adminthe economy.
Although there has been some modicum of stability in terms of the country’s macro-economic fundamentals, as indicated by the low inflation and Gross Domestic Product growth since the adoption of the multi-currencies in 2009, this growth and stability has not translated to meaningful job creation.
In an interview with Herald Business, Global Workforce Solutions (Pvt) Ltd principal consultant Mr Anthony Jongwe said the issue was not so much lack of employment opportunities as developing the right skills in our economic context.
A developing industrial economy such as Zimbabwe typically requires high levels of science and technical skills.
“Our situation is akin to what is called ‘jobless growth’ and this is not healthy for a country with one of the highest unemployment rates globally.
“However, globally there is always a demand for graduates with technical skills and those with background in science and technology. This should therefore challenge us as a country to allocate more resources to these areas of training.
“A developing country like Zimbabwe can never have too many engineers, medical doctors, artisans, veterinary surgeons or information communication technologists and so it is important that universities and tertiary institutions focus more on these,” he said.
Jobless growth is best described as an economic condition in which a macro-economy experiences growth while maintaining or decreasing its level of employment.
With stagnated growth in the manufacturing sector and simultaneous notable growth in the services sector, Zimbabwe could be facing a crisis of de-industrialisation even before it fully industrialises.
It is, however, not exclusive to Zimbabwe. The 2011 Economic Report on Africa has predicted a steady growth of African economies of approximately 5 percent, which will,
however, not be accompanied by a corresponding improvement in the continent’s employment rate.
Zimbabwe has an unemployment rate (in respect of the formal sector) in excess of 80 percent.
Mr Jongwe says that lack of capacity enhancement outside installed capacities in the manufacturing sector has constrained job growth.
The Confederation of Zimbabwe Industries 2011 manufacturing survey shows that the sector is presently yielding an average 57,2 percent in terms of capacity utilisation.
“Traditionally, the manufacturing sector, with its close ties to the agricultural sector which used to be the lynchpin of the economy, has been a good benchmark of the employment situation across other sectors of the economy yet it is choking under an array of challenges at the moment.
“Despite renewed optimism by the CZI that the sector is slowly turning the corner in its quest for recovery, this will not be sudden owing to the high cost of capital and utilities,” he said.
He added that extensive power shortages will continue to constrain the pace of recovery throughout the economy and that this will impinge negatively on job creation.
Nonetheless, the issue of youth unemployment – especially amongst university graduates – is a global issue. In Europe, university graduates are struggling to secure employment owing to the pervasive financial crisis and their frustration is manifesting itself through the “Occupy Wall Street” movement.
Online Reporter