Investigation Of The Roots Of Unemployment In The Maldives
What is Unemployment?
Unemployment is when a person who is able to work is actively searching for paid work or employment but is unable to find work or a job in a reasonable timeframe. This timeframe is not universally agreeable but some experts believe a minimum period of 28 working days in job search is acceptable. (What is Unemployment?) Unemployment rate is based on workforce (or potential employment capacity) and not on the entire population. The unedited or as-it-is definition on MSG website on unemployment is:
Unemployment occurs when a person who is a participant of the labor force and is actively searching for employment is unable to find a job. (What is Unemployment?) All definitions carry common points as:
Searching for paid-work and employable (ie skills present) Willing to work Unable to find paid-work (ie job) in a defined time Time period not agreeable. Unemployment Rate Unemployment rate is on the labour force (not population). Let’s say if unemployment rate is 5%, and labour represents 80% of population the correct meaning is 5% of 80% people are unemployed. It has to be understood the rest of 20% is also a subset of population. Some may be unemployed among the 20%. Unemployment rate differs when definition of unemployment changes since the variables used in statistical calculation varies. A 2014 unemployment rate may differ by receding 2015 unemployment rate if definitions used to assess unemployment variables differ. Unemployment rate is a representative figure using statistical analysis. It’s not done by consensus since it’s not practical. Random household data on employment selected by a computer program and used statistically represents a true unemployment rate of the entire population. (What is Unemployment?). This is used in the US to random generate 60,000 households among a population of 340million.
The process is subject to advanced computer modelling and analyzed statistically. (What is Unemployment?). However, despite how well data is collected and analyzed some acceptable variance exists. But it’s a true representative rate! The application of computer programs is not a must but the important point is to determine a true sample among an entire population. The data collected has to be used well. Reliable statistical analysis is the main concern here. Types of Global Unemployment The main global unemployment types are cyclical unemployment, structural unemployment, regional unemployment, classical unemployment, seasonal unemployment, frictional unemployment, and voluntary unemployment. (Types of Unemployment) Cyclical unemployment Individuals lose jobs due to downturn in aggregate demand due to recession. The recession may be short-term as it had been between 1980 and 1982 in the UK or long-term as it was in the 1930s in the great depression globally. (Types of Unemployment). Economists define cyclical unemployment as demand deficient or general unemployment.
This is termed Keynesian unemployment sometimes. Structural unemployment Certain industrial decline due to changing long-term market conditions result in job losses and is termed structural unemployment. An example is the decline in motor vehicle production in UK while Far East market in car production has had been on the rise since 1998, ie some 20 years back the trend began. This trend created structurally unemployed workers in motor vechiles. This trend is mainly due to globalization. Communication, transport, and skills elsewhere determine how cost-effective one place could be over another place in the long-term. (Types of Unemployment) Regional unemployment Structural unemployment in local areas of a country is termed ‘regional’ unemployment.
An example is job losses in Addu Atoll when Gan Airported operated as a British military base closed down in 1976. In the UK, coal miners in S Wales, and ship workers in N East faced redundancy. (Types of Unemployment) Classical unemployment Prior to 1930s, workers demanded higher wages and rejected low-paid jobs. The unemployment thus was due to workers not accepting paid –work for wages that are low in their view. This is also termed real wage unemployment. (Types of Unemployment) Seasonal unemployment In industries such as tourism, farming, and construction unemployment is seasonal. These industries produce work or get income at certain times. In the Maldives, seasonal unemployment is seen in the tourism sector. (Unemployment Rate) Frictional unemployment Workers lose present job and look for job elsewhere. Full employment is impossible at any one time since some workers continue to seek paid work to deliberately change jobs. (Types of Unemployment) Voluntary unemployment Excess welfare benefits, higher income tax, and low equilibrium wage rate push workers not to work at a particular condition.
