Regional Article 17: Is unemployment real?


UNEMPLOYMENT = SUPPLY OF LABOUR > DEMAND FOR LABOUR

In a country, where levels of unemployment stay persistent over time, then it is a sign that the rates of growth of the supply of labour (population numbers -” child creation”) each year is growing at rates faster than the rate of growth of the demand for labor  (job creation).  And we as a nation are not noticing these two trends.  Period.

When the supply consistently outstrips demand over time, we have persistent unemployment.  It is an unhealthy situation (as we would have with when supply of manufactured goods exceeds their demand we would have a drop in prices, when supply of rainfall exceeds demand for water, we have  rising water levels, when supply of migrant influx exceeds rate of city planning we have slums, and so on).  Unemployment is a function of how these two variables are behaving relative to each other.  Period.

And should the problem be led by the supply of labour, we need to be realistic to expect that the demand for labour (be they by job vacancies by the private (employment) or the government sectors (education, employment) will grow fast enough to overtake and get rid of the state unemployment in the country.  Seeing scenes of citizens walking the streets looking for jobs is here to stay.  Period.  Again.

What influences the supply of labor?

The rate of supply of labour is influenced by the rate of the population’s growth (i.e. procreation).  The only issue is the supply we see today of twenty and thirty-year olds in the labour market, was set into motion twenty or thirty years ago.  By the population.  The children born then have today become the youth and labour of today …. and therefore today’s unemployment.

In most cases, the populace do not see the relationship of the birth-rates of yesteryears (well pretty much like what happens between the sheets and the timing of births) and much less so their impacts on the labor supply for tomorrow.  It is and is likely to stay “unrelated” in our minds for as long as these inter-relationships are not raised and discussed by all.  Instead, our mind replaces that (“vacuüm in our) thought by fears of our survival or security for our future should “if “the one, two or three” dies or moves away tomorrow?” (this is the voice of the grandmother in the lesser developed  countries).  So, we multiply … mindlessly.

But there is a misconception and it is unfortunate!

Supply does not drive the demand for labour.  This  means, that ‘should there be excess labour’, it is not to say that the demand for labour should go up.  It could go up for compassionate reasons but not on economic grounds.  We forget that in reality, it is the demand for labour that drives its supply.  Period.

What influences the demand for labour?

I sometimes joke, it is often easier to “create children” than it is to “create jobs”.   But in both cases,  the “jobs” are done by the “same person” – Adults.  So well, how is it then that we do not see how we are attempting to solve a problem we have created by our own volition?

Also the mind that ‘looks for a job’ for oneself to feed my children, is not the mind that learns to ‘create jobs’ for others, including for our children.

So it is the fault of the ‘bosses’ for not creating jobs, or the ‘fault of the rest of us’ for not thinking about creating jobs for others (while we are busy trying to find one for ourselves)?

What influences our ability to create  jobs?

It is dependent on the propensity by the same adults of the country to grow the economy, i.e. the private sector.  It includes us defining the ability of the country (and sector / industries) to see :

  1. Capital, flow into the economy (and not the family only)
  2. Increase of the economy’s revenue and
  3. Reduction in the costs of running the economy
  4. Diversification of the economy (systemic growth)
As the margin between the two widens, so to does the country’s / industry’s capacity to see:
  1. Creation of further posts for existing employees to progress into
  2. With progression of existing employees in moving to higher level jobs, it leaves the posts vacant for younger entrants (youths) to more easily enter the labour market
  3. More likelihood of higher wages increase across the board for all

This is dependent on the systemic development (what diversification could look like) of the economy, e.g. the story of the dairy milk production.

So, is this just a case of “not enough jobs”?  Yes? Given what?  We would need to complete the sentence … for everyone!

  1. What should we be doing today to solve the problem of  unemployment?  Who is the ‘we’?  The government?  The private sector?  The public sector?  The citizens?  The male or the man (the demand for labour?)?  The female or the woman (the supply of labour?)?
  2. What, in your view, would  citizens need to understand about these realities before they begin ‘discussions about unemployment’ in the country and to figure their own ways to turn the situation around?
  3. When should we be thinking about the solution to the problem?  When we create the problem or when the problem leads us to another problem?

What are the roles of the wife, mother and the man in turning these situations around?

Which role as a woman does she have an impact on the growing the demand for labour?

Which role does she have an impact on growing the supply of labour?  What is motivating her?

What roles are the men play in each of their relationships with these women?  As the son or the man?

Which role of the man helps grow the demand for labour (job creation) in the economy?

As the son or the man?

But this reasoning almost also begs the question, what were we doing when ‘the spark’ sparked the problem?

Sleeping, you say?

Ahh ….. SURE!

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One thought on “Regional Article 17: Is unemployment real?

  1. Pingback: Case Study 23: Unemployment, labour disputes, economic diversification and fertility « Sheila's Blog

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