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Cambodia: Skills Needed for Sustainable Developement

While Cambodia has more than halved the number of people living below the national poverty line in just 5 years, the bulk of its labor force is still employed in the informal economy or in vulnerable employment and 71% of the population lives on less than $3 a day.

Most of the country’s labor force is young but often not equipped with skills that match business needs, so the challenge for policymakers is to address this gap and mismatch,” said ADB Chief Economist Shang-Jin Wei. “Developing a more educated, employable, and productive workforce is essential for Cambodia to broaden its economy beyond the current four mainstays of garment manufacturing, tourism, construction and agriculture and to sustain high growth.”

Tackling the skills gap and mismatch requires action on many fronts including increasing access to quality education and mid–level skills vocational training; upgrading competencies of underqualified teachers; promoting input on skills training from the private sector, including through public-private partnerships; and implementing the qualification framework to ensure consistent national standards are applied across education and vocational training levels. Better information about labor market needs and trends is also needed.


Policymakers also need to take steps to provide better income earning opportunities for rural residents, to expand social safety nets and to improve work conditions in the informal sector to create a more inclusive economy, the study says. Strengthening the security of land tenure and the legal structure for land transactions can play a central role in promoting rural development and improving rural employment outcomes. Support for those micro, small and medium-sized enterprises that are dynamic and competitive can also increase productive employment. 
Excerpted from: ADB

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