How Job Creation Can Help End Global Poverty—and Fuel Economic Growth

By Julieta Ocampo

Discover how job creation offers a long-term, market-driven solution to global poverty and unlocks economic growth where it's needed most.

What Is Job Creation—and Why Does It Matter?

Job creation refers to the process of generating new employment opportunities within an economy. As such, it is a priority for many organizations in development, including non-profit organizations, policymakers, civil society, and the private sector. 

Work plays a crucial role in most people’s daily lives. It provides income, shapes living conditions, and influences access to education, healthcare, and other services. The type of work available also affects how people participate in their local economies. 

Over the next decade, 1.2 billion young people in low- and middle-income countries will enter the workforce. Yet, current projections estimate that only 420 million jobs will be created in that time. Without action, hundreds of millions of young people may face limited access to formal employment, putting pressure on social systems and slowing economic growth.

What do you mean by job creation?

At its core, job creation means providing people with pathways to earn a steady income through formal or informal work. This can include expanding existing businesses, supporting the creation of new enterprises, or investing in infrastructure that increases access to employment, like skills building to meet labor demand. 

At TechnoServe, we focus on the most effective ways for people to increase their incomes, support household needs, and build a more secure future. Through practical business support, we help individuals grow farms, strengthen enterprises, and access market opportunities that lead to steady employment and long-term economic growth.

What is the job creation process?

The process involves a blend of economic policies, financial investments, market demand, and skill development. Typically, the stages include:

• Market Analysis – Identifying growth sectors
• Investment & Innovation – Channeling funds and ideas into these sectors
• Training & Education – Equipping individuals with the necessary skills
• Enterprise Support – Helping businesses scale sustainably

When these steps align with local priorities and conditions, we’ve seen how job creation enhances people’s ability to earn an income, grow their businesses, and improve their livelihoods.

Micro, Small, and Medium Enterprises engines for job creation

Micro, small, and medium enterprises (MSMEs) are a driving force of economic growth and job creation in developing countries. Globally, MSMEs make up around 90% of all businesses and provide more than half of total employment, according to the World Bank. In emerging markets, they contribute up to 40% of GDP, and that share increases significantly when informal businesses are included.

One of those businesses is Cochecito, a baby clothing and supply store in San Salvador, El Salvador. Founded in 2019 by Nieves Rocio Requeno after identifying a gap in the local market, Cochecito has grown from a small online venture into two brick-and-mortar shops. With support from our CRECE program, Nieves expanded her operations and built a team of nine young employees. 

The business offers essential products to local families and provides meaningful job opportunities for young people. Gabi Garcia, for example, started as a sales assistant and now manages one of the stores. Cochecito’s growth highlights how MSMEs can serve as powerful platforms for employment and economic inclusion, particularly for young people and women in developing economies.

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Understanding the Scale and Impact of Global Poverty

Despite decades of progress, poverty remains a persistent challenge for millions of people around the world. According to updated global poverty lines by the World Bank, around 838 million people live in extreme poverty, surviving on less than $3.00 per day. Many reside in low- and middle-income countries, where job opportunities are limited, particularly in rural and underserved areas. Without access to stable income, it becomes increasingly difficult for individuals to meet their basic needs, invest in their futures, and contribute to local economic growth.

What is the global poverty trend?

Over the past three decades, global poverty has declined significantly. But in recent years, that progress has slowed. Economic disruptions from the COVID-19 pandemic, inflation, conflict, and climate-related shocks have affected millions of people, particularly in sub-Saharan Africa and developing countries.

Projections indicate that without stronger, more inclusive economic growth, hundreds of millions of people will still be living in extreme poverty by 2030. This trend highlights the importance of expanding access to employment, strengthening resilient market systems, and supporting local businesses that create lasting income opportunities.

What country has the highest levels of poverty?

Nigeria has the highest number of people living in extreme poverty, with estimates exceeding 70 million, according to recent data from the World Bank. Other countries with large populations facing similar conditions include the Democratic Republic of Congo and India. In these contexts, poverty is shaped by a range of factors—including limited access to stable income, nutritious food, healthcare, education, and other essential services—that make it harder for people to improve their livelihoods.

