{"id":6513,"date":"2023-04-18T11:36:52","date_gmt":"2023-04-18T09:36:52","guid":{"rendered":"https:\/\/\/?page_id=6513"},"modified":"2024-06-18T11:23:56","modified_gmt":"2024-06-18T09:23:56","slug":"jobs-created","status":"publish","type":"page","link":"https:\/\/reports.norfund.no\/annualreport-2023\/development-mandate\/impact-development-mandate\/jobs-created\/","title":{"rendered":"Jobs created"},"content":{"rendered":"\n

Norfund contributes to creating jobs directly in portfolio companies and indirectly through their value chains.<\/p>\n\n\n\n

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Results in 2023<\/h2>\n\n\n\n
37,200<\/div>
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new jobs created in portfolio companies*<\/p><\/div>

625,000<\/div>
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total jobs in portfolio companies <\/p><\/div><\/div><\/div>\n\n\n\n

* In companies with two consecutive years of reporting under the development mandate<\/sup><\/sub><\/p>\n<\/div><\/div>\n\n\n\n

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Read about Norfund’s Development Mandate strategy<\/h3><\/div><\/div><\/div><\/a><\/div>\n<\/div><\/div>\n\n\n\n

Development rationale<\/h2>\n\n\n\n

Creating and sustaining jobs is vital to reduce poverty. Jobs generate household income, are a basis for taxation, provide security, and can enable knowledge and skills development.\u202fIt is a prerequisite that the jobs are in businesses that are financially viable to sustain the impacts. <\/p>\n\n\n\n

Investing in businesses and creating jobs encourages the transfer of technology and skills, equipping the workforce with the tools needed for innovation and productivity improvements. In essence, investing in job creation in developing countries can be seen as a catalyst for a virtuous cycle of growth, poverty reduction, and enhanced social stability. <\/p>\n\n\n\n

Following a period of stability in number of unemployed people worldwide, the pandemic brought on a surge in the number of unemployed individuals. Even though the level has come down from the peak during the pandemic, global unemployment levels maintain above the level that was achieved before the pandemic.  <\/p>\n\n\n\n

Also in Norfund\u00b4s markets the unemployment and informal sector jobs remain substantially higher than before the pandemic. High levels of informal jobs and unemployment makes Norfund\u00b4s investments, targeted at creating and sustaining jobs ever more important. Investments not only support the immediate need for quality jobs but also lay the foundation for sustainable development by investing in specific sectors. By channeling funds into sectors and businesses with high growth potential, Norfund is stimulating economic growth.  <\/p>\n\n\n\n

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Norfund\u2019s investments contribute both directly and indirectly to the achievement of SDG Target 8.5<\/em>.<\/p>\n<\/div>\n<\/div>\n\n\n\n

In Africa, nearly 83% of the jobs are within the informal sector<\/a>. This means that the workers are unregistered, have no insurance or sick leave schemes and have limited access to training. Therefore, it is crucial to develop formal job opportunities and ensure that these are jobs where workers\u2019 rights are protected.\u202f\u202f <\/p>\n\n\n\n

Avoiding further job losses and creating a substantial number of quality jobs in the formal sector in developing countries is therefore imperative to achieve growth and sustainable development.  <\/p>\n\n\n\n

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Read about Norfund’s investments in African agriculture and food systems<\/h3><\/div><\/div><\/div><\/a><\/div>\n<\/div><\/div>\n\n\n\n

Results 202<\/strong>3<\/h2>\n\n\n\n
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Photo credit: Redsun<\/figcaption><\/figure>\n\n\n\n

Record high number of jobs in Norfund portfolio companies <\/strong><\/h3>\n\n\n\n

By the end of 2023, a record high number of 625,000 people were employed in the companies in which Norfund is invested, either directly or through funds. 77% of these were permanent jobs.\u202f\u202f <\/p>\n\n\n\n

The below figure shows the number of jobs directly supported through the companies Norfund has invested in during the last five years. Figures are not directly comparable across years due to variations in the portfolio composition from new investments and exits. However, we see that since 2019 the number of direct jobs supported through our investments has increased by 64 %.<\/p>\n\n\n\n

 Total jobs in Norfund\u2019s portfolio companies<\/strong><\/h3>\n\n\n