Stepping Up Skills for More Jobs and Higher Productivity

Abstract

Getting children off to the right start Step 2Ensuring that all students learn Step 3 Building job-relevant skills 1 Step 4Encouraging entrepreneurship and innovation Step 5 Facilitating labor mobility and job matching PrefaceCreating jobs and increasing productivity are at the top of agenda for policymakers across the world.For developing countries that are seeking to grow in an inclusive way and reduce poverty, the challenge of expanding employment and productivity is a sine qua non.Skills, and skills development, are an essential component of all efforts in this challenging area.Too many workers are simply unprepared to meet the needs of firms, particularly in more competitive economic environments.Systems to provide training are often plagued by weak governance and poor incentives that make them unreliable or ineffective.Weak incentives and support platforms for innovation and entrepreneurship development can stifle creativity and change.But the problem is often more complex.In many countries, education systems are not providing young people with the basic skills (cognitive and behavioral) that make them "trainable."And serious handicaps are inflicted early in life when children are malnourished or insufficiently stimulated.Moreover, rigid labor markets in many countries reduce mobility and make it difficult for workers to find jobs-and for firms to find the right workers.

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