Unemployed youth: A time bomb

THIS week there has been much spotlight on youth clamouring for lucrative jobs in Korea. In fact the Daily FT on Monday headlined the front page picture of these youth outside Police Park in Colombo 5 as ‘Queuing up for jobs away from emerging Wonder of Asia?’

We featured how youth from various parts of the country were queuing up overnight to collect application forms on Monday to try their luck on securing jobs in Korea. As it transpired, an estimated 10,000 had converged by that day and the rush to collect applications before they ran out caused tensions as well as a stampede. Police had to be brought in to control the situation.

As per reports, the Police Park was one of many venues in select provincial towns where applications for jobs in Korea were available for collection. What was up for grabs were an estimated 45,000 jobs in Korea and judging by the response, the demand had outstripped availability.

Korea has been one of the Southeast Asian economies which have managed to survive and succeed amidst many regional and global financial crises. When Sri Lanka liberalised its economy, we had a flood of Korean investments as part of that country’s strategy of relocating production facilities in low cost economies. Little over three decades later, only investments and operations of a significantly lower number of Korean companies exist. Over the years they have relocated to a new low cost territory or gone out of business.

In recent years, Korea has opted to import labour in larger numbers as a strategy to remain competitive in select industries. Due to good bilateral relations, Sri Lanka had managed to lobby for a higher allocation for such imported skilled and unskilled labour of late. In the first half of this year, over 3,000 youth have found jobs in Korea and the number is over 8,000 since late last year.  

All these developments must be read in the context that in the 1950s Korea wasn’t considered the best of economies or places to live and work and like a few other Asian tigers such as Malaysia and Singapore, was certainly lagging behind Sri Lanka. How these countries subsequently emerged stronger and became role models is history, but Sri Lanka certainly hasn’t learnt enough in the past decades – and still has many lessons to cover.

Whilst the number of youth who turned up for Korean jobs can be unprecedented, a visit to some of the Middle Eastern country embassies will confirm that a large number queue up for work visas to take up jobs as well.

Foreign employment, whilst resulting in a brain drain, was also the biggest foreign exchange earner for Sri Lanka. Last year total foreign remittances received rose by 24% to a record $ 4.1 billion. In the first five months of this year, they rose by 28% to $ 2.1 billion. Departures for foreign employment in 2010 rose by 8% to 266,445. These are hard statistics and indications are that full year data for 2011 will be higher.

Whilst youth seeking foreign jobs cannot be totally eliminated, the growing numbers despite Sri Lanka being dubbed as the most politically and economically sound country is a serious concern. Whilst it could be correct that overall unemployment levels have come down in the country post-war, the relatively high rate of youth (estimated to be 18% between the ages of 15 and 24 years and 11% of those qualified with GCE Advanced Level) being without jobs is a grim statistic for the Government. This, as well as the paradox of most of the economic sectors of the country experiencing labour shortages, was highlighted even by business leader Dr. Anura Ekanayake in his outgoing speech at the Ceylon Chamber of Commerce AGM.

As we have ample proof that unemployment was the root cause of successive youth unrests in the south and perhaps a spark for terrorism in the north, the Government needs to take stock of simmering discontent as well as the plight of unemployed youth. The answer is certainly not State jobs, an option the Government has been quick to rely on, but through greater entrepreneurial activities from the private sector as well as supporting a new generation of self-employed in a new era of peace and prosperity.