how employment make change in the country

Employee[edit]

An employee contributes labor and/or expertise to an endeavor of an employer and is usually hired to perform specific duties which are packaged into a job. An Employee is a person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.

Employer-worker relationship[edit]

Employer and managerial control within an organization rests at many levels and has important implications for staff and productivity alike, with control forming the fundamental link between desired outcomes and actual processes. Employers must balance interests such as decreasing wage constraints with a maximization of labor productivity in order to achieve a profitable and productive employment relationship.

Finding employees or employment[edit]

The main ways for employers to find workers and for people to find employers are via jobs listings in newspapers (via classified advertising) and online, also called job boards. Employers and job seekers also often find each other via professional recruitment consultants which receive a commission from the employer to find, screen and select suitable candidates. However, a study has shown that such consultants may not be reliable when they fail to use established principles in selecting employees.[1] A more traditional approach is with a “Help Wanted” sign in the establishment (usually hung on a window or door[2] or placed on a store counter).[3] Evaluating different employees can be quite laborious but setting up different techniques to analyze their skill to measure their talents within the field can be best through assessments.[4]Employer and potential employee commonly take the additional step of getting to know each other through the process of job interview.

Training and development[edit]

Training and development refers to the employer’s effort to equip a newly hired employee with necessary skills to perform at the job, and to help the employee grow within the organization. An appropriate level of training and development helps to improve employee’s job satisfaction.

Employee benefits[edit]

Employee benefits are various non-wage compensation provided to employee in addition to their wages or salaries. The benefits can include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education and other specialized benefits. Employee benefits improves the relationship between employee and employer and lowers staff turnover.

Organizational justice[edit]

Organizational justice is an employee’s perception and judgement of employer’s treatment in the context of fairness or justice. The resulting actions to influence the employee-employer relationship is also a part of organizational justice.

Workforce organizing[edit]

Employees can organize into trade or labor unions, which represent the work force to collectively bargain with the management of organizations about working, and contractual conditions and services.

Ending employment[edit]

Usually, either an employee or employer may end the relationship at any time. This is referred to as at-will employment. The contract between the two parties specifies the responsibilities of each when ending the relationship and may include requirements such as notice periods, severance pay, and security measures.

Wage labor[edit]

Main article: Wage labor

Worker assembling rebar for a water treatment plant in Mazatlan,Sinaloa, Mexico.

Wage labor is the socioeconomic relationship between a worker and an employer, where the worker sells their labor under a formal or informal employment contract. These transactions usually occur in a labor market where wages are market determined.[5][6] In exchange for the wages paid, the work product generally becomes the undifferentiated property of the employer, except for special cases such as the vesting of intellectual property patents in the United States where patent rights are usually vested in the original personal inventor. A wage laborer is a person whose primary means of income is from the selling of his or her labor in this way.

In modern mixed economies such as that of the OECD countries, it is currently the dominant form of work arrangement. Although most work occurs following this structure, the wage work arrangements of CEOs, professional employees, and professional contract workers are sometimes conflated with class assignments, so that “wage labor” is considered to apply only to unskilled, semi-skilled or manual labor.

Wage slavery[edit]

Main article: Labour economics

Wage labour, as institutionalised under today’s market economic systems, has been criticized,[7] especially by both mainstream socialists and anarcho-syndicalists,[8][9][10][11] using the pejorative term wage slavery.[12][13] Socialists draw parallels between the trade of labour as a commodity and slavery. Cicero is also known to have suggested such parallels.[14]

The American philosopher John Dewey posited that until “industrial feudalism” is replaced by “industrial democracy,” politics will be “the shadow cast on society by big business”.[15] Thomas Ferguson has postulated in his investment theory of party competition that the undemocratic nature of economic institutions under capitalism causes elections to become occasions when blocs of investors coalesce and compete to control the state.[16]

Employment contract[edit]

Main article: Employment contract

Australia[edit]

Australian Employment has been governed by the Fair Work Act since 2009.[17]

Bangladesh[edit]

Bangladesh Association of International Recruiting Agencies (BAIRA) is an association of national level with its international reputation of co-operation and welfare of the migrant workforce as well as its approximately 1200 members agencies in collaboration with and support from the Government of Bangladesh.

Canada[edit]

In the Canadian province of Ontario, formal complaints can be brought to the Ministry of Labour. In the province of Quebec, grievances can be filed with the Commission des normes du travail.