To address this reality, we are working in Nigeria to support grain farmers and small and medium-sized enterprises (SMEs) in accessing formal markets, thereby enabling their integration into higher-value supply chains and helping them advance on the path to generating stable incomes and improved livelihoods. 

What is the leading cause of global poverty?

Key drivers include:

• Lack of quality education
• Limited job opportunities
• Weak infrastructure
• Corruption and poor governance
• Climate change and conflict

All these factors limit economic growth and job creation potential. 

Related: What is Poverty: Understanding the Global Challenge

How Jobs Reduce Poverty: The Economic Chain Reaction

Having access to employment opportunities is crucial for breaking the cycle of poverty, both at the individual and community levels. Jobs provide people with a consistent source of income to meet daily needs, plan for the future, and support their families. When individuals earn steady wages or establish viable businesses, they are better positioned to access essential services such as food, healthcare, and education. 

Employment also stimulates local economies by creating demand for goods and services, encouraging business growth, and expanding opportunities for others. This is exactly the kind of economic chain reaction we work to initiate, strengthening the systems that enable people to find or create work, because stable employment is one of the most effective ways to build long-term economic resilience and reduce poverty. 

What are the effects of job creation?

Job creation fuels economic growth by increasing household spending, driving business investment, and contributing to national GDP growth, tax revenue, and innovation. This rise in consumer spending boosts demand across the economy, encouraging businesses to expand their operations.

1. Higher Household Income & Spending– Enabling families to meet basic needs
2. Improved Health & Education – With income comes better access to essential services
3. Stronger Local Economies – Employed people spend more, fueling growth
4. Greater Social Stability – Jobs reduce unrest and increase resilience

As companies grow to meet this demand, they invest in new equipment, open new locations, and hire additional staff, creating even more jobs. This cycle strengthens local economies, builds market resilience, and contributes to broader development goals.

The ripple effects of employment are not only economic, they are deeply personal. When Joyce Chika started booking safari itineraries in Botswana, she had limited resources and no formal business structure. With support from TechnoServe’s Tokafala program, she formalized her business, secured financing, and began growing her operations. 

Today, Joyce actively mentors and subcontracts young entrepreneurs who are starting their own tourism businesses, helping them build experience and credibility in the industry. She also supports a student pursuing culinary training and helps cover her grandchildren’s university education in Zambia. The income Joyce generates sustains her household and supports others to pursue their goals. Her business contributes to a local economy that grows through steady work, reinvestment, and the development of new talent.

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Job Creation vs. Aid: Why Sustainable Solutions Matter

While humanitarian aid plays a crucial role in helping communities navigate crises, such as natural disasters, conflict, or food insecurity, finding long-term solutions to poverty depends on sustained economic opportunities. Job creation provides a pathway for individuals and communities to generate stable incomes, access essential services, and foster stronger local economies. When people have the tools and support to grow businesses or participate in the labor market, they are better positioned to meet their needs and invest in their futures.

How can job creation help reduce global poverty?

By giving people:

• Income stability
• A sense of purpose
• Pathways for advancement

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Real-World Success: Job Creation in Sub-Saharan Africa

In Rwanda, like many parts of sub-Saharan Africa, young people often face limited opportunities to earn a reliable income. Data show that, on average, 22% of youth in Rwanda are unemployed, with many others underemployed or working in low-paying, informal jobs. For Gloriose Uwayezu, who, a decade ago, was a recent secondary school graduate, these challenges were familiar. 

After struggling to find stable work, she joined our STRYDE program, where she gained practical business skills and developed a plan to start a brickmaking business in her rural community. In 2014, after completing her training, Gloriose made a bold decision that surprised many in her community. She decided to enter the brickmaking industry, a field traditionally dominated by men in Rwanda.

With training, peer support, and access to financial tools, Gloriose and her savings group were able to invest in their first kiln and begin production. Over time, she expanded her operations and built a steady client base. 

Today, Gloriose employs nearly 40 people, including young women who are learning technical skills and contributing to the business’s growth. Her income allows her to support her household, fund her daughter’s education, and reinvest in the business. She has also opened a small retail shop and supports others in her community to pursue their own ventures.

