World Bank: 1.2 Billion Youth Face Global Jobs Crisis by 2035
Overview
The World Bank warns that 1.2 billion young people in emerging and developing economies will reach working age by 2035, presenting a monumental jobs challenge. Weak economic growth and insufficient investment risk exacerbating unemployment and poverty, particularly in regions like South Asia and Sub-Saharan Africa. Sustained pickup in investment and structural reforms are deemed critical to harness this demographic opportunity for growth rather than deepening economic strains.
The global economy stands on the precipice of a significant employment crisis, as the World Bank forecasts 1.2 billion young people will reach working age by 2035, primarily in emerging and developing nations. This surge in jobseekers arrives at a precarious time, with many developing countries grappling with subdued economic growth in the wake of the pandemic.
Looming Demographic Challenge
The World Bank's latest Global Economic Prospects report highlights a stark reality: without a substantial boost in investment and crucial structural reforms aimed at enhancing productivity, numerous countries may fail to create enough jobs. This shortfall could lead to a rise in unemployment, a swelling informal sector, and persistent poverty.
Regional Pressures and Vulnerabilities
The challenge is particularly acute in frontier and low-income economies where capital availability severely limits the creation of productive jobs. Sub-Saharan Africa is set to experience the most rapid expansion of its working-age population, necessitating robust economic expansion to stave off widespread joblessness. In South Asia, despite headline growth figures, a significant portion of employment remains in low-skill, informal roles, leaving younger workers susceptible to automation's disruptive influence.
Policy Imperatives for Growth
To avert potential social and economic strains, the World Bank advocates for a multi-faceted policy approach. This includes prioritizing infrastructure development, improving the business climate, investing in human capital, and enhancing the participation of women and youth in the labor force. Sectors such as energy, agribusiness, healthcare, tourism, and value-added manufacturing have been identified as key areas with the potential for large-scale job creation.
Failure to address this demographic wave proactively means squandering a rare opportunity. If managed effectively, the influx of 1.2 billion young workers could propel economic growth; conversely, inaction could lead to profound instability across large swathes of the developing world.
