The World Bank has warned that developing countries could face a shortage of 800 million jobs over the next 10 to 15 years, raising concerns about the future of millions of young people entering the workforce.
World Bank Group President Ajay Banga gave the warning during the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, where he called on governments to urgently strengthen efforts to create employment opportunities.
According to Banga, approximately 1.2 billion young people in developing countries are expected to reach working age within the next 10 to 15 years, but only about 400 million jobs are projected to become available.
He described the growing employment gap as a major economic challenge, stressing that governments cannot tackle the problem alone and must work with private investors and development partners to expand job opportunities.
Banga explained that creating more jobs would require reliable electricity, efficient transportation, improved digital connectivity, quality education and practical skills that match the needs of employers.
He also emphasised the importance of predictable government policies and strong institutions to encourage businesses to invest, expand their operations and employ more workers.
The World Bank president further highlighted the potential of small businesses and artificial intelligence to improve productivity in sectors such as agriculture, healthcare and education.
He disclosed that the World Bank Group mobilised $112 billion in private capital during the last fiscal year, compared with approximately $35 billion in the 2022 fiscal year, as part of its efforts to support development and investment.
For Nigeria and other African countries with rapidly growing populations, the warning highlights the urgent need to turn economic growth into meaningful employment, stronger businesses and improved living standards.
IMF Warns of Global Economic Pressures
Meanwhile, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that rising public debt, energy supply disruptions and geopolitical tensions are putting additional 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 support growth despite the negative effects of energy shocks.
However, she cautioned that high debt levels and increasing borrowing costs were limiting governments’ ability to respond to economic challenges, while persistent inflation continued to put pressure on households and businesses.
The IMF chief urged countries with high debt burdens to develop credible long-term financial plans, control inflation and strengthen their ability to withstand future economic disruptions.
She also stressed that governments must ensure that economic reforms do not place an unfair burden on vulnerable populations.
On artificial intelligence, Georgieva warned that although the technology could improve productivity, it could also disrupt employment, create financial stability risks and increase exposure to cybersecurity threats.
She called for greater international cooperation to help countries prepare for changes driven by AI, strengthen financial systems and ensure that the benefits of technological progress reach more people.
The warnings from both institutions highlight the growing connection between economic stability, investment and employment, particularly as developing countries prepare for a rapidly expanding workforce.
For Nigeria, the challenge will be to create an environment that attracts investment, supports businesses and provides young people with access to productive and sustainable employment.
Source: World Bank and International Monetary Fund (IMF)
