Employment creation

While employment creation in developing countries is high on the agenda of most donor agencies, there are different views on how to achieve it. This page brings together key publications offering insights into solutions and challenges in creating jobs.

At a glance: Short reads on employment creation

Synthesis Note: Employment Creation, DCED, 2017. This note summarises key research and debates on the most effective approaches for creating employment. Key take-aways include:

  • Labour-intensive light manufacturing industries, supported by a conducive investment climate, can deliver productive jobs for low-skilled workers at scale.
  • SMEs contribute a large share of employment in developing countries; however, as many fail, their net job creation rate is likely similar to large firms. Development agencies focused on job creation through SMEs should therefore target small firms that grow.
  • Creating wage jobs in the manufacturing and service sectors has great potential in the medium term, but increasing productivity and incomes of the many people in traditional agriculture also needs to remain a priority in the short-term.

DCED publications on employment creation

Key overview documents

The relationships between growth, employment and poverty reduction

Overview documents

Employment and poverty reduction

Country Assessments and sectoral employment studies

Constraints and solutions to employment in developing countries

The Impact of the Business Environment

The role of structural transformation and industrial development

The Potential of Skills and Innovation

Small and large enterprises in job creation

Job quality: promoting ‘decent work’ and productive employment

Reviews of interventions to support employment creation

Measuring employment

Photo credits

Photo credits: Tran Viet Duc/Canadian Development Assistance in Vietnam; Nata Sisvadze, ALCP Georgia