Unemployment problem occupies the top position in the list of worries of all countries. Trade educational and training policies are being framed with an aim to generate more employment opportunities the view of this the Government of India has globalized its economy.
The number of unemployed youth under 25 years is very large in all countries except Germany So the crisis of joblessness is posing a challenge In the OECD countries a record number of 3s million people against 25 million in 1990 are jobless. Europe Is being labeled as black spot of unemployment and the average jobless rate is expected for rise to 12% a year against Americas 6.5%. Half of the 24 OECD countries have jobless rate of 10% of even more. American system of knowing the number of jobless is through household a survey which is nearest to the real. Most of the European countries count the unemployed from the job registration centers.
Ever since the advent of Industrial revolution policy makers have blamed machines for sparing human hands Late John F. Kennedy once remarked that if a man is intelligent enough to invent machines he is equally intelligent to engage people gainfully. The role of education in promoting employment opportunities type of training and the quantum of flexibility in labor laws are some of the basic issues. Economists are also debating the effect of third world countries on the employment in the developed countries when the low skilled jobs are shifting to less developed countries due to technological innovations
It is now an agreed fact that the Supply side of the economy should be strengthened by improving the skills of the workforce. Brain should triumph over brawn. Investment On training is however considered as the nation’s stock of skills; Training prepares people for jobs of tomorrow rather than subsidizing jobs of yesterday. Training should reduce the shock in transition from school/college to work and from work to work.
In addition to bridging these situations training should also be a ladder to reach higher places. Japan has adopted in company training and this helped in switching over to flexible manufacturing which ultimately beat Ford in car making. Germany his apprenticeship system which made its manufacturing base very strong France is improving is vocational education Britain has reintroduced apprenticeship and evolved a concept or University for Industry this shall work as active link between trainer and trainee in a manner of permanent technology seminar. The manner of training also depends on the structure of economy and social pathologies of a country
Many economists are of the view that return on investment on general education is higher than that on specific skills. With sound basic education worker is more versatile and adaptable whereas specific skill binds him German Labor is the costliest mainly because of their apprenticeship system as it is inflexible Even Japans system of broad based general education followed by long job specific training is also under stress and Strain.
Moreover companies are afraid of poaching by competitors and the system also requires life time employment so general education with no age bar for higher education and market-oriented training may be more acceptable Solution. College graduates in America cam about 77% more than the school graduates. Thus the youth has the opportunity to climb the career ladder first by going to work from school and then with a time gap to universities
It should be endeavored that the expenditure on such programs gets sprayed on the large part of the economy. Return on investment made for primary education is higher than that made on secondary education which in tum is higher than that made on university education. Experts have further worked out that return on general secondary education is higher by 50% than that on secondary technical or vocational education. This is due to more investment in the later. America shall spend $ 5 billion the next five years to set national standards for schools under the Goals 2000 program which shall ensure that 90% of the students graduate from high school
The flexibility in labor laws and mobility of labor are very important factors. Americans are champions in this respect and are excel Tent job creators. Part time jobs are encouraged in the U.S.A. to re duce the cost of production Half of the U I S.A s unemployed find Job within a month but only 5% of unemployed in Europe can do this The average wage of worker in the lower end in Europe is only 68% of the average European wage whereas this is 38% in the US A
During the last decade 2% of the Americans were rendered unemployed each month against 0.4% in Europe Experts are of the view that labor market which allows wages to vary both ways to match the level of supply and demand guarantees more job creation In E.U. intense struggle is going on between Britain and others about the labor regulations.
Unemployment is our major socioeconomic problem needing attention on priority at the beginning of eighth plan (1992-97) employment was estimated at 301.7 million. Open unemployment was about 17 million with educated accounting for 7 million As per economic survey the net addition of labor force during eighth plan and ninth plan is likely to be 35 and 36 million respectively. So employ: ment must grow at a rate of 2.6 to 2.4% to reduce the menace of unemployment The live registers of employment exchanges showed 362.52 lakh unemployed by November 1993 against 36775 lakh on November 1992 The vacancies notified during April-November 1993 were 2.66 lakh against 2.76 lakh during the same period of 1992. The number of educated job seekers matriculates and above constituted 60U/ of those registered. The National Development Council (NDC) has recommended among other things a three pronged strategy for educated employed. Employment intensive sectors should be the thrust area with stress on education and training to take care of the labor market. So synergistic relationship between various sectors is required to tackle the menace of unemployment effectively especially in view of the emerging global challenges
Article extracted from this publication >> June 10, 1994
