Well-designed employment policies play a decisive role in turning the idea of decent work into a lived reality for millions of people, according to Dorothea Schmidt, Chief of the International Labour Organization’s Employment Policy, Labour Market and Youth (EMPLAB) branch. She emphasises that employment policies are not abstract government documents, but powerful tools that shape everyday life, determine job quality, and help societies navigate economic transformation and crises.
At their core, strong employment policies expand access to productive, formal, and sustainable jobs. They influence whether young people can secure their first formal employment, whether women receive equal pay for work of equal value, and whether workers can move between jobs without falling into poverty. By improving job quality, these policies ensure that economic growth is reflected not only in macroeconomic indicators but also in households, communities, and individual well-being.
Schmidt highlights that labour markets do not naturally self-correct in ways that deliver fairness or inclusivity. Even in growing economies, job creation can remain slow, unequal, or concentrated in low-productivity sectors. Employment policies are therefore essential in aligning macroeconomic planning, sectoral strategies, skills development, and labour market measures around a shared objective of full, productive, and freely chosen employment, as set out in ILO Convention No. 122.
In a rapidly changing world of work shaped by digitalisation, demographic shifts, climate change, and global economic uncertainty, employment policies offer countries a strategic framework rather than a reactive response. They help governments anticipate labour market transitions, guide structural change, and invest proactively in skills, institutions, and productive sectors. Evidence from the ILO shows that countries with strong employment policy frameworks were better prepared to respond to shocks such as the COVID-19 pandemic, combining job retention measures, active labour market policies, and social protection in a coordinated way. Importantly, employment policies are not fixed blueprints but evolving instruments that adapt as economies and societies change.
Social dialogue and tripartism are central to the effectiveness of these policies. Because employment outcomes directly affect workers, employers, and governments, policies developed through dialogue are more legitimate, realistic, and resilient. The ILO’s experience demonstrates that consensus-based employment policies are more likely to withstand political change and economic shocks. For social dialogue to work in practice, however, it must go beyond formal consultation. Governments need to create genuine spaces for engagement, while workers’ and employers’ organisations must have the capacity, data, and analytical tools to participate meaningfully. When this happens, employment policies become platforms for collective problem-solving rather than top-down directives.
The ILO supports countries throughout both the design and implementation of employment policies, grounding its work in international labour standards and national realities. Countries may choose different approaches, such as national employment policies, employment-focused development strategies, or coordinated policy frameworks across ministries. Regardless of the format, social dialogue ensures that priorities are clearly identified and that employment objectives are embedded across economic, sectoral, skills, and labour market policies. Beyond design, the ILO places strong emphasis on implementation, helping countries translate policy frameworks into action through institutional strengthening, active labour market measures, and robust monitoring and evaluation systems. Initiatives like the Employment Policy Action Facility allow governments to learn, adapt, and sustain reforms over time.
Lessons from recent regional experiences underline that evidence-based design, alignment with national development strategies, and strong social dialogue significantly increase the chances of success. Countries that clearly identify their main employment challenges, whether youth unemployment, informality, or low productivity, are better positioned to prioritise and sequence reforms. Respect for labour rights and international labour standards also plays a critical role, as strong rights frameworks reinforce the effectiveness of employment policies, while effective policies, in turn, support the realisation of those rights.
Ultimately, Schmidt stresses that employment policies matter because meaningful change rarely happens without them. Labour markets alone do not guarantee decent jobs for all. A clear employment policy focus creates priorities, accountability, and direction, signalling that job creation, job quality, and inclusion are not secondary outcomes of growth, but central goals of public policy. When pursued seriously, employment policies provide a shared path towards a more sustainable and socially just future.
