World Bank says 800 million jobs will be lacking for young people — Asharq Al-Awsat

World Bank Group President Ajay Banga said during the organization’s annual meetings in Bangkok, Thailand, that approximately 1.2 billion young people will enter the global labor market over the next 10–15 years. At the same time, the market is expected to create only about 400 million jobs, meaning a gap of approximately 800 million jobs, Asharq Al-Awsat reports.

Obstacles to job creation

Banga called large-scale job creation one of the main tasks of economic development. According to him, this is hindered by ongoing conflicts, shrinking government budget capacity, growing debt burdens, and high commodity prices, including for energy and fertilizers.

He noted that to address the problem, countries need to combine public financing, private investment, philanthropic funds, and technology in line with their own needs. Banga also emphasized the importance of supporting micro, small, and medium-sized enterprises to expand economic activity and create jobs.

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World Bank strategy

The World Bank Group’s employment strategy, according to Banga, is based on developing physical and human infrastructure, strengthening the predictability of regulatory policy, and removing barriers to private investment. Among such barriers, he named currency risks and difficulties in accessing financing.

Last year, the World Bank Group directed $40 billion to infrastructure and basic services, while 30% of its public-sector financing supported policy and institutional reforms. According to Banga, the organization also mobilized about $112 billion in private capital, compared with approximately $35 billion in the 2022 fiscal year.

He added that the practical application of artificial intelligence can increase the productivity of farmers, teachers, healthcare workers, and entrepreneurs if they have access to electricity, connectivity, devices, and the necessary skills.