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Over the next decade, 1.2 billion young people will reach working age in developing countries, yet only 420 million jobs are expected to be created under the current trajectory. Among those youth who will get a job, few will find good jobs, where workers can be more productive and earn more. Without immediate action, millions of young people could be left behind, deprived of opportunity and hope¡ªwith wider impacts for social stability and economic growth.

Acting now, therefore, is critical to unlock private sector-driven economic growth that creates productive jobs, which will foster dignified livelihoods and enhance resilience to shocks that can push people back into poverty.

The challenge needs to be tackled on several fronts: Business-friendly policies and simpler regulations can fuel private sector growth. High-quality public infrastructure and access to electricity and digital technologies can make it easier for people to access work. Education and skills development initiatives must be aligned with the competencies and knowledge in need. Also crucial is an enhanced effort to support firms, especially smaller ones, in accessing financing so they can grow and become more productive.

Increasing job opportunities is particularly critical for women. Teenage pregnancy, early marriage, domestic responsibilities, limited access to childcare services, inadequate transport infrastructure and security, unequal access to assets, and restrictive societal norms hinder girls¡¯ access to higher education and restrict women¡¯s participation in the labor force. As a result, women¡¯s occupational choices are often limited, leading to disproportionate involvement in vulnerable employment, if they engage in paid work at all.

For youth, a big challenge lies in ensuring that job opportunities align with their rising educational levels. In many low-income economies, young people are staying in school longer, yet even with higher education, they often find themselves trapped in occupations that make little to no use of their skills.

Last Updated: Mar 27, 2025

At the World Bank Group, creating more and better jobs has long been central to our mission. We now prioritize job creation as an explicit aim of everything we do. We support countries through the entire life cycle of job creation:

• We are committed to supporting governments through the financing of essential services that help prepare young people for the jobs of tomorrow. This includes healthcare, education, clean water and energy, and digital access. These investments, along with investments in vital infrastructure like transportation, also lay the foundation for broad-based economic growth.
• We support governments to improve business policies and implement sound regulations to create environments in which the private sector can grow and spur job creation across industries. Our research and reports identify opportunities for private-sector-led growth¡ªas well as the constraints holding back that growth. Knowledge gleaned from these reports informs the World Bank Group¡¯s loan and investment decisions. These same insights can guide governments as they adopt policies that foster broad-based growth.
• Å·ÃÀÈÕb´óƬ Group¡¯s private sector experience, knowledge, and on-the-ground presence are all integral to private sector financing and access, and can help businesses grow and create jobs through financing and enhanced skills training tailored to local needs. For example, WBG support through business accelerators allows young entrepreneurs to generate new business solutions. More generally, our debt and equity funding, risk sharing and mitigation, and guarantees help businesses¡ªfrom MSMEs to larger corporations¡ªbuild on the opportunities created by a business-friendly environment.

Our approach to job creation varies according to the country context in which we¡¯re working. Low-income countries, middle-income countries, small island states, and countries affected by fragility and violence all have different needs, and we tailor our work to each environment.  

Knowledge for effective policies

Å·ÃÀÈÕb´óƬ Group mobilizes global knowledge on the challenges that developing countries face in achieving and sustaining high economic growth and in creating more and better jobs.

The Country Growth and Jobs Report, a World Bank core diagnostics tool launched in early 2025, puts jobs at the center of country-specific analyses and recommendations. With that, governments can identify constraints not only to faster growth but also¡ªand more importantly¡ªpinpoint what can drive employment and quality of jobs. Country Growth and Jobs Report findings inform the , which frames the World Bank¡¯s engagement with client countries.  

Our cutting-edge research and engagement with global partners and client countries shed light on the challenges and opportunities posed by megatrends¡ªsuch as climate change, demographic trends, and technological advances¡ªin creating more and better jobs in developing countries.  

Last Updated: Mar 27, 2025