World Bank Approves $40M Credit to Enhance Skills and Employability in Cambodia

Despite Cambodia’s rapid economic growth and employment expansion, the quality of jobs remains low, with a significant portion being low-skilled and informal.

The World Bank's Board of Executive Directors has approved a $40 million credit to benefit approximately 33,000 Cambodians, aiming to provide improved training and labor market services. This initiative, supported by the World Bank's International Development Association (IDA), is set to bolster the quality and relevance of job-related skills among Cambodia's workforce, thereby enhancing employability and increasing workers' earnings.

The funding will be allocated to the Skills for Better Jobs Project, which aims to strengthen technical and vocational education and training, improve career guidance and job search support, and foster greater employer involvement in training program development. By addressing these areas, the project seeks to diversify Cambodia's economy into sectors requiring more medium-skilled occupations.

Despite Cambodia's rapid economic growth and employment expansion, the quality of jobs remains low, with a significant portion being low-skilled and informal. The project, implemented by the Ministry of Labour and Vocational Training and Skills Development Fund, targets to elevate the skills of the workforce to attract higher-quality foreign investment and meet evolving employer demands.

Maryam Salim, World Bank Country Manager for Cambodia, emphasized the importance of upskilling the workforce to support Cambodia's objectives of moving up value chains and diversifying production. She highlighted the significance of demand-responsive technical skills training, complemented by digital and behavioral skills, in achieving these goals.

The project's key outcomes include enhancing employer satisfaction with training program graduates, increasing the share of graduates finding jobs above the national median wage, fostering industry involvement in training, improving the labor market information system, and expanding access to job counseling and career guidance services. Through these initiatives, the project aims to create a more skilled and competitive workforce to drive Cambodia's economic development forward.