Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market
Strong economic growth continued in 2014-15, but the drought slowed down Ethiopia’s growth to 8 percent in 2015-16. Exports have had their worst performance in the last decade and the current account balance remained large. Inflation is remarkable...
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/463121480932724605/5th-Ethiopia-economic-update-why-so-idle-wages-and-employment-in-a-crowded-labor-market-draft-for-public-launch http://hdl.handle.net/10986/25747 |
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okr-10986-257472021-06-14T10:14:23Z Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market World Bank Group economic growth economic outlook monetary policy labor market unemployment wage trends Strong economic growth continued in 2014-15, but the drought slowed down Ethiopia’s growth to 8 percent in 2015-16. Exports have had their worst performance in the last decade and the current account balance remained large. Inflation is remarkable stable given the recent drought and even declining; it stood at 5.6 percent in October 2016. Understanding the nature of urban labor markets is important for a successful transition to a manufacturing and service-oriented economy and to further reduce poverty. Many urban labor market trends are moving in the right direction although there has been little change in the structure of urban labor markets over time. Although jobs are being created faster than growth in the urban workforce, not enough jobs are being created for those with primary and secondary education. This economic update offers five policy recommendations to enhance urban labor markets: encourage firm creation and firm growth that creates jobs for non-graduates; increase labor productivity in the low-skill population segment by addressing constraints faced by firms in accessing capital (financial and physical) to ensure that the marginal product of labor increases above the nutrition-based wage; invest further in job training and technical training programs to build the skills of those in the job market: both for low-skilled workers to increase their productivity and for those with higher levels of education to increase their skill base; introduce targeted urban safety nets and labor market programs to invest in skills of low skilled employees and the unemployed, and provide financial support to enable their job search; and enhance the use of information communication and technology (ICT) to provide information on job vacancies throughout the city and reduce the cost of job search. 2016-12-14T22:54:00Z 2016-12-14T22:54:00Z 2016-12-02 Report http://documents.worldbank.org/curated/en/463121480932724605/5th-Ethiopia-economic-update-why-so-idle-wages-and-employment-in-a-crowded-labor-market-draft-for-public-launch http://hdl.handle.net/10986/25747 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work Africa Ethiopia |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
economic growth economic outlook monetary policy labor market unemployment wage trends |
| spellingShingle |
economic growth economic outlook monetary policy labor market unemployment wage trends World Bank Group Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market |
| geographic_facet |
Africa Ethiopia |
| description |
Strong economic growth continued in
2014-15, but the drought slowed down Ethiopia’s growth to 8
percent in 2015-16. Exports have had their worst performance
in the last decade and the current account balance remained
large. Inflation is remarkable stable given the recent
drought and even declining; it stood at 5.6 percent in
October 2016. Understanding the nature of urban labor
markets is important for a successful transition to a
manufacturing and service-oriented economy and to further
reduce poverty. Many urban labor market trends are moving in
the right direction although there has been little change in
the structure of urban labor markets over time. Although
jobs are being created faster than growth in the urban
workforce, not enough jobs are being created for those with
primary and secondary education. This economic update offers
five policy recommendations to enhance urban labor markets:
encourage firm creation and firm growth that creates jobs
for non-graduates; increase labor productivity in the
low-skill population segment by addressing constraints faced
by firms in accessing capital (financial and physical) to
ensure that the marginal product of labor increases above
the nutrition-based wage; invest further in job training and
technical training programs to build the skills of those in
the job market: both for low-skilled workers to increase
their productivity and for those with higher levels of
education to increase their skill base; introduce targeted
urban safety nets and labor market programs to invest in
skills of low skilled employees and the unemployed, and
provide financial support to enable their job search; and
enhance the use of information communication and technology
(ICT) to provide information on job vacancies throughout the
city and reduce the cost of job search. |
| format |
Report |
| author |
World Bank Group |
| author_facet |
World Bank Group |
| author_sort |
World Bank Group |
| title |
Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market |
| title_short |
Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market |
| title_full |
Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market |
| title_fullStr |
Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market |
| title_full_unstemmed |
Fifth Ethiopia Economic Update : Why So Idle? Wages and Employment in a Crowded Labor Market |
| title_sort |
fifth ethiopia economic update : why so idle? wages and employment in a crowded labor market |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/463121480932724605/5th-Ethiopia-economic-update-why-so-idle-wages-and-employment-in-a-crowded-labor-market-draft-for-public-launch http://hdl.handle.net/10986/25747 |
| _version_ |
1764460051290914816 |