The World Bank and the International Monetary Fund (IMF) have warned that the global economy could face a shortfall of 800 million jobs over the next 10 to 15 years, amid rising public debt, geopolitical tensions and limited resources for development.
The institutions called on governments to attract private investment, strengthen development financing and accelerate job creation, particularly in developing countries, to accommodate the growing workforce.
World Bank Group President, Ajay Banga, gave the warning on Friday at the 2026 Annual Meetings of the IMF and World Bank Group in Bangkok, Thailand.
Banga said projections showed that about 1.2 billion young people in developing economies would enter the labour market over the next decade to 15 years, while only about 400 million jobs were expected to be available.
The World Bank president said the challenge had become more pressing as governments struggled with rising debt obligations, high living costs and competing development priorities, leaving limited funds for infrastructure, healthcare, education and other critical sectors.
Banga disclosed that the World Bank Group had increased the private capital it mobilised from about $35 billion in the 2022 financial year to $112 billion in the most recent financial year.
He said total financing, including the institution’s own funding, exceeded $230 billion.
Private capital mobilisation had nearly tripled in lower-middle-income countries, quadrupled in upper-middle-income economies and more than doubled across Africa, he added.
Banga identified infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing as priority sectors for boosting productivity and generating employment.
He also highlighted the importance of micro, small and medium-sized enterprises, particularly in fragile and conflict-affected countries, where small businesses could support job creation and economic resilience.
On development financing, Banga said six multilateral development banks were working to establish common mechanisms for assessing, packaging and transferring investments.
The initiative would enable other investors to acquire assets from projects initially financed by development institutions, freeing up capital for new projects and expanding financing beyond the banks’ existing balance sheets.
Meanwhile, IMF Managing Director, Kristalina Georgieva, warned that rising public debt, geopolitical tensions and disruptions to energy supplies were increasing uncertainty in the global economy.
She urged highly indebted countries to implement credible medium-term fiscal consolidation plans while protecting vulnerable households and pursuing structural reforms to support sustainable economic growth.
