World Bank Group Warns of Growing Youth Employment Gap Amid Skills Mismatch

The World Bank Group has raised concerns over a potential widening employment gap as an estimated 1.2 billion young people are expected to enter labour markets across developing countries within the next decade.

Paschal Donohoe, Managing Director and Chief Knowledge Officer of the institution, cautioned that many of these young entrants may lack the skills required by employers, largely due to a growing disconnect between education systems and rapidly evolving labour market demands.

Speaking at the Vice Chancellor’s Occasional Lecture Series at the University of Ghana on Monday, March 16, he described the situation as a pressing global challenge. He noted that the issue extends beyond job availability to concerns about productivity and income levels, particularly for young people already engaged in work but struggling to advance economically.

He further observed that the nature of jobs is changing quickly, with roles expected to evolve significantly over the next decade. According to him, skills that were once adequate are becoming increasingly outdated, underscoring the need for continuous adaptation.

Paschal Donohoe indicated that the World Bank Group is focusing its development agenda on improving education and skills training, promoting job creation, and supporting entrepreneurship. He explained that current efforts aim to strengthen foundational learning, better align higher education with labour market needs, and expand opportunities for young people to access meaningful employment.

He added that equipping individuals with relevant skills and opportunities remains essential to enabling them to reach their full potential in a changing global economy.