A. M. 
The private sector plays a crucial role in developing economies, generating 90% of jobs, 75% of investments and more than 70% of production, according to the World Bank. However, the quality of employment remains a pending issue, especially in a context of growing labor demand due to the increase in the youth population. This challenge is even more urgent in low-income countries, where most jobs are informal and precarious.
Currently, 84% of the world’s working-age population resides in developing countries. Of these, an alarming 70% of jobs are in the informal sector, characterized by low productivity, insufficient wages and unsafe working conditions. In low- and lower-middle-income countries, barely 25% of formal paid jobs are available, reflecting a profound gap in access to quality jobs.
Demographic pressure is exacerbating this problem. Between 2020 and 2030, 3.7 million young people worldwide will reach working age each month, increasing the urgency of generating sustainable job opportunities. Without proactive action, youth unemployment and labor informality could deepen, with far-reaching economic and social consequences.
Investing in strengthening the private sector is key to addressing these challenges. Promoting public policies that encourage formalization, boost productivity and improve working conditions could transform developing economies. In addition, workforce training and access to finance for small and medium-sized enterprises are key to creating more decent jobs.
Improving the quality of employment in developing countries is not only an economic necessity, but also a matter of social equity. As millions of young people enter the labor market, ensuring quality opportunities for them will be crucial to the sustainable development of these economies.
