This  paper presents the empirical findings of the analytical work of the project, Poverty Reduction through Jobs Creation along Small-Ruminant Value Chains in the Ethiopian Highlands (FMM/GLO/101/MUL). This work sought to identify the employment potential created by improvements in productivity and profitability along small-ruminant value chains in the Ethiopian highlands. By doing so, it made an important contribution towards analytical work that links small-ruminant value chain analysis with employment assessment in a rigorous and quantitative manner.