Effects of unemployment in sri lanka

Effects of unemployment in sri lanka

1. Many research workers have been conducted sing unemployment in Sri Lanka, among them are unemployment and offenses, unemployment due to accomplishments mismatch, and unemployment due to bing instruction system and so on. But after reading those surveies it is apparent that among the alumnuss of the state, Arts graduates face this job earnestly due to their accomplishments mismatch with the current occupation markets.

PREVIOUS RESEARCHS

2. The word ‘mismatch ‘ is used usually in earlier research about the Sri Lankan unemployment job, and it is of import to explicate the different contexts in which this term exists. There were some problems to do a differentiation between them. There exists a mismatch on the labor market where the demand for educated labor is less than the supply of it. This is a practical fact, since this mismatch is reflected in the high rate of unemployed educated young person. In other words, there are fewer occupations with educational demands than the supply of educated workers. The logical result of this is unemployment. There are, nevertheless, different sorts of hypothesises developed to explicate this 15 sort of mismatch and one of them is called the mismatch theory. Here will seek to give a brief sum-up of the different accounts below. The high rate of unemployment in Sri Lanka has concerned research workers, policymakers and the international community for a long clip, which has resulted in a batch of researches and literature in the subject. Several accounts have been proposed and the most recognized account though is the accomplishments mismatch theory hypothesis. It was foremost spoken by the International Labour Organization ( ILO ) in the 1970s and was farther researched by Glewwe ( 1987 ) and Dickens and Lang ( 1996 ) .This theory suggests that the educational system of Sri Lanka does non bring forth the accomplishments that are valued by the employers. At the same clip it raises the outlooks of those who get them. This means that the unemployed are non interested in the available occupations. At the same clip the employers will non engage them since they lack the accomplishments needed. This hypothesis argues that the ground for the high rate of unemployment among the first occupation searchers is that this group has merely finished schooling, and has hence non developed the accomplishments needed out of earlier work experiences. This theory suggests that in order to get the better of the unemployment job, the educational system needs to be reformed through accomplishments development and vocational preparation with more connexion to the labor market. Another account to the unemployment job is the line uping hypothesis linked to public sector employment and pay policies. This theory is besides suggested by Glewwe ( 1987 ) , and was developed by Bowen ( 1990 ) and Dickens and Lang ( 1996 ) . They argue that public sector workers have a lower pay than those in the private sector in a well working labour market. This is so because of compensation for greater stableness, attractive benefits and prestigiousness and lower work attempts that exists in the populace sector. This is non the instance in SriLanka though, were the public retainers both get all the mentioned benefits and a higher wage. As a effect, the fresh alumnuss prefer to wait for the occupations in the populace sector and hereby choose to remain unemployed for a piece alternatively of taking occupations outside the public sector. This hypothesis can hence be seen as a Mismatch between outlook and available occupations. The solution to this type of job is to reform the manner the populace sector recruits their staff and set up pay policies to halt this line uping behavior. They besides find that there is significant grounds of labour market cleavage which provides a principle for the unemployed to wait for alleged “ good ” occupations. The 3rd account is that the labor market ordinances create a pay. This account is connected with Rama ( 1994 ) and suggests that the labor market ordinances discourage employers to engage new staff in their endeavors since they make it really hard to end unwanted workers. The Termination of Workmen Act ( TEWA ) is modulating endeavors with at least 15 employees and provides life long term of office. Small houses with less than 15 workers have on the other manus no occupation security at all. The same goes for the Export Processing Zones ( EPZs ) . This is a dichotomy that means that the unemployed prefer to wait for the regulated occupations. The solution would be to cut down the cuneus between TEWA protected and the unprotected occupations.

LITERATURE RELATED TO THE STUDY

What precisely is a Bachelor of Humanistic disciplines Degree?

3. “ The Bachelor of Arts grade ( B.A ) is distinguished by its humanistic accent. Students who complete a B.A may fulfill the grade demands by taking classs that advance their apprehension of human civilization through analysis of thoughts, perceptual experience of differences, grasp of art and originative merchandises through understanding art signifiers, beauty and symmetricalness, cognition of theories and rules of signifier, substance, statement and doctrine, apprehension of the interaction between linguistic communication ”

Why is a Bachelor of Arts Degree Valuable?

4. The demand for appliers possessing Bachelor of Arts Degree can merely travel up. As globalisation spreads, concerns now spend a batch of clip working with civilizations really different from our ain. China, India, Southeast Asia, and Africa all offer an tremendous sum of concern Opportunities for concern and employers able to accommodate. Tangible accomplishments are great in planetary economic system. Engineers, for illustration, will ever be needed to construct Bridgess or survey to construction of edifices. However, there are certain accomplishments inborn to a Bachelor of Arts Degree that makes it valuable trade good in today ‘s market.

a. Critical thought accomplishments: The ability to work out jobs utilizing information at-hand and to generalise information

B. Argument accomplishments: The ability to utilize logic and facts to carry others.

c. Communication accomplishments: The ability to show one ‘s positions clearly in unwritten and written presentations.

d. Information Management: The ability to screen and construe informations.

e. Designing and Planning Skills: The ability to look critically at a job from different positions and place alternate solutions.

f. Research and probe accomplishments: The ability to happen and explicate information.

g. Management and Administration Skills: The ability to analyse undertakings, set precedences, and communicate ends to others.

