ECONOMIC GROWTH, EMPLOYMENT AND POVERTY REDUCTION – 69 PROMOTING PRO-POOR GROWTH: EMPLOYMENT- © OECD 2009 Understanding the Relationship between Economic Growth, Employment and Poverty Reduction

a. Growth in one sector of the economy will not automatically translate into benefits for the poor: much will depend on the profile of growth (its employment- or productivity- intensity), the sectoral location of the poor, and the extent of mobility across sectors. b. For employment-intensive growth to translate into poverty reduction it must occur in a “more productive ” sector, while “less productive ” sectors may require productivity-intensive growth to ensure a decline in headcount poverty. c. Country-specific quantitative and qualitative analysis is required to identify constraints to job creation, productivity and mobility and to ensure that the poor are able to participate in more and better job opportunities