DEVELOPING economies like the Philippines should intensify their job-creation programs to address the widening gap between new work entrants and job availability, according to a recent report.
The World Bank has warned that over the next 10 to 15 years, 1.2 billion young people in developing countries will come of working age, a scale the world has never seen.
“On current trajectories, these economies are expected to generate only about 400 million jobs over that same period—leaving a gap of staggering proportions,” said the article.
In the Philippines, the Philippine Statistics Authority late last year reported that its latest Labor Force Survey indicated a rising unemployment rate as the number of new entrants went up from 1.25 million in July 2024 to 1.7 million in July 2025.
The Employers Confederation of the Philippines has confirmed in recent interviews that job creation is lagging behind the needs of new job seekers because of many factors, including a lack of investments due to poor investor confidence, corruption allegations, and the high costs of transportation, electricity, and fuel.
The World Bank report said that while the global labor situation is often framed as a development challenge, it is also an economic challenge and “increasingly a national security challenge.”
“If we invest early in people and connect them to productive work, this vast new generation can build lives of dignity and become a foundation for growth and stability. If we do not, the consequences are predictable: pressure on institutions, irregular migration, conflict, and rising insecurity as young people reach for any path available to them,” it said.
Job strategy
The report outlined a three-pronged job strategy to address the impending crisis.
One measure is to create both human and physical infrastructure, noting that without reliable power, transportation, education and healthcare, private investment and jobs won’t materialize. While the role of physical infrastructure is well understood, investment in people through training and education aligned with real market demand is equally critical.
Also vital is to create a business-friendly environment. Clear rules and predictable regulations reduce uncertainty and improve the ease of doing business. Jobs are generated when entrepreneurs and firms have the confidence to invest and expand. Public resources can help unlock that process, but job creation at scale depends on the private sector—especially MSMEs that generate most employment.
It is also necessary to help businesses scale by providing financing, guarantees, and risk insurance, which will drive the growth of firms.
The report said that by 2050, more than 85 percent of the world’s population will live in developing countries, representing not only the largest expansion of the global labor force in history, but the largest growth in future consumers, producers, and markets.
Developing countries benefit from a strategic job strategy because jobs create income, stability, and dignity while strengthening domestic demand and giving young people a reason to invest in their future at home rather than look elsewhere.
Developed countries gain as well. As developing economies grow, they become stronger trading partners, more resilient supply-chain anchors, and more stable neighbors.
And for the private sector, this represents one of the largest opportunities of the coming decades. “Rapid population growth means sustained demand for energy, food systems, healthcare, infrastructure, housing, and manufacturing,” said the report. / PHILEXPORT NEWS AND FEATURES