Pakistan[edit]

Pakistan has Contract Labor, Minimum Wage and Provident Funds Acts. Contract labor in Pakistan must be paid minimum wage and certain facilities are to be provided to labor. However, the Acts are not yet fully implemented.[citation needed]

India[edit]

India has Contract Labor, Minimum Wage, Provident Funds Act and various other acts to comply with. Contract labor in India must be paid minimum wage and certain facilities are to be provided to labor. However, there is still a large amount of work that remains to be done to fully implement the Act.[citation needed]

Philippines[edit]

In the Philippines, private employment is regulated under the Labor Code of the Philippines by the Department of Labor and Employment.

United Kingdom[edit]

In the United Kingdom employment contracts are categorised by the government into the following types:[18]

  • Fixed-term contract: last for a certain length of time, are set in advance, end when a specific task is completed, ends when a specific event takes place.
  • Full-time or part-time contract: has no defined length of time, can be terminated by either party, is to accomplish a specific task, specified number of hours.
  • Agency staff
  • freelancers, consultants, contractors
  • zero hour contracts

United States[edit]

In the United States, the standard employment relationship is considered to be at-will, meaning that the employer and employee are both free to terminate the employment at any time and for any cause, or for no cause at all. However, if a termination of employment[19] by the employer is deemed unjust by the employee, there can be legal recourse to challenge such a termination. Unjust termination may include termination due to discrimination because of an individual’s race, national origin, sex or gender, pregnancy, age, physical or mental disability, religion, or military status. Additional protections apply in some states, for instance in California unjust termination reasons include marital status, ancestry, sexual orientation or medical condition. Despite whatever agreement an employer makes with an employee for the employee’s wages, an employee is entitled to certain minimum wages set by the federal government. The states may set their own minimum wage that is higher than the federal government’s to ensure a higher standard of living or living wage for those who are employed. Under the Equal Pay Act of 1963 an employer may not give different wages based on sex alone.[20]

Employees are often contrasted with independent contractors, especially when there is dispute as to the worker’s entitlement to have matching taxes paid, workers compensation, and unemployment insurancebenefits. However, in September 2009, the court case of Brown v. J. Kaz, Inc. ruled that independent contractors are regarded as employees for the purpose of discrimination laws if they work for the employer on a regular basis, and said employer directs the time, place, and manner of employment.[21]

In non-union work environments, in the United States, unjust termination complaints can be brought to the United States Department of Labor.[22]

U.S. Federal income tax withholding[edit]

For purposes of U.S. federal income tax withholding, 26 U.S.C. § 3401(c) provides a definition for the term “employee” specific to chapter 24 of the Internal Revenue Code:

“For purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term “employee” also includes an officer of a corporation.”[23] This definition does not exclude all those who are commonly known as ’employees’. “Similarly, Latham’s instruction which indicated that under 26 U.S.C. § 3401(c) the category of ‘employee’ does not include privately employed wage earners is a preposterous reading of the statute. It is obvious that within the context of both statutes the word ‘includes’ is a term of enlargement not of limitation, and the reference to certain entities or categories is not intended to exclude all others.”[24]

Labor unions[edit]

Labor unions are legally recognized as representatives of workers in many industries in the United States. Their activity today centers on collective bargaining over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over violations of contract provisions. Larger unions also typically engage in lobbying activities and electioneering at the state and federal level.

Most unions in America are aligned with one of two larger umbrella organizations: the AFL-CIO created in 1955, and the Change to Win Federation which split from the AFL-CIO in 2005. Both advocate policies and legislation on behalf of workers in the United States and Canada, and take an active role in politics. The AFL-CIO is especially concerned with global trade issues.

Sweden[edit]

According to Swedish law,[25] there are three types of employment.

  • Test employment (swe: Provanställning), where the employer hires a person for a test period of max 6 months. The employment can be ended at any time without giving any reason. This type of employment can be offered only once per employer and employee combination. Usually a time limited or normal employment is offered after a test employment.
  • Time limited employment (swe: Tidsbegränsad anställning). The employer hires a person for a specified time. Usually they are extended for a new period. Total maximum two years per employee and employee combination, then it automatically counts as a normal employment.
  • Normal employment (swe: Tillsvidareanställning / Fast anställning), which has no time limit (except for retirement etc.). It can still be ended for two reasons: personal reason, immediate end of employment, only for strong reasons such as crime. Or: lack of work tasks (swe: Arbetsbrist), cancellation of employment, usually because of bad income for the company. There is a cancellation period of 1–6 months, and rules for how to select employees, basically those with shortest employment time shall be cancelled first.

