IFC Jobs Study : Assessing Private Sector Contributions to Job Creation and Poverty Reduction
This report is the result of an open-source study to assess the direct and indirect effects of private sector activity on job creation. The report examines how and under what conditions the private sector can best contribute to job creation and pov...
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| Format: | Publications & Research |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/01/18687618/ifc-jobs-study-assessing-private-sector-contributions-job-creation-poverty-reduction http://hdl.handle.net/10986/16979 |
| Summary: | This report is the result of an
open-source study to assess the direct and indirect effects
of private sector activity on job creation. The report
examines how and under what conditions the private sector
can best contribute to job creation and poverty reduction.
The private sector, which provides some 90 percent of jobs
in developing countries, must be at the core of any response
to this double challenge. Therefore, it is crucial to
understand the constraints that private companies face in
creating jobs, and the public sector and development finance
institutions must help build an environment where these
obstacles are removed or minimized. This report aims to help
by providing an understanding of how the private sector
generates jobs, what constraints limit job creation, and how
these problems can be mitigated. The world is thus facing a
double jobs challenge: creating a large number of jobs and
creating better jobs. The economic crisis has added 27
million new unemployed; leading to a total of 200 million
unemployed worldwide in 2011. More than 600 million jobs
must be created in the next decade to ensure that
unemployment does not increase even further as millions of
young people enter the workforce. Private sector job
cre-ation is inextricably linked to overall development and
poverty reduction, making it crucial to understand how the
private sector creates jobs, what obstacles limit job
creation, and how those obstacles can be mitigated. This is
precisely the supporting role of the public sector: provide
the necessary macroeconomic environment and a supportive
investment climate. Development finance institutions can
support the public sector in that process, in addition to
working directly with private companies. Development cannot
take place without jobs. Therefore, the world needs to act
now to address the enormous jobs challenge that confronts
it. The main message for policymakers is that job creation,
socioeconomic development, and poverty reduction are not
independent, and thus policies aimed at these should be
designed and implemented in an integrated manner. In
particular, job policies should be a central part of any
development policy, and they should tackle the double-sided
challenge of generating more jobs and better jobs. The
second message is that because the private sector is the
main engine of growth and job creation, it is fundamental to
understand both what drives job creation and what obstacles
prevent the private sector from generating jobs. This report
aims to understand the effects of constraints and of
policies removing them on job creation, while identifying
the circumstances under which these policies are likely to
work. The report also contains some estimates of the
magnitude of the employment-generation effects. |
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