As it stands, more than 100 million people are unemployed in the G20 economies and 447 million employees are "working poor" or living on less than $2 a day in emerging G20 economies, according to the report.
Echoing comments from Bank of England Governor Mark Carney, the report also said wage growth has significantly lagged behind productivity and real wages have stagnated or even fallen in most G20 countries.
"We are seeing wage and income inequality widening in many G20 countries, and if the goal is stronger, sustained and balanced growth then inequality cannot be ignored," Nigel Twose, senior director for jobs at the World Bank Group said.
"Equally, the situation of young people who are out of work is acute, and countries that ignore their plight do so at their own peril. There is no magic formula to solve this jobs crisis but we do know that it requires a 'whole of government' approach, involving the active collaboration of many ministries," he said.
Read MoreFriday's jobs data should show strong hiring trend
The members of the G20 comprise of a mix of the world's largest developed and developing economies, making up 66 percent of the world's population and over 75 percent of global trade.
The report, presented at the G20 Labor and Employment Ministers meeting in Melbourne on Wednesday, said policy interventions are "essential" to reverse the current cycle of slow growth, low job creation and low investment.
"The current situation calls for strong and well-designed employment, labor and social protection policies to address both cyclical and structural challenges, applied in conjunction with supportive macroeconomic policy mixes," the group said.
Look past the weak jobs report
"The effectiveness of such policies would greatly increase if actions are taken collectively at the G20 level in a coordinated manner," they added.
—By CNBC's Jenny Cosgrave: Follow her on Twitter @jenny_cosgrave