The World Bank has warned that the world could face a shortfall of 800 million jobs over the next 10 to 15 years as growing numbers of young people enter the workforce.
World Bank Group President Ajay Banga issued the warning at the institution’s Annual Meetings in Bangkok, Thailand, on Friday, 16 October.
He said about 1.2 billion young people were expected to enter the labour market during that period, but only 400 million jobs were projected to become available.
The warning comes as the World Bank steps up efforts to help developing countries create employment through infrastructure investment, support for small businesses and greater private sector participation.
Mr Banga said creating jobs on a large scale was one of the biggest development challenges facing the world.
“A job is not a statistic. A job is dignity,” he said.
The World Bank President outlined a strategy focused on improving access to electricity, transport, water, education and skills training, alongside reforms to make it easier for businesses to invest and expand.
He also announced progress in mobilising private investment and highlighted a new strategy aimed at helping small businesses access financing and reach larger markets.
The global warning is also relevant to Pacific island countries, including Solomon Islands, where employment opportunities remain limited compared with the number of young people entering the workforce.
In its August economic update, the World Bank estimated that around 9,000 Solomon Islanders enter the labour force annually, while only about 2,100 formal jobs are created.
The GREAT Coalition Government has announced a target of creating 25,000 jobs over four years, covering both formal and informal employment.
Mr Banga did not refer specifically to Solomon Islands in his address, but emphasised the importance of ensuring economic development leads to employment and better livelihoods.
He said the projected global jobs gap was not inevitable and called for greater cooperation between governments, development institutions and private investors to expand opportunities.
“The jobs gap is a projection. It does not have to be our future,” he said.
