Ticking bomb: World Bank warns of critical job shortage by 2030

The world is facing a global jobs crisis that is hurting the chances of reigniting economic growth and there is no magic bullet to solve the problem, the World Bank warns. In a study released at a G20 Labour and Employment Ministerial Meeting in Australia, the Bank said an extra 600 million jobs needed to be created worldwide by 2030 just to cope with the expanding population. The report, compiled with the OECD and International Labour Organisation, said more than 100 million people were unemployed in G20 economies and 447 million were considered “working poor”, living on less than US$2 a day.

We’re also seeing wage and income inequality widening within many G20 countries, although progress has been made in a few emerging economies.

World Bank’s senior director for jobs, Nigel Twose

Despite a modest economic recovery in 2013-14, global growth is expected to remain below trend with downside risks in the foreseeable future, while weak labour markets are constraining consumption and investment. The persistent slow growth will continue to dampen employment prospects, the study says, and warns that real wages have stagnated across many advanced G20 nations and even fallen in some. G20 leaders, who meet in Brisbane in November, have called for each member country to develop growth strategies and employment action plans.

There is no magic bullet to solve this jobs crisis, in emerging markets or advanced economies.

Nigel Twose

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