As the country’s population grows, the need to create more jobs intensifies.
And countries like the Philippines may get to address this need, as well as that of poverty reduction, by widening people’s access to finance and supporting self-employment in low-income areas such as agricultural villages, according to a study released by the International Finance Corp. (IFC).
The world needs to create 600 million new jobs to support a surging population and yet, there are currently 200 million unemployed (mostly women and young people living in developing countries), said the IFC, a unit of the World Bank group focused solely on the private sector.
“The private sector provides 9 out of 10 jobs in developing countries, and therefore plays a key role in creating the new jobs needed and fostering growth. It is crucial to understand the constraints that prevent the private sector from growing and generating jobs. Governments and development finance institutions must help build an environment where these constraints are minimized or removed,” the IFC said.
Among the sectors, services has grown the most, followed by manufacturing. The agricultural sector, on the other hand, shows a steady decline, the report said.
Via W. Robert de Jongh