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This third edition of Job Creation and Local Economic Development examines the impact of technological progress on regional and local labour markets. It sheds light on widening regional gaps on job creation, workers education and skills, as well as inclusion in local economies.
Drivers of job creation: hearing before the Subcommittee on Economic Policy of the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Thirteenth Congress, second session, on examining the current state of job creation focusing on key sectors spurring job growth as well as the important role of the middle class, May 7, 2014.
The impact of COVID-19 on local jobs and workers dwarfs those of the 2008 global financial crisis. The 2020 edition of Job Creation and Local Economic Development considers the short-term impacts on local labour markets as well as the longer-term implications for local development.
Innovation, skills, entrepreneurship and social cohesion are key drivers of growth, and essential goals of effective economic development strategies. Each has a strong governance component, which requires partnership between government, business and civil society for co-ordinating actions and adapting policies to local conditions. But what are the best governance mechanisms to fuel the drivers of growth? What is the role of central government in maximising their effectiveness? What specific actions must cities carry out to become more competitive and spread prosperity? How can public services be managed in the most effective way to support local competitiveness in the age of globalisation and networking? How can partnerships generate more funding and deliver better results? For this book, the OECD has brought together top world experts to translate policy lessons into concrete recommendations that will help policy makers and practitioners make the best governance decisions to stimulate growth.
Manufacturing-led development has provided the traditional model for creating jobs and prosperity. But in the past three decades the conventional pattern of structural transformation has changed, with the services sector growing faster than the manufacturing sector. This raises critical questions about the ability of developing economies to close productivity gaps with advanced economies and to create good jobs for more people. At Your Service? The Promise of Services-Led Development (www.worldbank.org/services-led-development) assesses the scope of a services-driven development model and policy directions that can maximize the model’s potential.
Compared to all prior recessions since the end of World War II, the 2007-2009 recession ranks worst in terms of the number of jobs lost (over eight million), and second worst in the percentage decline (6 percent). The key to economic recovery will come in the form of newly created jobs. But where will these jobs come from? Using United States Census Bureau data from 2006-2007, this paper examines net new job creation in terms of firm age rather than firm size. Until 2005, we knew that from 1980-2005, nearly all net job creation in the United States occurred in firms less than five years old. This data set also shows that without start-ups, net job creation for the American economy would be negative in all but a handful of years. If one excludes start-ups, an analysis of the 2007 Census data shows that young firms (defined as one to five years old) still account for roughly two-thirds of job creation, averaging nearly four new jobs per firm per year. Of the overall 12 million new jobs added in 2007, young firms were responsible for the creation of nearly 8 million of those jobs. Given this information, it is clear that new and young companies and the entrepreneurs that create them are the engines of job creation and eventual economic recovery. The distinction of firm age, not necessarily size, as the driver of job creation has many implications, particularly for policymakers who are focusing on small business as the answer to a dire employment situation.