World Bank warns of massive youth job shortfall

The World Bank Group has issued a strong warning about a looming global employment crisis, revealing that 1.2 billion young people are expected to enter the workforce over the next decade, yet only 420 million jobs are projected to be created within the same period.

The Bank emphasised that this significant shortfall presents urgent challenges for economies around the world, particularly in emerging and developing markets.

In response, the World Bank said it is stepping up efforts to work closely with governments and the private sector to foster the creation of more and better jobs. The approach will focus on scalable and sustainable solutions capable of addressing the jobs gap at a systemic level.

This message was amplified at the Bank’s flagship event titled ‘Jobs – The Path to Prosperity’, held as part of the ongoing International Monetary Fund (IMF)/World Bank Spring Meetings in Washington. The panel featured global leaders and thought leaders who underscored agriculture, tourism, and infrastructure as key sectors with the potential to drive large-scale job creation and support inclusive economic growth.

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Panelists included Tharman Shanmugaratnam, President of the Republic of Singapore; Nonkululeko Nyembezi, Chairman of Standard Bank Group; Anthony Tan, Group CEO and Co-Founder of Grab; and Rania Al Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation. Also contributing to the discussion were Douglas Peterson, Special Advisor at S&P Global; Dilhan Pillay Sandrasegara, Executive Director and CEO of Temasek Holdings; and Nicola Galombik, Executive Director at Yellowwoods and founder of the Harambee Youth Employment Accelerator.

In a compelling discussion, the speakers stressed the transformative power of targeted investments in agriculture, tourism, and infrastructure, particularly for countries in Africa and other developing regions. They highlighted both the urgent needs and the rich opportunities that exist within these sectors, advocating for inclusive solutions and strong cross-sector collaboration.

Sandrasegara offered a unique perspective by referencing Singapore’s limited agricultural base. “I’m going to take one which my country doesn’t have as a sector, which is agri-food. Because we import largely all our food into Singapore. We’re only 730 square kilometres there’s not much land for us to till. But we have farmers too,” he said.

He pointed out that smallholder farmers face the highest risks in the agriculture value chain and often suffer from post-harvest losses due to a lack of adequate tools and infrastructure. “The farmer takes the biggest risk of it all, especially smallholder farmers. We have this issue of wastage in production because they don’t have the right tools to mitigate those risks,” he explained.

Sandrasegara advocated for the integration of technology, better seeds, data-driven decision-making, and access to financing as critical enablers of higher productivity and resilience in agriculture. “If you can bring together equipment, data analytics, financing solutions, and even micro-insurance, you get better outcomes for farmers and better outcomes for global food security,” he said.

Echoing the emphasis on strategic sectors, Minister Rania Al Mashat highlighted tourism as a powerful job creation engine. “Every direct job in tourism generates four indirect jobs. So if we’re thinking about peace, mobility, and openness, tourism is one sector that delivers,” she said.

Al Mashat, a former Minister of Tourism in Egypt, noted that tourism is more than travel, it is a major export of services and a driver of productivity and infrastructure development. “It’s hotels, construction materials, hospitality, and much more. And there’s a gender element, too, tourism creates inclusive employment,” she added.

Other speakers noted the multiplier effects of infrastructure investment. Douglas Peterson emphasised that infrastructure not only supports economic activity but also unlocks value across sectors. “You build an airport, and then you get hotels, rental car services, fuel stations. You build a bridge and you connect communities, reduce travel time, and even cut carbon emissions,” he said.

Peterson underscored the importance of developing domestic capital markets to support long-term infrastructure investment. “As you move from banking to insurance and pensions, you start creating institutional investors with a long-term view. That’s the kind of capital infrastructure development needs,” he explained.

Dilhan Pillay Sandrasegara and Nicola Galombik both highlighted the enabling role of digital infrastructure, especially in empowering youth and entrepreneurs. “Digital connectivity allows small and social entrepreneurs to plug into the economy. It opens up entirely new avenues for employment and growth,” they said.

The session concluded with a shared sense of urgency and optimism. Panelists agreed that governments alone cannot solve the jobs crisis. Instead, it will take coordinated policy reform, public-private collaboration, and bold investments in sectors that create inclusive, sustainable employment.

“We have the blueprints,” one panelist said. “Now we must turn this moment into a movement fast, effectively, and together.”