Private sector development for job creation
As governments around the world are discovering, navigating to economic growth is highly complex.
Today, about 200 million people globally are unemployed (United Nations data). Estimates indicate that about 600 million new jobs will be needed worldwide in the next 15 years to absorb a burgeoning workforce. Otherwise, large portions of our national populations will be left behind: unproductive, unhappy and posing an increasing financial burden on social welfare programs.
How we can help
We have created a framework to help governments harness private sector development. The framework helps federal and provincial governments, donor agencies, international economic development agencies and not-for-profit organizations to drive inclusive growth through job creation.
Governments need to control growing social inequity and improve the structural integrity of national budgets. They need to find ways to drive inclusive growth, to support the conditions that deliver widespread job creation.
According to the World Bank, 9 of every 10 new jobs are created by the private sector. Although the private sector is the engine of inclusive growth, governments have an important role in making this engine run smoothly. Governments can promote inclusive growth and attract investments to priority sectors by improving governance, strengthening policy and regulatory frameworks, and developing a locally available skilled and qualified workforce.
View the latest thinking on job creation within EY and beyond
Our framework is designed to encourage entrepreneurial activity in organizations of all sizes and attract domestic and international investment.
It covers the six core elements required to increase employment opportunities, including:
- Business climate reform
- Increasing attractiveness
- Livelihood enhancement
- Micro, small and medium-sized enterprise development and access to finance
- Skill development
- Infrastructure development