The World Bank has raised concerns over mounting pressure on labor markets in developing countries, warning of a significant gap between job demand and supply in the coming decade. World Bank President Ajay Banga, in an interview with Reuters, said that even if current trends continue, job creation will fall far short of what is needed. As a result, a large number of people could remain without employment opportunities.
According to Banga, the global economy has yet to fully recover from the shock of the COVID-19 pandemic. Ongoing geopolitical tensions and conflicts have further complicated efforts to focus on long-term development priorities. He emphasized that creating jobs, expanding access to electricity, and ensuring the availability of clean water must remain top priorities for policymakers.
These issues are expected to take center stage at the upcoming Spring Meetings of the World Bank and the International Monetary Fund (IMF) in Washington this week. Recent conflicts have already weighed on global growth prospects while contributing to rising inflationary pressures. The World Bank has outlined plans to address policy and regulatory barriers that have long hindered investment and job creation. These include simplifying business regulations, improving supply chains, and reducing trade-related obstacles. At the same time, sectors such as infrastructure, agriculture, primary healthcare, tourism, and manufacturing have been identified as key areas with strong potential for job generation. The institution believes these sectors are less likely to be immediately disrupted by advances in artificial intelligence. Banga cautioned that failure to act could lead to increased global instability and a surge in migration pressures in the years ahead. Source: Reuters.