Bangkok, October 16, 2026 (Yes Punjab News)
The world could face a shortfall of nearly 800 million jobs over the next 10 to 15 years as about 1.2 billion young people enter the workforce, World Bank Group President Ajay Banga has warned, calling for a major shift in development financing to expand employment opportunities.
Addressing the World Bank Group’s 2026 Annual Meeting plenary in Bangkok, Banga said only around 400 million jobs were projected to become available for the 1.2 billion young people expected to join the global workforce during the period.
“The jobs gap is a projection. It does not have to be our future,” Banga said, outlining an approach combining public finance, private investment, philanthropy and technology to accelerate economic growth and job creation.
He said persistent conflicts, rising debt, limited government finances and high energy and fertiliser costs were adding to the challenges faced by developing economies.
Banga also highlighted reforms introduced since he took office in June 2023 to increase the World Bank’s financing capacity, reduce bureaucracy and attract private investment. Project preparation time has been cut from 19 months to nine months, while the institution’s performance indicators have been reduced from 153 to 22.
The reforms have generated more than $100 billion in additional lending capacity for the International Bank for Reconstruction and Development over a decade.
Private capital mobilisation has increased from around $35 billion in fiscal 2022 to $112 billion last year. Combined with the World Bank Group’s own financing, total financing exceeded $230 billion.
Investors from 110 countries contributed to the mobilisation effort, with the United States, the United Kingdom and India emerging as the leading sources, Banga said.
However, mobilising commercial investment in the poorest countries remains difficult, with private capital mobilisation in low-income economies holding at around $3 billion.
Banga said the World Bank was placing greater emphasis on micro, small and medium enterprises, particularly in fragile and conflict-affected economies where large companies often have limited operations.
The institution committed $40 billion last year to infrastructure, healthcare, education and skills development, while 30 per cent of its public-sector financing supported policy and institutional reforms.
He also highlighted the potential of artificial intelligence to support development. While advanced systems require expensive computing infrastructure and specialised expertise, smaller AI applications could help farmers raise productivity, teachers personalise instruction and entrepreneurs reach new markets.
On energy access, Banga said 59 million people in Africa had gained electricity under Mission 300, which aims to connect 300 million people by 2030.
The World Bank also plans to expand its critical minerals business fivefold within five years, with the aim of supporting local industries and employment.
Banga said six multilateral development banks were working to standardise how investments are packaged and transferred, enabling institutional investors to finance existing projects and freeing development bank capital for new initiatives.
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