The World Bank is tightening its rules around who gets hired on the projects it funds—especially when it comes to roads, bridges, or power infrastructure in developing countries. From September 2025 onward, any company bidding for major international construction work with World Bank money will have to commit at least 30% of their labor costs to local workers, the Bank announced in a press release.
The hope is straightforward: when contractors hire more workers from within local communities, it helps families earn an income, keep skills in the region, and creates a ripple effect for small businesses nearby. With more than a billion young people expected to enter job markets in developing economies over the next ten years, the Bank wants its funding to translate directly into paying jobs for those who need them most.
“This new requirement is part of our promise to create more jobs,” said Gallina Vincelette, Vice President for Operations Policy and Country Services at the World Bank. She stressed that using local labor brings immediate opportunities and builds longer-term skills that can stick with communities long after a project is done.
The change builds on earlier updates made in March, which pushed contractors to think beyond just bottom-line costs when competing for Bank-funded work. Now, bidders must show they will focus on quality—with an eye toward durability, the environment, and how their bids can bring benefits like job training or new local hires.
By ensuring that more jobs and paychecks stay close to project sites, the Bank aims to give local communities a bigger stake in the work, support broader participation, and help move economies from brick-and-mortar investments to real, lasting growth.
