A new assessment from the World Bank Group highlights growing concerns over job shortages in developing economies amid a surge in young people entering the labour market.
The institution warned that many developing countries may struggle to generate enough employment opportunities to match the pace of population growth, raising fears of economic strain and social instability if urgent measures are not taken.
According to the report, about 1.2 billion young people in developing nations are expected to reach working age within the next 10 to 15 years, while current projections suggest only around 400 million jobs may be created during the same period — leaving a significant gap.
President of the World Bank, Ajay Banga, said the challenge goes beyond development, noting that persistent unemployment could heighten migration pressures, weaken institutions and pose broader security risks.
The bank called for stronger investment in infrastructure, education, energy and healthcare, alongside policy reforms that encourage entrepreneurship and private-sector growth. It stressed that small and medium-sized enterprises remain central to large-scale job creation in emerging markets.
The institution also emphasised the use of financial tools such as guarantees and risk-sharing mechanisms to attract private capital into key sectors, including agriculture, manufacturing and services.
The World Bank urged global leaders to prioritise job creation in upcoming international discussions, arguing that addressing the employment gap could transform demographic growth into a driver of economic progress rather than instability.
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