Report on Decent and Sustainable Job Creation in Developing Countries

Introduction

At a public hearing hosted by the European Parliament’s Committee on Development, the International Labour Organization (ILO) emphasized the urgent need to prioritize decent job creation within development initiatives. The hearing, titled “Decent and Sustainable Job Creation in Developing Countries: Measuring the Impact of EU Projects”, highlighted the critical role of employment quality in achieving sustainable development.

Key Messages from the ILO

Sangheon Lee, Director of the ILO’s Employment Policy Department, delivered a clear message regarding the current shortcomings in development projects:

“Too often, development projects miss the opportunity to create decent jobs.”

He stressed that while many EU-funded investment projects generate substantial employment effects, these jobs often lack intentional design to ensure they are decent, measurable, and aligned with EU values.

Emphasis on Sustainable Development Goals (SDGs)

The ILO’s position aligns strongly with several Sustainable Development Goals, including:

• SDG 8: Decent Work and Economic Growth – promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
• SDG 5: Gender Equality – addressing the underrepresentation of women in employment gains.
• SDG 10: Reduced Inequalities – focusing on youth employment and informal sector challenges.
• SDG 9: Industry, Innovation, and Infrastructure – through infrastructure and employment-intensive investment projects.
• SDG 13: Climate Action – by integrating social and environmental impacts in development investments.

Insights from the STRENGTHEN2 Project

The ILO shared findings from its collaboration with the European Commission’s Directorate-General for International Partnerships (DG INTPA) through the STRENGTHEN2 project. This partnership has developed robust methodologies to assess employment impacts of development investments, particularly under the Global Gateway initiative.

1. More than twenty detailed evaluations have been conducted across sub-Saharan Africa.
2. Findings reveal substantial job creation but highlight uneven distribution and decent work deficits.
3. Women and young people remain underrepresented in employment gains.
4. Informality is widespread, especially in indirect jobs.
5. Imported inputs dominate many projects, limiting local employment potential.

Recommendations and Future Actions

To address these challenges, the ILO recommends:

• Integrating employment impact assessments throughout the entire project cycle, both before and after implementation.
• Building national capacity to conduct these assessments and embedding the practice within public institutions.
• Embedding labour rights, gender equality, and skills development into project cycles.
• Advising on social dialogue, occupational safety, and labour due diligence.
• Developing estimation tools for employment impact assessments based on typical infrastructure and employment-intensive investment profiles.

Conclusion

Sangheon Lee concluded the hearing with a strong call to action:

“We want growth that works for people. Decent job creation should not be an afterthought—it must be a core, measurable goal of EU development efforts.”

The ILO stands ready to deepen collaboration with EU institutions, development banks, and Member States to ensure that investments translate into quality jobs and improved livelihoods, thereby advancing the achievement of the Sustainable Development Goals.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article focuses on the urgent need for decent job creation in development initiatives, aligning directly with SDG 8’s goal to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
2. SDG 5: Gender Equality
   • The article highlights the underrepresentation of women in employment gains, emphasizing the need for gender equality in job creation.
3. SDG 10: Reduced Inequalities
   • Addressing youth employment and informality in jobs touches on reducing inequalities within and among countries.
4. SDG 9: Industry, Innovation and Infrastructure
   • The focus on infrastructure and employment-intensive investment projects under the Global Gateway initiative relates to SDG 9’s aim to build resilient infrastructure and promote inclusive and sustainable industrialization.
5. SDG 17: Partnerships for the Goals
   • The collaboration between ILO, European Commission, and other partners reflects SDG 17’s emphasis on strengthening global partnerships for sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8 Targets:
   • 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
   • 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities.
   • 8.8: Protect labour rights and promote safe and secure working environments for all workers.
2. SDG 5 Targets:
   • 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
3. SDG 10 Targets:
   • 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
4. SDG 9 Targets:
   • 9.1: Develop quality, reliable, sustainable and resilient infrastructure to support economic development and human well-being.
5. SDG 17 Targets:
   • 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships.
   • 17.17: Encourage and promote effective public, public-private and civil society partnerships.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Employment Impact Assessments:
   • The article mentions the development of robust methodologies and analytical tools for assessing employment impacts of development investments, implying indicators such as:
     • Number of jobs created (direct and indirect)
     • Quality of jobs created (decent work conditions, labour rights, occupational safety)
     • Representation of women and youth in employment
     • Level of informality in jobs created
     • Use of local versus imported inputs affecting local employment potential
2. Labour Rights and Gender Equality Indicators:
   • Indicators measuring gender equality in employment, labour rights observance, and social dialogue integration.
3. Capacity Building and Institutionalization:
   • Indicators related to the embedding of employment impact assessments in public institutions and national capacity development.

4. SDGs, Targets and Indicators Table

Source: ilo.org