A growing mismatch between the number of people entering the workforce and available jobs is emerging as a major global challenge, particularly for developing economies.
Ahead of the 2026 Spring Meetings of the International Monetary Fund and the World Bank Group, Ajay Banga, president, World Bank, flagged the scale of the issue. Over the next 10 to 15 years, nearly 1.2 billion people are expected to reach working age in developing countries. However, only about 400 million jobs are likely to be created during this period, leaving a gap of roughly 800 million jobs.
This imbalance is being compounded by ongoing global disruptions. Economic recovery since the pandemic has been uneven, while geopolitical tensions and conflicts continue to weigh on growth. These factors are contributing to inflation, supply-chain disruptions, and energy market volatility, all of which make large-scale job creation more difficult.
Despite these pressures, the World Bank has emphasised the need to stay focused on long-term priorities. Expanding employment opportunities, investing in infrastructure, and improving access to basic services remain critical areas for governments and policymakers.
The institution is also working with countries to address structural barriers that limit job growth. These include complex regulatory systems, restrictive labour laws, corruption, and inefficiencies in trade and logistics. Easing such constraints could help businesses expand and hire more workers.
Reportedly, companies expanding across borders, such as Reliance Industries, Mahindra Group, and Dangote Group, highlight the role of the private sector in generating employment at scale.
The stakes are significant. A persistent jobs gap could increase migration pressures and heighten social instability, especially at a time when global displacement is already high. For organisations and HR leaders, the message is clear: job creation and workforce readiness must remain central to long-term strategy.
