Fourteen years of civil conflict(1989-2003) have destroyed Liberia's social andeconomic infrastructure and brought the economy nearly to ahalt. Workers who came of age during the conflict arelargely unskilled, and the supply of workers exceeds demandby a substantial margin. The negative effects ofunemployment, underemployment, and low productivity oneconomic growth have made employment the most urgent demandof the population and the top priority for Governmentaction. This report offers guidance to the Government ofLiberia in its development of a more strategic approachtoward increasing productivity and employment, in order toachieve its pro-poor growth objectives. This report includesseven sections: employment is key for poverty reduction; onein five workers is unemployed or underemployed; thestructure of Liberia's economy limits prospects forformal sector employment; transformation of the agriculturesector is essential for pro-poor growth; investment and jobgrowth in the formal sector are constrained by three mainfactors; labor-intensive public works programs are necessaryfor the very poor; and education and training must beimproved to enhance employability.