In recent years, there has been considerable economic growth in most ESCWA member countries, however the employment situation has not improved at the same pace. A better understanding of the interrelation between the structure of economic growth and employment dynamics will facilitate broad-based economic growth conducive to job creation.

The present report analyses the macroeconomic environment and economic policy framework of ESCWA member countries to identify key constraints under which labour-market policy operates. The report argues that insufficient job creation in the region is associated with distortionary State spending, high levels of public employment and weak institutional environments. It proposes that Governments consider policy options to promote private employment and private sector activities.