Public works and the creation of jobs

Article | 01 April 2011
Public investment is one of the instruments frequently used for counteracting the loss of jobs during economic crises, or to sustain and boost the initial phases of recovery. During the recent crisis, countries of the region increased resources for this by 20% on average. Nevertheless, governments do not usually have the tools for prioritizing projects on the basis of their impact on job creation. In order to correct this absence, the methodology described below aims at including the employment variable in the ordinary process followed in the selection of public works. The aim is to improve the efficacy of these policies for the creation of new jobs, especially at times when this goal becomes a priority.