Employment levels in countries often determine how stable the country is, or will be.
Employment is the state of being paid for a service rendered or activity carried out. Employment requires the signing in of a person or people, to function in specific places.
The level of employed or unemployed persons in a country, often tells a lot about the country.
The development level of a country depends on the level of work that is being carried out. More work hastens the growth of a country.
People are usually too lazy or uninterested when it comes to working. They would rather sit down and beg for money.
There is a need to look into the employment level of a country because several factors come into play to determine the employment status of a country.
Factors Influencing Employment Level in a Country
We will be looking at the factors that can influence the employment level of a country. Below is an outline of these factors:
1. Economic Growth
When there is growth in an economy, companies tend to grow and expand.
This expansion leads to the need for more workers, leading to an increase in employment.
More workers are being employed to trigger the work and increase the delivery rate of companies.
2. Interest Rate
High-interest rates often lead to a reduction in people’s income and a reduction in spending.
When consumers can no longer spend, companies will begin to go down, leading to the laying off of staff and unemployment.
When taxes are high, it discourages employers from getting or hiring more staff.
There is also an effect on the unemployed. There is this tendency to stay back and not search for jobs, due to taxation.
4. Labor Regulation
Labour Regulations often help in regulating the number and type of people to be employed in a country.
This law affects employment, as not everyone can be employed, but those who meet the criteria for employment and service in the country.
Age, gender, education, etc. affect the employment level of a country. When older people are occupying the workspace, the work rate will be reduced.
Gender also affects the level of employment in a country, as certain jobs are gender-specific.
Education also plays a major role, as uneducated people often do not get a chance of securing jobs.
Technology plays a very important role in the job creation/employment level of a country.
Due to the discoveries and use of new technologies, there is a need to employ skilled people who can handle those technological appliances.
Several workers are being laid off during these phases, especially the less skilled workers who cannot handle more sophisticated machines or tools.
Technological improvement has both a negative and a positive impact on the employment level of a country.
Globalization is the process by which companies link with foreigners or have connections with international companies.
This often leads to employees applying for opportunities outside.
The disadvantages of globalization, often play out when staff or employees begin to look for international opportunities and quit their current jobs.
8. Political Instability
Political Instability leads to insecurity, and insecurity leads to fear in the hearts of citizens.
When there is political instability in a country, it affects the companies, as most people will be scared of investing money in these companies, for fear of loss.
Most foreign companies will also not want to partner with companies in politically unstable areas.
All of these lead to a decrease in the revenue of companies and also reduce employment levels in countries.
In conclusion, several factors affect the level of employment in a country. These factors, if handled properly, can enhance or limit the level of employment in a country.
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RESEARCHER: Chiomah Iloh