The World Bank Group has warned that developing economies are heading towards a significant employment crisis as millions of young people prepare to enter the workforce without enough jobs to absorb them, raising concerns about economic stability, migration pressures and global security risks.
According to the World Bank, about 1.2 billion young people in developing countries are expected to reach working age within the next 10 to 15 years, while current economic projections indicate that only around 400 million jobs are likely to be created during the same period.
The mismatch, it said, could leave hundreds of millions without access to productive employment.
The President of the World Bank Group, Ajay Banga, noted that while global attention is often captured by immediate crises such as conflicts, technological disruptions and market volatility, slower-moving structural forces like demographics, food and water pressures, and globalisation trends are likely to have deeper and longer-lasting consequences.
“This challenge is not only a development issue,” Banga wrote in the post. “It is an economic challenge and increasingly a national security concern.”
The institution warned that failure to address the widening employment gap could strain public institutions and contribute to irregular migration, social unrest and insecurity, particularly in regions with rapidly growing youth populations.
