World Bank warns 800 million youth face global job shortage

World Bank President Ajay Banga has warned of a massive global employment gap, predicting that 800 million young people will face a lack of job opportunities over the next decade or two. Speaking in Bangkok during the annual meetings of the World Bank and the International Monetary Fund, Banga noted that while 1.2 billion young people are expected to graduate and enter the workforce, only approximately 400 million new jobs are projected to be created.

The crisis is driven largely by demographic shifts in developing nations, particularly in Africa and parts of Asia, where the median age is between 18 and 25. This rapid population growth is outpacing the capacity of local economies to generate formal employment. The situation is further exacerbated by declining international development aid and rising external debt in developing countries, which reached $12.3 trillion in 2025.

Experts warn that this imbalance could threaten global prosperity, social stability, and trade, while also driving increased migration as individuals seek opportunities elsewhere. While advanced economies face the opposite challenge of aging populations, the labor shortage in emerging markets is viewed as a systemic global risk.