1.2 Billion Young People Face AI-Shaped Jobs as World Bank Pushes Skills Investment

The World Bank has highlighted the urgent need for governments to strengthen education, healthcare and workforce skills so young people can benefit from new technologies rather than struggle to compete in changing labour markets.

Over the next decade, around 1.2 billion young people in emerging economies are expected to enter the workforce, bringing enormous opportunities and challenges as artificial intelligence transforms the global job market. Millions of these future workers are growing up without essential educational foundations, with nearly seven in ten children in low- and middle-income countries unable to read and understand a simple text by age ten. The World Bank has highlighted the urgent need for governments to strengthen education, healthcare and workforce skills so young people can benefit from new technologies rather than struggle to compete in changing labour markets.

These concerns dominated discussions at the 2026 Human Capital Ministerial Conclave, organised during the World Bank Group and International Monetary Fund Annual Meetings in Bangkok. Representatives from 42 Human Capital Project member countries joined development organisations and private sector experts to explore how artificial intelligence, investment and educational reforms could improve employment opportunities. The discussions focused on preparing young people for technology-driven industries and strengthening cooperation between governments and businesses to develop a more capable workforce.

Investment in human capital remains one of the most important drivers of economic development, influencing productivity, employment opportunities and long-term living standards. According to the World Bank, differences in health, education and skills account for approximately one-third to two-thirds of the variation in income per person between countries. World Bank Managing Director and Chief Knowledge Officer Paschal Donohoe emphasised that developing people's capabilities is essential for unlocking individual potential, supporting economic development and creating better employment opportunities.

Strong Education and Human Skills Remain Essential in the AI Era

Education experts at the Conclave stressed that artificial intelligence cannot compensate for weak reading, writing and comprehension skills, making foundational learning essential for every child. UNICEF Executive Director Catherine Russell explained that technology should improve learning outcomes rather than replace traditional education, highlighting how AI tools can help teachers identify struggling students and support children with disabilities. These applications could make education more accessible and personalised, but teachers remain essential for guiding children and helping them develop the understanding needed to use technology responsibly.

Sandeep Aneja, Founder and Managing Partner of Kaizenvest, highlighted the importance of developing human abilities that artificial intelligence cannot easily replace, including creativity, perseverance and sound judgment. He also explained that governments establish the conditions in which markets operate, with private investors contributing funding, innovation and the willingness to take risks that can help successful solutions reach more people. Clear government policies and stronger partnerships with businesses could encourage investment in educational technologies, professional training and employment programmes designed around changing industry requirements.

Governments Explore New Ways to Finance Skills and Create Jobs

Sixteen government representatives shared different approaches to preparing young people for employment through public investment, private financing, financial incentives and emerging technologies. Some countries are using wage subsidies to cover part of employers' costs when hiring young workers, with many of these opportunities developing into longer-term employment contracts. Other governments are introducing national education and skills investment plans that encourage substantial private sector contributions, alongside tax incentives that make investment in education more attractive.

Digital learning platforms and artificial intelligence are also helping countries address educational challenges created by geographical distance, limited teaching resources and smaller populations. Examples discussed included AI-supported teaching across islands, shared digital training platforms for small island countries, national AI training programmes for young people and civil servants, and AI tutors being tested in secondary schools with World Bank Group support. Government representatives stressed that reliable internet access, strong digital infrastructure and responsible AI governance are necessary to protect people, encourage innovation and ensure that technological advances benefit a wider population.

Human Capital Network Expands to 102 Economies to Strengthen Workforce Development

The Conclave marked an important milestone for the World Bank's Human Capital Project as Botswana, Gabon, Kosovo, Mauritius, Thailand and Zimbabwe joined the international network in 2026. Membership has increased from 28 economies when the initiative began in 2018 to 102 economies, reflecting growing international recognition of the importance of investing in people's health, education and employment prospects. The network supports governments through research, data, policy discussions and country assessments that help them identify successful approaches and adapt reforms to national circumstances.

New member economies are pursuing different strategies to strengthen workforce development, including establishing national bodies that connect government institutions, educational organisations and industry representatives. Several countries recognise that having a large young population can support economic growth only when young people receive quality education, develop relevant professional skills, remain healthy and find suitable employment opportunities. Stronger cooperation between employers and educational institutions could help reduce skills gaps and create better connections between classroom learning and labour market requirements.

World Bank Group Vice President for People Mamta Murthi concluded the Conclave by emphasising the private sector's important role in financing skills development and introducing innovations that improve the effectiveness of government spending. She encouraged participating countries to continue sharing practical experiences and return for the 2027 Conclave to strengthen cooperation on human capital development. The discussions reinforced a central message for emerging economies: preparing young people for an AI-driven future requires sustained investment in basic learning, modern skills, healthcare and employment opportunities that allow technological progress to benefit society.