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Indonesia’s structural transformation offers clues on where to find good jobs

Maria Monica Wihardja's picture

What goes up must come down.

The end of the commodities boom is a wake-up call for Indonesia, as the reversal in economic transformation has adversely impacted employment growth in recent years. How can Indonesia continue to create jobs for its growing labor force?

Jobs in manufacturing and services offer a solution, as historical patterns of job creation have shown.

In the past 20 years (excluding the economic crisis of 1997-1999), manufacturing and services have been important sources of job creation, while employment in agriculture continues to decline. From 1990 to 2015, jobs in agriculture fell to 34% from 56% of all employment, while service sector work has surged to 53% from 34%, and manufacturing jobs have increased from 10% to 13%.

Solomon Islanders rising up Jacob’s Ladder of opportunity

Evan Wasuka's picture

Geographically, the capital of Solomon Islands, Honiara, is a hilly city, a maze of ridges and valleys.

In front of me, concrete steps descend 30 meters down the face of a ridge, winding their way down in a gravity-defying manner; nothing else stands on the slope, it’s simply too steep.

The steps are part of a system of footpaths that link communities of thousands of people below to the main public road above.

Over the past 60 years as Honiara has developed, so too have informal settlements. These are often located at the bottom of steep valleys without basic services such as roads, water and electricity.

Finding employment for young people of all abilities

Matt Hobson's picture
Young women from family with members with disabilities being taught to use a sewing machine.
India. Photo: © John Isaac / World Bank

Today is the International Day of Persons with Disabilities.
In every society globally, unemployment rates for persons with disabilities are higher than for people without disabilities. The International Labor Organization reports that, in some Asia-Pacific countries, the unemployment rate of people living with disabilities is over 80%. 

Maintaining momentum in Myanmar

Axel van Trotsenburg's picture

Myanmar is undergoing a historic transition. After decades of armed conflict and economic stagnation, the country is beginning to make important strides toward realizing its potential and the aspirations of its people.

Our engagement in Myanmar started more than 60 years ago when it became a member of the World Bank, soon after gaining independence from British rule.

Back in 1955, the Bank’s first economic report stated: “the lack of security remains a disrupting influence on the economic life of the country” while “the long term economic potentials are bright” on account of its moderate population growth and abundant natural resources. It also noted the importance of “encouraging private sector enterprise to improve the standard of living of the people”— these are topics that continue to resonate in today’s development discourse.

In the early 1950s, Myanmar’s GDP per-capita was comparable to that of Thailand, Korea, and Indonesia.  Like others in the region, Myanmar was coming out from colonial rule and a period of struggle. Sixty years on, Myanmar has a per capita GDP just above $1,100, less than one third the average for ASEAN countries and one of the lowest in East Asia.

The good news is that Myanmar has begun the catch up process. Major political and economic reforms since 2011 have increased civil liberties, reduced armed conflict, and removed constraints to trade and private enterprise that long held back the economy.

Realizing the hopes of unemployed youth in Papua New Guinea

Walai Punena Jacklyn Tongia's picture

I met Gilford Jirigani at a workshop in Port Moresby a few months ago. What struck me about him was his natural confidence and poise as he captured the audience’s attention - including mine-as he told us how one project changed his life. He went from being an unemployed kid, down and out and unclear about his life in the city, to eventually becoming one of the pioneers of a youth program aimed at increasing the employability of unemployed youth in Port Moresby in 2012.

YouThink! Year in Review

Ravi Kumar's picture
I'm amazed by how young people around the world are innovating despite the numerous challenges they face. Their participation in the fight against poverty is crucial. At the World Bank, we know we can't end extreme poverty by 2030 without empowering youth.

What explains Vietnam’s stunning performance in PISA 2012?

Christian Bodewig's picture
The results from the Program for international Student Assessment (PISA) 2012 show that Vietnam’s general education system is more successful than systems in many wealthier countries in providing students with strong basic cognitive skills such as reading literacy and numeracy. Participating for the first time in PISA, Vietnam’s 15 year-olds perform on par with their peers in Germany and Austria and better than those in two thirds of participating countries.

Who creates jobs?

Ejaz Ghani's picture

The role of entrepreneurs in job creation has a long intellectual tradition (Cantillion 1730, Knight 1921, Schumpeter 1942). While the great economic minds throughout history recognized the link between entrepreneurship, regional development, and job creation, controversies remain. Our understanding of entrepreneurship is still at an early stage (Glaeser et al 2009, Klapper and Love 2011). How does one quantify entrepreneurship? Do young/small establishments or large/established firms contribute to job growth? Have manufacturing or service sectors created more jobs? What is the geographical scale at which entrepreneurial mechanics function? Why do some cities attract more entrepreneurs? Do agglomeration economies and networking differ across formal and informal sectors and industries, cities, and gender? What makes some local governments fiscally more entrepreneurial than others? These questions provide insights into job creation and they have rightly attracted the attention of researchers, but many of them remain unanswered.