Urban Economy

The urban economy and its sectors

The economy of each city or town encompasses different sectors. While each sector has its specificities, the fact that their production processes are encompassed within a limited geographical area (the urban area) entails interchanges. In addition, a number of sectors are already technically interrelated (to give one example: utilities, infrastructure, construction and waste). Therefore, labour issues on a specific sector of the urban economy are linked to what happens in other sectors - hence the importance of an integrated approach. Other reasons for such an approach include:
  • Development and/or regulation of the urban sectors are by and large under the coordination the local government, which has an integrated plan for the city/town. Therefore, there is need to study its policies to understand the impact on sectoral jobs and to be able to influence them.
  • Policies for the urban environment tend to be integrated (whether under the local government or a central government agency). Therefore, there is a rationale to understand such integrated policies, as they will impact on jobs in each urban sector - and to influence the decision-makers.
  • Operations for adaptation to climate change also tend to integrate the different aspects of urban development. Again there is a rationale to understand such integrated policies, as they will impact on jobs in each sector - and to influence the decision-makers.
  • Exploring possible linkages and synergies between the different urban sectors may expand and strengthen a coalition to advocate for decent work. This would bring the Decent Work Agenda of the ILO to the local level.
  • This approach is consistent with the plan of action of the Council of Global Unions (October 2010).
In sum, a comprehensive knowledge of the urban economy will help to understand the specific labour issues in particular sectors, and to act accordingly. The ILO is already working on an integrated approach to the rural economy. There is a rationale to do the same in regard to the urban economy. Work on the sectors of the urban economy will be posted later.