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Better Jobs Mean Better Development

Manufacturing industries are no longer the labor-absorbing sectors they used to be, and that is a big problem for developed and developing economies alike. Achieving sustainable, inclusive growth will now depend on creating opportunities in services – a sector not generally associated with good, productive jobs.

CAMBRIDGE – Conventional economics has always had a blind spot when it comes to jobs. The problem goes back to Adam Smith, who placed consumers, rather than workers, on the throne of economic life. What matters for well-being, he argued, is not how or what we produce, but whether we can consume our preferred bundle of goods and services.