The World Bank Group has warned that the global economy could face a shortfall of 800 million jobs over the next 15 years, urging governments and investors to accelerate investment in businesses and infrastructure to absorb a growing youth population.
The bank’s president, Ajay Banga, gave the warning at its 2026 Annual Meetings in Bangkok, Thailand, on Friday, saying about 1.2 billion young people were expected to enter the labour market over the next 10 to 15 years, while only 400 million jobs were projected to become available.
He said addressing the gap would require a shift in development financing, with governments, multilateral lenders and private investors working together to expand economic opportunities.
Banga disclosed that the World Bank Group mobilised $112bn in private capital in 2025, more than three times the $35bn recorded in 2022. Total financing, including the institution’s own resources, exceeded $230bn last year.
The increased mobilisation is aimed at attracting investment into sectors such as infrastructure, energy, agriculture, healthcare, tourism and manufacturing, which the bank considers important for job creation.
However, Banga noted that the gains had not been evenly distributed. Private capital mobilisation nearly tripled in lower-middle-income countries and quadrupled in upper-middle-income economies, but remained flat in low-income countries, where difficult investment conditions continue to restrict business expansion.
He said the bank was increasing support for micro, small and medium-sized enterprises, particularly in poorer and fragile economies where smaller businesses could generate employment despite limited investment from larger companies.
The institution is also expanding the use of guarantees, equity financing and local-currency funding to reduce investment risks and attract private investors to developing economies.
To strengthen its capacity to finance development projects, the bank has restructured its balance sheet to create more than $100bn in additional lending capacity for the International Bank for Reconstruction and Development over a decade. It has also reduced project preparation time from 19 months to nine months.
Africa remains a major focus of its employment and development agenda through Mission 300, a partnership with the African Development Bank aimed at connecting 300 million people across the continent to electricity by 2030.
Banga said 59 million people had gained electricity access under the initiative, with 29 million connected in 2025, compared with 12 million in 2024 and 18 million in 2025.
He stressed that expanding access must be accompanied by reliable and affordable electricity to support factories, farms, businesses and urban growth.
The bank is also working towards improving water security for up to one billion people by 2030 and helping 300 million smallholder farmers move from subsistence farming to surplus production.
Its climate-related financing reached $96bn in 2025, including $48bn mobilised from private capital, Banga said.
Meanwhile, six multilateral development banks are developing common mechanisms to transfer investments to long-term investors, including pension funds, insurance companies and sovereign wealth funds. The initiative is expected to free up development finance for new projects while attracting more institutional investment into emerging markets.
Banga warned that failure to create enough jobs could threaten stability, while expanding employment opportunities would deliver benefits beyond national borders.
“A job is not a statistic. A job is dignity,” he said.
“The jobs gap is a projection. It does not have to be our future,” he added.
Discussion0