Photo: Ting Shen / CNP / Keystone Press Agency / Global Look Press
This was stated by World Bank Governor Ajay Banga stated Reuters. He estimated that about 1.2 billion people in emerging economies will reach working age during this period, but only about 400 million jobs will be created if current trends continue.
The first reason for irregular migration
Banga said that despite the focus on short-term risks, including the conflict in the Middle East and its impact on global inflation, employment should remain the primary concern. Ignoring these issues could lead to increased irregular migration and greater instability, he said.
That is why during the spring meetings of the International Monetary Fund and the World Bank it is planned to discuss measures to stimulate employment. It is about improving the investment climate: increasing regulatory transparency, fighting corruption, reforming labor and land legislation, as well as reducing barriers to business and developing logistics and trade.
“Five Keys” from the World Bank
The World Bank identifies five key areas where accelerated job creation is possible. These are infrastructure, small farmer agriculture, primary healthcare, tourism and high value-added manufacturing.
Employment problems are also confirmed by data from the International Labor Organization. According to report “Employment and Social Trends – 2026”, the global job gap (the number of people who want to work but do not have the opportunity to do so) will reach 408 million this year.
Over 2 billion people work illegally
In addition, the ILO records a deterioration in the quality of employment. Nearly 300 million workers live in extreme poverty, and some 2.1 billion people are employed in the informal sector without basic labor rights and social protection. Real wages in many countries have not recovered from the inflationary shocks of recent years, holding back living standards.
Experts warn that without accelerated reforms and investment, the gap between the number of workers and available jobs will widen, increasing pressure on developing economies.
