Cambodia launches new policy brief under the Global Accelerator on employment and socioeconomic impacts of LDC Graduation

Phnom Penh, Cambodia - The Ministry of Labour and Vocational Training (MLVT) of Cambodia and the International Labour Organization (ILO) have launched the first jointly developed policy brief applying Social Accounting Matrix (SAM) multiplier analysis, a foundational building block of the Structural Model for Sustainable Development (SMSD), marking an important milestone in strengthening national capacity for evidence-based labour market policy analysis under the Global Accelerator. The publication, “Employment and Socioeconomic Impacts of Cambodia's LDC Graduation: Evidence from TINA and the SAM-Multiplier Analysis”, was officially presented during the Labour Market Update 2026 workshop in Phnom Penh. 

The policy brief is an output of an ongoing applied research and capacity-building programme established under Cambodia's Global Accelerator implementation process. Rather than producing research externally, the initiative focuses on transferring analytical skills directly to national counterparts through hands-on collaboration, enabling government officials to progressively develop and apply advanced quantitative modelling techniques to national policy challenges. This approach aims to strengthen sustainable national analytical capacity while generating policy-relevant evidence and guidance for decision-makers.

Using the Trade Intelligence and Negotiation Advisor (TINA) and a Social Accounting Matrix (SAM) multiplier analysis, the policy brief examines the potential employment and socioeconomic implications of Cambodia's graduation from Least Developed Country (LDC) status. The analysis finds that while LDC graduation represents a major development milestone, the gradual loss of trade preferences could generate significant short-term impacts across the economy if not accompanied by appropriate policy responses. 

The modelling highlights that women, informal and self-employed workers, low-skilled workers, and those employed in labour-intensive manufacturing and agriculture are among the groups most exposed to potential adjustment pressures. It also proposes an integrated policy framework combining skills development, social protection, enterprise upgrading, sectoral value chain development and trade diversification to support a more resilient and inclusive economic transition.

The policy brief represents the first step in a broader applied research and capacity-building programme under the Global Accelerator. Building on this work, the ILO and the Ministry of Labour and Vocational Training (MLVT) are jointly developing a series of analytical products examining the employment impacts of major economic shocks, including cross-border migration dynamics and global supply chain disruptions, alongside more advanced policy simulation and microsimulation analyses. 

These studies will provide the analytical foundation for future policy briefs and technical reports on key priorities under Cambodia's Global Accelerator roadmap, including employment, formalization, skills development, labour market transitions, social protection and just transition. It also demonstrates how the Global Accelerator supports countries not only through policy dialogue but also by investing in the analytical tools and institutional capacities needed to design evidence-based policy-making and reforms.