Jobs Strategies and Country Work JOBS DIAGNOSTICS What

Jobs Strategies and Country Work

JOBS DIAGNOSTICS What type of structural transformations are taking place ? DEVELOPMENT OBJECTIVES Economic growth, poverty reduction, shared prosperity, youth employment? What types of transformations need to be accelerated ? JOBS STRATEGIES What are the policies, programs and priorities ? INVESTMENT OPERATIONS In which sectors and regions ?

JOBS are not the by-product of economic growth Jobs determine economic growth and changes in standards of living Jobs have social externalities: Social Value > Value Added Markets alone might not create enough and/or the "right type"

THE LINK BETWEEN INVESTMENT POLICIES, GROWTH AND JOBS IS NOT WELL UNDERSTOOD CGE Model for TUNISIA

Wood Text Trade Educ Const Agr Met Pap Health Tourism Elec Serv-bus Land-trnsp Chem Extr-Oth Extr-Oil Non-met Telec Util IT -100 THE LABOR INTENSITY; THE SKILLS/AGE/GENDER COMPOSITION OF JOBS; AND WHERE JOBS ARE CREATED VARIES BY SECTOR 0 100 200 300 400 500 Low skilled youth Low skilled non-youth Medium skilled non-youth High skilled non-youth 600 CGE Model for TUNISIA

Wood Text Trade Educ Const Agr Met Pap THE NUMBER OF INDIRECT JOBS CREATED VARIES BY SECTOR Health Tourism Elec Serv-bus Land-trnsp Chem Extr-Oth Extr-Oil Non-met Telec Food Util IT -100 0 100 200 Job Creation Direct 300 400 Job Creation Indirect 500 600 CGE Model for TUNISIA

COMPONENTS OF A JOBS STRATEGY SECTORAL REGIONAL POLICIES & PROGRAMS What market/government failures need to addressed to improve job opportunities ? VC ICTs and jobs Secondary towns Smarter ALMPs Working conditions & SI FUNDAMENTALS (macro, business environment, governance, education, infrastructure, labor policies) What do we do differently because of jobs ?

TUNISIA: DAUNTING CHALLENGES IN TERMS OF JOB CREATION AND JOBS QUALITY Active • 70 % < SECONDAR Y 48% (3. 9 m) • 90% 15 -34 Unpaid 3% (0. 1 m) Unemployed 18% Agriculture (0. 7 m) 37% (0. 2 m) Public Self-Employed 15% (0. 6 m) (2. 3 m) Non-Agri 63% (0. 4 m) Wage Employee 59% 32% (0. 7 m) Employer 5% (0. 2 m) Formal* Private 68% (1. 6 m) 59% Informal… 41%

EMPLOYMENT BY SECTORS Source: Author calculations using ENPE 2012 11

JOBS STRATEGY AND OPERATIONS FUNDAMENTALS COMPETITION LAW BANKING SECTOR REFORM INVESTMENT CODE FISCAL CONSOLIDATION LABOR TAXES AND SOCIAL INSURANCE JOBS FOCUS DEVELOPMENT OF VALUE CHAINS IN LAGGING REGIONS SECTORAL / REGIONAL BASIC SERVICES AROUND "JOBS POLES" NEW PROFILING SYSTEMS OF JOBSEEKERS AND ALTERNATIVE DELIVERY MECHANISMS OF EPS LENDING: Lagging Regions Youth Employment