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Focus more on employment generation - Study

There isn't sufficient emphasis on employment generation, though poverty reduction and economic growth has been stressed.

With a poverty rate of 25 percent and an economic growth rate at 8 percent for the first half of this year and projections from the Central Bank promising sustained growth it is important to link these projections to analysis on the nexus of economic growth, poverty reduction and employment generation, a study conducted by ILO and UNDP on Employment Generation for Poverty Reduction in Sri Lanka, noted.

A seminar to deliberate the key conclusions from the Sri Lankan case study and discuss issues relating to employment for poverty reduction was held on Tuesday.

A high rate of economic growth is necessary for poverty reduction but it is not sufficient. There needs to be growth in productive employment where the benefits of growth are passed down to the people living below the poverty line, Country Director-ILO Sri Lanka, Tine Staermose said.

Regional Program Co-ordinator and Pro-poor policy Advisor, UNDP RCC, Dr. I. Palanivel said eminent economists believe that if there is a major inflow of investment in infrastructure activities, the private sector will be forthcoming and employment will be generated. For this investment must be thoughtfully planned while targeting sectors where employment will be generated for those who need it most, the poorer sections of the society.

He said that it is important to give priority to employment and decent work in economic and social policy making to ensure that they are integrated in policies of macroeconomic stability. ILO specifies a global agenda for decent work.

The ECOSOC ministerial declaration this year states that "An employment strategy that aims to promote full, freely chosen and productive employment and decent work for all, with full respect for fundamental principles and rights at work under conditions of equity, equality, security and dignity, should constitute a fundamental component of any development strategy.

Deputy Secretary to the Treasury R.A. Jayatissa said in Sri Lanka, employment growth during the past decade has been lower than GDP and labour force growth. Though employment has declined, it is at a high level, with underemployment and youth unemployment continuing to be serious problems creating social and political unrest.

Despite the decline in poverty, unemployment continues to grip the rural masses. It is essential to consider generating employment than only focusing on economic growth. It is through an employment generating policy at grassroots levels that the benefits of economic growth will trickle down to the masses at the periphery and the poverty rate could be reduced, he said.

The ILO and the UNDP have been collaborating to highlight issues relating to productive employment for poverty reduction in the world and in particular the Asian and African regions.

 

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