Firms and employment in cities
Productive cities rely on conducive business environments and well-functioning labour markets.
Cities cluster firms and workers together, fostering rapid learning, skills development, and entrepreneurship. They also offer essential trade networks and infrastructure, enabling firms to access regional and global markets. However, rapid urbanisation can exacerbate issues like congestion and air pollution, which hinder business productivity. Getting core urban policy right, including land rights and land use planning, infrastructure, and service provision, can significantly reduce urban density costs and create a competitive environment for businesses to thrive and workers to access better employment opportunity.
