(TIMES) Employment windfall expected next year
Employment windfall expected next yearBy Business Reporter
MORE than 36, 000 jobs will be created in the formal sector by next year if Zambia’s domestic credit continues to grow as a result of the expansion in the private sector, economist, Chibamba Kanyama has said. Mr Kanyama who was commenting on the 15 per cent growth in domestic credit said there would be a marginal level of job creation if the trend continued.
He said there was an increase in domestic credit arising from the macro-stability in the economy as exhibited by the fall in the inflation rate to single digit and stability in the exchange rates.
Mr Kanyama who is Economics Association of Zambia (EAZ) national secretary said the expansion of the private sector was also feeding on the strengthened demand generally for services and goods.
“If this trend continues, it means that more people will be absorbed in the formal sector because private companies are able to borrow money from the banks to expand their undertakings which is a positive development in our growing economy,” he said.
Mr Kanyama said the situation would gradually translate into an increase in household incomes due to improved salaries offered in the private sector thus reducing poverty levels.
“I must emphasise and repeat this, although other people may not see it, households are beginning to have a steady income because they are able to access finances and good salaries.
All this, due to macro-stability in the economy and we will soon start seeing this impacting positively in people’s pockets. Come 2010 all corners of the country would feel the positive effects of economic development,” Mr Kanyama said.
Mr Kanyama said the positive economic manifestation would not be immediate but systematic and gradual.
He, however, bemoaned the slow rate at which institutional investors were listing on the Lusaka Stock Exchange (LuSE).
Mr Kanyama said listing one company annually was not enough to meet the growth projections in the economy.
There was need to have more than four companies listing on LuSE annually in order to meet the growth.
Meanwhile, United Liberal Party (ULP) leader, Sakwiba Sikota said there was need for the economy to be ready to deal with factors that may distort the growth currently being experienced.
Mr Sikota said there was need to seal all loop-holes through which public finances can be siphoned off or misapplied in order to allow the development process to continue.
Labels: ECONOMY, UNEMPLOYMENT
posted by MrK @ 6:47 PM
1 Comments:
According to the CIA factbook, Zambia has a labour force of 4.92 million.
According to the same website, unemployment runs at 50%. That would be 2,460,000 jobs that are needed.
So to describe a 16,000 job increase as 'a windfall' is exaggerated, to say the least. It will do absolutely nothing to alleviate unemployment in the country.
All this, due to macro-stability in the economy and we will soon start seeing this impacting positively in people’s pockets.
Don't hold your breath though. The only change is going to come, is when the majority of the population is going to participate in the economic life of the country.
That means land redistribution and agrarian reform, not more foreign investors/foreign businesses. That means government reform, not business as usual. That means investment and jobs in infrastructure, and the only way to make money available for that without taking on massive debt, is by making the mines pay the maximum - paying full corporate taxes at 25%, as well as profit sharing through joint share ownership.
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