Meeting the Turning Demands for Higher Education in Sri Lanka

5. Hon. Dr. Sarath Amunugama, Minister of Public Administration and Home Affairs and Deputy Minister of Finance highlighted that the higher instruction in Sri Lanka face challenges due to mismatch of the instruction system and employment chances. Sri Lanka being a in-between income state has a demographic roar due to investings in societal public assistance, wellness and instruction. The riddance of malaria, improved maternal and child health care and other wellness sector services led to a population roar. This leads to high demands for instruction. Harmonizing to him about 20,000 enter the Universities in the state and another 10,000 go abroad for survey. This cause a fiscal load and emphasis to the populace. Even though Sri Lanka is classified as a in-between income state, harmonizing to Dr. Amunugama, if the population was halved so it could be classified as an upper in-between state. In this background the hereafter of higher instruction must be considered. The low per centums of Science and Commerce watercourses in schools were indicated as a critical issue. He besides noted that 150,000 young person found occupations in forces and another one million young person were working abroad. He stated that there exists a terrible mismatch of instruction and employment. Because the alumnuss, particularly in humanistic disciplines and humanistic disciplines, are unemployable as they demand authorities occupations. In the alumnus employment strategy, 44,000 alumnuss were given employment. Approximately 10,000 who were so already employed in the private sector occupations preferred the authorities occupations offered by the strategy. He pointed out that rapid growing of the private sector is important to get the better of the scenario. The alumnuss have to be absorbed to the private sector or they should seek employment abroad. He besides noted that the authorities establishments have excessively many employees. He highlighted that we should concentrate on countries that has chances. Demand and supply state of affairs should be considered in countries of higher instruction. He stressed the importance of learning IT to run into the demand of the occupation market.

UNIVERSITY EDUCATION 2004-2009

6. Detailss of university instruction from twelvemonth 2004 to 2009 demo the undermentioned tabular array.

Item

2004

2005

2006

2007

2008

2009

No of Universities

No of Students

No of lectors

New Admission for Basic Degree

No of Alumnuss,

Art & A ; Oriental Studies ( B.A & A ; B.A Special )

Commerce & A ; Mgt.Studies ( B.Sc/B.Com/B.B.A

Low L.L.B

Science B.Sc.

Engineering B.Sc. ( Eng )

Medicine M.B.B.S.

Dental Surgery B.D.S.

Agriculture B.Sc.

Veterinary Science B.V.Sc.

Architecture and Quantity Surveying B.Sc.

Computer Science IT/ICT/MIT

Food Science

Autochthonal Medicine

Outgo on Higher Education, Rs. Mn.

Capital Outgo

Perennial Outgo

13

60,350

3,611

13,396

10,4771

3.366

3,091

166

1,323

984

964

84

388

42

69

7,622

1,384

7,622

15

66,386

3,875

14,520

8,659

2,410

2,367

345

1,402

755

593

74

554

74

95

8,178

2,133

6,045

15

65,206

4,016

16,585

11,713

4,405

2,198

327

2,348

809

896

123

430

64

13

100

12,607

2,816

9,791

15

66,996

4,313

17,196

12,005

5,142

2,301

208

1,492

894

901

70

484

57

132

107

83

134

12,281

3,129

11,775

15

66,891

4,452

20.069

12,958

4,012

2,547

345

2,274

1,114

1,294

125

510

80

116

303

68

170

13,825

3,233

10,592

15

65,588

4,738

20,846

N.A.

N.A

N.A.

N.A.

N.A

N.A

N.A

N.A

N.A

N.A.

N.A.

N.A.

N.A.

N.A.

16,326

5,150

11,176

Beginning: University Grants Commission Table: 2-1

LOCAL LABOUR MARKET CONDITIONS

7. Available information on the demand and supply conditions of the domestic labor market reveals an overall labor deficit, while assorted conditions are observed among different classs of occupations.

Beginning: Statistics Department Report -2008 Figure: I

The available informations indicate a mismatch between overall demand and the supply in the mention period where the figure of vacancies available exceeds the figure of revealed penchants to supply labor. Contrary to the overall estimated unemployment of around 6 per cent of the labour force ( Table 2-2 ) , the informations indicate a labour deficit. The information of Jobs Net may non reflect the overall state of affairs, as all on both sides of the labor market do non hold entree to or non cognizant of Job Net. However, information available from different beginnings indicates both formal and informal sectors in the economic system suffer from deficit of labor.

Harmonizing to the Job Net information the prevailing labour deficit is about 10 per cent of the revealed demand. However, this state of affairs varies among different occupation classs. The occupation classs of Clerical/Administrative and Management have comparatively high extra supply, where the supply is about 9 times higher than the demand in the former class and about 4 times higher in the latter. Among Professionals excessively there is extra supply. However, it is fringy. In contrast, the classs of Craftsman, Elementary, Technicians, Sales/Marketing and Manufacturing have deficit of labor. Further scrutiny of the information reveals that the extra supply is associated more with the Services sector, while extra demand is associated more with Industrial Sector. This is an unhealthy tendency, as the strength of the Industry sector provides drift for Services sector to spread out and prolong, unless the Services sector focuses its enlargement based on the foreign demand.

The information on demand and supply conditions reveals that there is an extra demand for about all classs of occupations. Except for simple occupations other occupations need minimal degrees of accomplishments acceptable to the employers. Lack of accomplishments and makings could be the chief grounds for the ascertained state of affairs. Despite extra supply of Clerical and Administrative class of occupation aspirers in the local market at really high degrees, the foreign market suffers from deficits of supply in the same class. That suggests that it is perchance the deficiency of needed accomplishments and makings that give rise to the two contrasting state of affairss related to the same class of occupations. The other glowering observation is the deficit of labor in Technical, Craftsman and Elementary classs of occupations. The classs of Technical, Craftsman and Elementary occupations suffer deficits and have failed to run into the demand emanating from both the local market and the foreign market.