According to the World Bank, 620 million individuals are predicted to enter the working-age population in Sub-Saharan Africa by 2050. This makes the region the world’s largest supply of new workers during the next 25 years.
As populations age and workforces shrink in other regions, this demographic shift will put Africa at the centre of the global labour market.
According to World Bank forecasts, SSA’s population will increase from over 1.5 billion in 2024 to 2.5 billion by 2050, with over 600 million more individuals reaching working age.
However, researchers note that the continent’s growing population presents a significant economic challenge. It is still difficult to create enough productive occupations to hire millions of new workers annually.
The World Bank estimates that SSA will need to generate an average of 25m jobs annually through 2050 to keep pace with the expansion of its working-age population.
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That requirement is particularly challenging because economic growth across the region has not generated jobs quickly enough to match the expansion of the labour force.
The institution has therefore urged African countries to pursue more productive, diversified and private-sector-led growth, supported by investment in infrastructure, skills and institutions that reduce the cost of doing business.
The World Bank has identified infrastructure and energy, agriculture and agribusiness, healthcare, tourism, and value-added manufacturing as areas with strong potential to generate jobs at scale.
It will take more than government funding to realise that potential. According to the World Bank, enabling businesses to increase output and employment would depend on increased private-sector investment, better infrastructure, and a more favourable business climate.
It also said that as African economies integrate into new industries and shifting global supply networks, skills development will become more crucial.
Demographic change is especially important for Nigeria. As the most populated nation in Africa, if enough productive jobs are generated, its quickly growing labour force might contribute significantly to economic growth.
However, the same population expansion could worsen underemployment, unemployment, and pressure on household incomes if jobs are not created more quickly.
