quality employment.”
Dwindling workforce in developed countries, opportunities for Nigerian youth
The ILO report also notes that labor markets in Europe and Central Asia are facing a shrinking workforce and rising dependency ratios. Aging societies are under pressure to accelerate productivity growth, giving Nigeria the opportunity to benefit from skills transfer and international exposure. As Stefan Kuhn, senior economist at the ILO and lead author of the report, said, “In high-income countries, labor force growth is already at zero and about to shrink. There is a real risk of labor shortages”.
This imbalance represents a strategic economic opportunity for Nigerian youth that can be converted into exportable human capital, generate remittances and reduce domestic unemployment.
Such approaches will ensure that migration becomes a planned development instrument rather than a survival strategy.
Gender and care economy opportunities
Gender inequality remains a global feature of labor markets. The report estimates that only two in five workers worldwide are women. Demographic change also expands opportunities in the care economy, where women dominate employment globally.
For Nigerian women, the shortage of aged-based labor abroad offers opportunities to participate in formal care work, technical services and digital trade, provided that safeguards ensure decent work, fair wages and social protection, in line with the ILO's emphasis that “decent work is not just about getting a job. It is about earning a good income, accessing social protection and enjoying rights at work.”
Other findings of the report state:
Informality remains a dominant reality globally
Informal employment defines the actual experience of work for most people around the world. The report estimates that 57.7 percent of the global workforce, approximately 2.1 billion people, is employed informally.
Youth not in employment, education or training
Youth face disproportionate barriers to decent employment. Although rising youth unemployment is nothing new, the report highlights deep concerns.
“What concerns us most is not just unemployment, but the share of young people who are not in employment, education or training. One in five young people globally, about 260 million, fall into this category,” Kuhn said.
“They are not able to gain the experience they need to succeed later in the labor market,” he said. “Despite global commitments to reduce it, this figure has stagnated rather than improved.”
