Turning rural economy into vibrant economy

 ·       What causes unemployment in the rural areas?

·       Does current governemt investment in line with needs on the rural communities?

·       Is land still crucial for the development of rural communities when considering the type of basic eduaction provided by the rural school?

Intorduction

The rural unemployment occurs on two fronts. Firstly, there is unemployable skill where certain graduates can not find employment suitable for the skills they have. The graduates are willing to employ their skills but the rural economic environment prevents the employment.

Secondly, unemployed skill occurs when rural economic environment allows the employment of skill but people who have skill decide not to employ. The main reason of not employing a skill in the rural areas, is based on comparison of returns obtainable in the face of risks of employing a skill. The people who decide not to employ a skill percieved risks being higher than returns. The greatest risk in the rural areas is inability of rural customers to buy at high mark-up prices which cover costs to do business, due to unemployment.

Unemployable

·       Environment completely prevents employment of skill

·       There is willingness on the side of a skill holder to employ a skill.

·       No infrastructure.

The people from this category are quick to move to urban areas to seek environment which will allow them to employ their skills.  Most graduates leave rural areas to stay in towns and cities.

 Unemployed

·       Environment allows the employment of skill.

·       There is no willingness on the side of a skill holder to employ a skill.

·       The returns on employing a skill are lower than risk.

 The people in this category remain in the rural areas waiting for the change in buying power of the rural customers. They invest in smaller scale in such that they don’t incur big losses. The rural shopkeepers are the example of people who remain in rural areas even if they are not making big profits. ….. cont…….

View point

 This section in the book ‘Turning rural economy into vibrant economy’ can also be applied to workplace situations.

 A skill in the hands of an employee needs environment that allows its implementation. It is with this reason a person who has a skill in a particular department is not employed in other department where he has no skill for. The department in which a person has a skill is an environment that allows his/her skill. The argument is opposite for the department in which he/she has no skill. Unemployable skills happens when an accountant is placed in Human Resources department to perform duties such Disciplinary Hearings, Employee issues, etc. These duties fall outside the area of his expertise. A Chartered Accountant could have unemployed skills if he/she is placed in a position Financial Clerk in an organization. 

 The organizations need to check whether there are no unemployable skills and unemployed skills in their organizations. The qualification audits should be conducted regularly to check what skills current employees are possing or pursuing.