According to The Africa Competitiveness Report 2017, Africa is forecasted to produce just 100 million new jobs by 2035, while the working age population is projected to grow by more than 450 million. The fastest population growth will occur in the 15 to 35-year-old demographic. This growing working-age population presents both an opportunity and a potential risk to Africa’s future prosperity. To ensure these new workers engage in productive livelihoods and prevent significant increases in extreme poverty and civil unrest, governments will need to enable job creation, including scaling cost-effective livelihood development programs targeting the extreme poor. Described below is a cost-effective approach which is yielding promising results and scaling through results-based financing.
Active labor market programs (ALMPs) like job matching, training, wage subsidies, start-up support, and public works for the unemployed have a less than stellar reputation. “Ineffective,” “a ”charade,” and “a waste of money” are common labels one hears when discussing ALMPs; and even when positive effects of ALMPs are acknowledged, the sizes of these effects are portrayed as too small to bother. At the same time, these programs are widely used, not only in high-income countries, but also in many developing countries—often with the hope that they solve many labor market problems, in particular, unemployment. Are policymakers wrong to pursue these programs?
The view that a productive agriculture is critical for employment creation and poverty reduction is now widely shared within the development community. Yet, this has not always been the case. In the run up to the 2008 world food price crisis, many development practitioners, government officials and economists doubted whether agriculture could still play this role, especially in Africa. Agro-pessimism had set in during the 1990s and 2000s, with a decline in policy attention and agricultural investment. The food price spikes of 2008 brought a realization that more needed to be done to strengthen agriculture in developing countries.
Non-farm household enterprises provide an important opportunity for employment in Tanzania. Agriculture is still the primary economic activity of the country, but the economy is shifting away from it and the number of people employed in this sector has been declining since 2006. At the same time, nearly 850,000 individuals a year enter the labor market seeking gainful employment and non-farm household enterprises are growing rapidly. Across the country, 65.9% of households reported household enterprises as a primary or secondary employment.
Due to the growing importance of non-farm household enterprises, our team conducted a study to understand why household enterprises are not growing and what their major constraints are to productivity gains.
Starting this month, an estimated 9 million women will be able to get behind the wheel in Saudi Arabia after the historic announcement in September last year lifting the ban on women from driving. While international attention has often focused on the driving ban on women in Saudi Arabia, it has often missed the fact that women in several other countries are legally debarred from certain driving jobs. The World Bank’s recently released Women, Business and the Law 2018 report finds that 19 countries around the world legally restrict women from working in the transport sector in the same way as men.
Over the next several decades, Pakistan is poised to become the fourth most populous country in the world. With nearly 53 million active youth (under 25) and a high youth unemployment rate, the challenges of inclusion and empowerment of these young people will continue to grow. Gender disparities also persist with Pakistan having one of the lowest female labor force participation rates in the South Asia region.
Finding a job is a challenging process ---and it can be especially difficult and overwhelming for youth and people entering the labor market for the first time. Youth unemployment rates in Sub-Saharan Africa are double those of adult unemployment for both men and women. Estimates show that 11 million youth will enter the labor market in Sub-Saharan Africa each year for the coming decade. This offers the potential to dramatically reduce poverty. But to make the most of this opportunity, young people need to engage in productive employment that fuels economic growth. In this blog, we present two simple and effective strategies to support job seekers to find employment.
Ghana was the first country in Sub-Saharan Africa to meet the Millennium Development Goal (MDG1) target of halving extreme poverty by 2015. A share of the population living in poverty decreased from 52% in 1991 to 24% in 2012. Ghana is eager to lead the way in Africa again, but this time to graduate extreme poor households, out of poverty. The current policy debates are around graduating in about three to four years some 8.4 % of households living in extreme poverty. But to what occupations?
Connected cities use urban infrastructure and transportation networks to boost access to economic opportunities and job creation. In Port-Au-Prince, Haiti, a project recently analyzed the flows of people within the city’s network using cell phone data. The study identified the most critical links in the urban transportation system that can connect people to jobs and businesses to markets. The project won the World Bank Group’s Fiscal Year 2018 Presidents Award for Excellence for using disruptive technology to collect data.