Ethiopia Making Significant Strides in Employment Programs

Addis Ababa, May 20, 2025 (FMC) — Ethiopia is making significant strides in its Homegrown Economic Reform, officials taking part at the ongoing 20th International Labour Organization (ILO) Regional Conference for Labour-Based Practitioners said.

Speaking at the conference, Planning and Development Minister Fitsum Assefa emphasized the importance of inclusive growth, saying “unless growth registered in any country is inclusive, economic stability cannot be achieved.”

This principle is central to Ethiopia’s Ten-Year Development Plan which aims to ensure that economic progress benefits all segments of society, she noted.

According to her, the Homegrown Economic Reform initiated in 2019 has transformed the private sector, particularly through reforms in finance, logistics, and telecom.

Allowing market-managed foreign exchange rates has been crucial for attracting investment and creating decent jobs, Fitsum stated.
Fitsum highlighted that per capita GDP has increased substantially, now standing at almost 2,000 USD, along with a significant decline in poverty levels.

Notable government initiatives include the development of industrial parks and special economic zones across the country, aimed at attracting both domestic and foreign direct investment.

Currently, there are ten special economic zones, two industrial parks, and one free trade area operational, focused on sectors with high job creation potential, such as textiles, pharmaceuticals, and food processing.

These initiatives have created over 100,000 jobs in the industrial parks since 2022, she said.

Additionally, the horticulture sector has generated 200,000 jobs, predominantly for women, showcasing the government’s commitment to gender-inclusive employment.

The prime minister’s Green Legacy Initiative has further contributed by creating over 1 million green jobs, again primarily benefiting women, reflecting a strong focus on sustainable job creation in Ethiopia, the minister noted.

Labor and Skills State Minister Teshale Berecha elaborated on Ethiopia’s employment policies, focusing on “decent job creation that favors fair pay and also safe working conditions for our workers.”

He emphasized the need to harness the potential of Ethiopia’s youth, with nearly 2 million new entrants to the labor market each year.

“Our employment policy is aspiring to harness the opportunity in this untapped potential of our young people.”

Both officials have stressed the importance of flagship programs like the Productive Safety Net Program which engages individuals in labor-intensive and green jobs.

The government aims to create 20 million jobs over the next decade, with a focus on inclusivity and sustainability in employment strategies, it was learned.

Teshale said Ethiopia’s comprehensive approach to economic reform and job creation exemplifies its commitment to fostering an inclusive and resilient labor market for all citizens, as reported by local news agency.

The results of these reforms are evident, with the urban economy sustaining robust growth. Ethiopia has achieved double the Sub-Saharan Africa average GDP growth, ensuring resilience through these multiple challenges.