How Can We Create More Oppurtunities for Greater Employment

Mon, 08 Dec 2008 14:19:27 EST

Among the problems confronting developing nations, employment is highly disturbing. The rate of unemployment increases every year. It is urged that employment opportunities should provided by governments of these countries. The simplest way to create opportunities of greater employment is to establish industries of different kinds in different fields such as telecommunication, manufacturing, agriculture etc.

Another way is to promote small business at domestic levels. More avenues of productive and gainful employment may be opened up for the presently unemployed or underemployed labor force. This objective can be realized by introducing more labor intensive techniques, providing financial incentives to employers for additional absorption of workers, and discouraging by means of penalties, the replacement of labor by capital exceed the social costs of labor.

In a nutshell, a built in preference for labor intensive approaches should be ingrained into the system. It means devising essentially a carrot and stick policy for the private sector as regards employment. As regards production, the strategy will favor the production of goods of mass consumption rather than luxury goods consumed by the rich. It is generally understood that a relatively more labor intensive technology is required for production of consumer goods, leading to creation of new employment.

The demand for the luxury goods can be discouraged by ensuring better income distribution. The success of this policy depends upon the evolution of an appropriate domestic technology which suits a country's resources endowment. This in turn will require indigenous research to introduce modification in the imported technology as well as to evolve altogether new technology. So if there are greater opportunities the manpower will also increase.

Government should itself supervise this plan and provide easy loans to those who want to establish this kind of business. The more these opportunities are created, the more people will get employment.

TRCB.com RSS Feed

How Can We Create More Oppurtunities for Greater Employment