Tuesday, November 18, 2008

Policies To Reduce Unemployment




In the long term, effective policies to reduce the total level of unemployment need to encourage


An improvement in the employability of the labour supply -


so that the unemployed have the right skills to take up the available job opportunities. Policies should focus on improving the occupational mobility of labour

An improvement in the incentives for people to search and then accept paid work -

this may require some reforms of the tax and benefits system

A sustained period of economic growth so that new jobs are being created

- this requires that aggregate demand is sufficiently high for businesses to be looking to expand their workforces
Improving skills and reducing occupational immobility

Policies should provide the unemployed with the skills they need to find re-employment and improve the incentives to find work. Structural unemployment is the result of workers being occupationally immobile - improvements in education and training will increase the human capital of these workers, and therefore give them a better chance of taking the new jobs that become available in the economy.
Reflating Aggregate Demand
The government can also use macro-economic policies to increase the level of aggregate demand. These policies might involve lower interest rates or lower direct taxes. It might also encourage foreign investment into the economy from foreign multinational companies. In the diagram below we see an increase in aggregate demand leading to an expansion of aggregate supply. Because of the increase in demand for output, the demand for labour at each wage rate will grow - leading to an increase in total employment.
Not every increase in demand and production has to be met by using more labour. Each year we expect to see a rise in labour productivity (more output per worker employed). And, businesses may decide to increase production by making greater use of capital inputs (machinery and technology).
Benefit and Tax ReformsReducing the real value of unemployment benefits might increase the incentive to take a job - particularly if the real worth of unemployment benefits is well below the national minimum wage rate.Targeted measures are designed to help the long-term unemployed find re-employment (including the Government's "Welfare to Work Schemes" - see New Deal
Employment Subsidies Government subsidies for those firms that take on the long-term unemployed will create an incentive for firms to increase the size of their workforce. Employment subsidies may also be available for overseas firms locating in the UK.
Economic Growth and UnemploymentA growing economy creates jobs for people entering the labour market for the first time. And, it provides employment opportunities for people currently unemployed and looking for work .
the chart above shows the level of real national output (GDP) and total employment in the economy since 1980. In both of the last two recessions (1980-81 and 1990-92), the number of people in work has fallen sharply. But a period of sustained economic growth (as experienced by the UK from 1993-2001) has led to a significant increase in employment levels. Indeed by the summer of 2001, employment in the British economy was at record levels. This has helped reduce the official measures of unemployment to a level not seen for over twenty-five years.
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Nigeria Unemployment News

Nigeria Unemployment News

Highlights of the Strasbourg 17-20 November plenary session 18 Nov 2008 10:30 GMT... In this own-initiative report, MEPs in the Employment Committee express their preoccupation with maintaining the core ... the topics are: Somalia, death penalty in Nigeria, and the case of the al-Kurd family (East ...
Issues in Arab's Tenure Saga 18 Nov 2008 09:31 GMT... Arab, should retire from service to the Nigerian nation. Arab's tenure has become a subject of ... appointment in Kaduna State with his present employment at the Federal Civil Service, why are his ...
Gas - NGA Laments Lack of Regulatory Framework 18 Nov 2008 09:31 GMT... hindering the progress and growth of the Nigerian gas sector and which may also make the ... and competence, thus creating the much needed employment in the region and contribute to the economic ...
EQ. GUINEA: Oil money draws Sub-Saharan Africans 18 Nov 2008 07:55 GMT... retired police officer Antonio Obiang, "migrants from Nigeria and Cameroon started arriving. The first group settled here ... a director at the country’s Ministry of Employment: "It’s not like before. We see boatloads ... heightened locals’ wariness: "Immigrants have flooded the job market and the informal economy has created a ...
Esan in Netherlands laud Oshiomhole 18 Nov 2008 03:17 GMT... victory for democracy and a sign that Nigerians have embraced democratic tenets. In a congratulatory ... the twin problems of poverty alleviation and unemployment, adding that this will go a long ...
Gas: NGA laments lack of regulatory framework 18 Nov 2008 01:51 GMT... hindering the progress and growth of the Nigerian gas sector and which may also make the ... and competence, thus creating the much needed employment in the region and contribute to the economic ...
First Bank recommends Nirph Solution for Microfinance banks 18 Nov 2008 01:18 GMT... director, banking operations of First Bank of Nigeria Plc, has recommended Nirph Identification Solution for all ... credit for the poor, creation of self employment and reduction of poverty among others. "These objectives ...
An Indian with a global heart 17 Nov 2008 19:58 GMT... will not only help them sharpen their soft skills but also assist in finding employment abroad. In countries like Ghana, Sierra Leone, Toga and Nigeria, where he has several businesses running, Raja had helped build schools in villages and donated ...
ACF - in Search of 'Bank of the North' 17 Nov 2008 19:30 GMT... is politically dangerous. The Northern part of Nigeria is addressing its dwindling fate in the ... is confronting include: Poverty, the Almajiri menace, unemployment, bad governance and agricultural problems. In an ...
K.P.R. Raja: An Indian with a global heart 17 Nov 2008 18:13 GMT... will not only help them sharpen their soft skills but also assist in finding employment abroad. In countries like Ghana, Siearraleone, Toga and Nigeria, where he has several businesses running, he had helped build schools in villages and donated ...
Ooni of Ife laments state of federal roads 17 Nov 2008 16:31 GMT... community, the monarch regretted the state of Nigerian roads and urged the federal government to urgently ... funds to industrialize and create means of employment for the people saying that government alone could ...
Business abroadBitten by the crunch British business may be feeling the squeeze, but how is the rest of the world faring? 17 Nov 2008 16:05 GMT... year, Spain had the highest rate of unemployment in the euro zone at 11.3%. Despite ... paid 30% towards the production of brochures. Nigeria aims to become one of the 20 ...
--> Today Marks Launch of First-Ever Global Entrepreneurship Week 17 Nov 2008 14:32 GMT... Business Enterprise & Regulatory Reform, AIESEC, Youth Employment Services, The Prince's Youth Business International. 1. Argentina ... New Zealand 75. Venezuela 24. Germany 50. Nigeria 76. Vietnam 25. Ghana 51. Norway 77. Zambia 26. ...
Today Marks Launch of First-Ever Global Entrepreneurship Week 17 Nov 2008 14:30 GMT... Business Enterprise & Regulatory Reform, AIESEC, Youth Employment Services, The Prince's Youth Business International. 1. Argentina ... New Zealand 75. Venezuela 24. Germany 50. Nigeria 76. Vietnam 25. Ghana 51. Norway 77. Zambia 26. ...
Four Australian judges on UN shortlist 17 Nov 2008 14:16 GMT... the UN's internal justice administration to resolve employment-related disputes involving discrimination, harassment and abuse of ... in their national jurisdictions were from Botswana, Nigeria, Uruguay, Moldova-Romania, Ghana, Ireland, New Zealand, Mauritius, Germany, ...

