Present and future of work in the Least Developed Countries - ILO

This report provides an overview of the state of development and the structural challenges facing LDCs along the dimensions of structural transformation, productive employment, work conditions and just transition. It also highlights policy frameworks and institutional reforms that can create pathways for increasing productivity, employment, incomes and inclusiveness. Part I, on Decent Work Gaps and Challenges in LDCs, describes current trends in production, productivity and employment, highlighting those work quality dimensions that are most relevant for the LDCs (Chapter 1). It looks at the impact of the COVID-19 crisis on the LDC economies and populations and proposes a framework for a “building forward better” recovery. This framework focuses on the policies and resources needed to support a recovery that lays the foundations for longer-term sustainable development (Chapter 2). Part II, on Structural Transformation, Sustainable and Inclusive Growth and Decent Work, looks in greater detail at the challenges and opportunities for LDCs in building their productive capacity and undertaking structural transformation. It suggests that they should be supported in these tasks by multidimensional employment policies that include industrial development policies, skills development, transition to formality and an enabling environment for sustainable enterprises to generate and unleash productive capacities and opportunities. These productive capacities include not only stronger economic linkages and entrepreneurial capacities, but also improved human capabilities, skills, effective institutions and social protection systems. The idea is to make structural transformation more sustainable, resilient and productive while also leading to higher incomes and more equitable income and gender distribution (Chapters 3 and 4). Finally, Part II looks at the cross-cutting challenges posed by climate change for LDCs and how their response can yield development gains.