From papers to people: How employment policies shape lives and jobs

Q1. How do good employment policies make a real difference in people’s lives?

Good employment policies translate the abstract promise of “decent work” into lived reality. They shape opportunities for people- whether young people can access a first formal job, whether women get equal pay for work of equal value, or whether workers can move between jobs without falling into poverty. Well-designed employment policies expand access to more productive, formal and sustainable jobs, and by doing so they improve overall job quality. They also ensure that the benefits of economic growth are felt not just in macroeconomic indicators, but also in communities, households, and individual lives.

Crucially, employment policies matter because labour markets do not self-correct in socially optimal ways. Without deliberate public policy, job creation can remain slow, unequal, or concentrated in low-productivity sectors despite increases of GDP. Employment policies help governments align macroeconomic, sectoral, skills, and labour market measures toward a shared objective: full, productive, and freely chosen employment, as enshrined in ILO Convention No. 122.

Crucially, employment policies matter because labour markets do not self-correct in socially optimal ways.

Q2. How do employment policies help countries navigate the changing world of work?

The world of work is changing faster than ever - driven by digitalization, demographic shifts, climate change, and global economic volatility. Employment policies provide countries with a strategic compass in this uncertainty. Rather than reacting piecemeal to disruptions, they enable governments to anticipate change, guide labour market transitions, and invest proactively in skills, institutions, and productive sectors. ILO analysis shows that countries with strong employment policy frameworks were better positioned to respond to shocks such as COVID-19, as they were able to combine job retention, active labour market policies, and social protection in a coordinated way. [1]

Importantly, employment policies are not static blueprints. They are living instruments that must evolve as economies and societies change. This adaptability is one of their greatest strengths.

Q3. What role do tripartism and social dialogue play in shaping effective employment policies, and how do we make them work in practice?

Tripartism and social dialogue are at the heart of effective employment policies because employment outcomes affect - and depend on - workers, employers, and governments alike. Policies that emerge from dialogue are more legitimate, realistic, and durable. The ILO’s experience shows that when employment policies are the result of consensus, they have a high likelihood to survive political cycles and economic shocks.

Making social dialogue work in practice requires more than consultation - it requires capacity, trust, and meaningful engagement. Governments must create spaces where social partners can shape priorities, not just comment on final drafts. Employers’ and workers’ organizations, in turn, need to have the capacity to participate on equal footing to the dialogue and need to have access to data, analysis, and policy options to engage effectively. When this happens, employment policies become platforms for collective problem-solving.

Q4. How does the ILO support countries in developing and implementing these policies?

The ILO supports countries through a structured yet flexible approach grounded in international labour standards and country-specific realities. The first step is supporting the design of a comprehensive employment policy framework – in different formats: Whether countries go for a national employment policy, a mainstreamed employment strategy across different sectors and ministries, an “employment-focused development strategy” or a coherent set of aligned policies depends on their choice and institutional setting. No matter what the choice is, social dialogue will ensure that the most pressing priorities are identified and that employment objectives are embedded across macroeconomics, economic sectors, skills interventions and labour market policies.

Good design matters but it is not enough. The second step is implementation, where many policies falter. The ILO provides hands-on support to translate frameworks into action - developing implementation plans, strengthening active labour market policies, building institutional capacity, and establishing monitoring and evaluation systems. Through initiatives such as the Employment Policy Action Facility, the ILO accompanies countries over time, helping them learn, adapt, and sustain reform.

Q5. What lessons have emerged from recent work in different regions?

One clear lesson is that design matters. Employment policies that are grounded in evidence, aligned with national development strategies, and built through social dialogue are more likely to succeed. Countries that clearly define their employment challenges - whether youth unemployment, informality, or low productivity - are better able to prioritize and sequence reforms. Also, the ILO’s regional experience shows that policies work best when they are tailored to institutional capacity and labour market realities.

Countries that clearly define their employment challenges - whether youth unemployment, informality, or low productivity - are better able to prioritize and sequence reforms.

Finally, there is a clear interaction between the effectiveness of employment policies and the state of rights, including the respect for international labour standards. The more rights are respected, the more effective employment policies become. Vice versa is also true: Strong employment policies are based on rights and contribute towards their implementation. And once these two are working together, this has a positive impact on the development and growth of societies.

Successful countries invest early in coordination mechanisms, financing, M&E and data systems, and they treat implementation as a learning process rather than a one-off event.

Q6. If there’s one key message you want readers to remember about employment policies, what would it be?

Employment policies matter - because without them, meaningful change is unlikely to happen. Labour markets do not automatically deliver decent jobs for all, even in growing economies. A clear employment policy focus creates priorities, and accountability. It signals that job creation, job quality, and labour market inclusion are not residual outcomes of growth, but central objectives of public policy. And it provides a path towards a sustainable and socially just future to walk on together.

* The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of ILO.

Dorothea Schmidt-Klau is the Chief, Employment Labour Markets and Youth Branch (EMPLAB) ILO. Before this role, she was the Head of the Department Management and Coordination Unit of the Department. In both functions, she has supported the work of the Department to promote full and productive employment by developing integrated employment, development and skills policies.

She was also the Senior Employment Specialist for North Africa, based in the Decent Work Country Team for North Africa in Cairo between 2009 and 2013. In that position, she worked with Governments, Employers’, Workers’ Organizations and other key stakeholders providing advice on analytical work, policy development and advocacy on employment-related issues.

Dorothea has worked on many major ILO publications, including several World Employment Reports, Global Employment Trends Reports and most recently the ILO’s COVID-19 Monitors and the Global Employment Policy Review. She has also published numerous working papers and articles in her areas of expertise. She holds a PhD in Economics from Albert-Ludwigs-University in Freiburg.