Studies confirm aggravation of unemployment problem [Archives:2006/945/Business & Economy]

May 11 2006

Mahyoub Al-Kamali
Presidential instructions have been lately issued for the appropriation of YR 20 billion to implement government investment projects generating new opportunities for workers and employment opportunities for the unemployed. That has been announced on the Yemeni celebration of the May Day this year.

The presidential directives include the government's taking of urgent measures with concerned ministries for the implementation of this great government investment project in coordination with the public and private sectors. This program comes in line with the ruling party's preparation for the presidential and local elections scheduled in September and a feeling by the government of the necessity of tackling the deteriorating workers' situations with the aim of gaining trust of workers who represent a segment of considerable weight in the Yemeni society and being the segment that is most harmed by the economic reforms implemented in the country since 1995.

Yemen has this year celebrated on International Labor Day, 1st of May amidst suffering of the workers segment from unemployment as well as non-availability of jobs for graduates from government and private universities.

According to studies, the cause of unemployment problem aggravation at the Yemeni labor market is attributed to weakness of the structural construction of the national economy and not developing sources of income and production. Added to that is the weakness of the agricultural sector that is possible to re-habilitate it for the development and accommodation of two thirds of force capable of working.

The latest statistics indicate that the agricultural sector, despite of the negligence it suffers, now accommodates 52.9% of workforce whereas the other sectors of transport, industry, trade, construction, tourist hotels, financing works and works services accommodate 47.1% of that force.

The third factor is represented by aggravation of recession of government investment spending directed to development projects that could contribute to create job opportunities for the unemployed in the country while the rise in population rate in Yemen contributes in worsening the problems of unemployment. The studies point out that outputs of education contributed to increase in average of unemployment along with the increase in number of government and private universities to 15 and more than 65 faculties and 30 technical institutes.

Thus, the solution for alleviation of the unemployment problem begins with treatment of these problems. Among these solutions is the increase in appropriations of the government investment program. If the presidential directives of operating YR20 billion for creating new jobs is implemented and also the employment of not working labor, this policy will begin to finding some solutions for the problems from which the labor sector is suffering in Yemen and away from electoral propaganda.