ILO Launches Policy Training to Tackle Skills Gaps and Labour Market Pressures in Cambodia

At the same time, Cambodia is preparing to graduate from Least Developed Country (LDC) status by 2029, a milestone that will require a more skilled, competitive, and productive workforce.

The International Labour Organization (ILO), in partnership with Cambodia’s Ministry of Labour and Vocational Training (MLVT), has launched a specialised training programme aimed at strengthening evidence-based policymaking, as the country navigates mounting labour market challenges and prepares for economic transition.

The four-day course, held in Siem Reap from 30 March to 2 April 2026, brings together 40 policymakers, trade union representatives, and employers’ organisations to build practical skills for designing policies that promote decent work, employment growth, and social justice.

Addressing a Complex Labour Market Transition

Cambodia has made notable progress in labour reforms, but structural challenges persist:

• Low workforce skill levels

• High levels of informal employment

• Growing mismatch between available labour and industry needs

These pressures have intensified following the return of over 900,000 migrant workers after border tensions with Thailand—placing additional strain on the domestic labour market.

At the same time, Cambodia is preparing to graduate from Least Developed Country (LDC) status by 2029, a milestone that will require a more skilled, competitive, and productive workforce.

Building Data-Driven Policymaking Capacity

The training focuses on equipping participants with tools to make policy decisions grounded in evidence rather than assumptions, a key priority as labour market dynamics become more complex.

Participants are being trained to:

• Formulate clear and targeted policy questions

• Analyse labour market data and statistics

• Critically assess evidence from multiple sources

• Translate findings into practical policy recommendations

• Draft policy briefs on decent work and employment issues

“This course is about turning evidence into action,” said Naren Prasad of the ILO Research Department.

Strengthening Social Dialogue and Collaboration

A key feature of the programme is its emphasis on social dialogue, bringing together:

• Government officials from multiple ministries

• Trade unions

• Employer organisations

This approach aims to ensure that policies are:

• Inclusive

• Reflective of real-world labour market needs

• Supported by key stakeholders

“This training enhances understanding of ILO principles and strengthens the process of developing effective policies,” said Lim Suy Hong, Under Secretary of State at MLVT.

Responding to Emerging Economic Pressures

ILO experts note that Cambodia is facing increasingly complex policy challenges, including:

• Job creation in a changing economic landscape

• Labour market transitions and automation

• Expanding social protection systems

• Reducing informality

• Aligning skills with industry demand

“These challenges make it essential that decisions are based on reliable data and sound analysis,” said Mary Kent, ILO Skills and Employability Specialist.

Preparing for the Next Phase of Growth

As Cambodia moves toward LDC graduation, policymakers must focus on:

• Upskilling the workforce

• Improving labour productivity

• Strengthening institutional capacity

• Attracting higher-value industries

The training programme is part of broader efforts to ensure that Cambodia’s development trajectory is sustainable, inclusive, and globally competitive.

From Training to Policy Impact

By the end of the course, participants are expected to produce policy briefs addressing real labour market issues, creating a direct link between training and policy implementation.

The initiative highlights a growing recognition that data-driven policymaking is essential for navigating economic transitions and ensuring long-term employment outcomes.

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Tags: Cambodia labour market, ILO training, skills development, employment policy, evidence-based policymaking, LDC graduation Cambodia, migrant workers, labour reforms, decent work, workforce development