Inclusive Labor Market Reforms Help More Bolivians Secure Formal Employment

Bolivia has made significant progress in expanding access to formal employment through the Program to Support Employment (PAE II), implemented in partnership with the Inter-American Development Bank. The initiative was designed to address longstanding labor market challenges where many people relied on personal networks to find work, leaving women, youth, and persons with disabilities at a disadvantage. By strengthening public employment services and improving job-matching mechanisms, the program helped connect job seekers directly with formal employers.

The program focused on reducing barriers to employment by providing labor intermediation services, on-the-job training opportunities, and temporary financial support during training periods. Participants gained valuable work experience while developing skills that increased their employability. Special measures were introduced to support groups facing greater obstacles, including extended training opportunities, childcare subsidies for women, and targeted assistance for people with disabilities and young job seekers entering the workforce.

The initiative delivered substantial results, benefiting more than 72,000 people through employment services and enabling over 27,000 individuals to complete workplace training. Evaluations found that participants were more likely to secure formal employment and earn higher incomes compared to non-participants. Women experienced notable improvements in employment outcomes and earnings, while young people and persons with disabilities also achieved greater access to stable jobs and valuable work experience.

Despite implementation challenges during the COVID-19 pandemic, the program demonstrated the effectiveness of active labor market policies in promoting employment and economic inclusion. Strong coordination among institutions and adaptive program management ensured continued service delivery during difficult conditions. The experience highlighted the importance of designing employment interventions that directly address the needs of vulnerable groups.

Bolivia’s approach illustrates how targeted employment services, practical skills training, and inclusive policies can create lasting pathways into the formal economy. The program not only increased job placements but also contributed to long-term labor market participation, offering valuable lessons for countries seeking to reduce informality, promote workforce inclusion, and support sustainable economic development.