The government has so far failed to frame a long-term employment policy. Without one, there is a real danger of our youth going astray—which would not only disrupt but also put unnecessary pressure on our development strategies. As things stand, secure employment often seems reserved for a small circle of well-connected individuals.
According to a recent report by the Ministry of Labour and Human Resources, the national unemployment rate sits at 2.9 percent, while youth unemployment stands at 9.6 percent. That may sound small on paper, but ask any fresh graduate, and they'll tell you it feels much larger.
This year, nearly half of the 3,322 university graduates sat for the preliminary examination to compete for just 434 civil service vacancies. That means at least three graduates are chasing every single government slot. And the unemployment figure keeps rising. The labour ministry's press release claims that the national unemployment rate dropped by 0.3 percent in 2014 compared to 2013—but anyone watching closely knows that number doesn't tell the real story. The government must now start thinking seriously about absorbing graduates into the workforce. One of the most practical ways to do this is to replace aging employees with young, skilled job seekers. The labour force participation rate was estimated at 62.6 percent in 2014 for those between 16 and 45 years of age—a group considered economically active, unlike those who have retired or are nearing retirement.
 |
| Google Guru |
One promising scheme is the Voluntary Retirement Scheme (VRS). Under this arrangement, employees are offered a generous, often tax-free, severance package to voluntarily retire from their positions. This is popularly known as a "Golden Handshake"—because it polishes the exit door until it shines. It is a golden route to retrenchment, but done kindly. A golden handshake typically includes cash, stock options, or other incentive packages. It is an agreement between employer and employee to part ways early, voluntarily, and without bad blood. The so-called "golden parachute" is usually dangled as a lure to create job opportunities for young people. And let's be honest—when young people enter jobs, they tend to run faster, learn quicker, and stay awake longer during meetings than some of us oldies.
of creating jobs for an active group of people.
Under this scheme, employees receive better emoluments. They get their provident fund and gratuity dues earlier than usual, which they can use for house construction or family subsistence. It becomes a lucrative settlement that prevents financial resentment in old age. It also offers the most humane route to reducing excess staff. Best of all, because the retirement is voluntary, there's little need for enforcement or hard feelings.
The people most likely to take advantage of the Golden Handshake are those who would retire anyway. For example, employees above 50 years of age with more than 25 years of service should be made eligible. If that tenure criterion is adopted, we could easily create 1,000 or more jobs in a single year—far more than the meager 434 civil service slots currently on offer. Offering the Golden Handshake might encourage a few additional employees to retire sooner than planned. And once the bogus sleepers opt for retirement, the new hires would bring fresh energy, new ideas, and higher overall job quality. If the Golden Handshake doesn't fit, there is another option. A Lump Sum Incentive Program could be introduced, where retirement-eligible employees are offered a one-time lump sum payment. This could include cash, a house, stock options, or other lifelong benefits in exchange for the personal sacrifice of early retirement. For example, any employee at least 50 years old who retires by the close of the fiscal year could receive such an incentive.
Either way, the message is clear: doing nothing is no longer an option. Our youth are waiting. And their patience—unlike their unemployment rate—is running thin.