Temporary in the sense its not permanent and not non-curable. Inadequate funds have not helped the interviewers tackle their illness. Females who have become mothers have lost their jobs. They have not been successful in getting atleast a 6-monts leave after delivery. Only 45 days were granted. Age restrictions Previous companies where certain interviewers had worked have made an age limit of less than 40 for job applicants. Hence, some interviewers have had been denied jobs since they are over 40 but in good health. An example is MACL (ie Maldives Airports Company Ltd) that has imposed an age limit of less than 40 for job applicants. (Mohamed Waheed, 2018) No formal qualifications but experienced! A few interviewers surprisingly have had worked in certain jobs with years of experience but they terminated employment on illnesses of spouse(s), parents, children etc. They don’t have formal qualifications. They were denied jobs since they have no formal qualifications. Regrettably documentation on previous experience does not exist! Some sole traders or partnerships did not provide such documentation then. This is an administrative or legislative defect. Strategies to reduce unemployment in Maldives The strategies to reduce unemployment in the Maldives is assessing the root causes of unemployment and working sincerely on to minimize the issue.
The details are as follows:
Implement Labour Laws and Adhere to rules & regulations Labour laws require valid work permit for essential and necessary areas of work at all levels. The law has to be enforced. Illegal workers without work permits is a sign of the law not being fully enforced. Acts such as Employment Act (Act No 2/2008), and Fiscal Responsibilities Act require Labour Relations Authority to comply with and enforce the law. Labour Relations Authority is an administrative body in a legal context. The enforcement ascertained of judicial verdicts is on the Maldives Police and MNDF. (Emplyment | AG Office) Rules & regulations has to be enforced.
The economic ministry changed a regulation by disallowing foreign cashiers in April 2015 Instances of foreign cashiers still working at sales points have to be stopped. The ministry began free workshops in collaboration with businesses for Maldivians wishing to be cashiers but regrettably some still remain unchanged for the change. (Unemployment (MinivanNews)) The law does not specify a minimum paid-job salary or remuneration but this has to be enforced by an Act passed by the Parliament. Living costs and inflation nationwide mean locals are reluctant to be employed at salaries per month of less than 4500 unless severe financial obligations compel them to be in low paid jobs. I have personally understood that expatriate workers who do not get employment in their own country are willing to work long hours with accommodation and basic food for even less than $200 (US dollars Two Hundred only).
Training & Development
Vocational training is required in areas such as engineering, maintenance, and civil works. Most jobs in construction and civil engineering are dominated by expatriate workers at all levels. Skilled and professional training is required for pharmacists, laboratory personnel, and bio-medical maintenance staff. Moreover, opportunities and finance options have to be available to willing youth and existing workers. Reduce Non-essential and Illegal Expatriates Maldives needs foreign labour at semi-skilled, skilled, and professional levels for the growing economy. The current problem is not exptatriates but non-essential and illegal workers flooding the labour market. This has to be stopped by enforcing the law. The government, public, and private sectors acting in parallel collaboratively could stop the inflow of illegal and non-essential workers from Bangladesh, India, Sri Lanka, Nepal, Phiilipines and Thailand. Community Participation and Willingness to reduce unemployment Maldivian youth, local businesses, and the government must unite to reduce employment. Youth has to be willing to replace laborious jobs in waste management, construction, housekeeping, and the hospitality industry. Only then non-essential expatriates could be successfully replaced. Awareness and publicity campaign on employment and economy is required.
Conclusion
Unemployment is when a willing person with employable skills searches a paid-work but is unable to find work in a reasonable time. In this research paper it’s 4 weeks. The unemployment rate is calculated as a percent of workforce (ie {unemployed persons / workforce } × 100 ). Computer programs and satistics are used in calculating a representative unemployment rate. Based on nature of unemployment and frequency, experts on social science have named unemployment types, namely cyclical unemployment, structural and regional employment, classical and seasonal unemployment, frictional, and voluntary unemployment. An example of seasonal work in the Maldives is seen in the hospitality industry and construction when demand for paid workers varies as tourist arrivals fluctuate, and when projects in housing and infrastructure change. Six locals have been interviewed on unemployment. The findings are they were unable to find work due to certain red tape in the law such as age restrictions, competition from expatriates, and lack of documentation on qualifications.
For example, a few who are experienced but lost jobs due to long-standing sickness now cured could not find a job since they lacked formal qualifications! The strategies to address local unemployment are: - Implement Labour Laws and Adhere to rules & regulations Training & Development Reduce Non-essential and Illegal Expatriates Community Participation and Willingness to reduce unemployment These have been recommended in the light of information in the questionnaires and my own observations.
