The Inter-American Development Bank (IDB) approved an investment loan of $25 million to strengthen the labor integration of workers in Ecuador in quality jobs.
The project will expand the coverage of training programs for employment and relevant certification for labor competencies to meet the needs of the productive sector. It will also enhance the capacity of Ecuador's Public Employment Service, with a special focus on individuals facing significant barriers to entering the job market.
The program will target sectors and programs relevant to their job-generation potential. It will finance job training for 81,960 individuals and competency certification for 67,790 individuals in sectors such as construction, transportation, sustainable energy, and circular economy. It will support 32,269 women and 14,000 individuals in human mobility situations. It will create new training profiles and certifications in relevant sectors and promote training services among potential users.
Ecuador's workforce faces two main limitations in accessing quality jobs. First, the gap between the skills demanded by formal employers and those offered by employees. Second, the lack of information and job guidance limits the ability to match labor supply and demand appropriately. Women, individuals in situations of human mobility, persons with disabilities, youth, and individuals from indigenous communities are among the populations facing more significant employability barriers.
The program will strengthen the services provided by the Public Employment Service agencies, implementing a service that connects and generates opportunities with employers and job seekers, focusing on closing gaps.
It will also fund the design and implementation of a new IT platform and process improvements for the Employment Service, making it accessible for individuals with visual and auditory disabilities while having an improved web identity and gender focus. The enhanced service and specific promotion and socialization actions are estimated to increase the number of registered workers and job vacancies posted by companies on the platform.
The $25 million IDB credit has a disbursement period of 4 years, a grace period of 7.5 years, and an interest rate based on SOFR (Secured Overnight Financing Rate). The program also includes financing an additional $517,489 from the IDB's Non-Reimbursable Facility and $3,337,732 from the Canada Cooperation Framework.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.