Nine out of ten jobs in developing countries are provided by private-sector companies. Yet globally, 38% of private-sector employers report difficulties in filling vacant positions owing to the unavailability of adequately trained staff. The result is a serious mismatch: on the one hand, all those job vacancies; on the other, vast numbers of job-seekers who do not have the skills (private) employers are looking for. These so-called skills gaps – the difference between the skills needed for a job and those possessed by a worker – represent a major constraint on development.

This report introduces an approach for companies to conduct a cost-benefit appraisal of their measures to address skills gaps – in their own workforce, in the value chain and in the local community.