Regional: Improving Employment Outcomes

Sovereign Project | 45375-001

Summary

The TA will assess the nature of the labor market and labor market policies in four Asian countries. The methodology will be based on, but also further expand and develop, the approach used in the ADB's country diagnostics studies (CDS). The CDS approach combines the well-known growth diagnostics framework developed by Hausmann, Rodrik and Velasco with the Diagnostic Framework for Inclusiveness that has been added by ADB to ensure sufficient focus on poverty, inequality, employment and other aspects of socio-economic inclusion. The TA will develop the labor market aspects of the CDS approach and then apply it in four countries.

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Project Name Improving Employment Outcomes
Project Number 45375-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7951-REG: Improving Employment Outcomes
Technical Assistance Special Fund US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Education - Secondary - Technical and vocational education and training - Tertiary
Gender Equity and Mainstreaming Some gender elements
Description

The TA will assess the nature of the labor market and labor market policies in four Asian countries. The methodology will be based on, but also further expand and develop, the approach used in the ADB's country diagnostics studies (CDS). The CDS approach combines the well-known growth diagnostics framework developed by Hausmann, Rodrik and Velasco with the Diagnostic Framework for Inclusiveness that has been added by ADB to ensure sufficient focus on poverty, inequality, employment and other aspects of socio-economic inclusion. The TA will develop the labor market aspects of the CDS approach and then apply it in four countries.

Considerable analysis of the labor market and the education and training sector has been undertaken by various organizations in the two countries specified under this TA. ADB and other agencies, such as the ILO, have recently completed or have on-going projects in the areas of education, including technical vocational education and training (TVET) and labor market information. Furthermore, two recently approved TAs in the Regional Sustainable Development Department focus on various aspects of green jobs, gender, skills and labor markets. The TA will build on and complement the research, analysis and activities that have been undertaken to date, and generate synergies with the two recently approved TAs.

A specific focus of the TA will be on the flow of information between and amongst employers, jobseekers, youth entering post-basic education, labor market policy planners in government, and the education system, including education and training institutes. The information flows will be mapped and key stakeholders surveyed to determine bottlenecks that inhibit proper private and public planning for employment and skills. In conducting the analysis, the research will take into account structural change, patterns of investment that shape employment demand, the flow of individuals between rural and urban areas, and the nature of formal versus informal employment. As appropriate, the analysis may also draw on data from existing household and labor market surveys conducted by national statistics offices or other agencies, where such data is relevant and timely. In conducting the analysis and data gathering, distinctions will be made based on gender and socio-economic status (poor/non-poor, etc.) and on other relevant criteria where possible and as appropriate to the analysis.

The TA will have two main components: (i) in-depth country assessments, as outlined above; and (ii) broad dissemination of the key findings and recommendations, principally through discussion at a national forum with policymakers and other stakeholders. The results of the analysis will be used as inputs to the CDS for Cambodia and Viet Nam which are scheduled for preparation in 2012 and for two additional CDS in 2013. This phased approach will allow insights from the two initial studies under this TA to inform the detailed design and scope of the two latter studies, ensuring that learning takes place over the course of the TA. Through the CDS and on its own, the outputs are also designed to impact the government's medium-term development planning, the formulation of the country partnership strategy and future ADB operations.

Project Rationale and Linkage to Country/Regional Strategy

A key requirement for the achievement of inclusive growth is the generation of decent employment opportunities for broad segments of the population. Decent jobs provide productive and satisfying work situations, livable wages, social security and protection, and a measure of job stability. These elements allow women and men to share in the fruits of national economic growth and to provide for the health, nutrition and education of their children.

Expanding access to good employment opportunities is fundamental to ensuring that the benefits of growth in Asia are widely distributed among the population, including women, youth, the poor and lower-middle class, and other disadvantaged groups. The TA strongly supports inclusive growth, which is one of the three pillars of ADB's Strategy 2020. Inclusive growth is a key component of ERD's Priorities for 2010-2012, and its Strategic Initiatives for 2012-2014 (draft); the latter emphasize the importance of "operations support through rigorous research", which this TA will seek to achieve through its targeting of the country partnership strategy process.

Impact Use of improved labor market analysis for better economic policy and sector planning decisions by countries and the ADB.
Project Outcome
Description of Outcome Improved analysis and understanding of labor markets that feed into the ADB's country diagnostic studies, the government's medium-term planning and ADB's operations.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. An expanded labor market analysis framework for country diagnostic studies.

2. Studies of the labor market in Viet Nam and Cambodia.

3. National dissemination workshops on labor market analysis in Viet Nam and Cambodia.

4. Studies of the labor market in two other countries.

5. National dissemination workshops on labor market analysis in two countries.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The services of a firm(s), based on QCBS, or, alternatively, individual international and national consultants, with expertise in education, training, labor markets, editing and graphics, will be recruited and engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The activity will require 26 person-months of international and 31 person-months of national consulting input. Disbursements will be made in accordance with the ADB's Technical Assistance Disbursement Handbook (May 2010, as amended from time to time.)
Responsible ADB Officer Sakiko Tanaka
Responsible ADB Department Economic Research and Regional Cooperation Department
Responsible ADB Division Economic Analysis and Operations Support Division
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 04 Nov 2011
Fact Finding -
MRM -
Approval 08 Dec 2011
Last Review Mission -
Last PDS Update 15 Nov 2011

TA 7951-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2011 - 08 Dec 2011 30 Apr 2014 30 Apr 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 0.00 0.00 0.00 0.00 800,000.00 08 Dec 2011 162,885.04

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