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 gave the warning at the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, where he said about 1.2 billion young people in developing countries were expected to reach working age during the period, while only 400 million jobs were projected to be created.
Banga described the employment challenge as a defining economic concern, stressing the need for governments to work with private investors and development partners to expand opportunities and help young people build productive lives.
He said job creation depended on reliable electricity, efficient transport systems, digital connectivity, quality education and relevant skills. He also highlighted the importance of predictable regulations and strong institutions in encouraging businesses to invest and expand.
The World Bank chief further emphasised the role of small businesses and practical applications of artificial intelligence (AI) 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, compared with about $35 billion in the 2022 fiscal year, as part of efforts to expand development financing and support investments capable of generating jobs.
For Nigeria and other African countries with growing youth populations, the warning highlights the challenge of translating economic growth into productive employment, stronger businesses and improved living standards.
IMF Warns of Rising Debt and Economic Pressures
Meanwhile, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that mounting public debt, energy supply disruptions and geopolitical tensions are placing increasing pressure on the global economy.
Georgieva said global growth was projected at 3.1 per cent in 2026, unchanged from the IMF’s forecast a year earlier. She noted that investment in artificial intelligence was helping to support growth and offset some of the negative effects of energy shocks.
However, she cautioned that rising borrowing costs and high debt levels were weakening governments’ ability to respond to economic shocks, while persistent inflation continued to put pressure on households and businesses.
The IMF chief urged countries with high debt levels to adopt credible medium-term fiscal plans, control inflation and strengthen their capacity to withstand future disruptions, while ensuring that economic reforms protected vulnerable populations.
She also warned that AI, despite its potential to improve productivity, could disrupt employment, create financial stability concerns and expose countries to growing cybersecurity threats.
Georgieva called for urgent international cooperation to help countries prepare for AI-driven changes, strengthen financial systems and ensure that the benefits of emerging technologies were more widely shared.
Nigeria Faces Pressure to Expand Employment
The warnings from the World Bank and IMF highlight the close relationship between economic stability, investment and job creation as developing countries face mounting financial pressures and a rapidly growing workforce.
For Nigeria, the challenge extends beyond sustaining economic growth to creating an environment where businesses can expand, investment can increase and young people can access meaningful employment.
Improving infrastructure, strengthening education and vocational training, supporting small businesses and attracting private investment will be important to expanding job opportunities and improving living standards.