There are no laws about minimum salary in Sweden. Instead there are agreements between employer organizations and trade unions about minimum salaries, and other employment conditions.

There is a type of employment contract which is common but not regulated in law, and that is Hour employment (swe: Timanställning), which can be Normal employment (unlimited), but the work time is unregulated and decided per immediate need basis. The employee is expected to be answering the phone and come to work when needed, e.g. when someone is ill and absent from work. They will receive salary only for actual work time and can be in reality be fired for no reason by not being called anymore. This type of contract is common in the public sector.

Youth employment[edit]

Youth employment rate in the US, i.e. the ratio of employed persons (15-24Y) in an economy to total labor force (15-24Y). [1]

Research has looked at understanding private sector led youth employment programmes that contain or are supported through temporary employment/employer placement, and not in only training. Researchers claimed that a problem rising up the international agenda involves enlarging the share of the population in employment. After looking at literature they concluded that youth employment programmes are most effective when combining elements. The most effective programmes involve the private sector with training provided both in the classroom and in work placements. The majority of interventions worldwide include a large element of such training initiatives. Wage subsidies have some incidences of fairly strong impacts. With other types of interventions like in entrepreneurship and in job placement assistance, the evidence is more mixed.[26]

Working poor[edit]

Worker, Dhaka, Bangladesh.

Employment is no guarantee of escaping poverty, the International Labour Organisation (ILO) estimates that as many as 40% of workers as poor, not earning enough to keep their families above the $2 a day poverty line.[27] For instance, in India most of the chronically poor are wage earners in formal employment, because their jobs are insecure and low paid and offer no chance to accumulate wealth to avoid risks.[27] According to the UNRISD, increasing labor productivity appears to have a negative impact on job creation: in the 1960s, a 1% increase in output per worker was associated with a reduction in employment growth of 0.07%, by the first decade of this century the same productivity increase implies reduced employment growth by 0.54%.[27] Both increased employment opportunities and increased labor productivity (as long as it also translates into higher wages) are needed to tackle poverty. Increases in employment without increases in productivity leads to a rise in the number of “working poor”, which is why some experts are now promoting the creation of “quality” and not “quantity” in labor market policies.[27] This approach does highlight how higher productivity has helped reduce poverty in East Asia, but the negative impact is beginning to show.[27] In Vietnam, for example, employment growth has slowed while productivity growth has continued.[27]Furthermore, productivity increases do not always lead to increased wages, as can be seen in the United States, where the gap between productivity and wages has been rising since the 1980s.[27]

Researchers at the Overseas Development Institute argue that there are differences across economic sectors in creating employment that reduces poverty.[27] 24 instances of growth were examined, in which 18 reduced poverty. This study showed that other sectors were just as important in reducing unemployment, as manufacturing.[27] Theservices sector is most effective at translating productivity growth into employment growth. Agriculture provides a safety net for jobs and economic buffer when other sectors are struggling.[27]

Growth, employment and poverty[27]
Number of
episodes
Rising
agricultural
employment
Rising
industrial
employment
Rising
services
employment
Growth episodes associated with falling poverty rates 18 6 10 15
Growth episodes associated with no fall in poverty rates 6 2 3 1

Models of the employment relationship[edit]

Scholars conceptualize the employment relationship in various ways.[28] A key assumption is the extent to which the employment relationship necessarily includes conflicts of interests between employers and employees, and the form of such conflicts.[29] In economic theorizing, the labor market mediates all such conflicts such that employers and employees who enter into an employment relationship are assumed to find this arrangement in their own self-interest. In human resource management theorizing, employers and employees are assumed to have shared interests (or a unity of interests, hence the label “unitarism”). Any conflicts that exist are seen as a manifestation of poor human resource management policies or interpersonal clashes such as personality conflicts, both of which can and should be managed away. From the perspective of pluralist industrial relations, the employment relationship is characterized by a plurality of stakeholders with legitimate interests (hence the label “pluralism), and some conflicts of interests are seen as inherent in the employment relationship (e.g., wages v. profits). Lastly, the critical paradigm emphasizes antagonistic conflicts of interests between various groups (e.g., the competing capitalist and working classes in a Marxist framework) that are part of a deeper social conflict of unequal power relations. As a result, there are four common models of employment:[30]

