1 Full Employment for South Eastern Europe SEED Symposium, Zagreb April 2007 Garry Jacobs The Mother’s Service Society Pondicherry, India

2 Can unemployment be eliminated ? NO, if we accept conventional wisdom and believe the problem is unsolvable YES, if we are open to new approaches and do not oppose practical solutions

3 Global employment trends Globally, jobs growing faster than population Pop growth 140%, Job growth 200% Working age population is declining in OECD countries Labor shortages by 2020:  EU million  USA 17 million

4 Global shortage of Skills - not Jobs USA has shortfall of 126,000 nurses & estimates shortfall of 200,000 MDs & 800,000 nurses by In Germany, 80% of enterprises with fewer than 20 employees reported difficulties in filling positions. In Austria, 42% of enterprises face skilled-labor shortage. 50% of firms in developing countries face skills shortage. Mismatch between skills & jobs due to little or inappropriate education & training

5 Progress Report -- Croatia Labor participation rate = 50.5% Employment rate = 54.7% Unemployment rate 2000 = 16.0% 2005 = 12.7% Long Term unemployment = 8.0% Small firms share of jobs 1994 = 7.0% 2001 = 16.0%

6 Croatian unemployment is high among Youth 24.9% employed, 36.0% unemployed Women 47.8% employed vs. 61.4% men 16.4% unemployed vs. 13% men Less educated

7 Education & Employment Employment % UnEmp % Incomplete basic schooling Basic Lower secondary vocational Higher secondary yr post secondary University

8 Case Study: INDIA Labor force growing 7 million a year Unemployment ~35 million Employment need 100M in 10 years Prosperity 2000 strategy = 10M a year Unemployment has not increased Economy is generating at least 7M a yr Full Employment Law 2004

9 Conclusions No justification for fatalism or helplessness Future for employment is very bright Full employment is an achievable goal. Decision and Commitment first, then strategy I can be done now

10 Job Creation Strategies Identify skill shortages at home and overseas Launch massive program for skill creation Computerized vocational training Self-employment – e.g. Internet-based opportunities Publicize opportunities & successes in the media Incentives for new initiatives Offer insurance for new businesses Create purchasing power & access to credit Remove structural impediments & disincentives Strengthen law & administration – e.g. part-time jobs Raise minimum level of education 2 years

11 How society creates employment New products New services Growth in demand Higher productivity Entrepreneurship Access to information Technological innovation Organizational innovation Higher quality standards Legislation & enforcement Administrative efficiency Health consciousness Environment awareness Higher skills Increased speed Change of attitudes

12 Conclusions No justification for fatalism or helplessness Future for employment is very bright Full employment is an achievable goal. Right to employment should be guaranteed. The nation that guarantees it will achieve it.

13 Need for Further Research Natural process of job creation Project occupation demand Project skills requirements

14 Unemployment Unemployment rose from 140 M to 180 M (21%) 6% of global labor force of 3 B unemployed Labor force participation rose 1.5% resulting in an additional 90 M job seekers since 1990 – largely due to more working women and delayed retirement of the elderly

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16 Structural Unemployment Symptom of the artificial functioning of the society hindered by its structures  9% in Europe  5.6% in USA

17 Myths about Employment Population growth creates unemployment Technology destroys jobs Globalization generates unemployment Rising levels of unemployment are inevitable