How economies generate productive jobs and how labour is absorbed are
important issues for development. This report reviews evidence on the employment impact of economic
growth and draws out evidence and lessons from the literature on how
growth is associated with employment at a macro, sector and industry
level.
The review of empirical literature in this paperhighlighted that economic growth is positively
associated with job creation. The level and quality of impact is determined by country context,
factors that transmit the impact of growth, as well as complementary policies.
Section 2 briefly
discusses the methodology used to review the literature on economic growth and job creation. Section 3 provides an overview of the findings, and section 4 provides a discussion of disaggregated
impact. Section 5 discusses the impact of macroeconomic policies on employment.
