Selected Issues Papers

Unleashing Private Sector Job Creation: Challenges and Opportunities for Lesotho

By Athene Laws, Ann-Alice Ticha

October 14, 2025

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Format: Chicago

Athene Laws, and Ann-Alice Ticha. "Unleashing Private Sector Job Creation: Challenges and Opportunities for Lesotho", Selected Issues Papers 2025, 141 (2025), accessed October 15, 2025, https://doi.org/10.5089/9798229027540.018

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Summary

Lesotho’s public sector led growth and employment model has struggled to develop a flourishing labor market, and recent external shocks have made developing job-rich growth an even more urgent priority. The primary challenge is a lack of labor demand due to a small, undiversified private sector and steep barriers to firm growth. Nonetheless, labor supply issues, including skills mismatches also compound the challenge. Addressing this issue will require a concerted effort on multiple policy fronts; combining public-sector reform, business-environment reform, expanding financial access for firms, better skills matching, and careful macroeconomic management.

Subject: Commodities, Economic growth, Economic sectors, Electricity, Employment, Financial inclusion, Financial markets, Job creation, Labor, Labor markets, Manufacturing, Public employment, Public sector, Structural transformation

Keywords: Business environment, Electricity, Employment, Financial inclusion, Firm growth, International organization, Job creation, Job creation, Labor markets, Manufacturing, Private sector development, Public employment, Public sector, Structural transformation

Publication Details

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