Date Posted: 7/26/2013 11:31:31 PM
Posted By: amo84 Membership Level: Silver Total Points: 742
How to combat unemployment in Kenya.Kenya is country in East Africa that boarders Uganda, Tanzania, Somalia among other countries. With over 38 million people a major challenge has been extreme poverty and inflation which has always alternated with unemployment. Kenya’s unemployment rate as reported by the Kenya Bureau of Statistics shows an increase to 40% in 2011 from 12.70 percent in 2006.Most of Kenya’s unemployment is structural type emanating from lack of particular required skills by labour market. Others are due to contractionary measures, monetary and fiscal policies by the government and central bank in its efforts to control inflation, imperfect information on available vacancies, corruption in major job terminals, poor and unsound management system that render one with double posts, lack of empowerment on enterprise, massive rural – urban migration, preference to specific job opportunities, the education system is not on-job type, dependency on a static traditions and culture among others.Early studies show that money wages and unemployment always moves in the opposite direction. Thus, if we are to do away with unemployment we should accept higher inflation. The Phillips curve confirms this that depicts an inverse relationship.Cyclical unemployment occurs when actual GDP is below potential.Kenya has a way to go to absorb the lot of the idle labour force, the unemployed. Two common applicable policies could be the demand side which aims at reducing demand deficient unemployment brought about by recession; and the supply side policies to reduce structural unemployment.The government should better the education system by adopting a dynamic system that would enhance financial literacy and provision of appropriate skills for the market to incorporate it. Advances in technology should be integrated in the schools’ curriculum to equip the output of academic venture with required skills.Thanks to the various enterprises the government has initiated such as the Youth Enterprise Development Fund, Women Enterprise Fund CDF projects. The aggressive lot can commence on great investment that will employ a lot of idle labour. The management systems in many government institutions especially the financial boards have been a failure on the side of Kenyans, inappropriate boards should be dissolved and corrupt officials sued. Small business enterprises should be encouraged at all costs even if it means providing incentives such as tax holidays and training.Our infrastructure has been a big blow either due to poor networks and linkages or lack of them which has increased the cost of transport and in the long run prices of goods due to high cost of production. This lays off a lot of labour force. They should be improved and adopting green energy in place of the non-renewable fossil fuels. The business environment needs to be improved and contracts to foreign companies such as road work, building and construction should absorb the domestic labour through training.A move should be made from the dependence on primary products to industrial and manufacturing sectors. The economy needs to diversify from primary sector to manufacturing sector for instance through inclusion of a fraction of GDP to this sector to stimulate productivity and employment creation.The various strategies and programs such as vision 2030 and Konza city projects are a start to economic growth and development. The new constitution stipulates criteria on resource sharing by the counties which may create opportunities. Counties on their part should promote the natural resources in the vicinity to enhance county growth such as tourism.
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