Reflections on the World Bank Annual Meetings: Jobs, dignity, and the future of work – World Bank Blogs

Report on Global Youth Employment and Sustainable Development

This report analyzes the critical challenge of global youth employment as discussed during the World Bank Group and IMF Annual Meetings. It frames the issue within the context of the United Nations Sustainable Development Goals (SDGs), highlighting strategic initiatives aimed at fostering inclusive economic growth and decent work for all.

The Scale of the Youth Employment Crisis and its Impact on the SDGs

The global employment landscape presents a significant challenge to the achievement of the 2030 Agenda, particularly for youth and women. This directly impacts progress on several SDGs.

• SDG 8 (Decent Work and Economic Growth): Projections indicate a severe jobs gap, with 1.2 billion young people expected to enter the labor market in the next 10-15 years, while only 400 million jobs are anticipated to be created. This leaves a shortfall of 800 million jobs, undermining the core objective of full and productive employment.
• SDG 1 (No Poverty) & SDG 10 (Reduced Inequalities): With approximately 80% of the world’s population projected to live in developing nations by 2050, the lack of employment opportunities threatens to exacerbate poverty and deepen inequalities, particularly affecting youth who are nearly three times more likely to be unemployed than adults.
• SDG 16 (Peace, Justice and Strong Institutions): High unemployment erodes social cohesion and can lead to instability and conflict. Meaningful work is a cornerstone of dignity, stability, and peacebuilding, especially in fragile states.

The World Bank’s Three-Pillar Strategy for Job Creation

In response to the employment crisis, the World Bank has articulated a three-pillar strategy designed to create an enabling environment for job growth, aligning with multiple SDGs.

1. Foundations: This pillar focuses on building the essential infrastructure and human capital necessary for economic activity. Investments in roads, electricity, education, and healthcare directly support SDG 9 (Industry, Innovation and Infrastructure), SDG 4 (Quality Education), and SDG 3 (Good Health and Well-being). An agricultural program in Ethiopia, supported by this approach, created nearly one million jobs, advancing SDG 2 (Zero Hunger) and SDG 5 (Gender Equality).
2. Policy: This involves assisting governments in creating transparent and predictable regulatory environments that encourage private sector investment. Fair taxation, secure land rights, and clear regulations are fundamental to achieving SDG 16 by strengthening governance and the rule of law.
3. Capital: Through the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), this pillar mobilizes private investment. This is a key mechanism for realizing SDG 17 (Partnerships for the Goals) by leveraging private sector resources for sustainable development and job creation.

Strategic Imperatives for Inclusive and Sustainable Employment

The report identifies several key strategic areas for maximizing the impact of job creation initiatives on the SDGs.

Fostering Local Economies and Key Growth Sectors

A primary focus is creating jobs where people live, reducing forced migration and building community resilience. The International Development Association (IDA) is instrumental in this by investing in local infrastructure, health, and education. The strategy targets five job-rich sectors with high potential for inclusive growth:

• Energy: Aligns with SDG 7 (Affordable and Clean Energy).
• Agribusiness: Supports SDG 2 (Zero Hunger).
• Healthcare: Contributes to SDG 3 (Good Health and Well-being).
• Tourism: Promotes sustainable economic growth under SDG 8.
• Value-added Manufacturing: Drives progress on SDG 9.

Technology as an Enabler for SDG 9

The role of technology, particularly Artificial Intelligence (AI), was identified as a potential tool for inclusion rather than a threat to employment. The concept of “small AI”—tools designed for local contexts to solve specific challenges in agriculture, health, or renewable energy—demonstrates an innovative approach to leveraging technology to advance SDG 9 and create new job opportunities in developing countries.

