Developing an employment model that works
Governments cannot be expected to create ample jobs and be on top of pension funding
- Image Credit: Ahmed Kutty/Gulf News Archives
- Participants at a career fair in Abu Dhabi University. Governments shouldn’t create more jobs than it needs to fix unemployment. Governments are required to create the right investment environment through its policies, and that is that.
I have always wondered on how involved a government should be in the jobs market. Should it recruit all of the excess jobseekers that the private sector, for one reason or another, could not, or just did not, recruit?
Most importantly, can the government do so without being extremely inefficient and hindering its own operations and services for the sake of doing so? What about the huge wage bill that comes with that? What about pension?
Well, speaking of pension, this might be why basic salaries, along with whatever is included in pension contribution, are the lower proportion of the total salary. Once all of the above is considered, how can it be addressed in terms of countries with income taxes?
Not only that, but can a very high increase in income taxes fix the inefficiency in government recruitment if imposed on public sector employees only? Can it fix government pay, which cannot go up if you are doing 30-40 per cent of labour force recruitment like in Egypt?
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