World Bank Warns of 800 Million Job Shortfall in Developing Countries

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 opportunities for young people.

World Bank Group President Ajay Banga gave 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 widening employment gap as a major economic challenge, stressing that governments must work with private investors and development partners to expand job opportunities and help young people build productive lives.

He identified reliable electricity, transport infrastructure, digital connectivity, quality education and relevant skills as essential to job creation. He also called for predictable regulations and stronger institutions to encourage businesses to invest, grow and employ more people.

The World Bank chief highlighted the importance of small businesses and the practical use of artificial intelligence in boosting productivity across agriculture, healthcare, education and other sectors. He disclosed that the World Bank Group mobilised $112 billion in private capital in the last fiscal year, up from about $35 billion in fiscal year 2022, as part of efforts to support development and investment.

For Nigeria and other African countries with growing youth populations, the warning highlights the challenge of turning economic growth into jobs, stronger businesses and improved living standards.

Meanwhile, International Monetary Fund Managing Director Kristalina Georgieva warned that rising public debt, energy supply disruptions and geopolitical tensions were placing increasing pressure on the global economy. She said global growth was projected at 3.1 per cent in 2026, with investment in artificial intelligence helping offset some of the effects of energy shocks.

Georgieva cautioned that high debt levels and rising borrowing costs were limiting governments’ ability to respond to economic shocks. She urged heavily indebted countries to adopt credible medium-term fiscal plans, control inflation and strengthen their resilience while protecting vulnerable populations.

She also warned that artificial intelligence could disrupt employment, create financial stability concerns and increase cybersecurity risks, despite its potential to improve productivity. Georgieva called for greater international cooperation to help countries prepare for technological changes and ensure the benefits are more widely shared.

The warnings from both leaders underline the link between economic stability, investment and employment. For Nigeria, the challenge is to create conditions that attract investment, support businesses and provide meaningful work for a rapidly growing young population.