Rural Employment Promotion in Lao People's Democratic Republic

Background

Despite the high economic growth enjoyed by Lao People's Democratic Republic during the past decade (2010-19), employment increased at a much lower rate. The composition of employment also did not shift much. Agriculture remains the mainstay for most of the population but saw little improvement in farm and labour productivity. In the absence of job creation, rapid economic growth did not bring an equally high rate of poverty reduction and rather contributed to growing inequality. MSMEs (micro, small, and medium-sized enterprises) constitute the backbone for job creation, yet the vast majority of them are vulnerable to external shocks, operate informally and characterized by low productivity due to limited technical, business, and financial management skills. Current TVET system is non-responsive to market demand and is also non-inclusive and does not include necessary life skills in its curriculum.

Key partners

• Ministry of Labour and Social Welfare (MoLSW)
• Lao National Chamber of Commerce and Industries (LNCCI)
• Lao Federation of Trade Unions (LFTU)

Target beneficiaries

• Macro level: MoLSW, Ministry of Planning and Investment (MPI), Ministry of Agriculture and Forestry, Lao National Chamber of Commerce and Industries, Lao Federation of Trade Union (LFTU)
• Meso level: LNCCI, LFTU, Youth Union (YU), Women Union (WU), associations, private sector enterprises, cooperatives
• Micro level: Women and men, rural workers, persons with disabilities, youth, returned migrant workers and LGBTQI
• Total target beneficiaries: Phase I: 7,500 people and Phase II: 17,500 people

Geographical focus

Phase I: Three target provinces, one from the North, one from Central and another from South
Phase II: Two additional provinces

Project goal and components

Women and men, including persons with disabilities, youth, returned migrant workers and LGBTQI in rural areas have increased net income, productive employment through implementation of NRES. To achieve this goal, the interventions are grouped under 3 components as follows:

Component 1: Upgrading TVET systems and employment services

Component 2: Strengthening market integration of primary producers, rural workers and enterprises

Component 3: Development of public-private sector capacities to facilitate rural employment, investment, and NRES implementation

Project outcomes

Outcome 1:  Rural women and men, including persons with disabilities, youth, returned migrant workers and LGBTQI enhance their employability and are effectively linked to decent employment opportunities especially in non-farm sectors.

Outcome 2: Better employment opportunities are generated and increase in demand for labour of rural women and men, including persons with disabilities, youth, returned migrant workers and LGBTQI.

Outcome 3: Government and relevant private business membership organizations including trade unions have the skills and competencies to facilitate rural employment, investment, and NRES implementation.

Project approach

The REP project adopts a four-pronged strategy that are intertwined in nature and complement each other to support the implementation of NRES.

• Sectoral approach - value chain development
• Cross sectoral approach – enterprise, life and vocational skills development
• Inclusion and cross-cutting themes
• Business enabling environment