Promoting productive employment in Sub-Saharan Africa: A review of the literature
Adam Szirmai, Mulu Gebreeyesus, Francesca Guadagno & Bart Verspagen
#2013-062
This report provides an overview of current research on and knowledge
about employment trends and policies in sub-Saharan Africa. Access to
productive employment is seen as essential for poverty reduction and the
inclusion of the poor in wider society. Productive employment is
characterised by a. Sufficient income to permit workers and their
dependents a level of consumption above the poverty line; b. Stability
of this income over time (absence of vulnerability; c. Decent working
conditions and working hours. The challenge of African economies lies
not so much in open unemployment, as in the quality of employment as
defined by earnings, vulnerability and working conditions. Much
employment is located in the informal sector, where vulnerability is a
serious problem. High youth employment in young populations is another
serious challenge. Causes of employment problems include: lack of the
right kinds of structural change, skill mismatches on the labour market,
insufficient attention for SMEs with growth potential and insufficient
innovation. The paper discusses a wide range of policies to promote
productive employment including trade policies, sectoral policies,
innovation policies, population policies and employment and labour
market policies. The paper concludes with a discussion of emerging
debates and contrasting views with regard to productive employment. It
summarises the debates on agricultural led industrial development,
resource based industrialisation, emergence of non-traditional exports,
employment in labour intensive modern commercial agriculture, the role
of manufacturing in growth and employment creation, the exploitation of
unlimited supplies of labour, role of FDI and promoting pro-poor
innovation in the informal sector.
Key words: productive employment, vulnerability, working conditions,
unemployment, structural change, skill mismatches, employment policies
JEL classification : J21, J24, J28, J46, O2, O4