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Employment Problem: Why do People remain Jobless?

In subsequent years, there have been serious concerns about the constant inadequacy of employment opportunities in developing countries.

Even though developed countries have some unique challenges as well, however, the region getting the real hit are those that are still underdeveloped.

To better understand the problem of employment in developing countries, it is essential to understand the root cause of the situation better.

In constant economic trends, the dimension of the problems is demonstrated by the estimates and projections of the economically active population in those primarily affected regions.

This post will examine some facts that constantly lead to employment problems in developed countries.

To narrow things down, first, we look at the root cause of the problem, the true definition of unemployment, and finally, measures that individuals can take to overcome these challenges.

While this post is not only focusing on individuals alone, we will also look at some proactive measures that developing countries can take further to balance the economically active rate and the employment opportunities.

1. The economically active population

Before we proceed into the main subject, let us look at what we meant by economically active population.

According to European Union (EU), "the labour force or workforce or economically active population, also shortened to active population, includes both employed (employees and self-employed) and unemployed people, but not the economically inactive, such as pre-school children, school children, students and pensioners."

2. Trends and the root cause of the employment problem

It is the retrospective cause of the event since the end of World War II.

There is no doubt that the economic performances of the developing countrys' growth rates have tremendously been quite credible ever since then. But yet, the suffering as to employment problems persists.

I think it will be fair to say that the employment problem is even getting worse based on the various social indicators that have played out in several years.

The letdown in the past and disquiet about the future are serious elements that raise doubt and cause disbelief in the entire system.

As a result, you would often find individuals in developing countries trying to migrate to a working system they can trust at all costs.

Even though policymakers in developing countries are not relenting in their fight to bring credibility and normalcy to the region, often, the situation seems to overwhelm these efforts.

The most significant cause of these issues in developing countries is the lack of coordinated data.

There is a considerable variation in labour productivity at the subregional level.

For example, in 2019, the increase in productivity per worker in eastern Africa (2.4 per cent) and northern Africa (2.3 per cent) was more than twice that in southern and western Africa, while Central Africa registered negative growth.

According to the ILO (International Labour Organisation), labour productivity in Africa is challenging to measure due to the large proportion of labour devoted to subsistence activities.

To summarise the trends, developing countries lack the data to plan appropriately, and the economic growth rates vs the socially active population are not even.

3. Nature of the employment problem

Unfortunately, the data difficulties in solving and analysing problems in developing countries are commonly regarded as unemployment.

Since the late 1930s, the employment problem has been primarily centred around two ratios - the "participation rate" and "unemployment rate."

The participation rate is the economically active population (labour force). You can think of this as those at work and those seeking it (as described earlier).

The unemployment rate is simply the sum of those not employed and seeking to be employed.

Establishing our research on these two ratios hasn't been impactful in developing countries.

Under the usual survey procedures, there are two major questions featured: (1) Are you employed? If the response is negative, the next question is (2) Are you seeking employment?

A determination to these two questions describes unemployment. But, in reality, the reliance on these two ratios usually fails to unveil the real problem behind the employment problems.

The downside here is that the developing countries with this approach will continue to struggle with doubtful policies since the statics are robust enough to capture the real problems.

It is essential to consider the labour market's strength in solving the employment problems.

Those who do not seek employment should not be included in the economically active population or the unemployed. By doing this, it will reduce bias by downsizing the unemployment rate.

4. What individuals can do to help curb the employment problem.

Decent employment is crucial to providing sustainable income and creating pathways out of poverty; this is essential to boost life quality.

The challenges facing individuals in developing countries searching for decent work are substantial. However, it has been argued and ascertained that the main issue is access to decent quality employment for most developing countries' young people rather than an absence of work.

In order words, some of these jobs often do not meet the expectations of individuals.

But let us try to understand a few things here!

As well as individuals aspiring to get these dreamed jobs, most of them do not possess the required skills to take on the opportunities that will land them their actual jobs.

Another problem is that most people give up quickly on the job hunt. To be part of the solution, consider participating in these three things.

  • See to obtain technical skills and put them to use.
  • Do not give up on your dream because of a few rejections
  • Do everything you can to ignore social pressure and focus on the big picture.

I hope this article helps understand the underlining employment problems in developing countries. Leave a comment below.

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