First off, I do not believe that God created evil, I think that was a bad translation. Evil means profoundly immoral and wicked and it only applies to humans and their behavior.
Look at all the other translations below. What I think this means is that God sends us good times and bad times, God brings prosperity and creates disasters. I think that the reason God does this is to test our faith and also because suffering helps us grow spiritually.
Most people have more good times than bad times so they have something to thank God for but if life was always good times we would never be challenged and grow spiritually. Those people who have suffered most in life have the most character.
KJ21
I form the light, and create darkness; I make peace, and create evil; I, the Lord, do all these things.
ESV
I form light and create darkness; I make well-being and create calamity; I am the Lord, who does all these things.
KJV
I form the light, and create darkness: I make peace, and create evil: I the Lord do all these things.
NASB
The One forming light and creating darkness, Causing well-being and creating disaster; I am the Lord who does all these things.
NIV
I form the light and create darkness, I bring prosperity and create disaster; I, the Lord, do all these things.
NKJV
I form the light and create darkness, I make peace and create calamity; I, the Lord, do all these
things.’
NLV
I make light and I make darkness. I bring good and I make trouble. I am the Lord Who does all these things.
NLT
I create the light and make the darkness. I send good times and bad times. I, the Lord, am the one who does these things.
NRSV
I form light and create darkness, I make weal and create woe; I the Lord do all these things.
I believe these atrocities are all caused by humans, not by God. The most you can say, and many atheists say this, is that God should not allow these things to happen or as some atheists say God should intervene. From my belief perspective this is untenable because God is not Superman. That is what it would amount to if God intervened every time something “bad” was about to happen. It would upset the order in the world which is based upon free will choices.
I think a more useful question is why God created a world such as this in which He knew so many people would suffer, often through no fault of their own. Again, I think that the reason God created a material world is to test our faith and also because suffering helps us grow spiritually.