The World Bank has urged governments to overhaul public works programmes, warning that short-term jobs alone are no longer sufficient to tackle unemployment, skills gaps and changing labour market demands.
In a new report titled Innovations in Public Works: Rethinking Public Works for Jobs and Skills in a Changing World, the lender said traditional public works schemes, which typically offer temporary, low-skilled infrastructure jobs, often fail to deliver lasting economic value or pathways into stable employment.
Public works programmes are widely used across low- and middle-income countries as a form of social protection, providing income support for vulnerable populations. However, the World Bank said these schemes must evolve to reflect labour markets increasingly shaped by digitalisation, climate pressures and demographic change.
The report noted that public works should move beyond short-term income relief and be redesigned to help participants build skills that align with growing sectors of the economy. It stressed that well-designed programmes can serve as both safety nets and stepping stones into more sustainable employment, particularly for youth, women, and informal workers.
According to the World Bank, a new generation of public works programmes is emerging, focused on care services, digital work and green jobs. Under care-based public works, participants provide services such as childcare, elder care and home-based support rather than physical infrastructure. In several countries, such programmes have expanded women’s participation in paid work while equipping participants with transferable caregiving and service-sector skills.
The report also highlighted the rise of digital public works, where participants contribute to the creation of digital public assets such as maps, datasets and digitised records. In some instances, young people using smartphones and satellite imagery to support urban planning, infrastructure mapping and disaster risk management. These programmes help participants acquire practical digital skills and are considered particularly accessible to women and young people, as many tasks can be performed remotely.
Green public works were identified as another key area, combining job creation with climate adaptation and environmental protection. Projects such as land restoration, water management, coastal protection and flood control were cited as examples of how public works can support climate resilience while building skills relevant to agriculture, environmental services and conservation-related MSMEs.
The World Bank said these approaches demonstrate that public works programmes can be more inclusive, adaptive and cost-effective when designed around skills development and long-term employability. By aligning public spending with labour market needs, governments can better support vulnerable populations while strengthening human capital and productivity.
The lender added that countries investing in forward-looking public works programmes stand to gain more value from public funds, protect vulnerable people in the short term and prepare workers for future jobs, including opportunities within small businesses, community enterprises and emerging green and digital sectors.
