The surge in young jobseekers will be concentrated across regions such as South Asia, Sub-Saharan Africa, East Asia and the Middle East, at a time when economic growth in many developing countries remains weak and uneven following the pandemic.
The World Bank said that without a sustained pickup in investment and structural reforms to boost productivity, many countries risk failing to generate enough jobs to absorb this expanding workforce, potentially worsening unemployment, informality and poverty.
“Generating sufficient job opportunities will be critical,” the report noted, adding that stronger investment growth has historically been associated with faster employment expansion in emerging and developing economies.
The challenge is especially acute in frontier and low-income economies, where capital stocks remain far below those in advanced and major emerging markets, limiting the pace at which productive jobs can be created.
Regional pressures vary. Sub-Saharan Africa will see the fastest growth in its working-age population, requiring robust economic expansion to prevent large-scale joblessness. In South Asia, despite strong headline growth led by India, a large share of employment remains concentrated in low-skill and informal work, leaving younger workers vulnerable to automation and technological change.
The World Bank called for a broad policy push focused on infrastructure investment, improved business conditions, human capital development, and greater participation of women and youth in the labour force. Sectors such as energy, agribusiness, healthcare, tourism and value-added manufacturing were identified as having potential to create jobs at scale.
Failure to act, the report warned, would mean missing a rare demographic opportunity. If managed well, the entry of 1.2 billion young people into the labour market could become a powerful engine for growth; if not, it could deepen social and economic strains across large parts of the developing world.
