Project Description
Labour Market Policy and Development Cooperation supports structural transformation processes in developing countries. It addresses how effective LMP structures, institutions and processes can promote employment, improve working conditions, foster skills development, and support transitions towards more sustainable and inclusive economies.
The study explores how Labour Market Policies (LMP) can address issues such as informality, self-employment, working poverty, underemployment and skills mismatches, and identifies core dimensions of LMP, including institutional frameworks, labour market information systems (LMIS), regulation and legislation, and integration with other policy areas such as education, training, trade, and social protection. Special attention is given to cross-cutting themes including Just Transition to a green economy, digitalisation, and women’s economic empowerment. The study examines opportunities and limitations of LMP in least developed countries (LDCs), low-income countries (LICs) and lower middle-income countries (LMICs) and formulates recommendations for governments, multilateral organisations, and development partners to strengthen LMP structures and institutions.
Provided Services
The contractor delivers a comprehensive study including:
Fact-Finding Study
- Analysis of LMP structures, institutions, and processes in developing countries, considering institutional frameworks, regulation, LMIS and interlinkages with broader employment policy areas.
- Evaluation of empirical evidence and literature review on the effectiveness of LMP for promoting employment and shaping transformation processes in LDCs, LICs and LMICs.
- Country case studies illustrating best practices, lessons learned and the impact of well-designed LMP frameworks.
- Conceptual framework for structuring LMP to support employment-rich and inclusive development in diverse contexts.
- Recommendations for action for governments, regional bodies and development partners, addressing policy design, institutional development and cooperation approaches..
Additional outputs include:
- Presentation of preliminary findings and draft results in workshops and events organised by GIZ.
- Knowledge management contributions through synthesis of findings into evidence-based recommendations for German and international development cooperation.
