Unpacking the black box: Investigating the role of social protection programmes in promoting decent work and economic growth in low‐income countries

Abstract

This study investigates the intricate nexus between low‐income countries, Sustainable Development Goals (SDGs), and the multifaceted phenomenon of unemployment. Amid the global endeavour to achieve SDGs, these marginalised nations assume a pivotal role, confronting distinctive challenges and opportunities. We employ meticulous analysis and structural equation modelling techniques to unveil a complex network of relationships among diverse socio‐economic indicators and unemployment across 27 low‐income countries, encompassing nations such as Afghanistan, Zambia, and others. Our empirical findings underscore the paramount importance of economic advancement, as epitomised by GDP per capita, in fostering employment prospects. Concurrently, environmental endeavours, epitomised by CO2 emissions, underscore the potential of green employment in mitigating unemployment. Investments in education and healthcare, as indicated by primary completion rates and life expectancy, emerge as pivotal determinants of employability. Moreover, access to clean energy sources and mobile cellular subscriptions indirectly influence unemployment rates, underscoring the multifaceted nature of the issue. Furthermore, our analysis reveals the intricate interplay between economic progress and social well‐being. These insights give policymakers invaluable direction, stressing the significance of tailored strategies that harness education, healthcare, technology, and environmental initiatives to alleviate unemployment, cultivate inclusive growth, and advance the overarching aspirations of sustainable development in low‐income countries.