Encouraging major industrial investments to absorb unemployment

Encouraging major industrial investments to absorb unemployment

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Friday, April 17, 2020
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Encouraging major industrial investments to absorb unemployment

Baghdad / Imad al-Amara
 
The phenomenon of unemployment is due to the inability of the national economy to find sufficient jobs commensurate with the supply of increasing numbers of entrants to the labor market due to the limited production base and weak investment and economic growth rates, and therefore it is necessary to attract and encourage major industrial investments to absorb unemployment.

Academic Dr. Thaer al-Ani told Al-Sabah: "One of the most important measures to develop appropriate solutions to reduce the problem of unemployment in the country is to find and provide the right environment for domestic and foreign investment to increase investment and employment opportunities, with a focus on directing investment to provide opportunities to absorb a part of the workforce and thus reduce unemployment rates."
 
International experiences
"The possibility of benefiting from the experiences of some Arab countries, such as Tunisia and Morocco, where high-intensity industrial investments have helped to reduce unemployment rates, and in order to achieve this, it is necessary to increase government spending, which is an important factor in moving the national economy and working to absorb the unemployed in state or private sector projects," he said.
"The need to implement social programs and funds that provide the necessary financing for small projects and provide infrastructure and services in poor areas, where these funds contribute to the provision of work to large numbers of unemployed, as well as to reduce the phenomenon of migration from the countryside to the city, and to accelerate the reconstruction of the economic sectors and infrastructure destroyed by terrorism, which would provide new jobs, especially for young people," he said.
 
Labour market
"The importance of restructuring the labor market to accommodate the increase in the national workforce through the adoption of various programs to train and rehabilitate workers and provide the necessary services to enable them to obtain employment opportunities within the framework of the new working environment, and there is no doubt that acquiring high technical capabilities, appropriate work traditions and acceptable preparations for harmony with available employment opportunities is important, which is the competence of training and vocational rehabilitation institutions that depend on their vital activities the labor market to respond to the demands of the production movement," he said. 
He warned that "the most important causes of the phenomenon of unemployment in Iraq is the inability of the private sector under the current stage to absorb a large part of the entrants to the labor market because of its limited economic activity, as well as the lack of harmonization of education outputs to the requirements of the labour market and the dependence of industrial and service activities on capital density instead of the density of labor, which was accompanied by the decline of the relative importance of the agricultural sector, which can absorb a large proportion of the labor force and the other reason is the trade deficit, which refers to dependence on imports, which provides jobs in the countries of production and export and causes unemployment in the import countries."
 
Gdp
In a related context, economist Dr. Ahmed al-Rawi pointed out that "high unemployment leads to a decrease in GDP and industrial GDP in particular, and this shortage is equal to what would have been produced by those unemployed, and unemployment leads to the disruption of the operation of part of the productive capital that has been abandoned. Workers who have been exposed to unemployment, which leads to a decrease in productive capacity and negatively affects the rate of economic growth and consequently the income and economic well-being of the individual, and the long disruption of some members of the workforce leads to the obsolescence of technical knowledge and lack of experience, which requires additional spending to restore those levels to the old."

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