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Sustainable economic development
Fighting unemployment and underemployment
Unemployment and underemployment are among the most serious development problems many developing and transition countries face. They are the direct cause of the poverty suffered by many population groups. Since 2008 the global financial and economic crisis has led to a sharp increase in unemployment and to the displacement of many regular jobs into the informal sector.
According to figures published by the International Labour Organization (ILO), around 212 million people worldwide were unemployed in 2009. Youth and women are disproportionately affected by unemployment. The ILO anticipates continued high unemployment in 2010 – despite global economic growth of 3.1 per cent.
The approach adopted by German development cooperation
Germany supports governments in developing countries, and international organisations, in developing and implementing employment-oriented development strategies. Here, German development cooperation pursues an integrated approach to employment encompassing the following three dimensions:
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creating new jobs, above all by providing economic policy advice, promoting the private sector and developing financial systems
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improving the employability of those looking for work, in particular through vocational training
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creating a better balance between supply and demand, especially by providing careers advice, job services and labour market information.
It is important to coordinate these areas, since economic growth does not automatically create new jobs. The more productive employment is generated, the greater the contribution that economic growth can make to reducing poverty and thus to achieving MDG 1.
As well as seeking to help create more jobs in partner countries, German development cooperation also aspires to raise the quality of work. In harmony with the ILO's Decent Work Agenda, the German government aims not only to promote employment, but also always to strengthen social protection, core labour standards and social standards.
Special target group: young people
Young people are nearly three times as likely to be unemployed than adults. Over the coming years the number of young people entering the job market in developing countries will rise steadily. Increasing youth employment is also extremely important with regard to conflict prevention and preventing labour migration.
Improving young people's employment situation is one element of MDG 8 (Develop a global partnership for development). It is also a special concern of German development cooperation. More than 140 ongoing projects worth a total of more than 300 million euros in bilateral cooperation alone focus on improving the situation of young people (as at: 2008).
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