Results Readiness in Social Protection and Labor Operations: Technical Guidance Notes for Labor Markets Task Teams

Labor allocation to its most efficient use, promoting employment and human capital investment as well as functioning labor markets can contribute to long-term economic growth, poverty reduction and to help workers manage their risks. A labor market policy framework includes both regulations and programs. However, the optimal framework is not standard and universal but varies country by country depending on the level of economic and financial development, culture and other structural characteristics. Labor market projects are equally concentrated in Latin America and the Caribbean and Eastern Europe and Central Asia regions and one is China. Interestingly, the number of projects having 'improving labor market' as the primary component has increased over time. All project development objectives in the cohort of projects reviewed focus on promoting higher employment and increasing economic opportunities as the main objective especially via training programs. About half of the projects also seek to reach specific vulnerable groups by improving targeting mechanisms and to improve the quality of social assistance services by reducing the cost of job search through access to enhanced employment services and by improving employability.