Approximately 33,000 Cambodians are expected to receive improved training and labor market services following the approval of a $40 million credit by the World Bank’s Board of Executive Directors on Thursday.
The credit from the World Bank’s International Development Association (IDA) aims to enhance the quality and relevance of job-related skills among Cambodia’s workforce, thereby increasing employability and earnings. The funding will support the Skills for Better Jobs Project, which seeks to strengthen technical and vocational education and training, improve career guidance and job search support, and better engage employers in developing training programs.
Cambodia’s economy and employment have grown rapidly in recent decades due to macroeconomic stability, openness to trade, and preferential access to Western markets attracting overseas investment. However, 89% of jobs in the country remain low-skilled with a significant portion being informal.
The five-year Skills for Better Jobs Project is designed to help diversify Cambodia’s economy into sectors requiring more medium-skilled occupations. It will be implemented by the Ministry of Labour and Vocational Training along with the Skills Development Fund.
“As Cambodia aims to move up value chains and diversify its production, upskilling its current and upcoming workforce will be key to attracting more and better foreign direct investment and responding to employer needs,” said Maryam Salim, World Bank Country Manager for Cambodia. “Technical skills training, when demand-responsive and supplemented with training in complementary skills such as digital and behavioral skills, can support Cambodia in achieving its objectives.”
Key expected outcomes of this project include:
- Greater employer satisfaction with the skills of training-program graduates;
- An increase in the share of graduates who find jobs paying more than the national median wage;
- Increasing industry's voice in training design and delivery while facilitating dialogue between training institutions and employers;
- An improved labor market information system;
- Increasing the number of individuals receiving job counseling and career guidance.