Vanguard (Lagos)

20 January 2013

Nigeria: 600 Million Jobs Needed to Address Global Unemployment By 2020 - World Bank

Photo: Manoocher Deghati/IRIN
A fruit vendor.

A World Bank report said that about 600 million jobs are needed to address global unemployment by 2020. The report was released last week as a companion report to the World Bank's World Development Report 2013 on Jobs, released last October.

In a joint communiqué issued at the launch of the report, 25 leading international finance institutions immediately pledged to work together to address job creation, and learn from each other's experience. Also the study found that 45 million people enter the workforce each year, yet more than a third of companies studied across the globe were unable to find employees with the skills that they needed.

"About 200 million people are unemployed globally, especially in developing countries."

The study, "assessing private sector contributions to job creation," concludes that four obstacles pose a particular challenge to job creation in the private sector: a weak investment climate, inadequate infrastructure, limited access to finance for micro, small, and medium enterprises; and insufficient training and skills. "Removing these obstacles can significantly increase job creation."

According to the World Bank, "The answer to unemployment lies with the private sector, which provides nine out of every 10 jobs in developing countries, and therefore plays a key role in creating the new jobs needed and fostering growth. It is crucial to understand the constraints that prevent the private sector from growing and generating jobs.

"Certain stand-alone reforms, such as those affecting business entry, taxation, competition and secured transactions have demonstrated a positive impact on growth and jobs. A lower tax rate and investment promotion efforts can help attract foreign direct investments," the World Bank explained.

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