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Job creation – what is needed, what is possible and how to manage expectations
One of the major issues facing the government in the short to medium term is that of creating jobs. Employment is important for many reasons including social stability, economic development and poverty reduction. Ultimately it is only through the creation of enough, quality jobs for all those who want them, that the economy can transform.
Over the past few years people’s expectations about what Mozambique’s resource endowment will bring have grown to include opportunities for quality, paid employment. However to date these expectations have not been realised. Without accurate statistics it is difficult to say for sure how many people are unemployed or under-employed but there is a real risk that at some point, the lack of jobs available and the expectations which people have are going to come to a head and result in social instability as people demand the jobs they feel should be available to them. What, then, can the incoming administration do to deal with this situation?
Most people therefore expect Mozambique’s resource boom to have significant positive impacts on employment. The boom will bring opportunities in the extractives sector for those with technical and management skills. However these opportunities will be limited in number. Related sectors such as construction and transport will also offer growing numbers of job opportunities. Again, however, these will be for those with skills. For those with low skills it is likely that the resource boom will bring no particular change.
What is needed, therefore, is a solution to the problem faced by thousands of unskilled people who are currently under-employed or unemployed, and a solution for the estimated 300,000 young people entering the workforce each year, many of whom have only basic levels of education and literacy.
Employers are finding Mozambique’s job market increasingly competitive. Basic rules of supply and demand have resulted in an increased cost to employ skilled people. There is growing demand but not enough people with even basic technical training in artisan skills to fulfil the demand. Even when employing low-skilled staff employers express concern that people often do not have the “soft” skills such as reliability on the job, communications and listening skills, critical thinking and problem solving abilities, and ability to work in teams. Despite high unemployment and under-employment there is a major shortage of people with the basic skills to fill the jobs available.
There is a huge gap between supply and demand in employment. To address this and to begin to resolve the problem it is therefore essential that the government defines how it envisages Mozambique’s labour force in the next 5, 10 and 20 years.
Developing comprehensive plans for education and skills development takes time. Even if suitable mechanisms were put in place now it would still take up to three years for the first graduates to qualify, and they would then need on the job experience before being able to truly capitalise on their skills.
Reforms are required across a variety of sectors from education to labour. However these reforms should form part of an overall national strategy. It is not sufficient to begin now training people to work in the extractives industry for example. Training is also needed for those who will work in other sectors of the economy, such as agriculture and tourism.
Information needs to be available for those who are still in school about what opportunities might be available to them when they leave so that they can start, as early as Grade 9 or 10 deciding what direction they would like to take with future studies and training.
Above all there is an urgent need to define at national policy level where Mozambique aims to position itself as a global competitor, not only based on its gas and coal but also in other key sectors such as agriculture, tourism and manufacturing where the majority of people may be employed. Based on this global policy all other policies can be developed or brought in line. For example it is only when the country has decided where it wants to position itself that it can develop a labour strategy to respond.
The clock is ticking. Construction work on major gas projects could begin soon. An estimated 10,000 jobs may be created in construction in Cabo Delgado alone, not to mention an estimated 8,000 construction jobs in the Nacala Corridor. Where will these 18,000 skilled artisans come from? If these are to be jobs for Mozambicans, training them must begin immediately. If those who take the jobs are to be employed after the construction projects end, other projects requiring their skills must be lined up to absorb them.
Now is not the time for reinforcing the unrealistic expectations that have already been created. Now is the time for engaging in swift, consultative, wide-ranging debate leading to the development of quality, realistic, implemented policy to ensure that Mozambique positions itself and puts the mechanisms in place to take full advantage of the resource boom and to ensure that current and future generations have the necessary skills to make Mozambique a world leader not only in export of natural resources, but in local manufacturing, agricultural production and tourism.