Activation Policies for the Poor in OIC Member States
26
(compared to the relationship observed in the developed economies of European and North
American economies) was also observed earlier, from 2002 to 2007, when overall economic growth
in Islamic Development Bank (IsDB) Member States (43 of the OIC’s 56 Member States are members
of the IsDB) averaged 6% per annum. Despite the strong economic growth, the strongest sustained
growth in 25 years, the unemployment rate did not particularly improve.19 This invariance is partly
explained by the first trend discussed in section 3.1.: jobless growth.
2.1 Employment Situation in the OIC Member States
This section explores the employment situation that can be observed across OIC Member States in
terms of improving the employment situation for the poor and those at risk of poverty. As labour
markets are affected by the level of a country’s economic development, as well as other factors such
as political stability and external economic influence, not all Member States will be affected by the
same challenges. Details are therefore included as to which regions, income groupings or particular
countries are affected. The table below summarises the trends relating to the employment situation
that are discussed.
Table 3: Trends Relating to the Employment Situation
Trend Description Countries affected
Demand side policies
Jobless growth The expansion of sectors linked to economic
growth creates relatively fewer jobs than
sectors associated with low growth. This means
that despite economic growth, jobs are not
created.
Low and lower-middle
income countries
Providing quality
jobs
Poor quality jobs are linked to working poverty
and vulnerable employment. This means that if
quality jobs are unavailable, employment is
unlikely to alleviate poverty.
Low and lower-middle
income countries; lower-
middle and upper-middle
income countries in terms of
providing quality jobs to
young workers
Youth
unemployment
Of Member States’ unemployment rates, these
tend to be particularly high for young people.
Most OIC Member States are
affected by this
Supply side policies
Skills mismatch Many young graduates do not have the skills
sought by private sector employers, causing
youth unemployment and constraining private
sector development.
Lower-middle and Upper-
middle income countries in
North Africa
Increasing
employment in the
private sector
Viewing the public sector as the main source of
employment means workers are reluctant to
seek work in the private sector (or, as
mentioned above, they may struggle to find
work in this sector due to skills mismatch).
Lower-middle and Upper-
middle income countries in
North Africa; high income
countries in the Middle East
Note: This classification is made by the authors of the study
Khamis M. et al. (2010)Impact of the Global Financial Crisis on the Gulf Cooperation Council Countries and Challenges Ahead . IMF
19 IsDB Group (2012)