Number of ‘good jobs’ in Mozambique not expanding fast enough – Read the WB’s “Mozambique Jobs Diagnostic” here

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Number of ‘good jobs’ in Mozambique not expanding fast enough – Read the WB’s “Mozambique Jobs Diagnostic” here

1:36 CAT | 17 Aug 2018

Picture: WB

A newly released report titled Mozambique Jobs Diagnostic finds that “good jobs” in the country “are not expanding fast enough to absorb the growing, better educated labour force”. According to the report, “unless this changes, poverty reduction will slow and the ‘demographic dividend’ will be squandered”.

The report summary says that “jobs can be improved through linkages in the labour market, the product market and capital markets”. However, “whether in self-employment or in wage jobs, better jobs require capital, technology, market access, scale and agglomeration economies”, it adds.

Mozambique needs to accelerate the growth of labour-intensive formal firms and there is “potential in agriculture, manufacturing and services. There are also constraints”, which according to the study, are connected to “competitiveness, the business climate, regulations, capital market failures [and] infrastructure gaps”.

Another finding of the study points to the need of raising the ” productivity and earnings of smallholders and independent producers – e.g. through value chain linkages”.

Finally, the report indicates that “the growth of formal wage jobs and improving jobs in self-employment are complementary strategies, not alternatives”, and stresses that “local economy multipliers link the growth of formal firms, independent farmers and household enterprises”.