Global jobs crisis looms: 800 million jobs gap threatens a generation

The World Bank Group President Ajay Banga has sounded the alarm over an impending global jobs crisis, projecting a shortfall of nearly 800 million jobs over the next decade to 15 years. With 1.2 billion young people poised to enter the labour market, only 400 million jobs are expected to be created, according to Banga.

Delivering his remarks at the 2026 Annual Meetings plenary session, Banga highlighted the unprecedented magnitude of the global employment challenge. He pointed to persistent geopolitical conflicts, mounting debt burdens, limited fiscal space, and rising commodity costs, from energy to fertilizers, as factors exacerbating the difficulty of development.

The World Bank leader emphasized that the past three years have been dedicated to two closely interconnected priorities: maximizing the impact of limited financial resources and helping countries create jobs on a large scale. Banga stressed that these challenges cannot be tackled separately, stressing the necessity to make more efficient use of available funding while simultaneously expanding employment opportunities.

According to the World Bank chief, the current global youth unemployment stands at 12.4%, with 67 million young individuals remaining jobless. Banga urged Pakistan to create 30 million jobs over the next decade to capitalize on the youth boom. Moreover, the International Monetary Fund (IMF) chief has warned that the AI revolution could disrupt up to 40% of jobs worldwide.

Lastly, the article briefly touches upon the UAE's job change rules, questioning whether employers can prevent employees from switching jobs.