Job Creation is a Priority in the Government's Development Strategy

The 9th Constitutional Government reaffirms its commitment to creating decent and sustainable employment, through a strategy based on three fundamental axes: investment in basic infrastructures, economic diversification and the strengthening of public institutions. This approach aims to respond to the high proportion of young people, the need to create opportunities throughout the country and the central objective of ensuring economic growth with a direct impact on job creation. 

After a long period of economic stagnation and shrinking public investment between 2017 and 2023, the current Executive began its mandate by launching structural reforms in the areas of public finance management, the financial sector, justice and public administration, while boosting decentralization and reinforcing investment in critical infrastructure. This investment aims not only to improve the living conditions and mobility of the population, but also to reactivate the economy and foster job creation. The International Monetary Fund recently concluded that Timor-Leste's economic growth should “remain robust” in 2025 and predicts that it will continue to accelerate in 2026. It also praised “the progress made in the financial sector reforms promoted by the government”, whose implementation “will favor the development of the private sector”.

In a report published in June 2025, entitled Tatoli! A Survey of the Timorese People, The Asia Foundation notes that “almost two-thirds (64%, up from 58% in 2023) of respondents were engaged in some form of paid work - including 45% who were self-employed (up from 41% in 2023)”. In contrast, the 2022 edition of this survey recorded that only “28% of respondents were employed, with a salary or other income”. 

Public investment has been channeled into structural areas such as road infrastructure, water supply and sanitation. These investments have a direct impact on job creation during the execution phase and create the necessary conditions for the development of local economic activities. In the strategic infrastructure sector, we highlight the progress of the fiber optic cable connection project and the launch of the rehabilitation of the Presidente Nicolau Lobato International Airport, which are essential for improving connectivity, attracting investment and promoting economic growth.

Economic diversification is another central pillar of the strategy to promote employment. The government has boosted the agriculture, fisheries, tourism and blue economy sectors as engines for creating opportunities. In the agricultural sector, irrigation systems have been rehabilitated and built, modern equipment has been distributed and initiatives have been promoted to increase national production, promote employment in rural areas and improve the living conditions of communities. 

The national policy for the blue economy, which is currently being finalized, represents a paradigm shift in the economic development model. Structured around social, economic and environmental pillars, it includes measures for the sustainable development of marine and coastal resources, the strengthening of ocean governance and the promotion of employment in a wide range of economic sectors linked to the sea.

Internationally, the strengthening of Timor-Leste's diplomatic presence, the consolidation of relations with strategic partners and active participation in economic forums and meetings with investors have all contributed to increasing international confidence. Joining the World Trade Organization (WTO) and the planned full membership of the Association of Southeast Asian Nations (ASEAN) later this year are important milestones in positioning Timor-Leste as a reliable economic partner and creating a more attractive environment for foreign direct investment. These advances should translate into the establishment of new companies and the creation of qualified and diversified jobs. 

The government is also implementing measures to strengthen the national private sector by simplifying administrative processes, improving the business environment and access to finance. The growth in the number of companies and entrepreneurs is a direct route to increasing employability outside the civil service. These actions are combined with cross-cutting policies to develop social capital, infrastructure and good governance, to create an environment conducive to entrepreneurship and the creation of new job opportunities.  The private sector, regardless of its vocation or size, should be one of the main drivers of the national economy and a determining factor in job creation and poverty reduction. 

In the energy sector, the Tasi Mane project, currently under development, and the negotiations with Australia for the Greater Sunrise gas field represent large-scale investments with multiplier effects on the economy and a strong impact on employment. As stated in the Government Program, “not only exploration, but also the construction phase, as well as the operation of infrastructure and related services, will create tens of thousands of direct and indirect jobs.”

The government's employment policy is present in all its areas of activity. The Government Program stresses that “investments in the various development sectors will contribute to a healthier and more productive workforce, a more educated and qualified workforce and, with the diversification of national production, greater opportunities for job creation”. 

The 9th Constitutional Government is thus implementing an integrated strategy that links public investment and economic diversification to the creation of decent and sustainable employment. The Government will continue to work to ensure that the population has access to economic opportunities, as an essential part of the national development process.