Global unemployment figures rise

As the world celebrates the Labour Day today, the global rate of unemployment increased from 8.2 per cent in 2009 to 8.7 per cent 2010 (CIA Fact Book), meaning that it is gradually becoming harder to get a job anywhere on the globe.The unemployment question cannot possibly be of much emphasis than the case of Mohamed Bouazizi, a Tunisian national whose actions sparked off a series of political revolutions in the Maghreb last year.After struggling with unemployment for most of his life, Bouazizi began street vending to provide for his large extended family; but his business was short-lived when local officials confiscated his property.In a burst of rage, Bouazizi set himself on fire and died, leading to a series of revolts in Tunisia that led to the resignation President Zine El Abidine Ben Ali and lit the touch of what was to be called the Arab Spring. According to the International Labour Organization (ILO), although economic growth has resumed in much of the world since the 2008 financial crisis, global unemployment remains alarming and could worsen due to governments’ worker-friendly strategies.Rwanda’s unemployment rate stands at 8 per cent, with SMEs comprising 98 per cent of all businesses in Rwanda and 41 per cent of the country’s labour force. On average, SMEs generate Rwf4.9 billion in annual tax revenue per year.Although the country seeks a solution by shifting from subsistence production to industrial, only 10 per cent of its population is employed in industry and service provision, the rest being in agriculture, most of which is not mechanised.Therefore, the government has shifted most of its attention to the youth, who make 65 percent of the country’s labour force.Youth employment is still a challenge in many developing countries, and in Rwanda, 67 per cent of the population is still under 25 years.“Due to increasing number of young population, Rwanda is committed to finding solutions and has taken initiatives of becoming a leader in youth employment,” Anna Mugabo, the Director General of the Ministry of Public Service and Labour (MIFOTRA), said.Information from the Ministry of Youth and ICT indicate that unemployment is actually quite low among the youth, ranging from 0.7% of 15-17s to 1.6% of those 20-24 years.“However a larger percentage is ‘inactive’ meaning they are not in employment or education, which could include ‘discouraged’ workers who are no longer actively searching for a job,” reads part of a statement from the ministry. “To achieve this objective, MIFOTRA in collaboration with partners has developed several employment policies and strategies to match the increasing number of the active population thus promoting employability among the youth, women and other vulnerable groups,” Mugabo adds.One of those initiatives is the just concluded Inter-University Essay Competitions designed to prepare youth with skills of developing business proposals.Fiona Mutoni, 22, a second year Law student at the National University of Rwanda (NUR) was the winner of this year’s competition, beating 38 other competitors to a cash prize of Rwf300, 000.“The youth need a lot of practical learning to gain as many skills as possible to help them play an active role in the economy,” she said.“After university, there is no guarantee that one will get a job immediately, but with such competitions, one can learn to develop business ideas and start up profit making companies instantly, upon graduation.”However, youth experts believe that school curricula are not yet in position to fully develop critical thinking among the youth.“Theoretical learning is everywhere and yet practical learning is what is outside. Whenever entrepreneurship skills are included in the curricula it is much better, which Rwanda has started to impart in its syllabi,” Emmanuel Nzeyimana, the programme Manager of DOT, a youth empowerment organisation said yesterday. “Business start up is still a challenge to the youth because of lack of capital, which is still a major challenge as banks and financial institutions require collateral security, which the youth do not have most of the time.”“The cycle in modern society emphasises studying in school, graduating and getting jobs; culture despises starting up businesses and yet it is usually the lifeline for many youth.”In order to promote employment for the youth, government began programmes to integrate the youth through the development of formal vocational training or on the job training adapted to the needs of the job market.Through the Technical Vocational Education and Training (TVET) programme, 400 youth have attained self-employability skills and obtained jobs or financial aid to start up businesses.Statistics show that 9,011 enterprises that registered in RDB pledged to create 15,981 new jobs from investments in 2011, particularly in construction, mining manufacturing, tourism, and transport among others.Although job creation is at the helm of national plans, sustaining jobs and being happy on the job is another challenge for those in employment.Many employees desire medical insurance and pension, among other incentives, but, some companies deny them these rights.To curb the unfair conditions faced by employees, CESTRAR, an umbrella of workers’ unions in the country, has embarked on sensitising employees in various institutions about their rights.“We are doing everything possible to supply small labour law books to all employees especially in the private sector so that get to know about their rights,” Africain Biramboneye, the Deputy Secretary General of Workers’ Trade Union (CESTRAR), said in an interview with The New Times.He added that 35 per cent of employees in the country have no given contracts, whereas over 40 per cent of cases reported to the union involve illegal dismissal of employees.The law on occupational health and safety was approved by cabinet last year to help curb these injustices.“To reach the targeted employment results, we will embark on empowering SMEs by, especially, supporting several youth projects across the country, mainly through constant follow-ups to enable them sustain their projects,” Mugabo added.If government attains its set goal of creating 185,000 off-farm jobs every year and 3.2 million jobs by 2020, then unemployment will surely be within containment.