The World Bank warned on Tuesday that South Asian nations run the risk of "squandering its demographic dividend" because job creation is not keeping up with the growth in the working-age population.

"Missing the demographic dividend might be dangerous. Franziska Ohnsorge, the chief economist for South Asia at the World Bank, told Reuters that it was wasted.

"If only they could get a job. Although there is a great chance to expand, employment ratios have been declining recently."

According to data in the paper, from 2000 and 2023, employment increased by 1.7% year while the working-age population rose by 1.9% annually.

When the working-age population grew by an average of 19 million per year, the area added 10 million employment annually on average.

The World Bank projects that South Asia's production would rise by 6.1% to 6.1% in the fiscal year that ends on March 31, 2025, mostly as a result of India's robust economic development, which is predicted to reach 6.6%.

The central bank of India projects a greater 7% growth rate throughout this time.

Following the epidemic, India's growth has recovered significantly because of government expenditure and, more recently, the construction sector. However, private investment in the third-largest economy in Asia has remained low, which has hampered the creation of jobs.

With the exception of Nepal, India's employment ratio fell significantly between 2000 and 22. However, according to World Bank estimates, early evidence points to a recovery in 2023 that might partially erase the previous fall.

"Overall, during 2000-23, employment growth was well below the average working-age population growth and the employment ratio declined."

In its research, the World Bank stated that in order to hasten the creation of jobs, South Asian countries must address a number of policy shortcomings.

These include labor and land market rules that are simplified, policies that incentivize profitable businesses to recruit staff, and increased trade openness with other countries.