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The World Region

Reforming Employment Services: Three Steps to Big Change

Jacqueline Mazza's picture
Increasing the number of jobs publicly listed, enabling public and private institutions to better connect workers to jobs will not likely solve the jobs problem in developing countries. (Photo: Jonathan Ernst / WorldBank)


With the right kind of reforms, public employment services can do a better job of matching job seekers from poor households. In low and middle-income countries, individuals from poor households find jobs through informal contacts; for example asking friends and family and other members of their limited network. But this type of informal job search tends to channel high concentrations of the poor individuals into informal, low-paid work.

Job seekers especially from poor households need bigger, more formal networks to go beyond the limited opportunities offered by the informal sector in their local communities. This is where public employment services can help, but in developing countries many of these services just simply do not work well: they suffer from limited financing and poor connections to employers, and governments are looking for ways to reform and modernize them to today’s job challenges.

There are lots of cases where developing countries have improved their public employment services and these can serve as models. The lessons from these successful reforms can be distilled and replicated. Based on our recent publication, here are three case-tested strategies that improved the performance, relevance and image of public employment services.

Measuring youth employment projects: What can we learn from each other?

Jose Manuel Romero's picture
When it comes to youth employment projects, there is a lag in the spread of innovations due to the various contexts, funders, and organizations often operating independently. (Photo:  Flore de Préneuf / World Bank)


Youth employment projects face varying contextual realities and constraints that often result in generating innovations when adapting and customizing their monitoring and evaluation system. There is a lag in the spread of innovations due to the various contexts, funders, and organizations often operating independently. Project teams find their own solutions to similar rising challenges, which in some instances lead to a medley of methods and conventions in monitoring and evaluation that lack a uniform standard.

To capture some of the main innovations and challenges in monitoring and evaluation, we held our first Virtual Workshop with Solutions for Youth Employment (S4YE)’s Impact Portfolio, which is a group of 19 promising and innovative youth employment projects. This brought together 30 participants from locations spanning across regions. As our new report highlights, challenges include: measuring job creation; consistently measuring important outcomes such as the financial behaviors of entrepreneurs; and tracking beneficiaries after graduating from youth employment programs to measure labor market outcomes.

We covered two new frameworks varying in scope, from a broad overarching framework to track jobs-related outcomes of projects to a newly developed metric focused on cost-effectiveness.

Why Digital Payments are Key to Entrepreneurs’ Success

Leora Klapper's picture
Public and private sector actors have an important role to play to encourage the use of digital payments and improve access to the formal financial system. (Photo: Dominic Chavez / World Bank)


In high-income countries, entrepreneurs routinely accept electronic payments from customers and make electronic payments to suppliers, tax authorities and others. But in developing countries, where more than a third of adults report being self-employed, digital payments are an underdeveloped business tool – one that can provide significant benefits to both entrepreneurs as well as society by bringing more people into the formal financial system. With the rapid growth of mobile phone ownership to facilitate digital payments in the developing world, shifting from cash to digital payments offers high potential payoffs for entrepreneurs worldwide. A new report shows how digital payments can benefit entrepreneurs.

Building ladders of opportunity by connecting people to data

Jimena Luna's picture
Open data gives us the power to innovate and be competitive at the local and global level—but how do we unleash the potential to do more with data? (Photo: Arne Hoel / World Bank)


Every day, more of our decisions are data-driven and our lives become dependent on digital tools —think about the weather and transportation apps on your smartphone. Today, governments produce more data than ever before, yet the Open Data Barometer finds that most countries fail to "use open data to truly change people’s lives for the better." This open data sits unused, and citizens are not able to reap the economic benefits. There is a myriad of payoffs to using government data to tackle complex problems like finding jobs, affordable housing, better schools, and making communities thrive. Open data gives us the power to innovate and be competitive at the local and global level—but how do we unleash the potential to do more with data?

Four policy approaches to support job creation through Global Value Chains

Ruchira Kumar's picture
 Maria Fleischmann / World Bank

Mexico created over 60,000 jobs between 1993 to 2000 upgrading the apparel value chain from assembly to direct distribution to customers.  (Photo: Maria Fleischmann / World Bank)

As we discussed in our previous post, Global Value Chains can lead to the creation of more, inclusive and better jobs. GVCs can be a win-win for firms that create better jobs while they enjoy greater efficiency, productivity, and profits. However, there is a potential trade-off between increasing competitiveness and job creation, and the exact nature of positive labor market outcomes depends on several parameters. Given the cross-border (and, therefore, multiple jurisdictive) nature of GVCs, national policy choices to strengthen positive labor outcomes are limited. However, national governments can make policy decisions to facilitate GVC participation that is commensurate with positive labor market outcomes.

Global Value Chains: a way to create more, better and inclusive jobs

Ruchira Kumar's picture
Photo by Jonathan Ernst / World Bank

Global Value Chains are a win-win for firms that enjoy greater efficiency, productivity, and profits while they create better jobs (Photo by Jonathan Ernst / World Bank)
 
Global Value Chains (GVC) are significant vehicles of job creation, employing around 17 million people worldwide and carrying a share of 60 percent of global trade. As globalization increases, GVCs are becoming more relevant in international production, trade, and investments. And Global Value Chains also have an important effect on job creation, and these jobs usually have higher wages and better working conditions. Global Value Chains can become a win-win for firms, which enjoy greater efficiency, productivity, and profits while they create better jobs. Here are some revealing facts about the potential of GVCs to create more and better jobs.

Partnering to measure impacts of private sector projects on job creation

Alvaro Gonzalez's picture
Worker in Ghana
For the poor and vulnerable of the world, jobs are key to ending poverty and driving development. But not all jobs are equally transformational.  
Photo: Jonathan Ernst / World Bank

Jobs are what we earn, what we do, and sometimes even who we are. For the poor and vulnerable of the world, jobs are key to ending poverty and driving development. But not all jobs are equally transformational. Good jobs add value to society, taking into account the benefits they have on the people who hold them, and the potential spillover effects on others. For example, inclusive jobs, such as those that employ women, can change the way families spend money and invest in the education and health of children.  

Fear the disconnection, not the machine

Siddhartha Raja's picture
Will robots, artificial intelligence, and derivatives such as driverless cars or automated call centers put us all out of work? Maybe. But the more immediate worry is about the effect of businesses not adopting today’s technologies. If businesses do not invest in technology, they will fail to increase productivity and become non-competitive, limiting job creation. Their disconnection is the bigger risk to job creation, rather than the speculated job losses due to automation.
 

Three ways to develop a global partnership against youth unemployment

Andrew Devenport's picture
Susan Ogwengo lives in Kibera, in Nairobi, Kenya. Two years ago she started up a children’s day care centre which has grown into a successful business, employing others and enabling parents to go to work safe in the knowledge that their children were well looked after.
 
But she didn’t do it on her own.