Question

In: Economics

The Covid-19 pandemic has disrupted labour markets in ways not seen since the Great Depression. Businesses...

  1. The Covid-19 pandemic has disrupted labour markets in ways not seen since the Great Depression. Businesses have had to come up with measures to mitigate against the adverse effects of the pandemic. These include rearranging work arrangements (work-from-home), forced leave, rotational work schedules, etc. Naturally, one would argue that level of unemployment has increased, at least in the short-term. You are the senior labour economist at the Ministry of Labour in Zambia. Write a one-page policy brief outlining a set of practical policy prescriptions to arrest the rising unemployment levels.

[Hint: Use a standard policy brief template]

Solutions

Expert Solution

Policies

a) Production: To reduce unemployment,it is essential to increase production in agriculture and industrial sectors.Development of small and cottage industries should be encouraged.Greater the production,greater is the demand for labour.

b) Productivity: Demand for labour is directly related to the productivity of labour.Higher productivity generates higher profits and therefore,greater demand for labour.

3) Help to self-employed Persons: Government should provide facilities like irrigation,better seeds,manure,implements,credit ,etc, to small and marginal farmers.In addition,self employed persons in urban areas should be given facilities of credit, marketing , raw material, technical training and the like.

d) Employment programmes : Such programme should be given greater importance which are likely to reduce the unemployment .The programme that can best serve this end are : irrigation projects, road construction , develooment of small industries.Crash Employment programme should not be encouraged as these programmes tend to swallow resources without a corresponding rise in employment on permanent basis.

e) Cooperative Industries: This industries should be encouraged as far as possible.As it helps in development of labour economically.


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