Job Creation in Afghanistan: Over 100,000 and counting..
After four months of collecting data, two months of analysis and a month of reviewing, perfecting, crossing things out and putting them back in again, Peace Dividend Trust today released a report entitled, Job Creation in Afghanistan: Putting Aid to Work. It sheds light on jobs created as a result of international spending and local procurement. The results are based on a survey undertaken with Kabul businesses that won international contracts from 2006 to 2011.
Based on the survey results, it is estimated that from 2006 until the end of March 2011, approximately 118,000 jobs were created or sustained through PDT’s Marketplace project. In the first three months of 2011, locally awarded contracts from international organizations led to the creation of the equivalent of 35,000 jobs lasting for six months.
Among the reports other findings:
- During contracts, businesses expanded their employee base on average by over 300%.
- For the typical contract, one month of employment was created or sustained for every $600 spent.
- The majority of businesses invested profits in both physical capital (purchase of equipment, etc.) and increasing the skills of their staff.
Through this report and the data collected from it, PDT has created a platform to understand better the kinds of jobs created, the conditions in which they were created, and the ensuing results of their creation. They are results that fill an important gap in information both about Afghanistan’s marketplace and the impact of the international community’s spending. This information provides the tools to develop a roadmap for building and, more significantly, scaling up Afghanistan’s economy.
Scaling up Afghanistan’s economy will take effort. The gains made so far are fragile. The findings in this report show that many of the jobs created through local procurement are often transient. In order to ensure that Afghans continue to create jobs and expand businesses greater investments in sourcing goods and services from Afghan entrepreneurs must be made.
Thanks to all of the team in Afghanistan who have worked so hard over the years to facilitate the contracts that created these jobs. Your continued work to connect Afghan businesses with both domestic and international opportunities is a crucial contribution to stability and growth.