Labour Market Reforms for Growth ; IPS Policy Insights

In: http://hdl.handle.net/11540/10471

Open Access

Abstract

This Policy Insight is based on the SOE 2015 chapter "Labour Market Reforms for Growth", which concentrates on four main issues faced by the labour market. First, the immediate challenge faced by the labour market is to source the workers needed to operate envisioned development plans of the country. However, already the country is faced with skill shortages. Second, The population ageing and the working age population is declining. These demographic effects on the economy need to be mitigated through better utilization of existing labour resources. Third, effective human resource planning is hindered due to lack of information, limited coordination between different labour market institutions, and the changing structure and affiliations of the labour market institutions and the conflicting objectives of the different labour market institutions. Fourth, the duality in the labour market needs to be reduced to encourage job creation and productivity.