Job Market(


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A short analysis of the job market in South Asia & Middle East.

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Job Market(

  1. 1. • The job market is not very different from what it was a few years ago. • Unemployment remains elevated. • Growing number of discouraged youth. • Trends in Labor productivity and real wages reveal pressure on employment quality. • Stagnating progress in reducing vulnerable employment and slowed progress in reducing working poverty. • A recovery in growth that has not brought about a comparable recovery in employment.
  2. 2. • Global unemployment began to grow in 2008 as the crisis increased uncertainty and led to reduced hiring.This was followed by a massive increase of more than 22 million in global unemployment in 2009.The year 2013 brought little change to this elevated level of unemployment.
  3. 3. • “In the fifth year after the outbreak of the global growth has decelerated and unemployment has started to increase again, leaving an accumulated total of some 197 million people without a job in 2012.Moreover, some 39 million people have dropped out of the labor market as job prospects proved unattainable, opening a 67 million global jobs gap since 2007.
  4. 4. • Despite a moderate pickup in output growth expected for 2013-14,the unemployment rate is set to increase again and the number of unemployed rate is set to increase again and the number of unemployed worldwide is projected to rise by 5.1 million in 2013,to more than 202 million in 2013 and by another 3 million in 2014.A quarter of the increase of 4 million in global unemployment in 2012 has been in the advanced economies in other regions,with marked effects in East Asia,South Asia and sub-saharan Africa.” Trends report 2013 Global Employment
  5. 5. • In South Asia several countries have seen boom in there economies.Export orders from many advanced countries have been pouring into South Asian countries. Srilanka, Bangladesh, India have all seen a surge in the foreign & domestic investment and international trade.
  6. 6. • In the year 2013 the macro-economic indicators show an improvement in South Asian market but the job market is getting weaker again.Most of the jobs are in the IT/Telecom sectors.These sectors are still experiencing a comparatively better economic
  7. 7. • Most of the jobs available in these sectors are either “lovely” high wage jobs or they are “lousy” low wage jobs.Organizations are either looking for better executives or more staff is being hired at the lower level. The most effected group among job seekers are the middle managers.
  8. 8. • “The three best performers in the region continue to be Srilanka, Bangladesh, India.GDP growth in 2012 in these three countries is estimated to 6.9(revised down to 6.1 percent in july 2012), 7.5 and 5.9 percent respectively (IMF 2012b).
  9. 9. • South Asia has been the second fastest growing region in the world in recent years, mostly thanks to India’s contribution, and is likely continue to be so despite the slowdown and domestic constraints.” Global Employment Trends 2013 report
  10. 10. • Thus,like many regions,growth has failed to deliver a significant number of better jobs in the formal economy.Formal economy is where people work to receive a regular wages and are assured certain rights e.g.paid holidays,sickness leave.
  11. 11. • Wages are taxed using a comparable definition for the latest year available, the share of workers in informal employment in the non-agriculture sector 83.6 percent in India (2009-10) and 62.1 percent in Srilanka (2009).
  12. 12. Overall, the estimated labor force participation rate for women is just 31.8(2012) which only exceeds the rates for the Middle East (18.7 percent) and North Africa 24.4 Percent).
  13. 13. • The major challenge for South Asia is to include growing number of young people in labor workforce.The real challenge is to produce skilled workforce.Majority of the youth in South Asia is looking towards freelance work on the web or working at unorganized jobs.This will ruin many years of work. • What we will gain out of this process will be an inexperienced workforce that is not mature enough to work in organized and specialized jobs.
  14. 14. Middle East • Against the backdrop of slowing world trade and stable oil prices, economic growth in the Middle East region has slowed in 2012 and is expected to accelerate only moderately in 2013 and beyond.
  15. 15. • On the back of this deceleration of growth rate in most of the region ,unemployment is set to rise again.Following a gradual but steady decline over most of the 2000’s unemployment rates are expected to rise over the coming years.Unemployment rates in the Middle East are varied and there are multiple reasons for growth in unemployment.
  16. 16. Countries(with Most unemployment 2012-2013) Unemployment Rates Iraq 37% Palestine 29% Jordan 30% Saudi Arabia 30% Yemen 28%
  17. 17. Countries(With Least unemployment 2012-2013) Unemployment Rates Qatar 5% Kuwait 11% UAE 12%
  18. 18. • In 2012,the youth unemployment rate stood at 28% percent and is expected to increase further as regional economic growth is slowing down.High joblessness among young people in Middle Eastern countries is not caused by fast labor force growth.Infact ,by international activity rates are low in the region. comparison,youth
  19. 19. • Almost 3 million young people enter the job market each year in the Arab world.Job creation is the most challenging issue facing the region. The youth unemployment rate is nearly double the global rate and has risen steadily over the past three years.There are twice as many women as men looking for employment across the region.
  20. 20. • Youth rates of employment are very sensitive to the business cycle, meaning that recovery for young people is highly uncertain, which could mean many hard years ahead for them.
  21. 21. • The internationalization of the production of goods and services, transportation reduced cost, and communication global and demographic developments will lead to higher international mobility of labor and jobs in the coming decades.Over the long run, income growth and the prosperity of nations will depend on the availability of a sufficiently large workplace with a range of skill levels and the ability to adopt to the changing needs of society.