Source: IFC

IFC, the largest global development institution focused on the private sector in developing countries,  has completed a study on job creation by the private sector. The findings of the study was launched on  January 14, 2013 at the IFC's offices in Washington, DC.

High levels of unemployment, especially among youth, and large numbers of low-quality jobs are problems in developing countries around the world, and therefore creating more and better jobs is an urgent priority.

Jobs are much more than monetary income; they are the cornerstone of development. Jobs boost living standards, raise productivity, and foster social cohesion, and they are the main path out of poverty.

Currently 200 million people are unemployed globally, and the unemployment rate for youth is more than 2.5 times higher than that of adults. By 2020, 600 million jobs must be created in developing countries—mainly in Africa and Asia—just to accommodate young people entering the workforce.

The private sector provides 9 out of 10 jobs in developing countries, and therefore plays a key role in creating the new jobs needed and fostering growth. It is crucial to understand the constraints that prevent the private sector from growing and generating jobs.

Support for the Study

We gratefully acknowledge the financial support from The Netherlands' Ministry of Foreign Affairs, Switzerland's State Secretariat for Economic Affairs (SECO) and by UKaid from the Department for International Development.

We would like to thank the team of people who helped prepare this report. They include the core team of authors, members of an external advisory panel, IFC and World Bank colleagues who helped with several case studies and research, operational colleagues who provided inputs, private sector clients, donor partners, and colleagues who supported the production of the report.