Seyyed Mohsen Tabatabaei Mozdabadi, Secretary General of the Iranian Urban Economics Scientific Association; Government leadership in the field of urban development plays a decisive role in increasing productivity and creating sustainable employment in cities, because in today's global economy, sustainable growth can no longer be expected just by injecting budgets or creating short-term jobs.

Governments that have had effective leadership in the field of urban employment have changed their attitude from "increasing the number of jobs" to "creating sustainable, productive and high-value-added employment," and this new perception is the main basis for increasing productivity and urban economic growth.

According to studies, most major cities in the world, even with the overall slowdown in the labor market in 2024, continue to perform better than the national average in employment growth, and some global cities such as Bangalore, Delhi, and Melbourne have predicted annual employment growth of more than 2 percent in the period 2024-2028, which is a sign of a focus on developing productive sectors.

The government, in its leadership role, is no longer simply an employer, but a regulator and creator of the growth platform for the private sector, startups and local businesses. When clear laws, reasonable taxation, targeted support and the necessary infrastructure are in place, employment is created naturally and sustainably, and cities are less likely to be trapped in government-funded or unproductive jobs.

One of the most important tools for governments to increase labor productivity and sustainable employment is investment in human capital; that is, skill-based training, adapting the education system to labor market needs and strengthening practical skills. Governments that have invested in this area in a targeted manner experience high employment rates and better job quality. For example, in the European Union, the employment rate of active people aged 20 to 64 has reached a historic high of around 75 percent, which demonstrates the power of empowering the workforce through appropriate education and labor market policies.

Globally, the characteristics of the labor market in different countries also indicate the importance of such leadership. Countries such as Norway, Sweden, Japan and Australia have recorded high employment rates and labor productivity, which is largely due to strong education, extensive social welfare systems and the matching of skills to market needs, all of which are the result of smart policymaking and long-term management.

Government leadership should also pay attention to the balanced distribution of employment in cities. Excessive concentration of employment in one area increases the cost of living, traffic and reduces the quality of life. In contrast, the creation of economic clusters in less developed areas, business parks and innovation zones can provide new and sustainable job opportunities.

Another fundamental axis of developing sustainable employment is paying attention to the digital economy and new technologies. Technology-based service sectors and the knowledge economy play a major role in urban employment growth, and in some regions, the office and service sector accounts for more than 30 percent of urban GDP and attracts a large workforce.

Sustainable employment cannot be achieved without social trust and citizen participation. Governments that engage in genuine dialogue with citizens, entrepreneurs, and the workforce, and that design policies with stakeholders, have had a greater impact on improving the labor market. This participation creates a sense of ownership and commitment in the workforce, increasing their motivation for productivity and growth.

Global statistics show that labor productivity in urban areas accounts for a large part of economic growth. The OECD report shows that in 20 member countries, capital cities are often the most productive, and employment growth has been in line with output growth, although regional disparities remain.

The future of cities with smart government leadership includes higher productivity, balanced development, and sustainable employment. Instead of relying on short-term or unproductive jobs, these cities are moving towards diverse, knowledge-based economies, resulting in a higher-quality workforce and better urban life.

If government leadership is based on transparency, participation, and long-term policymaking, it can transform cities into sustainable centers of economic and social growth and make sustainable employment a tangible reality.

Mehr News Agency