Financial institutions explore new approaches to measuring employment impacts of investments

Turin, Italy (ILO News) – On 5 and 6 October, representatives from international financial institutions, multilateral development banks, development finance institutions, development partners and other experts gathered at the International Training Centre of the ILO in Turin for the seventh Financial Institutions Symposium on Employment Impact Assessments.

Organized by the International Labour Organization (ILO) in collaboration with the European Union through the STRENGTHEN3 project, the symposium provided a platform for participants to explore how stronger project-level data collection can help improve the measurement of employment impacts and support investment decisions that contribute to the creation of decent jobs.

As Mito Tsukamoto, former Chief of the ILO’s Employment in Investments Branch (EMPINVEST), highlighted in her opening remarks: “We want to move from the broader question of why employment impacts matter to the practical question of how we can measure them more effectively and consistently at the project level. We want this to be a space for honest exchange to hear what is working, what remains difficult, and what financial institutions need to make employment impact measurement useful in their own operations.”

We want to move from the broader question of why employment impacts matter to the practical question of how we can measure them more effectively and consistently at the project level.

Mito Tsukamoto, ILO

Harmonization and collaboration as recurring topics

The symposium opened with a discussion on the taxonomy, indicators and institutional approaches used to measure the quantity and quality of employment throughout the project cycle. Discussions focused on aligning approaches to employment measurement, clarifying commonly used concepts such as job quality, and promoting more consistent reporting practices across institutions.

© Camyla Fonseca/ILO

© Camyla Fonseca/ILO

Another key theme discussed was the role of expenditure data in estimating broader employment impacts across supply chains and economies. Participants explored how more granular information can improve the accuracy of employment estimates and discussed opportunities for institutions to collaborate on expenditure breakdowns rather than developing similar approaches independently.

The symposium also showcased emerging digital solutions and artificial intelligence applications that can support data collection, reporting and analysis, ultimately generating insights that can inform project design and decision-making. While there was a general enthusiasm regarding these new technologies, discussions also underscored the need for a cautious approach, supported by robust data systems and institutional foundations.

The way forward

Looking ahead, participants identified several areas for continued collaboration. Two topics emerged as particularly promising: harmonizing the employment-related information that financial institutions request from their clients, potentially through a pilot initiative, and developing generic expenditure breakdowns as a common benchmark that institutions could use as a starting point and refine over time.

© ITCILO

© ITCILO

These exchanges will continue through the newly launched Global Employment Impact Assessment Community of Practice, which aims to foster peer learning and cooperation among practitioners working to strengthen employment impact assessment methodologies and practices. Those interested in joining the Community of Practice can contact [email protected].

The symposium forms part of the ILO's broader efforts to support evidence-based investment decisions that contribute to more and better jobs and advance decent work.