Papua New Guinea’s economy grew by 5.6 percent in 2025, marking one of the strongest performances in the Pacific region.
However, the expansion has not translated into sufficient quality employment for the country’s rapidly growing population, according to a new World Bank report.
The findings underscore a persistent structural disconnect between macroeconomic growth and labor market outcomes in the resource-rich nation.
The World Bank warns that the widening employment gap could become the country’s defining development challenge unless urgent reforms are implemented.
With approximately 90 percent of the workforce remaining in the informal sector, the lack of formal job creation poses significant risks to long-term stability and inclusive growth.
The report emphasizes that closing this gap is not merely an economic priority but a critical developmental imperative for the next decade.