  1. Mainstream economics: employment is seen as a mutually advantageous transaction in a free market between self-interested legal and economic equals
  2. Human resource management (unitarism): employment is a long-term partnership of employees and employers with common interests
  3. Pluralist industrial relations: employment is a bargained exchange between stakeholders with some common and some competing economic interests and unequal bargaining power due to imperfect labor markets
  4. Critical industrial relations: employment is an unequal power relation between competing groups that is embedded in and inseparable from systemic inequalities throughout the socio-politico-economic system.

These models are important because they help reveal why individuals hold differing perspectives on human resource management policies, labor unions, and employment regulation.[31] For example, human resource management policies are seen as dictated by the market in the first view, as essential mechanisms for aligning the interests of employees and employers and thereby creating profitable companies in the second view, as insufficient for looking out for workers’ interests in the third view, and as manipulative managerial tools for shaping the ideology and structure of the workplace in the fourth view.[32]

Academic literature[edit]

Literature on the employment impact of economic growth and on how growth is associated with employment at a macro, sector and industry level was aggregated in 2013.[33]

Researchers found evidence to suggest growth in manufacturing and services have good impact on employment. They found GDP growth on employment in agriculture to be limited, but that value-added growth had a relatively larger impact. The impact on job creation by industries/economic activities as well as the extent of the body of evidence and the key studies. For extractives, they again found extensive evidence suggesting growth in the sector has limited impact on employment. In textiles however, although evidence was low, studies suggest growth there positively contributed to job creation. In agri-business and food processing, they found impact growth to be positive.[33]

They found that most available literature focuses on OECD and middle-income countries somewhat, where economic growth impact has been shown to be positive on employment. The researchers didn’t find sufficient evidence to conclude any impact of growth on employment in LDCs despite some pointing to the positive impact, others point to limitations. They recommended that complementary policies are necessary to ensure economic growth’s positive impact on LDC employment. With trade, industry and investment, they only found limited evidence of positive impact on employment from industrial and investment policies and for others, while large bodies of evidence does exist, the exact impact remains contested.[33]

Globalization and employment relations[edit]

The balance of economic efficiency and social equity is the ultimate debate in the field of employment relations.[34] By meeting the needs of the employer; generating profits to establish and maintain economic efficiency; whilst maintaining a balance with the employee and creating social equity that benefits the worker so that he/she can fund and enjoy healthy living; proves to be a continuous revolving issue in westernized societies.

Globalization has effected these issues by creating certain economic factors that disallow or allow various employment issues. Economist Edward Lee (1996) studies the effects of globalization and summarizes the four major points of concern that affect employment relations:

  1. International competition, from the newly industrialized countries, will cause unemployment growth and increased wage disparity for unskilled workers in industrialized countries. Imports from low-wage countries exert pressure on the manufacturing sector in industrialized countries and foreign direct investment (FDI) is attracted away from the industrialized nations, towards low-waged countries.
  2. Economic liberalization will result in unemployment and wage inequality in developing countries. This happens as job losses in uncompetitive industries outstrip job opportunities in new industries.
  3. Workers will be forced to accept worsening wages and conditions, as a global labor market results in a “race to the bottom”. Increased international competition creates a pressure to reduce the wages and conditions of workers.
  4. Globalization reduces the autonomy of the nation state. Capital is increasingly mobile and the ability of the state to regulate economic activity is reduced.

What also results from Lee’s (1996) findings is that in industrialized countries an average of almost 70 per cent of workers are employed in the service sector, most of which consists of non-tradable activities. As a result, workers are forced to become more skilled and develop sought after trades, or find other means of survival. Ultimately this is a result of changes and trends of employment, an evolving workforce, and globalization that is represented by a more skilled and increasing highly diverse labor force, that are growing in non standard forms of employment (Markey, R. et al. 2006).

Alternatives[edit]

Workplace democracy[edit]

Main article: Workplace democracy

Workplace democracy is the application of democracy in all its forms (including voting systems, debates, democratic structuring, due process, adversarial process, systems of appeal) to the workplace.[35]

Self-employment[edit]

When an individual entirely owns the business for which they labor, this is known as self-employment. Self-employment often leads to incorporation. Incorporation offers certain protections of one’s personal assets.

