The United Nations Development Programme (UNDP) has warned that about 800 million young people entering the labour market in developing economies over the next 15 years could be left without jobs if governments fail to take urgent action.
Alexander De Croo, UNDP administrator, gave the warning on Tuesday while announcing two initiatives aimed at helping countries create jobs and improve employment opportunities for young people.
Speaking at a press briefing in New York remotely from Bangkok, where he was attending the World Bank Group-International Monetary Fund (IMF) annual meetings, De Croo said about 1.2 billion young people would graduate from school and enter the labour market over the next 15 years.
“Unfortunately, for only 400 million of these, there will be jobs. For 800 million of these, there will not be jobs,” he said.
De Croo attributed the projected jobs gap partly to population growth, noting that many developing countries have a median age of between 18 and 25.
He said the situation was not inevitable and could be changed through deliberate government policies and interventions.
“That is not going to go by itself. This is the result of policy,” he said.
The UNDP administrator said sectors such as care, agriculture and tourism could provide significant employment opportunities, even as artificial intelligence (AI) continues to transform the world of work.
He added that the projections were based on current technological conditions but could change if governments adopted policies that actively promoted job creation.
“Job creation is actually the only real sustainable way for people to grow out of poverty,” De Croo said.
To address the challenge, the UNDP announced two initiatives designed to help countries expand employment opportunities and prepare young people for the labour market.
The Jobs for Prosperity Facility will help governments identify sectors with strong job-creation potential, align workers’ skills with employers’ needs and address barriers that discourage hiring.
The Investment Accelerator will support governments in improving investment policies and legal frameworks, developing projects ready for investment and moving them from preparation to implementation.
Both initiatives are backed by expanded partnerships with the World Bank Group, the European Investment Bank and the European Bank for Reconstruction and Development. Pilot initiatives are already underway in Nepal, Yemen, Haiti, Lebanon and Ghana.
The warning comes as developing economies face mounting financial and economic pressures that could constrain their ability to create jobs and protect vulnerable workers.
According to a new UNDP report, No Time to Recover, the median developing country now spends 9.5 per cent of its total government income on interest payments alone.
De Croo described the pressures facing developing countries as a “triple shock”, comprising high energy costs, one of the most pronounced El Niño events since 1950, and high borrowing costs.
He also said the number of people living in multidimensional poverty had increased for the first time since 2010. The measure considers not only income but also access to electricity, water, healthcare and education.
“Those numbers should absolutely be a wake-up call to all of us,” he said.
Although the global economy had proved more resilient than expected, De Croo said the recovery was uneven, with some countries better equipped than others to withstand further economic shocks.
The UNDP’s warning highlights the employment challenge facing developing economies, where a rapidly growing population of young people will need access to decent work, relevant skills and sustainable livelihoods.
