Generating employment opportunities, often through the mechanism of minimum wage publics works programmes.
The adverse effects of structural adjustment on employment and living standards have resulted in new initiatives by multilateral lending and bilateral donor agencies to provide resources to mitigate the cost of adjustment and transition, through measures such as "social" or "employment" funds. The ILO has been involved in the design and implementation of such funds. Criteria are being developed for channelling resources towards activities which combine employment creation and poverty alleviation with effective macro-economic policy management and employment planning.
A study for the European Commission (DGV) found that the non-commercial baking sector (non-profit socially and environmentally-oriented financial organizations) created jobs with very little capital investment and with far less money than other banks and public support measures. Examples are that a job is created at the rate of ECU 2,900 on average when loaned to micro-enterprises; at the rate of ECU 4,100 on average when loaned to social enterprises, and at a rate of ECU 25,000 when loaned or invested in enterprises in new economic sectors such as the environment. The mainstream banking sector would almost certainly not have financed such organizations and projects, so these jobs would not have been created otherwise.
Creating jobs involves more people's wisdom and creativity in building society and meeting social needs.
Job creating schemes do not increase society's productivity and thus are a waste of money.