World Bank Warns Of 800 Million Job Shortfall In Developing Economies Over 15 Years

Developing economies could face a shortfall of 800 million jobs over the next 15 years as growing numbers of young people enter the workforce, according to the World Bank Group.

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As per a Bloomberg report, World Bank President Ajay Banga warned that emerging economies face an enormous employment challenge amid mounting debt, climate-related disasters and limited financial resources.

Speaking at the Climate Finance Summit in Antalya, Turkey, alongside the United Nations-convened COP31 climate talks, Banga said approximately 1.2 billion people in developing economies would reach adulthood during this period.

However, these countries are projected to generate only 400 million additional jobs, leaving a substantial employment gap.

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Banga cautioned that the employment shortfall could have far-reaching implications for poverty reduction, economic prosperity, migration and social stability.

He said rising debt burdens, conflicts, infrastructure vulnerabilities and natural disasters were restricting governments' ability to pursue development priorities.

The World Bank mobilised $230 billion for developing economies during the financial year ended June 30, including $112 billion in private capital.

According to the institution, private capital mobilisation was three times its level in financial year 2022.

Although capital mobilisation improved across lower-middle-income and upper-middle-income economies, flows to low-income countries remained unchanged.

Banga stressed that the poorest economies continue to require public financial support because attracting private investment remains difficult.

The World Bank President also emphasised the need to incorporate climate resilience into development planning.

He said emerging economies must strengthen coastal protection, safeguard agricultural production and construct infrastructure capable of withstanding extreme weather.

Banga advocated an approach combining physical infrastructure resilience with stronger institutions from the earliest stages of development.

He cited flood-resistant roads that maintain transport connectivity during severe weather and insulated schools that allow children to continue learning during extreme heat.

Such investments could help countries avoid repeated reconstruction costs while protecting economic activity and essential public services.

The World Bank's assessment highlights the twin challenges of expanding employment opportunities and strengthening climate resilience in financially constrained developing economies.

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