The World Bank has warned that Nigeria and several other developing countries risk facing a major employment crisis in the coming decade due to surging youth populations and inadequate job creation.
In a recent blog post, the Washington-based institution noted that demographic shifts across developing economies are accelerating, with an estimated 1.2 billion young people expected to enter the workforce within the next 10 to 15 years.
However, projections indicate that only about 400 million new jobs may be created during that period, potentially leaving an employment gap of roughly 800 million.
World Bank Group President Ajay Banga described the widening mismatch between labour supply and job availability as more than just a development challenge. He cautioned that it poses significant economic and national security risks.
According to Banga, failure to address the employment gap could trigger social unrest, increased irregular migration, and added pressure on public institutions. He also observed that global platforms such as the World Economic Forum have devoted less attention to long-term demographic risks compared to immediate crises like conflicts and financial instability.
“This challenge is not only a development issue,” Banga stated. “It is an economic challenge and increasingly a national security concern.”
The Bank stressed that if managed effectively, demographic growth could drive economic expansion and stability. However, without deliberate policies to translate economic growth into large-scale, productive employment, countries such as Nigeria may struggle to absorb their expanding youth workforce.
The institution urged developing economies to prioritise job creation strategies that ensure growth directly benefits their growing populations.