Unemployment in Nigeria

UNEMPLOYMENT

Unemployment in Nigeria is one of the most critical problems the country is facing. The years of corruption, civil war, military rule, and mismanagement have hindered economic growth of the country. Nigeria is endowed with diverse and infinite resources, both human and material. However, years of negligence and adverse policies have led to the under-utilization of these resources. These resources have not been effectively utilized in order to yield maximum economic benefits. This is one of the primary causes of unemployment and poverty in Nigeria. As per the report of the World Bank, the GDP at purchasing power parity of Nigeria was $170.7 billion during 2005. Unemployment in Nigeria is a major problem both economically and socially. Unemployment in Nigeria has resulted in more and more people who do not have purchasing power. Less consumption has led to lower production and economic growth has been hampered. Unemployment also has social consequences as it increases the rate of crime. The secondary-school graduates consist of the principal fraction of the unemployed accounting for nearly 35% to 50%. The rate of unemployment within the age group of 20 to 24 years is 40 % and between 15 to 19 years it is 31 %. Unemployment in Nigeria is one of the most critical problems the country is facing. The years of corruption, civil war, military rule, and mismanagement have hindered economic growth of the country. Nigeria is endowed with diverse and infinite resources, both human and material. However, years of negligence and adverse policies have led to the under-utilization of these resources. These resources have not been effectively utilized in order to yield maximum economic benefits. This is one of the primary causes of unemployment and poverty in Nigeria. As per the report of the World Bank, the GDP at purchasing power parity of Nigeria was $170.7 billion during 2005. Unemployment in Nigeria is a major problem both economically and socially. Unemployment in Nigeria has resulted in more and more people who do not have purchasing power. Less consumption has led to lower production and economic growth has been hampered. Unemployment also has social consequences as it increases the rate of crime. The secondary-school graduates consist of the principal fraction of the unemployed accounting for nearly 35% to 50%. The rate of unemployment within the age group of 20 to 24 years is 40 % and between 15 to 19 years it is 31 %.
Economic growth is not the only solution to curb unemployment in Nigeria, as the official statistics illustrate that previously unemployment did not always decline with the economic growth. Other solutions such as the provision of right skills to the people to help them tackle the problems and lead a more prosperous life should also be given importance. Recently the experts have suggested some techniques, which can play important role in curbing Unemployment in Nigeria. These include –
Sports schools, evening clubs that teach kids to play football, swim etc
Computer training schools and clubs that specializes in teaching programming softwares such as Java, Oracle, ASP, Cold fusion, JSP, digital photography, and video editing, etc.
Language schools teaching foreign languages like French, Spanish, and Chinese.
Setting up of provisional work agencies, which provides temporary staff to small companies
People with good web and programming skills can think of starting the following projects in order to deal with the problems of unemployment - program unique JAVA based applications to be used in 3G phones, a project to structure a complete phone directory of all Nigerian phone numbers, online map project of major Nigerian cities, and project, which can provide sufficient information about everything in Nigeria.Other projects such as building solar powered water pump for use in rural areas, solar powered streetlights, hybrid powered generators using solar and battery power, can also generate employment in the Nigerian economy.