The Workplace

Labor, Employment, Skills and Development

Labor, Employment, Skills and Development

Al Nasir Hafeez

The reduced role of employment generation in the public sector and formal private sector limited capacity to absorb labor work increasingly in developing countries have caused many workers to join the informal sector, which consists of a wide range of activities.

The formal sector felt threatened by the fact that the informal sector was not required to pay taxes and all legal formalities. But people, more and more areas rural and the limited absorption capacity and off-farm sectors in rural areas forced to leave rural areas to cities in search of work.

The unstructured informal sector is unable to find effective solutions, but rather the depopulation caused a serious decline in the vitality of local economy in rural areas.

For example, informal sector participation in urban employment has been estimated at 72 percent in Indonesia in 1986, 57 percent Myanmar in 1983, 79 per cent in Pakistan in 1990 and 62 percent in Thailand in 1988. Estimates of employment in the informal sector in some major cities in the region have also shown considerable growth in the sector over time. In addition to limitations in data availability, each can feel the enormous growth informal sector in recent years.

Another factor affecting the employment situation in the country is globalization. The forces of integration has gained momentum worldwide in the 1990s and many companies felt threatened as a result of trade liberalization and rationalization of tariffs, which has swept the developing world.

Companies began to make adjustments in the cost of doing business with the acquisition of the latest technology. Accordingly, Labour productivity has increased in all branches of industry and trade, which means replacing labor with technology.

Even after substantial withdrawal of the workforce in many organizations, labor productivity is a fraction of what is in competing countries. Therefore, no there was an increase in employment in industry and commerce organized. This implies that it offers little opportunity for employment growth in the organized sector in countries developing and Pakistan, but taxes.

As for the local scene, many people are skeptical about the government's request that The unemployment rate in the country fell 8.3 percent in 2002-03 6.5 per cent in 2005-06. They believe that the recent higher growth is the "jobless growth and without joy. "

Government statement is more than economic growth has resulted in a further reduction in unemployment. Although government came up with original ideas to create jobs, most have been stopped halfway.

The official recognition of the presence of a skills gap focused on the topic. However, the progress that is desperately slow. The vocational training sector is still sick eating resources without any benefit. The development of skills is a very important component of the strategy for employment generation. Other important element is the career planning is poor, even in our public and private. The government should promote vocational guidance and career planning at all levels. This will add the productivity growth in the economy.

Hosted by The Employers Skill Development Councils established by the Ministry of Labor and Workforce overseas Pakistanis have been established in all provinces to determine the needs of the geographical area, the priorities in market demand and facilitate training of workers for training providers in public and private sector. These tips are aimed at training the diverse needs of industrial and commercial sectors. But this initiative has the commitment and dedication to both employers and government. Only a game of numbers with the publication of lists of students proxy.

Technical Training professional and improves the employability of workers. UNRWA National Technical Education and Vocational Training Authority (NTEVTA) was established to develop infrastructure for technical education at the district level. However, it is yet to make an impression and is passed through the paperwork. Provincial Directorate of the workforce and training also contribute to capacity building at all levels under various constraints. However, the need for skills development needs in accordance of modern industry was deaf. In this context, it is not surprising that Pakistan lags behind many developing countries to reap the benefits of globalization. In the coming years, the outsourcing would be on the agenda and the presence of skilled labor groups will have enormous benefits for the country. Pakistan needs only large pools of skilled labor, instead of the so called Rozgar motivated schemes without any benefit to the economy, whether in the short term or long term.

Work is difficult to develop technology to absorb labor intensive, but we can improve productivity agricultural sector. More than 50 percent of the dwellers of rural life in the non-agricultural. Therefore, we should focus on creating employment opportunities in rural nonfarm areas. Providing micro-finance and market access through institutional design, the government could help the new category boyfriend contractors. Attracting foreign direct investment (FDI) is also a viable option, but we need a large pool of skilled labor, which unfortunately not found yet.

The government's first priority should be to create non-farm employment opportunities in rural areas to stop migration from rural to urban areas, skills and to promote the SME sector in rural areas. A fund of business support has been proposed by the government during the presentation of the federal budget for 2005-06 to promote the SME sector, but the idea has been shelved or is not implemented. This was a good idea and have appeared.

The governments of the developing world has made a mistake by ignoring agriculture and informal sector, which played a role in the response to requests use of more and more of the country. Economists believe that the contribution of capital-output ratio (ICOR) is much lower in agriculture than in other sectors of the economy which means that for a given investment in agriculture is the best bet to maximize growth and job creation as well. This reinforced the view the agricultural and handicraft industries can only maximize growth and employment in developing countries. Pakistan should also think of it this way create more jobs in rural areas.

The employment problem is important because many social ills are the culmination of this problem. We have been accused nearly all levels of power by unscrupulous elements to use the army of unemployed youth for their evil designs. This means that law and order that emerged in our investment climate and is also a product of unemployment. Another important development in recent years has been the growth of fungi Private universities for a title is on sale to all comers. Today, we have several times as many graduates and postgraduates five years ago, but the number of advertisements in national newspapers for employment in the public and private sector is far below the level a decade ago. If one reviews the files of newspapers ten years ago compared to a regular holiday today, we see that the number of employment opportunities declined drastically.

Pakistan in the current economic situation requires a comprehensive employment strategy is the full compliance with modern economic growth. Official data recognizes the fact that unemployment has increased significantly since the second half of the 1990s. We could not follow any strategy to combat poverty without an employment strategy credible. Positive side there is widespread recognition, even in official circles regarding the complexity of the threat of unemployment and likely impact on socio-economic infrastructure. The government should develop policies to target those sectors that are labor intensive, but should not minimize the importance the modern sectors of the economy.

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