Volunteerism[edit]

Workers who are not paid wages, such as volunteers, are generally not considered employed. One exception to this is an internship, an employment situation in which the worker receives training or experience (and possibly college credit) as the chief form of compensation.

Indenturing and slavery[edit]

Those who work under obligation for the purpose of fulfilling a debt, such as an indentured servant, or as property of the person or entity they work for, such as a slave, do not receive pay for their services and are not considered employed. Some historians suggest that slavery is older than employment, but both arrangements have existed for all recorded history. Indenturing and slavery are not considered compatible withhuman rights and democracy.

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effects of a reduction in unemployment

Discuss the economic effects of a reduction in unemployment

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Extracts from this document…

Introduction

Discuss the economic effects of a reduction in unemployment (18) One of the main government policy objectives is high employment or most of the countries even aim for full employment, which is a term for unemployment at 3%. This is because government acknowledges that employment benefits individuals, government itself and in most cases the whole society, as it can cause a sustainable economic growth and raise people’s material standard of living. However, every single country has some degree of unemployment, as it is impossible to avoid, so government uses different policies to reduce as much unemployment as possible. These policies are demand side policy, which is increasing the AD to reduce unemployment and supply side policy which means increasing the AS using different methods and with it increasing the need of the labour.

Middle

in some cases if the government moved from some unemployment to full employment the actual output will be the potential output and the country will be producing on its production possibility curve. . The increased output can result an increase in AS and shift the AS curve outward, which will push down the price level and increase the countries real GDP, therefore the country will be experiencing an economic growth in short run. Another benefit from reducing unemployment would be an increase in tax revenue, as firstly government would collect more revenue from the income tax and secondly the companies will be earning a higher profit because of the increase in AS, so the government would be able to collect more corporation tax.

Conclusion

On the other hand there are some costs of reducing the unemployment, for example less people will have the time to find for a more rewarding job and as the labour will be in high demand the workers might try to push up the wages through the workers union increasing the cost of production for the firms. Also the reduction in unemployment might increase the possibility of demand-pull and cost-push inflation, making the economy more unstable. In conclusion, the benefits of reducing unemployment outweighs the cost and the effects of the unemployment are in most cases beneficial, such as increasing the output and promoting the economic growth also increasing the material living standards. Therefore it’s not a surprise that most government believe that reducing the unemployment should be a priority to other government objectiv

Uemployment

UNEMPLOYMENT OCCURS WHEN PEOPLE ARE WITHOUT WORK AND ACTIVELY SEEKING WORK.THE UNEMPLOYMENT RATE A MEASURE OF THE PREVALENCE  OF UNEMPLOYMENT AND IT IS CALCULATED AS A PERCENTAGE BY DIVIDING THE NUMBER OF UNEMPLOYED INDIVIDUALS BY ALL INDIVIDUALS CURRENTLY IN THE LABOR FORCE.DURING PERIODS OF RECESSION,AN ECONOMY USUALLY EXPERIENCE S AS RELATIVELY HIGH EMPLOYMENT RATE.

how we can reduce unemployment?

unemployment?

Distinction can be made between demand-side and supply-side policies to improve the working of the labour market in matching people to available jobs

Reducing occupational immobility: Immobility is a cause structural unemployment.

Policies such as apprenticeship schemes aim to provide the unemployed with the new skills they need to find fresh employment and to improve the incentives to find work. In 2013, over 500,000 people started apprenticeships in the UK.

For many years the poor quality of work-place training has been a concern, with evidence of a persistent skills-gap in the UK. In a report published in 2011, a trade union reported that 11% of British adults do not have any qualifications.In some areas such as parts of Glasgow and Birmingham, more than a third of people of working age have no qualifications.

Reducing the geographical immobility of labour: Many people have the right skills to find fresh work but factors such as high house prices and housing rents, family and social ties and regional differences in the cost of living make it difficult and sometimes impossible to change location in order to get a new job. Many economists point to a persistently low level of new house-building as a major factor impeding labour mobility and the chances finding new work.

Benefit and tax reforms: To some economists, a policy that reduces the real value of welfare benefits might increase the incentive for the unemployed to take a job. But it is rare that the root cause of someone staying out of work is the prospect of out of work welfare handouts. Targeted measures to improve people’s incentives might include linking welfare benefits to participation in work experience programmes orlower marginal tax rates for people on low incomes.

