By Richard Musaazi
As the Government struggles to come up with programs geared at supporting the youth, which reduces revenues as fewer people are in employment and therefore they spend less. At the same time, government expenditure increase as more people are without work. This is the genesis of our economic woes! If we have policies that get people back to work, and doing good, economically productive jobs, then the deficit falls because the costs of unemployment go down, and the income from tax goes up – even without changing a single tax rate.
Currently Majority of the youth out of school have no regular work or income. 61.6% of them are not in any form of employment. Sadly enough, majority of them are in urban centers and they have no skills whatsoever – The only reason anyone is ever hired by an employer!
Fast growing economies have rapidly increased the numbers of students attending university in recent years. But here, Graduates spend a lot of time accumulating different degrees and ultimately realize that these degrees aren’t going to provide a passport into lucrative private sector jobs. Unemployed graduates are rising to worrying levels. That’s why this country needs to focus not just on expanding higher education but also ensuring quality at the same time if graduate unemployment is to be contained.
It is mostly in Uganda that People with post graduate qualifications are more likely to be jobless than those with undergraduate degrees, while graduate unemployment is higher than for those with vocational qualifications. Uganda’s biggest worry is that Universities continue to craft courses depending on how romantic they sound to them but when they are not helpful to our youths after graduating that’s why we need prudent labor market and marketing information system in this country.
Given the fact that informal sectors employ almost 70% of the population the government need to do more to support small scale businesses- this will not only increase tax base but also solve the unemployment scope. The government could elect to underwrite the cost of shipping, particularly for businesses that are relatively small. The direct government payment of export shipping costs would almost certainly become a trade issue with other nations, but that is one of many hurdles that almost any other trade-based solution to the economy and employment faces.
Policy makers of this country have got to acknowledge the fact that our economy needs to evolve from a consumer-based economy to one that relies more on exports and more so, the Government, companies and individuals need to work together to ensure unemployment free society for the rapid growth of our economy.