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World Bank calls for creation of 600 million jobs by 2020

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JobsThe World Bank says an estimated 600 million jobs must be created by 2020 as global unemployment keeps rising.

Most of the jobs to be created should be in developing countries, the Bank said January 14, 2013 as its Group member’s report found out that much-needed jobs in developing countries can be created at a faster rate if policymakers and development institutions make it a priority to remove the key obstacles to growth that private-sector companies face.

According to the World Bank, about 200 million people are unemployed globally and ways to solve the issue “lies with the private sector, which provides nine out of every ten jobs”.

The International Finance Corporation (IFC) report “Assessing Private Sector Contributions to Job Creation,” indicated that four obstacles pose a particular challenge to job creation in the private sector – a weak investment climate, inadequate infrastructure, limited access to finance for micro, small, and medium enterprises; and insufficient training and skills.

Removing these obstacles, it says can significantly increase job creation.

“Joblessness is a global crisis that is especially urgent in the poorest countries,” said Jin-Yong Cai, IFC’s Executive Vice President and Chief Executive Officer.

The report found that micro, small and medium enterprises (MSMEs) generate the most jobs in developing countries but they are also less productive, pay less, and do not offer as much training and development opportunities for employees, and smaller companies are also often most affected by obstacles to job creation, meaning they are unable to grow to their full potential.

Another key finding revealed by the report was access to finance by MSMEs. “Easing it [finance] can result in significant job creation,” it said.

The study found that 45 million people enter the work force each year and yet more than a third of companies across the globe were unable to find employees with the skills that they needed.

In a joint communiqué issued at the report launch, 25 leading international finance institutions immediately pledged to work together to address job creation, and learn from each other’s experience.

By Ekow Quandzie

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