Boosting aggregate demand:

  • A Keynesian-style stimulus is an active policy during a recession.This might include increases in state investment spending or lower taxes to boost disposable income
  • Both are a fiscal stimulus. Many governments have turned to fiscal policy as a way of creating new jobs; some economists refer to such programmes as providing ‘shovel-ready’ jobs, typically involving construction projects that are labour intensive
  • The hope is that extra spending on new roads, housing and other infrastructure projects will lead to a strong positive multiplier effect on output, incomes and jobs.

Employment subsidies and/or employment tax cuts (demand-side policy):

  • Government subsidies for businesses that take on the long-term unemployed – for example, as part of the UK Youth Contract, payments of up to £2,275 are available to employers who take on young people (aged 18-24) who have been claiming JSA for more than six months
  • Lower taxes on businesses that employ more workers might be effective, for example cuts in employer national insurance contributions for young, low-paid workers

Changing the participation age

From 2013, young people in the UK will be required to continue in education or training until they turn 17 and from 2015 they will be required to continue in education or training until they turn 18.

Will job guarantees help to lower unemployment?
Globalisation, Unemployment & Inequality

Globalisation and technological change favour the highly skilled. In the middle of the income distribution, a strong pair of arms, a willingness to work hard and a bit of common sense used to provide a comfortable income. No longer

Source: Tim Harford, Financial Times

Evaluation on Unemployment Policies

Unemployment policies are designed to

  1. Improve skills / human capital to make people more flexible in the workplace
  2. Provide stronger incentives to look for and accept work
  3. Increase the occupational and geographical mobility of labour
  4. Maintain a sufficiently high level of demand to create enough new jobs
  5. Encourage entrepreneurship and innovation as a way of creating new products and market demand which will generate new employment opportunities

There are always cyclical fluctuations in employment. If growth can be sustained it should be possible to create a steady flow of new jobs. There are always changes in the pattern of demand for different jobs – the labour force needs to be sufficiently flexible to deal and adjust to this.

An economic recovery creates new jobs; the issue is whether people in the labour market have the right skills, qualifications and experience to take them – many training schemes lead to qualifications which don’t necessarily help people back into work.

Demand and supply-side policies need to work in tandem for unemployment to fall. Simply boosting demand if the root cause of unemployment is structural is an ineffective way of tackling the problem. If demand is stimulated too much, the main risk is rising inflation

Full-employment does not mean zero unemployment! There will always be some frictional unemployment – it may be useful to have a small surplus pool of labour available. Most economists argue that there will always be some frictional unemployment of perhaps 2-3% of the labour force.

There are still large regional differences in unemployment levels which causes significant economic and external costs. Urban and regional regeneration can take decades to achieve

Youth unemployment by country

Policies for Reducing Unemployment – Key Themes

  • Boosting human capital – education and training – a long run strategy to make the workforce more employable and to raise the level of labour productivity
  • Lower employment taxes to increase labour demand – for example, a reduction in national insurance contributions
  • Stimulus to demand from both the public and private sector – keeping aggregate demand high to drive the creation of new jobs
  • Improved export competitiveness to provide an injection of demand into the circular flow of income
  • Improving work incentives – making work pay to reduce benefit dependency and expand the size of the labour supply

Raising the total level of employment is an important aim of labour market policies. The UK economy has seen some success in this regard in the last few years.

solutions of unemployment

Causes and Solutions of Unemployment in Pakistan

The foremost problem world is facing today is unemployment. The ratio of unemployment is increasing rapidly due to lack of sources and when unemployment takes place so many crimes are automatically be created. Pakistan the Asian country has plenty of problems in these days and unemployment is one of those. Unemployment is caused numerous problems for its people. Pakistan has countless natural resources but problem is that resources are being wasted since the independence of Pakistan in 1947. You may find many graduated masters IT experts, engineers and doctors wondering about for job opportunities due to bad employment system. The people of Pakistan are considered highly talented and hardworking in the world and there is no value of talent in Pakistan therefore it is the reason many of engineers, doctors, Scientifics, technicians and accountants travel in foreign countries for earn their livelihood.

