By: Mathias Hangala
A recent World Bank report introduces a new publication providing policymakers with a practical guide for diagnosing labour market challenges and solutions perceived to address unemployment shortcomings.
The report read that governments around the world invest billions of dollars in labour market programs aimed at promoting self-employment and micro-entrepreneurship, supporting training initiatives, offering job placement services, and providing wage subsidies where all these efforts are designed to connect people with better employment opportunities.
The results, however, have been mixed, ranging from notable successes to underwhelming outcomes. The key question is, therefore, not whether these programs work, but rather what is the difference between a program that delivers real impact and one that falls flat.
To address this question, the World Bank Group, in partnership with the Global Labour Market Conference, released the ‘What Works for Work: A Guidebook to Promising Employment Solutions’ guidebook, which presents a comprehensive catalogue of more than 100 employment creation initiatives from around the world, offering policymakers a practical resource to identify challenges and select effective interventions.
While the report emphasises that structural reforms promoting long-term economic growth are essential for sustained job creation, it also recognises the urgency of addressing immediate employment needs as more than two billion people worldwide are said to remain trapped in informal and often precarious jobs.
Moreover, the guidebook said that employment solutions such as active labour market programs, regulatory reforms, and the alignment of social programs are increasingly viewed as critical tools for addressing these challenges.
The report highlights examples from low and middle-income countries where programs delivered earnings or employability improvements four to five times more than typical interventions.
In Nepal, for example, the Employment Fund Program boosted participant earnings by up to 72 percent through short, market-oriented vocational training and outcome-based partnerships with training providers where providers received higher payments for trainees who secured jobs, with additional incentives for enrolling individuals from vulnerable groups.
The report also spoke of Kenya’s Youth Employment and Opportunities Project, which provides grants and training to help individuals start or grow micro-businesses, which boosted annual earnings per beneficiary by approximately 50748.62 Kenyan Shillings. The program achieved an internal economic rate of return of 100 percent and recovered its costs in less than a year.
Similarly, the Bank found that Nigeria’s Community-Based Skills Training Program, focused on the conflict-affected northern regions, is seen to have boosted self or wage employment by 35 to 40 percent, self-employment profits by 38 percent, and wage employment income by 55 percent.
Despite operating in different contexts, these programs revealed five key design principles: contextual tailoring, comprehensive scope, incentive alignment, private sector engagement, and integration with social protection systems. By grounding interventions in evidence and applying these principles, governments can transform employment programs into strategic investments that foster more productive, inclusive, and resilient labour markets.
In Namibia, available data at the Labour Ministry indicates that government initiated a project aimed at addressing unemployment through improved labour market coordination. Established in 2011 under the Employment Service Act No. 8, the Namibia Integrated Employment Information System (NIEIS), managed by the Ministry of Labour, Industrial Relations and Employment Creation (MoLIREC), sought to connect job seekers with employers and promote employment opportunities.
In 2023, the Ministry mandated that all companies employing more than ten people must post job vacancies with the Ministry to ensure broader public access to employment opportunities. Non-compliance is expected to carry legal consequences, although the effectiveness of enforcement and compliance remains to be fully assessed.
It is stated that the overarching purpose of the NIEIS is to provide professional labour market services aimed at achieving full, productive, and decent employment. These services include assisting job seekers in finding suitable employment, recommending qualified candidates to employers, offering vocational and career guidance, and developing career guidance programs that build market-oriented competencies. However, compliance and adherence is still to be tested.
Through evidence-based employment programs and integrated labour market systems such as the NIEIS, governments can take meaningful steps towards reducing unemployment and improving economic stability for individuals and families.
