The World Bank Group has outlined a three-part strategy focused on improving conditions, reforming policies, and unlocking private-sector potential to facilitate job creation.
The Group noted this in a video presentation made on its official YouTube account, it sounded a warning over the scale of the jobs challenge facing developing nations, with 1.2 billion young people expected to enter the global workforce over the next decade. The pressing question then is whether there will be enough jobs to meet this unprecedented surge.
The demographic challenge
Referred to as the demographic bulge or demographic dividend, this population surge is expected to reshape labour markets across the developing world.
According to data, by 2050, just five African countries will add more than 304 million people to their populations, while Sub-Saharan Africa as a whole will experience a 40 per cent increase in its youth population. When including children, that figure rises to 50 per cent for low and lower-middle income countries globally.
However, job creation is struggling to keep pace. Current projections suggest that by 2035, up to 24 per cent of people in Africa may be unable to find work. The World Bank also noted that women’s participation in the labour force has stagnated for three decades, representing a missed opportunity for economic growth. ‘It’s not only a question of job numbers, but also of job readiness,’ the World Bank representative explained. ‘Automation, digitalisation, and shifts in work patterns mean millions will need retraining to remain employable.’
Of the 1.2 billion young people set to join the workforce, only around 420 million jobs are expected to be created, leaving a deficit of more than 700 million opportunities. Yet, as the World Bank stressed, ‘forecast isn’t destiny.’
A three-pillar approach
To address this crisis, the World Bank has outlined a three-part strategy focused on improving conditions, reforming policies, and unlocking private-sector potential.
Creating the right conditions:
Job creation begins with investment in health, education, training, infrastructure, and energy. Combating malnutrition, for instance, offers not only social benefits but also strong economic returns, every dollar invested yields $23 in improved health and productivity.
Access to reliable energy is another cornerstone of growth. Through the ‘Mission 300 initiative’, the World Bank and its partners aim to connect 300 million people in Sub-Saharan Africa to electricity, a move expected to power enterprises and employment. Enabling policies and regulation:
The Bank emphasised the importance of business-friendly environments, citing wide variations in the ease of company registration. According to its ‘B-Ready’ report, the time required to register a domestic firm can range from three days to as much as eighty, while foreign firms may wait up to 106 days.
‘The right policy frameworks create certainty, transparency, and investor confidence,’ the representative noted. ‘Those are the conditions that allow jobs to grow.’
Empowering the private sector:
Recognising that most jobs are created by small businesses, the Bank highlighted the urgent need to close a $5.7 trillion global financing gap facing micro, small, and medium-sized enterprises (MSMEs), including the 34 per cent owned by women.
The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both part of the World Bank Group, have together mobilised $197 billion to support MSMEs and other private-sector initiatives, with that figure increasing each year. Five key sectors for job growth
The World Bank also identified five sectors with the greatest potential for employment generation, which are infrastructure and energy, agribusiness, healthcare, value-added manufacturing, and tourism.
By maximising energy development in Africa, the Bank estimates that up to 7.4 million additional jobs could be created by 2035. In low-income countries, it found that every job created in healthcare has a multiplier effect, generating an average of 3.4 additional jobs across the economy.
Despite this potential, the healthcare sector remains underdeveloped in many regions, accounting for just 5 to 6 per cent of total employment in South Asia and Sub-Saharan Africa far below the 20 per cent average seen in high-income economies.
Unlocking the potential of a generation
While the numbers may appear daunting, the World Bank expressed cautious optimism. ‘With the right data, insights, and investments, we can face this challenge,’ the bank representative said. ‘We can create jobs that will unlock the potential of an entire generation.’
Simply put, the world’s demographic transformation presents both risk and opportunity. With strategic action and investment, the next decade could define not only the future of work but the shape of global prosperity itself.