The poverty rate is also on peak therefore uneducated and unskilled people can be found easily in Pakistan. Labour class is also affected by the unemployment. Due to unemployment the living standard of Pakistanis is going down with the passage of time. People are lacking from their basic needs. People have become the patients of depression and they have no idea how to deal depression during unemployment. We have tried our best to point out some of the major causes of unemployment in Pakistan and as well as solutions as under:

Causes of Unemployment in Pakistan:

As our title of this post is causes and solutions of unemployment in Pakistan therefore in this part of post we will discuss about causes of unemployment in Pakistan as there are many reasons or causes of unemployment in Pakistan but most important causes of unemployment are discussed below in detail:-

Growth of Population:

One of the major problems regarding unemployment in Pakistan is uncontrolled growth of population. The population of Pakistan is increasing at very high rate this time. According to the statistical the population of Pakistan is increasing at the rate of 2.2%. There are plenty of factors responsible for over population such as early marriages, illiteracy, desires for sons, lack of awareness etc. As we all know that the education system of Pakistan is not upto the mark therefore increasing in population means bring more uneducated person into the field of labour. Government or any other company cannot provide jobs or work places to this huge amount of uneducated people at time.

Poor Education System:

The education system in Pakistan has been really poor since the creation of Pakistan. Unfortunately any government since independence didn’t take especial steps to make the education system good. Education system in Pakistan is unbalanced. It has been seen even talented students left study due to injustice of system. You will see many technical educational colleges and private technical institutions are being found which are only selling degrees because technical education which is being given in these institutions has no value, therefore people are wondering about for jobs due to lack of experience and  skills.

Violence and Terror Activities:

As we all know very well that the Karachi is hub of trade and business in Pakistan but there are no rules and regulations in Karachi as everyone is violating law in the biggest city of Pakistan. Another cause of unemployment is terrorism. Terrorist activities in Pakistan are on peak at this time especially in Karachi, therefore situation in Karachi is really threatening and alarming and due to this the nationals and as well as foreigners are frightened to invest in Pakistan. So when investors will not invest so how can job or earning opportunities are being created?

Energy Crisis:

Could you believe country with plenty of natural resources and atomic power is lacking of energy crisis? There are many sources of producing of energy in Pakistan but due to lack of proper planning and efforts Pakistan is having problem of energy crisis. The government of Pakistan is unable to provide electricity to residential areas in Pakistan than how can Causes and Solutions of Unemployment in Pakistanenergy or electricity can be provided to factories and industries. Therefore factories and industries that are required energy are transferring their business in other Asian countries like Bangladesh, India and as well as Sri Lanka. As of this result a huge number of labours are becoming the victims of unemployment.

High Age of Retirement:

The age of retirement in Pakistan is 60 years and it is really high age of retirement and the government of Pakistan is directly responsible for this factor. There are various educated people are in wait of jobs but high age of retirement is making young ones frustrated.

Afghans Refugees:

Afghans refugee to Pakistan is the additional problem of unemployment in Pakistan.  When American army attacked on Afghanistan in 2001 about 13 years ago and due to this plenty of Afghans migrated to Pakistan for making them save till the betterment situation of their country but the situation in Afghanistan is still critical. The migrated people caused labour markets as they are ready to work for fewer wages.

Solution of Unemployment in Pakistan:

It will be tough ask for government to solve one of the major problems of Pakistan “Unemployment” due to huge population but still we have given some solutions to reduce the unemployment in Pakistan and we are hopeful by following these solutions the ratio of unemployment in Pakistan can be reduced or decreased.

  • The first thing to do to reduce unemployment in Pakistan is the proper planning by the government of Pakistan.
  • The education system of Pakistan should be equal and well managed.
  • Well recognized training and technical institutions are need to be established where skills programs are offered.
  • The age of retirement should be at least 55 years.
  • Remove energy crisis so that investor comes to Pakistan thus job placement will automatically be created.
  • There should be peace across the country so foreigners will not hesitate to invest in Pakistan.
  • The agriculture sector should be developed.
  • Jobs should be given purely on merits.
  • Encourage multinational companies to business in Pakistan.
  • Family planning centers should be opened to control the flow of over population.

how we can decrease unemployment rate

Unemployment levels are increasing dramatically in many parts of the world. Why is this, and can it be avoided? The permanently unemployed have no income, and many choose the alternative of income by crime. Would you rather live in a country with no unemployment? Here is a sure way to eliminate unemployment!!

Unemployment is an unbalance between the supply and the demand of working hours.

