Wednesday, January 25, 2012
World Needs to Create 600-Million Jobs in Next Ten Years: ILO
This article discusses the current state of world unemployment and how jobs need to be created to avoid civil unrest. An agency of the United Nations believes that 600 million jobs will need to be created. Because of the poor economy worldwide, there are over 200 million people unemployed. The other 400 million jobs needed come from the new people joining the workforce annually. Even for people that are employed, in developing countries many of them still live below the poverty line. In more developed nations, young people (ages 15-24) are suffering more than ever. Effective government policies will need to be put in place in order for anything to happen regarding unemployment. One way to improve the unemployment rate is to encourage private investment.
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6 comments:
I would be interested to get an idea of how exactly the authors of this article got these numbers; if it was just based on population growth and if they took into account the current economic growth occurring in countries such as China and India. If their numbers are accurate, the job market looks fairly dismal for our age group as we have to venture into the "real world."
Unemployment is not a new topic. Leaders of whatever counrty cannot solve this problem by just easily saysing"we need to add how many jobs in the coming XX years".
As we learned in Econ 259, there are frictional and structural reasons for unemployment. The structural ones are not that easy to lower. With technology developing, there appear more and more device and equipment, thus we need fewer worker and more workers will be "outdated".
I believe the number does not tell the whole story, but this just mean that to get back to the unemployment rate before recession, you need that many jobs. Besides, with adequate training, and help, which I believe comes from the government, it can be achieved.
The government can work to fix unemployment through promoting higher education. However, while going to college has become more common in our country, the cost has steadily increased - even in public universities. In order to increase the number of graduates and the quality of their work, I agree with Paul Romer's idea that the government should more actively promote engineering and the sciences. Perhaps these hold the key to solving the problems that result from population growth and the economic crisis. At the very least, it can serve to get more young people jobs. The question remains, though: where should the government's money come from?
I think the most important thing to get unemployment back to 4-5% is trying to bring industry back to America. Early this year in a class I was told unemployment for people with a college degree is roughly 4%, so if American companies stopped making products elsewhere we could see employment go up.
600 million new jobs! It seems like an unthinkable number. It is true that to create 600 million jobs is tough. It is not that terrible indeed. First, there is a certain number of people are tiring in 10 years. Therefore, a certain number of job positions will need to be replaced. Moreover, as reported, the global economy is recovering indicating that new jobs are waiting for unemployed people in the near future. It is true that we should be aware of the serious unemployment problem, but what is important is that people should be confident about the future job market. Furthermore, as the global market trend is forming, there will be more job opportunities created for the transactions between different countries.
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