The research on employment-poverty linkages undertaken by the Department of Recovery and Reconstruction is based on an understanding that, although essential, economic growth is not a sufficient condition for poverty reduction. The pattern and sources of growth, as well as the manner in which its benefits are distributed, are equally important from the point of view of achieving the goal of poverty reduction. From this perspective, productive and remunerative employment (which, in turn, is an important component of decent work) assumes a central role in making economic growth pro-poor.

It is, therefore, essential to have a better understanding of the mechanisms through which the linkages between economic growth, employment and poverty reduction work. Likewise, employment considerations need to be integrated into development strategies in general and poverty reduction strategies in particular.  Productive employment for poverty reduction is one of the core elements of the ILO's Global Employment Agenda.

In view of the importance of employment as a route out of poverty, the ILO is undertaking a series of studies to examine the linkages between economic growth, employment and poverty. The main purpose of these studies is to contribute to the development of strategies and identification of policies that could be used to engender higher rates of economic growth and employment generation, thus achieving a faster reduction in poverty. The ILO is collaborating with SIDA and UNDP in implementing this programme.

Publications

Discussion Papers
Other Papers

Useful Links

ILO Governing Body discusses employment for poverty reduction

A cross-country analysis of the linkages between economic growth, employment and poverty

In general, research shows that an employment-intensive growth strategy, accompanied by a rise in productivity, is key to reducing the level of poverty via the income effect in the short run and through raising the productive capacity of the future workforce in the long run. To this end, policies must be directed at productivity-enhancing investments and the establishment of labour-intensive industries to generate employment for unskilled and semi-skilled labour in both rural and urban areas. Further policy implications include a need to focus on enhancing the human capital of the poor through a greater access to education (especially primary and secondary), skills and healthcare; improvements in physical infrastructure; easy access to credit; and the creation of social safety nets.

Future research on employment and poverty issues will include an analysis of factors determining the ability of the poor to integrate into the process of economic growth and benefit from it. In addition, the research will examine the contribution of employment-focused interventions and programmes in making economic growth more employment friendly and thus more pro-poor.