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How much does it cost to create a job?

David Robalino's picture
A $10 million investment can actually create just a couple hundred direct jobs. / Photo: Nugroho Nurdikiawan Sunjoyo / World Bank (Yogyakarta, Indonesia)

Creating more and better jobs is central to our work at the World Bank and a shared goal for virtually all countries —developed and developing alike. But oftentimes the policy debate turns to the cost and effectiveness of programs and projects in creating jobs.
 
As an example, I recently found myself in the middle of a discussion regarding a development project aimed at creating employment:  one of the reviewers objected given that the cost per job created was too high. “More than $20,000 per job,” he said, comparing it to much lower numbers (between $500 and $3,000 per job) usually associated with active labor market programs such as training, job search assistance, wage subsidies, or public works.
 
But what is the rationale behind these numbers?

In evaluating development projects, pressing for better tools in measuring job creation

Alvaro Gonzalez's picture
We learned that from potatoes and waste recycling in Lebanon to aquaculture and poultry in Zambia, it is possible to have a standardized base guideline; however, the methodology still needs to be adjusted for specific economic, political and social contexts. (Photo: Dominic Chavez / World Bank)


There is a well-known idiom saying that you can't compare apples and oranges. But this is precisely the challenge researchers often face when it comes to measuring the jobs impact of development projects. Having standardized impact evaluation tools and methods is a milestone for private sector-led job investments, and it allows international financial institutions, development practitioners, and governments to build on existing knowledge to develop solutions. And this is precisely one of the goals that Let's Work partnership, composed of 30 different institutions, is currently pursuing; to track the number of jobs generated from private sector-led interventions, the quality of those jobs, and how inclusive those jobs are in a standardized way, so apples are compared to apples and oranges to oranges.

#1 from 2017: Future jobs for youth in agriculture and food systems: Learning from our backyard in DC

Iftikhar Mostafa's picture
Our Top Ten blog posts by readership in 2017. This post was originally posted on March 14, 2017.
 
When we think of agriculture and food, we think of a farmer working in a rural area producing food for consumption and selling some surplus.  With growing urbanization and increasing demand for food, food system has moved away from just agricultural production. It involves aggregating, value addition, processing, logistics, food preparation, restaurants and other related services.  Many enterprises from small to large are part of the enterprise ecosystem.  The potential for new jobs for youth who start and are also employed by their enterprises is significant. The Africa Agriculture Innovation Network (AAIN) has developed a business agenda targeting establishment of at least 108 incubators in 54 African countries in the next 5 years focusing on youth and women among other actors. At least 600,000 jobs will be created and 100,000 start-ups and SMEs produced through incubation and 60,000 students exposed to learn as you earn model and mentored to start new businesses.


In recent past, there have been many innovations in areas of technology, extension, ICT, education, and incubation leading to new generation of enterprises and enterprise clusters resulting in the creation of good quality and new jobs in agriculture and food systems. A key challenge in the future is how we create more and better jobs in the agriculture and food system value chain. One of the major requirements for creating more jobs is a radical change in the way youth are taught agriculture and entrepreneurship. The skills required for a modern agriculture and food system are of a higher order and need to be upgraded significantly.

As part of the 2017 Global Learning Forum more than 250 staff in the Agriculture Global Practice from around the world are learning how Agriculture and Food Systems are going to look like in future. The group participants visited the Urban Food Hubs Program being managed by the University of the District of Columbia (UDC). The Urban Food Hubs focus on four components: food production, food preparation, food distribution, and waste and water recovery.

Using technology to promote youth employment: How to develop digital solutions

Gabriela Aguerrevere's picture
Partners have developed a human-centered approach in developing digital platforms for youth. Photo: Sarah Farhat/ World Bank

How and when can we use technology to design and implement youth employment programs? We should ask ourselves whether investing in digital solutions is worth the time and money before deciding to include a digital component in our projects, because as much as technology can be transformative and help provide solutions, it is both expensive and time-consuming. Furthermore, we need to make sure we fully understand the problem that we are trying to solve.

Tackling job creation in North Lebanon through investment in value chains

Thomas Farole's picture
Thomas Farole, one of the authors of the report, explains three ways of understanding North Lebanon's jobs challenges and opportunities. (Photo: Sonia Madhvani and Timothy Clay / World Bank)


North Lebanon’s beauty has been tarnished for several decades by an environment of conflict and violence, which has contributed to high levels of poverty and marginalization. More recently, the region’s challenges have been aggravated by a large influx of Syrian refugees —around 1.5 million refugees with a population of just 4.5 million people—, fleeing war in their country and seeking livelihoods in a place where good jobs are scarce for its own citizens.

Creating more and better job opportunities in such contexts could seem complex. But even in its fragility, Lebanon still has a chance to spur job creation and put the region back on the path to prosperity.

Here are three ways to understanding North Lebanon’s jobs challenges and opportunities, based on our recent World Bank report ‘Jobs for North Lebanon: Value Chains, Labor Markets, Skills and Investment Climate in Tripoli and the North of Lebanon’.
 

How young people are rethinking the future of work

Esteve Sala's picture
(Photo: Michael Haws / World Bank)


When we talk about the future of work, it is important to include perspectives, ideas and solutions from young people as they are the driving force that can shape the future.  As we saw at the recent Youth Summit 2017, the younger, digitally-savvy generations —whether they are called Millennials, Gen Y, or Gen Z— shared solutions that helped tackle global challenges.  The two-day event welcomed young people to discuss how to leverage technology and innovation for development impact.  In this post, we interviewed —under a job-creation perspective—finalists of the summit's global competition.

Satellite factories create more jobs for women in rural Jordan

Michelle Davis's picture
Also available in Arabic
In Jordan, only 14% of women are in the labor market, and job opportunities for them are scarce. (Photo: Mohamed Essa / IFC)

Many countries struggle with creating more and better jobs, especially when they try to increase the number of women in the labor market. Integrating women from more traditional, rural communities is especially difficult. And, if we are talking about a country with the second lowest female labor participation in the world, it might seem like an impossible task. This is exactly the situation that Hashemite Kingdom of Jordan faced a few years ago, and today they provide an interesting example of how innovative policies can address this challenge.

The innovation imperative: How Asia can leverage exponential technologies to improve lives and promote growth

Amira Karim's picture
Singapore: Global Innovation Forum

Robots will take over our jobs, disrupt our industries and erode our competitiveness.
 
Such were commonly expressed fears about advances in automation, artificial intelligence, and 3D printing – key representations of exponential technologies – during the inaugural Global Innovation Forum that took place in Singapore.
 
While robots continue to bear the brunt of public skepticism, participants at the Forum also expressed optimism about the emergence of innovations that could dramatically transform the quality of life for the poorest people in society, particularly in Asia, the region that was acknowledged by many participants as leading the pace of innovation around the globe.

Should people be paid to apply for jobs? Guest post by Stefano Caria

This is the sixth in this year’s job market series 
                                                                          
Labor misallocation is believed to be a key driver of differences in income across countries (Hsieh and Klenow 2010). However, the causes of this misallocation are not always well understood and there is little evidence on what interventions can improve the allocation of workers in the economy. These issues are particularly important in Sub-Saharan Africa, where worker mobility from low to high productivity sectors is often limited (McMillan, Rodrick and Verduzco-Gallo 2014).
 
My job market paper provides new experimental evidence from Ethiopia showing that subsidizing job applications can reduce inefficiencies in the allocation of workers’ talent.


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