Thekabarnews.com—The World Bank has issued a stark warning that the world economy may be unable to create enough jobs for a fast-expanding workforce over the next 10 to 15 years. As a result, the situation could create a looming global employment crisis.

World Bank President Ajay Banga said some 800 million people could be unemployed or underemployed. This issue will especially affect younger generations in developing countries.

Around 1.2 billion people will come of working age in the next decade and a half, Banga said.

But global economic projections suggest that the world’s economies will generate only about 400 million new jobs over the same period.

The gap would mean a shortfall of some 800 million jobs, placing huge economic and social pressure on several regions.

Many governments are still preoccupied with short-term crises, such as the lingering effects of the COVID-19 pandemic. Additionally, they face geopolitical conflicts, inflation, and economic uncertainty, Banga warned.

As countries deal with short-term economic challenges, the World Bank believes the perils of long-term job creation are growing more vital to future global stability.

The issue is likely to be a major topic at the upcoming Spring Meetings of the World Bank and the International Monetary Fund in Washington.

The forum comes as concerns about slowing global economic growth, persistent inflationary pressures, and rising geopolitical tensions mount.

Failure to generate jobs could directly threaten global purchasing power and fuel inequality. Moreover, it could create long-term instability, especially in developing economies with large numbers of young people.

Many emerging countries already find it difficult to generate jobs for the millions of new graduates entering the labor market each year.

Automation, artificial intelligence and rapid technological change are reshaping labor markets across the world.

Technology can create new industries and also boost productivity. However, automation may also eliminate many traditional jobs faster than economies can replace them.

Developing countries may be under the greatest pressure, where young populations are growing fast but economic growth is patchy.

To avoid mass unemployment, governments may need to invest more aggressively in education, vocational training, digital infrastructure, entrepreneurship and labor-intensive industries.

The World Bank has repeatedly emphasized that employment is one of the strongest engines of economic resilience and social stability.

When there are no stable jobs, household spending weakens, poverty grows, and economic inequality increases. Ajay Banga also emphasized that job creation extends beyond economic considerations.

“Employment is a critical foundation for social mobility, political stability, and long-term development,” he said.

The warning arises amidst increasing global apprehension. The global economy may soon experience a phase where job opportunities fail to match the workforce’s growth.

For younger generations, especially in developing countries, the challenge may be more than simply finding work. It could be competing in a global economy that is evolving faster than labor markets can adjust.

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