Jobs are considered a key result of effective development, according to the World Bank Group. The organization says that jobs not only help reduce poverty but also offer people hope, dignity, and better prospects for the future. As a result, the World Bank Group is changing its approach to ensure that all its operations focus on employment outcomes.
The World Bank Group highlights three main factors needed to create jobs: investing in basic infrastructure, fostering a business-friendly environment, and attracting private capital. Its public sector divisions—the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD)—provide funding for crucial human and physical infrastructure projects intended to help both individuals and businesses succeed.
In addition to financing, the organization works with governments to promote entrepreneurship and job creation by identifying sectors with high potential for growth and developing reforms tailored to stimulate these areas. However, it notes that public finance alone cannot meet global needs in a world where resources are limited.
To address this gap, other branches of the World Bank Group—the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA)—focus on mobilizing private investment through capital infusions, equity participation, and guarantees. These efforts aim to empower entrepreneurs and companies so they can grow their operations and generate new employment opportunities.
With an estimated 1.2 billion young people expected to enter working age within the next ten years, there is significant pressure worldwide to create enough jobs. The World Bank Group positions itself as a central partner in meeting this demand through its combined public- and private-sector initiatives.
"Jobs are the outcome of development done right and are the best way to end poverty and give people hope, dignity, and a better future.That’s why the World Bank Group is changing the way we do things—ensuring that all our operations have a clear line of sight to employment."