Over the next decade, around 1.2 billion young people are expected to seek employment worldwide, but the global economy is forecast to create just 400 million jobs, World Bank Group President Ajay Banga has warned.
The global economy faces a widening jobs gap, with approximately 1.2 billion young people projected to join the workforce over the next decade or so, while only 400 million jobs are expected to be created, World Bank chief Ajay Banga has cautioned.
ALSO READ : US September CPI Inflation Rises 3.7% To Hit Six-Month High On Fuel Prices
In order to address the looming jobs crisis, Banga called for governments, private investors, philanthropic organisations and technology providers to work together to help countries generate employment on a larger scale.
Addressing the World Bank Group's 2026 Annual Meetings plenary in Bangkok, Thailand, on October 16, Banga said the world faced the dual challenge of making limited development resources go further while helping economies generate jobs at scale.
“The challenges were great. Resources were limited. And the World Bank Group needed to face the wind,” Banga said, reflecting on the priorities he identified before taking charge of the institution in June 2023.
ALSO READ : Broken Levers To Forward Guidance: How Two US Economists Won The 2026 Nobel By Fixing Central Banking
Three years later, he said, the global environment remained difficult, with persistent conflicts, tightening fiscal space, rising debt burdens and elevated costs of essential commodities, including energy and fertilisers.
Against this backdrop, the projected gap between the number of young people entering the workforce and the jobs available presents a significant challenge for developing economies.
Banga said the generation entering the labour market would help shape the coming century, making policy choices today critical to determining its future.
He identified job creation and the more efficient use of scarce financial resources as interconnected priorities, arguing that countries would need to mobilise different sources of capital and technology to meet their development needs.
“The future of development will depend on bringing public finance, private investment, philanthropy, and technology together around what each country needs,” he said.
Banga said his address this year would focus on the progress made by the World Bank Group over the past three years and the direction of its ongoing reforms.
His remarks come as developing countries contend with mounting financial pressures while seeking to create employment opportunities for rapidly growing working-age populations.
The scale of the projected jobs shortfall underscores the need for investment-led growth and stronger collaboration between the public and private sectors.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.