World Bank Warns of 800 Million Job Shortfall in Developing Countries Over Next 15 Years

The World Bank has warned that developing countries could face a shortfall of 800 million jobs over the next 10 to 15 years, urging governments to accelerate investment and economic reforms to create employment opportunities for young people.
World Bank Group President, Ajay Banga, issued the warning at the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand. He said about 1.2 billion young people in developing countries are expected to reach working age over the period, while only 400 million jobs are projected to be created.
Banga described the employment challenge as one of the defining economic issues facing developing nations, stressing the need for governments to work with private investors and development partners to expand opportunities and help young people secure productive livelihoods.
He said creating enough jobs would require reliable electricity, efficient transport systems, digital connectivity, quality education and relevant skills. He also called for predictable regulations and stronger institutions to encourage businesses to invest, grow and employ more people.
The World Bank president highlighted the importance of small businesses and the practical use of artificial intelligence (AI) in improving productivity across sectors such as agriculture, healthcare and education. He also disclosed that the World Bank Group mobilised $112 billion in private capital in the last fiscal year, compared with about $35 billion in fiscal year 2022.
Meanwhile, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned that rising public debt, energy supply disruptions and geopolitical tensions were putting increasing pressure on the global economy.
Georgieva said global economic growth was projected at 3.1 per cent in 2026, with investment in artificial intelligence helping to offset some of the negative effects of energy shocks. However, she cautioned that high borrowing costs, mounting debt and persistent inflation were limiting governments’ ability to respond to economic challenges.
The IMF chief urged countries with high debt levels to adopt credible medium-term fiscal plans, control inflation and strengthen their resilience to future disruptions while protecting vulnerable populations. She also warned that AI could disrupt employment, create financial stability risks and increase cybersecurity threats, calling for international cooperation to ensure that its benefits are widely shared.
For Nigeria and other African countries with rapidly growing youth populations, the World Bank’s warning highlights the urgency of creating an environment where businesses can expand, investment can generate jobs and economic growth can translate into improved living standards.