Understanding the Relationship between Economic Growth, Employment and Poverty Reduction

Whether they are subsistence farmers, salaried workers, or self-employed entrepreneurs, poor people derive most of their income from work. This basic fact means that the level of employment, the quality of jobs, and the access which the poor have to decent earnings opportunities will be crucial determinants of poverty reduction. The intuition that jobs matter for development has not been lost on the governments of low income countries and the vast majority of national development strategies look to employment generation as a major channel for poverty reduction.