Saudi Arabia | Riyadh – The World Bank Group has called for urgent collaboration among industry stakeholders, regulators, and policymakers to address the widening global employment gap, with an estimated shortfall of 300 million jobs over the next decade.

Safaa El Tayeb El-Kogali, the Country Director for the World Bank Group in the Gulf Cooperation Council (GCC), made the call during the Global Labour Market Conference (GLMC) in Riyadh on Wednesday. She highlighted that over 400 million people worldwide are willing to work but remain unemployed, a figure that is expected to rise as 1.2 billion young people enter the workforce in emerging economies.

“This massive shortfall in job opportunities underscores the critical importance of the GLMC,” El-Kogali said. “The projected deficit represents not just a number, but a potential crisis with far-reaching social and economic consequences.”

The conference brought together global leaders, policymakers, and experts to strategize solutions for the growing employment crisis. Discussions focused on addressing skills mismatches, digital transformation, and demographic shifts affecting labour markets.

Youth Unemployment a Growing Concern

During a media parley, His Excellency, Engineer Ahmad Bin Salman Alrajhi, Saudi Arabia’s Minister of Human Resources and Social Development, underscored the urgency of the situation. He noted that 67 million young people are currently unemployed worldwide, while millions more struggle to find quality employment due to structural barriers.

“This issue is not merely economic—it has profound social implications that require urgent and comprehensive solutions,” Alrajhi said. “Supporting youth employment and equipping them with future-ready skills is a strategic investment in our societies and future generations.”

The minister emphasized that rapid technological advancements, demographic changes, and climate adaptation are critical factors reshaping labour markets. He called for proactive and bold action to prepare for the future.

Skills Mismatches and Structural Barriers

One of the key challenges highlighted at the conference was skills mismatches, which make it difficult for employers to fill vacancies despite high unemployment rates. According to the Organization for Economic Cooperation and Development (OECD), youth unemployment in OECD member countries reached an average of 11.3% in the third quarter of 2024, exceeding 20% in some nations.

“These figures highlight the urgent need for comprehensive strategies to address these common challenges effectively,” Alrajhi warned. “Labour market challenges affect both emerging and advanced economies, and Saudi Arabia is committed to tackling them domestically and through international partnerships.”

Successful Global Models in Job Creation

As part of the discussions, the conference showcased successful workforce development models from different countries, emphasizing the importance of skill-building initiatives.

• Germany’s Dual Vocational Training Program: A system that integrates classroom learning with on-the-job training, ensuring students graduate with industry-relevant skills.
• Singapore’s SkillsFuture Program: A national movement aimed at lifelong learning and upskilling workers to stay competitive in evolving job markets.
• Kenya’s Ijara Digital Program: A government initiative providing young people with digital skills and remote work opportunities.

“These models demonstrate that there are numerous solutions that can be developed and implemented to create an optimistic future for labour markets,” Alrajhi concluded.

Call for Global Action

The World Bank Group and the Saudi Arabian government reaffirmed their commitment to tackling global unemployment through policy innovation, education reforms, and digital transformation. As the world faces a growing youth employment crisis, leaders at the GLMC stressed that urgent collaboration is needed to equip young people with the skills and opportunities necessary for the future economy.

With millions entering the workforce in the coming decade, the time for action is now.