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Jobless growth - a recent trend
MANY
of the candidates in Jamaica's upcoming General Election are
promising to tackle unemployment, by seeking to promote economic
growth, to generate new investments in their constituency
and to build factories.
Now
unemployment might stand shoulder-to-shoulder with crime as
one of the major problems that this country is trying to overcome,
so since crime is harder to contain, it is admirable that
cutting unemployment is seen as the most desirable endeavour.
They may be unaware of a new trend called 'jobless growth'
that is as applicable to Jamaica as to other developing and
developed countries.
In
the past when economic growth was generated, this meant that
the area, from which such investments were based, could look
forward to some amount to job linkages (direct and indirect)
and persons flowed to these areas to secure jobs. In Jamaica,
one can look at the bauxite sector, then the tourist sector
and even the garment/apparel sector. Jobs of all levels and
skills were easily available and job opportunities were prevalent,
even in the bauxite sector that was more capital-intensive
than labour-intensive.
Global
manufacturing trends, incorporating highly-automated plants
and robotisation of key product processes have led to widespread
labour redundancies and global production specialisation,
that have ended this labour expansion. Today, manufacturing
plants of whatever type, have had to be 'lean and mean' to
be cost-competitive with global rivals, in order to deliver
easily affordable products. Firms no longer look to cheap
labour as the major cost savings in deciding on plant location.
This
has led to what has been called 'jobless growth', where economic
growth takes place but without any commensurate growth in
employment levels and, even in some instances, job losses.
Employers require existing employees to do more, or even trade
job stability for wage containment.
Where
employment expansion has taken place, it has largely been
in the service sector (e.g. telecommunication and personal
services) where particular skills and products are being demanded.
We should therefore bear this in mind before we promise to
generate jobs, since barring large scale government (state
capitalism) expansion, the days of large employment providers
are over. Tourism for instance has to tread carefully worldwide
in the wake of September 11, 2001 and possible US attacks
on Iraq, which disrupts American travel. To generate employment
nowadays since we cannot look towards the Government (given
the need to curb its fiscal expenditure), it must come from
small scale entrepreneurial activity of whatever type.
We
do a dis-service to others if we fail to point out this new
phenomenon of jobless growth and explain that large scale
employment is likely to have gone the way of the dinosaur.
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