By Anjali Sharma
Washington – World Bank President Ajay Banga on Monday has warned of a deepening global employment crisis, cautioned that a looming jobs gap could leave hundreds of millions without work in the coming decades, exacerbated by the prolonged West Asia crisis.
He noted that nearly 1.2 billion people will enter the working-age population in developing countries over the next 10 to 15 years. However, current economic trends are expected to generate only around 400 million jobs, leaving a deficit of roughly 800 million.
Banga emphasized that governments worldwide must balance immediate crises with long-term priorities, including job creation, access to clean water, and electrification.
“We have to walk and chew gum at the same time. The current environment is a short-velocity cycle dominated by geopolitical shocks,” he said.
Banga warned that failure to address employment gaps could fuel illegal migration and instability, pointed to UN estimates showing that more than 117 million people were displaced globally in 2025.
He had stated that the war in the Middle East would have a cascading impact on the global economy, even if a ceasefire announced by U.S. President Donald Trump holds.
Global growth could decline by 0.3 to 0.4 percentage points in a baseline scenario with an early end to the conflict, and by as much as 1 percentage point if it persists. Inflation could rise by 200 to 300 basis points, with a higher impact—up to 0.9 percentage points—if the war continues, he added.
Banga stressed that coordinated efforts involving development banks and private investors would be essential to address both immediate economic pressures and long-term structural challenges.