When I first started the brickmaking business, I was young, and I had to rely a lot on my own energy and determination,” she explained. “Back then, I didn’t have a lot of experience, so every day was a learning experience. I would wake up early and head straight to the brick kiln, where I’d either be molding the bricks or arranging the drying process. It was physically demanding work. I didn’t have many people to help me, so I did most of the work myself. I was also just starting out with very limited resources, so every little thing was a challenge.”

Gloriose’s story shows how job creation can transform individual lives and entire communities. Her business has become a source of income for dozens of families and a driver of local economic activity. Through steady work and local investment, people are better able to meet their needs and build more secure futures. At TechnoServe, we support entrepreneurs like Gloriose in growing their businesses, strengthening local markets, and creating long-term economic opportunities.

“Being able to send my child to school means a lot to me,” Gloriose explained. “As a mother, there’s nothing more important than giving your child a better future. Knowing that my child is getting an education because of the business I’ve built is incredibly pleasing. On top of that, I’ve gained a certain level of financial freedom. I can meet all the basic needs of my household, respond to emergencies without panic, and plan for the future with more reassurance.”

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Has global poverty declined in recent years?

Global poverty has declined significantly over the past few decades. Between 1990 and 2019, more than 1 billion people moved out of extreme poverty, driven largely by sustained economic growth in countries across East Asia and South Asia. This period marked steady progress in improving incomes, expanding access to services, and creating economic opportunity.

In recent years, however, progress has slowed. The COVID-19 pandemic led to the first major rise in extreme poverty in a generation, with an estimated 9.7% of the global population living below the poverty line in 2020. Since then, poverty rates have begun to decline again, but recovery has been uneven. Many low-income and conflict-affected countries continue to face challenges due to slow economic growth, rising debt burdens, climate shocks, and other disruptions.

As of 2025, the global extreme poverty rate is projected at 9.9%—slightly lower than during the pandemic peak, but still above earlier projections. Within this broader picture, there are examples of steady progress. Countries like Ethiopia and Rwanda have invested in inclusive job creation strategies that have helped expand opportunities and support economic development, particularly in rural areas.

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The Role of Organizations Like TechnoServe

Nonprofits like TechnoServe play an important role in helping bridge the gaps where market systems fall short. In many low-income and rural communities, entrepreneurs and small businesses face limited access to finance, training, and formal market connections. These gaps can prevent individuals from launching or growing businesses that create jobs and generate income. 

We work alongside local partners to strengthen these systems, helping people build the skills, networks, and confidence they need to participate more fully in the economy. By supporting job creation in high-potential sectors and helping small businesses scale, we contribute to stronger local economies that can grow more inclusively over time.

TechnoServe’s 2024 impact: A snapshot

• 1.2 million people directly benefited through our programs
• 73,000 in new or better jobs
• Over $491 million in financial benefits
• A continued emphasis on supporting women and youth (42% of the people and businesses we supported last year were women or women-owned)

Building lasting economic ecosystems

TechnoServe and similar groups help:

• Strengthen agricultural value chains
• Provide access to markets and finance
• Train local entrepreneurs

This builds inclusive, scalable, and durable economic ecosystems.

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What You Can Do to Support Market-Driven Change

You don’t have to be a policymaker to make a difference. By supporting organizations that provide job training, business support, and market access, you help expand the resources available to entrepreneurs and job seekers.

Supporting job-focused nonprofits

Donate to or volunteer with organizations like TechnoServe that focus on job training, entrepreneurship, and market solutions.

Investing in local entrepreneurs

Every contribution helps build the infrastructure of opportunity and build the foundation for more inclusive and resilient economies.

A Future Beyond Poverty Is Possible

Creating jobs is one of the most effective ways to support lasting progress. When people have the opportunity to work, they can provide for their families, build more secure futures, and contribute to the strength of their communities. Job creation expands access to income and services, helps local economies grow, and provides individuals with the tools to achieve their goals.

Ending global poverty is about unlocking potential, opportunity, and dignity—and that starts with jobs.