In-house trainings improve job prospects

LAHORE: The growth in the past four years has not created many jobs and though buoyancy was witnessed in industries that were technology-intensive, they did not require a large number of workers.

The growth in Large Scale Manufacturing in July-February FY17 stood at 4.46 percent. There were many sectors where growth has been negative or nominal like in fabric and yarn; while there are many large industries that have shown very high growth.

Tractor production for instance, has surged by over 78 percent; cement production increased by around 7 percent; motorcycle output increased by 21.68 percent, and sugar production recorded a growth of 24 percent.

These sectors have shown very impressive growth, but they employ comparatively few workers. The tractor industry hardly provides 10,000 direct and 100,000 indirect jobs; the total employment provided by cement units is less than 20,000. Motorcycle manufacturers employ around 12,000 workers and total employment in sugar mills of the country is less than 50,000. All these industries are still operating below their installed capacities. Even very high growth hardly creates a few jobs.

Maybe when these industries go for capacity expansion, a few thousand more jobs would be added. Higher cement consumption does create a large number of unskilled jobs in the construction sector. But construction industry workers are mostly daily wagers. The number of unemployed and unskilled workforce in Pakistan is much higher than the market demand.

This has suppressed their wages. At any given time, hardly 60-65 percent of the unskilled daily wager workforce is engaged. This means that on average a daily wager is engaged for 20 out of 30 days in a month.

This segment of workforce therefore is unable to enjoy a quality life. Most of them spend whatever they earn and even than have to compromise on their essential daily needs. The labour intensive industries in the manufacturing sector have not shown much growth. The manufacturers are sitting on large unutilised capacities. They fiercely compete with each other both in the domestic and global markets. Many small and medium sized knitwear and garmenting units have closed down as they could not operate on thin margins.

Economists the world over agree that exporters are better pay masters and have better compliance record on labour welfare matters and environment. Exports unfortunately are on constant decline in Pakistan.

Instead of creating jobs, the exporters are shedding jobs. It is not all about cost of doing business. We see that although cement production is on rise, its exports are declining sharply. This is despite the fact that Pakistani cement industry is globally competitive both in price and quality. We have somehow lost the touch to lure foreign buyers in all fields.

Most of the workers in exporting industries possess better skill and are paid well. The quality of life would improve only if we excel in exports. Some of the drawbacks we face in exports relate to both public and private sector. The public sector should come up with long term policies that remain enforced for a period of five year. There should be no tinkering during that period. This will give exporters time to chalk out a plan in accordance with that policy. The policy may not always be ideal but it would give exporters confidence to operate within its limits.