Developing Nations Face Looming Jobs Crisis, Warns World Bank

WASHINGTON, D.C., April 13, 2026 — World Bank President Ajay Banga warned that developing countries are heading toward a major employment shortfall over the next decade and beyond, describing it as a long-term risk to stability and development. Speaking in Washington, D.C., Banga said the scale of workforce growth expected in these economies will outpace job creation under current trends.

Banga projected that 1.2 billion people in developing countries will enter the workforce over the next 10 to 15 years. Against that influx, he said existing economic trajectories are expected to produce only 400 million jobs, leaving an estimated deficit of 800 million positions. He framed the gap as a structural challenge that will persist even as governments and investors focus on immediate geopolitical pressures.

In his remarks, Banga pointed to the ongoing Middle East conflict as an example of near-term concerns that can dominate attention, while arguing that the employment gap requires sustained policy focus. He said the jobs deficit, if left unaddressed, could carry serious consequences for global stability and development over time.

The World Bank’s Development Committee, he said, plans to work with developing nations on improving policy and regulatory conditions to encourage investment and expand hiring. The agenda he outlined includes efforts to streamline permitting processes, strengthen anti-corruption measures, and pursue reforms to labor and land laws.

He also cited reducing trade barriers as part of the discussions aimed at making economies more attractive for investment and more capable of generating employment at scale.

Banga also described a push to draw more private sector capital into areas he characterized as less reliant on global trade flows. The sectors he listed included infrastructure, agriculture focused on small farmers, primary healthcare, tourism, and value-added manufacturing. He presented these areas as potential channels for job creation that can be supported by domestic demand and local service needs, alongside broader investment reforms.

He warned that failing to close the jobs gap could intensify pressures such as illegal migration and broader instability. In that context, he referenced United Nations data showing that more than 117 million people were displaced worldwide as of 2025, underscoring the scale of existing humanitarian strain as policymakers weigh long-term employment challenges.