Job Creation in Horn of Africa

6

     INTRODUCTION

Job creation is one of most important development factors in the world, even though Africa is the world’s 2nd fastest growing region still there is high unemployment rate in the region especially Horn of African countries. Horn of Africa countries are also doing well in creating job mostly for the youth which is the most unemployed people in the region, therefore the opportunities are rare; this also causes that many of the youth crosses the Mediterranean Sea or die trying for seeking a better life, this is not the only obstacle in job creation but there is a long list that makes job creation harder for example; governance failure, economics crisis, wars and conflicts, corruption and etc. Naturally human being needs plans to create a way of surviving in poor, ignorance, diseases and wars. On the other hand peoples need economic growth, security strengthening and instability, technological advancement to increase the rate of production of the country, all of this is aspects can brings a development.

The question we should be asking ourselves is; what is the solution?

The economic growth of Horn of Africa continues to rise which can make a lot of sectors develop but it is crucial to double manufacturing, agriculture, petro-chemicals and other commodities, which could also increase Horn of Africa export and decrease its import. It is also important to diversify our economy and look another alternatives to grow our economy and create more jobs for Horn of African youth. We also need to encourage our private sector to invest and use our resources to create jobs, which will increase our labor force capacity. The private sector is very crucial for boosting in every country’s/region’s development and economic growth, hence the private sector investment can play a major role in in developing capacity in entrepreneurship specially in youth which is a major driver in job creation.  Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations and in small companies for that matter. Challenges faced on getting labor needed have suitable skills are the big private companies which are influencing the low makers and government that allows them to easy make more benefit, companies in horn of Africa mostly motivate the foreign labor and they give more prioritize those who come from the abroad, the big private companies did not produce and labor with skills.  Small businesses tend to attract talent who invent new products and ideas or implement new solutions and for existing ideas. Larger businesses also often benefit from small businesses within the same local community, as many large corporations depend on small businesses for the completion of various business functions through outsourcing. This growth in small businesses will boost the development and economics growth of horn of Africa.

     EDUCATION AND JOB CREATION IN HORN OF AFRICA

We also need to develop our human capital. Improving education access specially women and ensuring young people’s education will play a major role in creating skillful and equipped people in horn of Africa, and starting a job creation programs or work readiness programs that can increase employment rate.

The effect of education on the likelihood of employment has been investigated by Blundell, Dearden, Goodman and Reed (2000), McIntosh (2004), Jenkins et al (2003), and Jenkins (2006), whereas the effects of basic skills on employment probabilities were investigated by DeCoulon, Marcenaro-Gutierrez and Vignoles (2007). McIntosh (2004) focused on employment-related benefits for the acquisition of vocational qualifications during adulthood using information from the UK Labour Force Survey. Results show first that very few individuals who left school without qualifications at age 16 acquired high-level qualifications. However, vocational qualifications at all levels were associated with an increase in the probability of employment for those individuals who left schooling without qualifications. In particular, men who left school without qualifications and acquired vocational qualifications at Level 1 during adulthood were four percentage points more likely to be employed in 2002 than men who left school without qualifications and did not acquire any further qualifications, there are consistent results about the benefits of education in terms of remaining in employment or getting a job. There is also evidence that an increase in basic skills during adulthood is associated with the higher probability of being in employment. In particular, vocational qualifications are associated with an increase in the probability of employment for those individuals who left schooling without qualifications. For men not in employment in 1991, occupational training was associated with an increase in the probability of having a job in 2000, whereas for women not in employment in 1991, both vocational qualifications and occupational training were associated with an increased probability of being employed in 2000.

This simply proves that building an education career with a more qualifications will result high probability in the opportunities of employment, hence the more you equip yourself with education and qualifications the more you will like get a job. In horn of Africa countries there is also barriers in getting a job at the right way, these factors might also discourage the person in a lot of ways, therefore tackling these problems and barriers like tribalism, corruption, and others will make thigs better for the youth in this region specially the women.

    

     CAUSES OF UNEMPLOYMENT IN HORN OF AFRICA

The validity of applying H. H. Kelley’s covariation attribution model Though there have been several definitions of voluntary and involuntary unemployment in the economics literature, a simple distinction is often applied. Voluntary unemployment is attributed to the individual’s decisions, whereas involuntary unemployment exists because of the socio-economic Factors effecting graduates and employability in Horn of African environment (including the market structure, government intervention, and the level of aggregate demand) in which individuals operate. In these terms, much or most of frictional unemployment is voluntary, since it reflects individual search behavior. Voluntary unemployment includes workers who reject low wage jobs whereas involuntary unemployment includes workers fired due to an economic crisis, industrial decline, company bankruptcy, or organizational restructuring.

 

Much technological unemployment (e.g. due to the replacement of workers by machines) might be counted as structural unemployment. Alternatively, technological unemployment might refer to the way in which steady increases in labour productivity mean that fewer workers are needed to produce the same level of output every year. The fact that aggregate demand can be raised to deal with this problem suggests that this problem is instead one of cyclical unemployment. As indicated by Okun’s Law, the demand side must grow sufficiently quickly to absorb not only the growing labour force but also the workers made redundant by increased labour productivity. Otherwise, we see a jobless recovery such as those seen in the United States in both the early 1990s and the early 21st century.  

    CONCLUSION

Finally, this region needs to develop many sectors which will facilitate the economic growth and development such as; educating young people because they are the future of this region and making them feel that they can change this horn of Africa to a better one, a well taught generation that have a full knowledge about how to eradicate; poverty, corruption, economics crisis, government crisis and could be the backbone of this region. Job creating in horn of Africa will be the best step forward and to make this happen we need a joint force of public sector, private sector, and the other part of this regions community, so we can boost our human capital with skills, manufacturing, agriculture, and other commodities which will result a development in every sector and will make this region more developed and much better than this one.

     REFERENCE

  • AGCAS-CSU-IER 1996 Great Expectations. Department for Education and Employment, London.
  • Calmfors, L. and P. Skedinger (1995), Does Active Labour Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden. Oxford Review of Economic Policy, 11, 91-109.

W/B: Mukhtar Mahdi Aden

Tell: +252-63-4056993

Email: Mukhtarmahdi10@gmail.com

 

The views expressed in this article are the author’s own and do not necessarily reflect Horndiplomat editorial policy.

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