Good jobs are the surest pathway out of poverty: Rising wages account for around 40% of the drop in poverty over the last decade. But the developing world faces a jobs crisis that hampers efforts to end extreme poverty and to boost shared prosperity. Over two billion people of working age are out of the labor market, and over 65% of workers —which add up to other two billion people— work in low-productivity jobs, are self-employed, or do not earn enough to escape from poverty. The three main challenges most developing countries face in varying degrees are:
- Creating more jobs. Around 600 million jobs must be created over the next 15 years to increase employment rates and absorb the youth entering the labor market. This requires supporting private sector growth.
- Increasing the quality of jobs. Just having a job is not enough: What makes a difference is having a more productive job, with good working conditions, and social protection. Besides creating as many formal jobs as possible, it is also crucial to improve productivity and earnings of jobs in the informal sector—which are the primary source of income for most of the population in low-income countries.
- Connecting people to jobs. Not all workers have the same opportunities: women, youth, and the poorest are disadvantaged in the labor market. We must reduce any means of discrimination or barriers to employment, and ensure that workers have the skills required in today’s modern job market.
Last Updated: Apr 10, 2018