The World Bank has highlighted a massive mismatch between the number of young people entering the workforce and the number of available jobs, which could lead to widespread unemployment, poverty, social instability, and lost economic potential.

In its FY25 Annual Report released on Monday, October 13, 2025, Ajay Banga, the President of the World Bank Group, cautioned that the world cannot simply wait to see the disaster unfold.

Projections

According to the organisation, the projection is based on current trends in population growth, education levels, and economic productivity.

“In the next decade, 1.2 billion young people will enter the workforce in developing countries—but in those same countries, only 400 million jobs are expected to be created. That leaves 800 million young people without a clear path to opportunity,” Banga stated.

It also projected that only 20 per cent of the world’s population will be living in developed countries, characterised by a high level of economic and social progress. 

Humanitarian aid

“By 2050, 80 percent of the world’s population will live in countries currently considered developing. We cannot afford to wait. The most expensive word in development is “later,” he added.

In that regard, he underscored the role of job creation as a means to reduce the need for humanitarian aid, strengthen communities, and help reverse the forces of fragility.

Beyond job creation

Banga noted that creating jobs has long been central to its mission as they look to help countries build dynamic private sectors that convert growth into local jobs.

He highlighted building foundational infrastructure, strengthening governance and the regulatory environment and mobilizing private capital among the delibarete steps they had undertaken towards solving the financing puzzle to catalyse entrepreneurship, competition, and ultimately, demand for labour.

World Bank, has however, cautioned that the jobs agenda can only succeed through collaborative efforts:

“Governments must address investment and policy gaps that currently restrict growth and job creation in their countries, and the private sector must commit to investments that make job creation a priority,” he stated.