The World Bank has called on governments to prioritize improving job quality as the global economy prepares for a record influx of new job seekers over the next decade.
The World Bank warns that many countries facing the biggest employment pressures are the least prepared to generate sufficient work.
Speaking at a seminar, the World Bank Group Chief Economist and Senior Vice-President for Development Economics emphasized the need for policymakers to focus on “better jobs” that offer higher wages and opportunities for career progression.
Estimates suggest that between 250 million and 1.2 billion new labor market entrants will join the workforce in the next decade, with the challenges concentrated in Sub-Saharan Africa, South Asia, and the Middle East and North Africa.
The World Bank's findings indicate that countries with younger populations generally perform poorly on indicators measuring business readiness, making it harder for firms to expand and absorb growing numbers of workers.
Removing barriers facing women workers and entrepreneurs would help raise productivity and expand employment opportunities, according to the World Bank.
The organization is changing how it evaluates labor markets in its next flagship report, placing more emphasis on job quality, earnings, and career progression.
The World Bank estimates that around 200 million people worldwide are unemployed, but roughly 900 million people remain classified as working poor despite having jobs.
The organization is urging countries to generate employment in five sectors that offer greater opportunities for productive wage employment: agribusiness, manufacturing, infrastructure, healthcare, and tourism.
Developing economies should prioritize adapting artificial intelligence technologies to improve healthcare, education, agriculture, and public services, rather than attempting to lead frontier AI development.
The World Bank is also urging governments to review tax policies that place a heavier burden on labor than on capital or technology, arguing that reducing distortions in labor taxation could be a more efficient way to encourage employment.
