Ajay Banga warns of 800m job deficit for youth over next 15 years

World Bank President Ajay Banga has issued a stark warning regarding a looming global employment crisis, stating that 1.2 billion young people are set to enter the job market over the next 15 years with only 400 million positions projected to be available. Speaking at the 2026 World Bank/IMF Annual Meetings in Bangkok, Banga underscored the scale of this job market squeeze and the necessity for immediate, strategic intervention to prevent a widening economic gap for the upcoming generation. He emphasized that the global community must make critical choices today to shape a viable future for these new workers.

To address the projected shortfall of 800 million jobs, Banga called for a dual approach focusing on strategic infrastructure investment and regulatory certainty. He argued that governments must prioritize creating an environment that stimulates private sector growth and job creation. A key component of his proposed strategy involves developing predictable policy frameworks and scalable funding models to attract private investment, which he described as essential for generating employment on the necessary scale.

Banga also highlighted significant internal reforms at the World Bank designed to accelerate development impact and improve efficiency. These reforms include concerted efforts to reduce project preparation times and enhance the institution's ability to mobilize private sector financing. He noted that the World Bank successfully raised $112 billion in private capital last year, marking a substantial increase in financing efforts aimed at supporting large-scale economic projects and job-creating initiatives.

As young people worldwide prepare to enter an increasingly competitive workforce, the World Bank is positioning itself to ensure that economic growth translates into tangible employment opportunities. Banga's remarks serve as a call to action for international policymakers to prioritize job creation as a cornerstone of global economic stability. He warned that failure to bridge this employment gap could leave hundreds of millions of people without viable paths to prosperity, potentially leading to broader social and economic challenges.