We all know that the efficiency of all types of machines is increasing yearly. We need fewer people to produce the same goods. Work time has been reduced in the past 200 years from about 12 hours a day to less than 8 hours per day and the working week from 7 days to 5.

Historic working hours1802 – In the English textile industry, they try to reduce
the working hours of apprentices to 12 hours.

1847 – The legal workday in England is 10 hours.

1848 – In Germany, work time is reduced to 12 hrs. as
against the previous 14 to 16 hours per day.

1890 – In the USA, the AFL wants an 8 hour day.

1891 – In Germany, the new working hours for female
factory workers is 11 hours per day.

The main reason for the high level of unemployment is technological progress. Don’t get me wrong; progress is good and it makes life easier. But if every year we produce the same amount of goods with fewer people — in a few years far less working hours are needed to produce all the goods that are required. The historical trend has been to use less and less working hours per week. If we do not continue this trend, the supply of working hours is greater than the demand. We also know that what is abundant has low value, so an oversupply of working hours means they are worth less, wages and salaries get reduced. Also many persons are out of work; their working hours are no longer needed. Those that are out of work have no income and therefore the demand for goods goes down. With fewer sales, less gets produced, more persons are laid off. This is a vicious circle that accelerates unemployment and produces crime; because some will turn to crime to obtain income.
The way to stop this and have everybody working, is to continue the historical trend; is to distribute the available work between all persons that want to work. This we can do if each person works fewer hours per week. If there is, say, 9% unemployment, this level should be 9% less hours per week, than what is worked at present.
Also, the Government could level a tax on overtime, be it paid or voluntary, and on hours worked above a certain level per week.

Would the enterprises agree to this? By paying no overtime, the labor costs are lower. By having an increased demand for goods, sales and production would be higher. By working many shifts per day, seven days a week, the machines would work always and investment would be lower. Certainly costs would be lower and profits higher.

  • Investment:
    The life of a machine and related amortization costs, are related to the amount of time the machine was running. Or said differently, they are related to the amount of parts produced. After a certain amount of parts, the machine has to be replaced.
    If you are running three shifts instead of one, you need about on third the amount of machines (for the same daily production). So with equal profits per part, your investment costs and interest on investment is about one third.
    It is true, that after making a certain amount of parts the machine has to be replaced (Working three shifts, it has to be replaced in one third the time). But when the machine has produced all the parts it can, its replacement cost is covered by the profits obtained for the amount of parts produced. Monthly profits per machine are three times higher; replacement costs per machine are also three times higher.
    Since replacement costs are only a part of the profits, net profits are higher.

Would the people agree to this? Working night hours and weekend hours is not pleasant. But by working fewer hours per week, more hours are available to be with the family, for entertainment, sports and hobbies. Wages and salaries would be higher since there would be no oversupply of working hours. In summary, finally everybody could reap the benefits of technological progress and have more free time.

  • NOTE: When there is much unemployment the enterprises pay low wages. When the enterprises need employees, and there are many more persons that need work, than open positions, the enterprises select those persons that request the lowest salaries. Furthermore, at least in Argentina, they require their personnel to work unpaid overtime. If this is not accepted, the person gets fired, and the enterprise hires other persons that work for a low salary and agree to work long hours.When there is a shortage of available persons, the enterprises need to offer higher wages, so that they can get the people they need.
    In conclusion, when there is a high unemployment, salaries and wages are low.

    But what happens to the salary of the persons that work less hours, so that the unemployed can find work?
    At first, they receive a lower salary, since they work less hours. But as a result of working less hours, there is a shortage of available persons. So the enterprises have to raise salaries to get the personnel they need. Historically, this raise is much higher than the loss due to working less hours per week.

Some say that by increasing exports we can generate a greater need for working hours. If increased exports are balanced by increased imports, nothing is gained. Hours gained by exports are lost by imports that replace local products.
If exports are not balanced, a local oversupply of foreign currency results, changing the currency relations in the long run, which in turn balances the value of exports with imports.
Some say, create more jobs by creating new products. But people can only buy new products if they have money, and to have more money there must be low unemployment and high salaries.
So you see, these “solutions” do not help in the long run.

For a good idea about how to live slower and better see: The Slow Movement (Exterior link).

Summary:
The way to reduce unemployment and to live better is to distribute the available work by working fewer hours per week.

If you agree and live in a country with high unemployment, tell your friends of this solution and write to your newspaper, your magazine and your congressman. In this way everybody will live better.
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