World Bank Warns Developing Nations Face 800 Million Job Deficit Over Next 15 Years

The World Bank has warned that developing countries face a potential shortfall of 800 million jobs over the next 10 to 15 years, urging governments to accelerate investment and reforms to create employment opportunities for young people.

The President of the World Bank Group, 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 are expected to reach working age in developing countries, while only 400 million jobs are projected to be created.

Banga described the employment challenge as a defining economic concern, stressing that governments must work with private investors and development partners to expand opportunities and give young people a pathway to productive lives.

He said job creation requires reliable electricity, transport, digital connectivity, quality education and relevant skills, alongside predictable regulations and stronger institutions that encourage businesses to invest and expand.

Banga also highlighted the role of small businesses and practical applications of artificial intelligence in improving 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 fiscal year 2022, as part of efforts to expand development financing and support employment-generating investments.

For Nigeria and other African countries with growing youth populations, the warning reinforces the need to translate economic growth into productive jobs, stronger businesses and improved living standards.

Meanwhile, the Managing Director of the International Monetary Fund, Kristalina Georgieva, has warned that mounting public debt, energy supply disruptions and geopolitical tensions are putting the global economy under increasing pressure.

Georgieva said global growth was projected at 3.1 per cent in 2026, unchanged from the IMF’s forecast a year earlier, with the resilience partly reflecting the boost from artificial intelligence investment, which is offsetting the drag from energy shocks.

She cautioned, however, that rising borrowing costs and high debt levels were weakening governments’ ability to respond to economic shocks, while persistent inflation could further strain households and businesses.

The IMF chief urged high-debt countries to adopt credible medium-term fiscal plans, control inflation and strengthen their capacity to withstand future disruptions, while ensuring that economic reforms protect vulnerable populations.

She also warned that artificial intelligence, although capable of boosting 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 new technologies are more widely shared.

The two leaders’ warnings highlight the connection between economic stability and job creation, as developing countries face the dual challenge of managing financial pressures and providing opportunities for a rapidly growing workforce.

For Nigeria, the task is not only to sustain growth but to create an environment where investment can expand, businesses can thrive and young people can find meaningful employment.