Ethiopia launches Employment Impact Assessment to strengthen job outcomes of public infrastructure investment

Bishoftu, Ethiopia (ILO news) – The Government of Ethiopia, through the Ministry of Urban and Infrastructure, and the International Labour Organization (ILO) launched an Employment Impact Assessment (EmpIA) of public infrastructure investment on 4 September 2026. The assessment will provide evidence to help ensure that public investment generates more and better jobs across the country.

Supported by the Government of the Netherlands through the ILO PROSPECTS programme, the assessment will measure how public infrastructure investment contributes to employment creation and inclusive economic development. The launch event followed a three-day technical training and consultation for representatives of government institutions, development partners, academia, employers' and workers' organizations, and members of the Technical Committee overseeing the study.

The assessment will examine the direct, indirect and induced employment effects of public infrastructure investments and provide evidence on the quantity and quality of jobs generated. It will also help identify which public investments offer the greatest potential to create jobs, strengthen local economies and improve access to employment opportunities for vulnerable groups, including forcibly displaced persons and host communities. This can ultimately contribute to more inclusive labour markets. The findings are expected to inform infrastructure planning, budgeting and investment decisions.

Khumbula Ndaba, Director of the ILO Country Office for Ethiopia, Djibouti, Somalia, Sudan and South Sudan and Special Representative to the African Union and the Economic Commission for Africa, spoke at the launch. He emphasized that public investment can become a powerful driver of decent job creation when employment outcomes are intentionally measured and integrated into policy decisions.

“Maximizing employment outcomes from infrastructure investment is not simply a by-product of development spending; it is a policy choice. The role of the ILO is to support that choice through evidence, technical expertise and capacity development,” Ndaba said.

© Zelalem Alemenew Desta/ILO

© Zelalem Alemenew Desta/ILO

Speaking on behalf of State Minister Yetimgeta Asrat, Senior Infrastructure Advisor Bekele Negussie underscored the strategic importance of the initiative and its alignment with Ethiopia's broader economic and development priorities, including the Ten-Year Development Plan, the Homegrown Economic Agenda, the National Economic Policy and the Ethiopia Jobs Compact.

“Beyond a single study, our ultimate goal is to establish an institutionalization road map. We want to transition the Employment Impact Assessment from an ad-hoc pilot into a regular, systematic practice embedded within Ethiopia’s national planning, budgeting and public appraisal systems,” he said.

© Zelalem Alemenew Desta/ILO

© Zelalem Alemenew Desta/ILO

During the workshop, participants strengthened their understanding of Employment Impact Assessment methodologies, including Input-Output and Social Accounting Matrix approaches, while discussing data systems, institutional arrangements and pathways for integrating employment considerations into public investment processes.

The initiative draws on the ILO's longstanding experience in employment-intensive investment, particularly on recent Employment Impact Assessment activities, including those carried out under the joint EU-ILO STRENGTHEN initiative. This experience will help supports efforts to maximize the job creation potential of infrastructure spending in Ethiopia.

The assessment will support policy development and lay the foundation for institutionalizing Employment Impact Assessment within Ethiopia's planning and investment systems. This, in turn, will strengthen the contribution of future public investment to productive employment, decent work and inclusive growth.