Cambodia: Addressing the Skills Gap

Abstract

Cambodia’s growth in the last 20 years has been remarkable and the lives of its people have improved substantially. But low-cost labor advantages on a narrow economic base have driven this growth. The country now needs to move beyond the four sectors that have dominated its economy: garment manufacturing, tourism, construction, and agriculture. Better education outcomes and higher-level skills are crucial for economic diversification and structural transformation and to sustain its inclusive growth. Labor force participation is high and unemployment relatively low, but the large majority of jobs are informal and more than a half of the employed have just a primary education or less. Addressing the problems of skills mismatch and future skills demand is therefore a priority. This joint report from the Asian Development Bank and the International Labour Organization examines constraints and opportunities for increasing productive employment in Cambodia. It can help the country exploit the opportunities its youthful labor force offers, but this window is closing fast.