Strategies for creating transitional jobs during structural adjustment

The authors review world experience with creating transitional jobs through public work relief, public service employment, and subsidized private employment. They argue that work relief is a critical component of any structural adjustment program, so long as the work relief projects are consistent with the capabilities of the targeted workforce. The effectiveness of public works depends on timeliness, financing, providing good managers, choosing high-priority projects, and matching the skill needs of the project with the skills of the targeted workers. Public works and work relief tend to provide transitional jobs mainly for male manual workers. Women and displaced white-collar workers may be better served by public service employment of subsidized private employment. Public service employment is relatively easy to administer and quick to implement and disband, but it is difficult to focus geographically, rarely leaves anything permanent behind, and expands the public payroll - at least temporarily. Subsidized private employment is easily targeted and is compatible with efforts at privatization. Its chief weakness is that its success, both quantitatively (in number of jobs placed) and qualitatively (how good they are), depends on the private sector's willingness to increase hiring.