Working Paper
Jobs and Welfare in Mozambique

Mozambique has achieved remarkable macroeconomic success over recent decades, boasting one of the world’s highest rates of GDP growth. However, absolute poverty remains persistent, spilling over into social unrest. To better understand the link between aggregate growth and household welfare, this study focuses on labour market trends. We ask: (a) what has happened to jobs in Mozambique over the past 15 years; (b) what has been the link between jobs and development outcomes; and (c) where should policymakers focus to create more good jobs? We conclude that jobs policy must seek to raise agricultural productivity and stimulate labour-intensive exports.