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“If we look at the next 15 years, there will be 1.2 billion young people graduating from schoolenter the labor market,” UNDP Administrator Alexander De Croo told a news conference in New York from Bangkok, where he was attending the World Bank Group’s International Monetary Fund (IMF) Annual Meeting.
“Unfortunately, only 400 million of them will find work, while 800 million of them will not.”
Mr De Croo said the gap was driven by demographics – in many developing countries, the median age is between 18 and 25 – and employment projections are no different based on current technological conditions.
“This will not happen by itself. This is the result of policyhe said.
Starting from investment to employment opportunities
Of these two initiatives, the Investment Accelerator will help the government improve investment policies and legal frameworks, build a pipeline of investment-ready projects and move them from preparation to implementation.
The Jobs for Prosperity Facility will help countries identify sectors that have strong job creation potential, align skills with what employers need, and overcome barriers to business investment and recruitment.
When asked whether artificial intelligence (AI) was a factor, De Croo said the projections could change through active employment policies, noting that sectors such as healthcare, agriculture and tourism will still create many jobs even as AI advances.
“Job creation is actually the only sustainable way for people to get out of povertyhe said.
Both initiatives are supported by expanded partnerships with the World Bank Group, the European Investment Bank and the European Bank for Reconstruction and Development, with Pilot initiatives are already underway in Nepal, Yemen, Haiti, Lebanon and Ghana.
A ‘triple surprise’
The launch comes as many developing countries face what De Croo calls a “triple shock”: high energy costs, one of the most severe El Niño events since 1950, and sky-high borrowing costs.
According to a new UNDP report, No Time to Recover, the median developing country now spends 9.5 percent of total government revenue on interest payments Alone.
For the first time since 2010, the number of people living in multidimensional poverty – which measures not only income but also access to electricity, water, health services and education – increased.
“These numbers should be a warning to us all,” said Mr De Croo.
Although the global economy has proven more resilient than expected, that resilience is uneven, he added.
“Some countries still have fairly strong economic fundamentals, while other countries don’t have enough fundamentals to withstand further shocks.”