Conclusion: A Multi-Stakeholder Approach to Achieving SDG 8

The challenge of creating sufficient, decent work for the world’s youth is a defining issue for the 2030 Agenda. Employment is not merely an economic indicator; it is intrinsically linked to human dignity, social stability, and peace. Achieving SDG 8 requires a concerted, multi-stakeholder effort. As outlined in SDG 17, progress depends on robust partnerships between governments, the private sector, civil society, and youth themselves to transform the global jobs challenge into an opportunity for shared prosperity and sustainable development.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article primarily focuses on youth and women’s employment, economic growth, and the foundational elements required to create jobs, directly connecting to several Sustainable Development Goals (SDGs). The analysis reveals connections to the following SDGs:

• SDG 8: Decent Work and Economic Growth: This is the central theme of the article. The entire discussion revolves around the challenge of creating “meaningful work” and “formal employment,” particularly for a growing youth population.
• SDG 5: Gender Equality: The article explicitly mentions the theme of jobs for “youth and women,” highlighting the need to create opportunities for women, such as in the Ethiopian agricultural program where almost half the jobs created were for women.
• SDG 1: No Poverty: The article links unemployment to “despair” and suggests that jobs are the “surest path to dignity,” implying that employment is a critical tool for poverty alleviation.
• SDG 16: Peace, Justice and Strong Institutions: A dedicated section, “Jobs and Peace,” discusses how employment contributes to stability, eases community tensions, and builds trust, especially in “fragile and conflict-affected settings.”
• SDG 9: Industry, Innovation and Infrastructure: The World Bank’s “Foundations” pillar for job creation is cited, which includes building essential infrastructure like “roads, electricity,” which is a core component of this goal.
• SDG 4: Quality Education: The same “Foundations” pillar mentions “education” as a basic requirement that makes jobs possible, linking educational attainment to employment opportunities.
• SDG 17: Partnerships for the Goals: The concluding section, “A Shared Mission,” explicitly calls for “partnerships — between governments, civil society, the private sector” to tackle the jobs challenge, which is the essence of SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

The article’s content points to several specific SDG targets:

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. The article’s core focus on creating “meaningful work for a new generation,” especially for “youth and women,” directly aligns with this target.
• Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training. The article highlights the alarming statistic that “1.2 billion young people will enter the labor market, yet only about 400 million jobs will be created,” leaving 800 million without formal employment. This directly addresses the challenge outlined in Target 8.6.
• Target 5.b: Enhance the use of enabling technology, in particular information and communications technology, to promote the empowerment of women. The discussion on “small AI” as a tool for inclusion that can solve specific local challenges in sectors like healthcare and agriculture, where women are often employed, relates to this target.
• Target 16.1: Significantly reduce all forms of violence and related death rates everywhere. The article supports this by arguing that jobs contribute to peace and stability, stating that in fragile settings, employment programs “ease community tensions.”
• Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being. The World Bank’s strategy of building “foundations” for jobs, such as “roads, electricity,” is a direct reference to this target.
• Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. The mention of education as a foundational pillar for job creation implies the need for skills relevant to the labor market.
• Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The article concludes by stating that progress depends on “partnerships — between governments, civil society, the private sector, faith-based organizations, and young people themselves.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article provides several statistics and qualitative measures that can be interpreted as indicators for tracking progress:

• Youth Unemployment Rate: The article cites an ILO report stating that “young people are almost three times more likely to be unemployed than adults.” This comparative unemployment rate is a direct indicator for Target 8.6.
• Job Creation Gap for Youth: The statistic that “within the next 10 to 15 years, 1.2 billion young people will enter the labor market, yet only about 400 million jobs will be created” provides a quantifiable measure of the employment challenge. The “800 million” gap serves as a stark indicator of the scale of the problem.
• Number of Jobs Created in Specific Programs: The example from Ethiopia, where a “World Bank-supported agricultural program created nearly one million jobs,” serves as a project-level indicator of job creation.
• Proportion of Jobs Created for Target Groups (Women and Youth): The same example specifies that “almost half [of the jobs were] for women and youth,” which is a key indicator for measuring the inclusivity of job growth and progress towards Target 8.5.
• Volume of Private Investment Mobilized: The mention of the World Bank’s strategy to mobilize “private investment through the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA)” implies that the amount of capital mobilized for job-creating sectors is a relevant indicator for Target 17.17.

SDGs, Targets, and Indicators Table

Source: blogs.worldbank.org