How market systems development strengthens productivity ecosystems

Improving worker employability and productivity in Peru’s forestry sector

This case study is part of a broader series providing concrete examples of how the ILO promoted change that led to positive impact on productivity and decent work, especially for MSMEs. Drawing on learnings from the roll out of two interventions in Peru’s wood and furniture sector, it outlines how the market systems development (MSD) approach can be used to strengthen sector-level productivity drivers and improve working conditions in a sustainable and scalable manner. The two interventions examined include one addressing skilled labour shortages through a skills certification programme for workers who had learned their trade on-the-job, and another one addressing lack of coordination at the institutional level, which effectively led to addressing traceability issues through improved regulation at the forestry level.