[ Edit | View ]
Date Posted: Mon, Dec 29 2008, 02:26:41pm
Surely unemployment is a chronic disease in the country. While not siding with any side, i would like to offer a few insight into this problem, and how we can address the issue.
1. Government employs a steady stream of workers. Unless another government comes in and create another department, employment by the government departments seem to be stagnant. New graduates will always find it hard to enter the public sector because, there is not enough work. The jobs are already occupied.
This leaves us with the other major employer in any country, which is the private sector. In any country, private sector is seen to be the engine room for development and employment creation. When the private sector in any economy is thriving, unemployment level goes down.
What needs to be done in PNG is to provide a conducive environment for the private sector to flourish. Investment wise, PNG is seen as one of the high risk investment areas, therefore, capital intensive business such as the mineral sector would tend to dominate the private sector business activities.
On the other hand we complain about the high unemployment levels in the country and not enough jobs to go by, while on the other hand we tend to create that unstable climate for business to prosper in our country, with all the criminal activities, compensation claims, etc. In a recent tele-conference, between several countries hosted by the world bank office in Port Moresby, Papua New Guinea improved a bit on business confidence index, but, still ranked below such coutries as Colombia etc. Such perceptions can only change when Papua New Guineans become savers and invest in their own country to create more employment.
However the trend is that, most well of people in PNG tend to look offshore for investment. When there is low domestic capacity to save, investment in the private sector is minimal, resulting in low business activity and low employment. Its like a viscious cycle.
This chronic problem can only be eliminated when local businesses are encouraged to expand and new PNG businesses open up. Currently, the tedency to invest is low as a result of low savings capacity. Universtiy graduates will surely miss out on employment, when the rate of graduates coming out of the tertiary colleges are more than the rate of jobs created each year.
[ Post a Reply to This Message ]